What happens if a warranty made by an insured is found to be false?

When an insured makes a warranty in a title insurance policy, they are asserting that certain conditions are true and accurate. If it is later discovered that this warranty is false, the insurer has the right to deny the claim based on the false assertion. This principle is rooted in the idea that insurance contracts rely heavily on the truthfulness of the information provided by the insured.

In essence, warranties are integral to the risk assessment that insurers undertake. If the insurer discovers that a warranty is not true, it can significantly change the nature of the risk they accepted when issuing the policy. Thus, the insurer's ability to deny the claim is a protective measure against fraudulent or unintentional misrepresentation. It highlights the importance of honesty and accuracy in the information provided to insurers, as claims are adjudicated based on the warranties that the insured has made.