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
- Common material facts for motor insurance include: your driving licence history (endorsements, disqualifications), previous claims and accidents (usually last 5 years), modifications to the vehicle, where the car is kept overnight (your home postcode), annual mileage, your occupation, and any medical conditions affecting your ability to drive. Your address and marital status are also typically material. If you change any of these during the policy, inform your insurer — mid-term notifications are a contractual requirement. See our article on insurance after divorce for the effect of a change in marital status.
- Under the Consumer Insurance (Disclosure and Representations) Act 2012, if you fail to take reasonable care to answer questions accurately, the insurer's remedies depend on whether the non-disclosure was deliberate/reckless or merely careless. Deliberate or reckless non-disclosure allows the insurer to avoid the policy entirely (as if it never existed) and keep the premium. Careless non-disclosure that was still relevant allows the insurer to reduce the payout proportionately to what they would have charged or accepted had the information been known. The FCA regulates this area.
- Utmost good faith (uberrimae fidei) is the legal principle underlying insurance contracts — both parties are required to act with complete honesty and transparency. The duty to disclose material facts is one expression of this principle. The duty applies primarily to the policyholder at application (the insurer has superior knowledge of terms and pricing). UK consumer insurance law under the 2012 Act replaced the old absolute duty of disclosure with a duty of "reasonable care" — a more consumer-friendly standard.
- Yes, for most insurance products. Occupation affects risk assessment across life, income protection, motor, and personal accident insurance. High-risk occupations (scaffolders, roofers, firefighters, professional sportspeople) may face premium loadings or exclusions. Changing occupation mid-policy may require a mid-term notification, and some policies exclude certain occupational activities. Always disclose your occupation accurately and notify your insurer if it changes.