What incorrect statement by the insured may void coverage?

A breach of warranty is a statement made by the insured that is false and specifically affects the risk being covered by the insurance policy. In insurance terms, a warranty is typically a guarantee or promise made by the insured regarding certain facts or conditions related to the insured property or the insured's behavior. If the insured fails to uphold this warranty, it can indeed invalidate the coverage for the policy.

For instance, if an insured property has a warranty stating that it will be used solely as a residence, and the insured subsequently uses it as a commercial space, this breach can lead the insurer to deny a claim or void coverage. This mechanism is vital for insurers to manage risk effectively, as it allows them to rely on the information provided by the insured when underwriting the policy.

In contrast, waiver and estoppel involve legal doctrines that do not typically void coverage but instead address the rights of the parties involved in the insurance contract. A waiver refers to the voluntary relinquishment of a known right, while estoppel prevents a party from arguing something contrary to a previous claim if the other party has relied on that claim. These concepts can affect enforcement but do not inherently void a policy like a breach of warranty does.