How is an insurer legally entitled to respond to a claim for property damage to a chimney if a warranty requiring yearly professional sweeping has been breached?

The correct response in this scenario is that the insurer is legally entitled to deny the claim entirely due to the breach of the warranty requiring yearly professional sweeping of the chimney. A warranty in an insurance policy serves as a condition that must be met for coverage to remain in effect. When a policyholder fails to comply with such a warranty, the insurer can assert this breach as a reason for rejecting the claim related to damages.

In this case, the requirement for annual professional sweeping is a condition tied to the maintenance and safety of the chimney. If the chimney was not maintained according to the warranty, the insurer can justifiably conclude that the condition of the chimney at the time of the loss was affected by the policyholder's failure to fulfill their obligations. This breach significantly reduces the insurer's liability, and, therefore, the insurer can deny coverage for property damage resulting from that breach.

The nuances of insurance law often allow insurers to craft their policies with specific contractual obligations like warranties that, if violated, can lead to a denial of coverage. Understanding this principle helps in assessing how insurers can react to claims when policy conditions are not met.