Property insurance: warranties

It is settled law that a “basis of the contract” clause in an insurance proposal deems every answer given by the assured to be a warranty. Such clauses have featured very little in cases in recent years, and they have long been abandoned in consumer cases. However, they may still be effective as is shown by Genesis Housing Association Ltd v Liberty Syndicate Management Ltd [2012] EWHC 3105 (TCC), in which Akenhead J was faced with a basis clause but tempered by seemingly contradictory policy terms. As is seen below, the learned judge gave primacy to the basis clause.

Genesis Housing : the facts