What condition must be true at the time of loss according to an insurance policy?

A warranty in the context of an insurance policy refers to a specific statement or condition that the insured agrees to uphold as a part of the contract. If this warranty is not adhered to, the insurer may have the right to deny coverage or void the policy. This means that at the time of loss, the conditions set forth in the warranty must be true for the insurance coverage to be valid.

While consideration refers to the exchange of something of value between parties, and coverage limits determine the maximum amount payable under a policy, they do not specifically define conditions that must be met at the time of loss. Waivers relate to the voluntary relinquishment of a known right and are not conditions that must be satisfied for a claim to be honored. In contrast, warranties are directly linked to the validity of the insurance contract and are essential to ensure that all parties meet their obligations.