In the event of deliberate non-disclosure of subsidence details, what is BB Insurance Ltd likely to do with a claim?

When a policyholder deliberately omits or conceals important information, such as details regarding subsidence, it fundamentally undermines the trust and agreement between the insurer and the insured. This act of deliberate non-disclosure constitutes a significant breach of contract.

BB Insurance Ltd is likely to refuse the claim primarily because the non-disclosure affects the insurer's ability to accurately assess risk. Insurers rely on full and honest disclosure of material facts to determine the terms of coverage and the premiums charged. In cases of deliberate non-disclosure, insurers often choose to reject claims outright to maintain the integrity of the insurance contract. Retaining the premium serves as an additional deterrent against fraudulent or misleading behavior, reinforcing the expectation that policyholders must provide complete and truthful information.

This approach reflects the principle of utmost good faith (uberrima fides) that governs insurance contracts, whereby both parties must act honestly and transparently in their dealings. Therefore, the response of BB Insurance Ltd to refuse the claim and retain the premium is consistent with standard industry practices regarding fraudulent non-disclosure.