When an insured (a person who is covered by an insurance policy)commits an innocent breach of their duty of utmost good faith the insurer usually has the right:

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When an insured commits an innocent breach of their duty of utmost good faith, the insurer usually has the right to reduce the payout figure to reach its correct financial position. This means that the insurer will adjust the payout amount to reflect the true risk and costs associated with the insured's actions, while still honoring the terms of the insurance policy. Other options such as claiming the property or refusing to pay the claim entirely may be seen as punitive actions and are generally not appropriate in cases of innocent breach.

When an Insured (A Person Who Is Covered by an Insurance