Glossary ·Policy fundamentals

Material fact

Any information that would influence an insurer's decision to accept a risk, or the terms and premium at which they would accept it. Policyholders are legally required to disclose all material facts when applying for insurance and when making a change to an existing policy.

Examples of material facts by product

Home insurance

  • Property construction (thatched roof, timber frame)
  • Previous subsidence, flood, or fire claims
  • High-value items or collections
  • Whether the property is rented out
  • Extended periods of unoccupancy

Motor insurance

  • Driving licence endorsements or disqualifications
  • Previous claims (typically last 5 years)
  • Vehicle modifications
  • Overnight storage location
  • Annual mileage and main purpose of use

Life / health insurance

  • Pre-existing medical conditions
  • Family medical history (certain products)
  • Occupation and hazardous hobbies
  • Smoking and alcohol consumption
  • Existing life insurance cover

Travel insurance

  • Pre-existing medical conditions
  • Destination (FCDO travel advice status)
  • Planned activities (extreme sports, work travel)
  • Trip cost and pre-booked elements
  • Age of travellers

The duty of disclosure and what happens if you fail to meet it

Under the Consumer Insurance (Disclosure and Representations) Act 2012, consumers must take reasonable care to answer insurers' questions honestly and accurately. The standard is not an absolute duty to volunteer every fact — you are expected to answer questions asked. However, if you know that information is relevant and do not volunteer it, this can still be treated as a misrepresentation.

If a material fact was not disclosed, the insurer's remedy depends on whether the non-disclosure was: deliberate or reckless (policy can be avoided, no claim, premium retained); careless but not deliberate (insurer applies proportionate remedy — either reduced payout or policy revised to what they would have offered had they known). The FCA and Financial Ombudsman Service adjudicate disputed cases. See also underwriting.

Material fact FAQ

Frequently asked questions