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Warranty
A Warranty is a term in a policy that requires the policyholder to do something and must be complied with at all times e.g. setting your intruder alarm when your premises are closed is a typical warranty which you may find in relation to theft cover. Breach of a warranty may suspend your policy.
Insurers may have no liability to pay losses occurring or attributable to something happening during any such period of suspension. The period will continue until the breach has been remedied (if it is capable of remedy). A warranty may exist in the policy using other terminology and without reference to the word ‘warranty’.
