Most insurance policies contain clauses that allow the company to revoke coverage in the event the policyholder was not truthful. If your policy is not revoked, the company could deny any claims against the policy if it finds out that you lied on your application or claim. It is always best to be completely honest when applying for insurance and when filing an insurance claim. Insurance companies search for ways to avoid paying claims.  If your insurance company finds one small mistake on your application or claim, it can use that mistake to try to deny your claim. Therefore, do not give the insurance company any reason to deny your claim — always be truthful when dealing with your insurance company.