An applicant knows the basement floods each spring and stays silent although the application asks about past water damage. This is:

Explanation

Concealment is the deliberate withholding of a material fact the insurer needed to evaluate or price the risk, and a concealed fact of this size can let the insurer void the policy. The innocent-misstatement answer fails on the facts, because the applicant knew about the flooding and was directly asked. Recurring flooding is a physical condition of the property, not an attitude of indifference.