Why Was My Insurance Claim Denied? Understanding Policy Warranties in British Columbia
If your insurance claim has been denied, or you’re worried about protecting your home or business, you may be wondering whether failing to follow a condition in your policy can affect your coverage. The answer is often yes.
Many people don’t realize that insurance policies frequently contain policy warranties—specific promises that the policyholder agrees to follow throughout the life of the policy. Whether you have commercial insurance, property insurance, home insurance, or another type of coverage, failing to comply with these warranties could result in a denied claim or even the cancellation of your policy.
What Is a Policy Warranty?
A policy warranty are certain conditions set by the insurance company for the insured to abide by and if certain conditions are not met your claim will be denied. These warranties help insurers assess and manage risk while encouraging policyholders to take reasonable steps to protect their property or business.
There are two main types of warranties:
| Express Warranty | Implied Warranty |
| Specifically written in the insurance policy | Arises from the nature of the insurance contract or an express warranty |
| Example: Completing monthly fire safety inspections | Example: Properly maintaining equipment connected to the fire safety system |
Both types of warranties can affect your insurance coverage.
Why Are Policy Warranties Important?
Policy warranties are more than administrative requirements; they are often fundamental terms of your insurance contract.
For example, your policy may require you to:
- Maintain fire protection or sprinkler systems.
- Perform regular inspections or equipment maintenance.
- Keep security systems operational.
- Remove known hazards from your property.
- Train employees on required safety procedures.
These requirements reduce risk for both the insurer and the policyholder. In many cases, complying with them can also help keep insurance premiums lower.
What Happens If You Don’t Follow a Policy Warranty?
Failure to comply with a policy warranty can have serious consequences.
Depending on the wording of the policy and the circumstances, an insurer may:
- Deny all or part of your insurance claim.
- Void coverage for a particular loss.
- Cancel or refuse to renew your policy.
Importantly, an insurer may rely on a breached warranty even if the warranty itself did not directly cause the loss. This is why it is essential to understand your policy before an incident occurs.
Why Legal Advice Can Make a Difference
Insurance policies are legal contracts, and disputes often arise over how policy wording should be interpreted. Determining whether a warranty has been breached—and whether an insurer is entitled to deny coverage—can involve complex legal analysis.
At Watson Goepel LLP, our experienced insurance lawyers advise individuals and businesses on insurance coverage disputes, denied insurance claims, and policy interpretation. We help clients understand their rights, negotiate with insurers, and pursue legal remedies when coverage has been improperly denied.
Meet the Authors
If you’ve had your insurance claim denied or restricted, don’t hesitate to reach out to Partner Anastase Maragos. With our expertise and commitment to justice, we are here to explore your legal options and help you navigate the complex world of insurance claims. Your financial security and peace of mind are our top priorities so you can move forward with confidence.
Cameron Lineker, is the president at Blue Lion Claim Resolutions Ltd. If you’ve encountered challenges with restricted insurance coverage or a denial of your Property and Casualty (P&C) insurance claims, Cameron Lineker and his team at Blue Lion Claim Resolutions are here to assist you. Operating on a contingency basis in collaboration with the expertise of legal counsel, we strive to ensure that you receive the insurance coverage you deserve. Don’t hesitate to reach out and take the first step toward securing the resolution you need.
Frequently Asked Questions
Yes. If you fail to comply with an important policy warranty or condition, your insurer may deny your claim or argue that coverage is unavailable.
An express warranty is written directly into the policy. An implied warranty is not specifically stated but may arise from the nature of the contract or from an express obligation.
Ask your insurer to explain the reason for the denial in writing and seek legal advice before accepting the decision. An experienced insurance lawyer can review your policy and assess whether the denial is legally justified.
Disclaimer: This content is provided solely for informational purposes and is not intended for use in any legal proceeding. You should consult a qualified lawyer for advice tailored to your specific circumstances.
