Undisclosed Religious Meetings Lead to Denied Insurance Claim

The Critical Role of Full Disclosure in Insurance Policies

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In December 2025, a landlord faced a denied insurance claim after failing to disclose that the upper floor of their building was used for weekly religious meetings.

Initially insured as a restaurant, the premises' change in use was not communicated to the insurer, AIG.

Following a theft claim in 2023 amounting to $99,295, AIG declined coverage, citing non-disclosure of the building's actual use.

This situation highlights the paramount importance of full transparency with insurers. Changes in property usage can significantly alter risk assessments, and failing to inform insurers can lead to policy voidance. For property owners and landlords, especially those leasing to hospitality businesses, it's crucial to promptly report any changes in property use to ensure continuous and adequate coverage.

Regular communication with insurance providers and thorough documentation of property usage can prevent such disputes. Ensuring that all aspects of a property's use are accurately represented in insurance policies safeguards against potential claim denials and financial losses.

Published:Friday, 20th Mar 2026
Author: Paige Estritori
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