What might cause a policy to be voided by an insurer?

A policy may be voided by an insurer if the insured fails to disclose material information at the time of application. This is vital because insurers rely on accurate and complete information to assess risk and determine appropriate coverage and premiums. Material information refers to any facts that could influence an insurer's decision to provide coverage or the terms of that coverage.

If a policyholder withholds or misrepresents such information, it undermines the insurer's ability to evaluate the risk accurately. As a result, the insurer may consider the policy void ab initio, meaning it is treated as if it never existed. This can occur even if the omission was unintentional; the obligation to disclose is fundamentally part of the insurance contract.

Late payments, changing insurers, or accidental overlaps in coverage generally do not lead to a voiding of a policy in the same way. Late payments could result in a lapse in coverage or other penalties, while switching insurers is a common practice and doesn’t affect the validity of existing policies unless specific terms indicate otherwise. Accidental overlaps typically do not void a policy but may lead to complications in claims or coverage.