Rietta Hefner lives in Minnesota and uses a stove to heat herself in the winter, but when she was buying insurance for her house, she didn't tell her agent that she burnt wood for heat because she knew it was an uninsurable risk factor

When an insurance company enters into a contract, it is supposed to pay for the risk it has insured. However, any damage on the property as a result of any risk other than the insured risk creates no liability for the insurance company. However, if the property is damaged due to an incident which is covered under the risk; claim is payable by the company.

- In the given case, the customer did not tell her agent that she burnt wood for heat because she knew it was an uninsurable risk factor. Her house was damaged in a storm, and her insurer found her wood-burning stove during a visit to the scene.

- In this case, the buring of wood did not result into the accident. The reason of the accident was heavy strom. Hence, the accident of damage due to strom has no connection with the undisclosed event of buring wood. So, insurance company cannot avoid the payment of the claim on the grounds of burning wood. Hence, the insurance company is liable to pay for the computed claim amount.