Every homeowners application asks questions: roof age, prior claims, wood stoves, dogs, whether the house is rented out. A wrong answer can surface later, often after a claim. Tennessee’s insurance code sets a specific test for when that matters. Under Tenn. Code Ann. § 56-7-103, a misrepresentation or warranty in the negotiations or application shall not “defeat or void the policy or prevent its attaching, unless the misrepresentation or warranty is made with actual intent to deceive, or unless the matter represented increases the risk of loss.”
| Term | What the source says |
|---|---|
| Tenn. Code Ann. § 56-7-103 | A written or oral misstatement does not void the policy unless made with actual intent to deceive, or unless the matter represented increases the risk of loss |
| Material misrepresentation (TDCI glossary) | A significant misstatement on an application; with correct information, the company might not have accepted it |
| Rescission (TDCI glossary) | Termination of an insurance contract by the insurer when material misrepresentation has occurred |
Sources: Tennessee Code § 56-7-103 and the TDCI Glossary of Insurance Terms.
Two ways a misstatement can matter
The statute names two exceptions. The first is intent: a statement made with actual intent to deceive. The second does not require intent: a misstated fact that increases the risk of loss. An honest mistake about the color of your siding is unlikely to change a risk. An understated roof age, an unreported prior water claim, or an undisclosed short-term rental can be a different conversation. How a specific dispute comes out depends on the facts and on Tennessee courts, not on this article.
The rule is old. Justia’s history note traces it to Acts 1895, chapter 160.
Why insurers ask so many questions
TDCI’s glossary defines an application as a form an insurer uses “to decide whether to issue a policy and how much to charge.” It defines a material misrepresentation as a significant misstatement where, with the correct information, the company might not have accepted the application. When that happens, TDCI’s glossary lists rescission — the insurer ending the contract — as a possible result. For how rescission differs from cancellation and non-renewal, see TDCI’s glossary explains how cancellation, non-renewal, lapse, and rescission end a policy in different ways.
How Tennessee homeowners can protect themselves
- Pull your free claims history before you apply so your prior-loss answers match the record: TDCI’s CLUE explainer says Tennesseans can pull seven years of home and auto claims history for free.
- Read the application summary or declarations page your agent sends back and correct errors in writing: TDCI glossary: what your insurance declarations page shows.
- If your home’s use changes — a rental, a home business, a new pool — tell your insurer before a claim, not after.
- Keep a copy of the application you signed. A binder is temporary proof of coverage, not the final contract: TDCI glossary defines an insurance binder as temporary proof of coverage.
- If a claim is denied and you believe the insurer is wrong, Tennessee has a separate bad-faith statute: Tennessee law can add up to 25% when an insurer refuses in bad faith to pay a loss within 60 days of a demand. You can also file a TDCI complaint: How Tennesseans file an insurance complaint with TDCI’s Consumer Insurance Services.
This article is informational only and is not legal advice. It does not promise coverage, eligibility, or a claim outcome. Your policy forms and Tennessee law control.
Related reading from All Seasons
- TDCI’s glossary explains how cancellation, non-renewal, lapse, and rescission end a policy in different ways.
- TDCI’s CLUE explainer says Tennesseans can pull seven years of home and auto claims history for free.
- TDCI glossary: what your insurance declarations page shows.
- TDCI glossary defines an insurance binder as temporary proof of coverage.
- Tennessee law can add up to 25% when an insurer refuses in bad faith to pay a loss within 60 days of a demand.
- How Tennesseans file an insurance complaint with TDCI’s Consumer Insurance Services.
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
Can a mistake on my insurance application void my policy in Tennessee?
Tenn. Code Ann. § 56-7-103 says a misrepresentation does not void the policy unless it was made with actual intent to deceive, or unless the matter represented increases the risk of loss.
Does the law cover spoken answers too?
Yes. The statute covers written or oral misrepresentations or warranties made in negotiations or in the application, by the insured or on the insured’s behalf.
What is a material misrepresentation?
TDCI’s glossary calls it a significant misstatement on an application form where, with the correct information, the company might not have accepted the application.
What is rescission?
TDCI defines rescission as the termination of an insurance contract by the insurer when material misrepresentation has occurred.
Does an honest mistake count?
The statute’s second exception does not mention intent: a misstated matter that increases the risk of loss. Outcomes depend on the facts. This is not legal advice.
What should I do if I find an error after I buy a policy?
Tell your agent or insurer in writing and keep a copy. Correcting the record before a claim is better than explaining it after.
Is this legal advice?
No. It summarizes a Tennessee statute and TDCI glossary definitions for general information. Talk to a Tennessee attorney about a specific dispute.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
