Which of the following is true regarding liability claims made by an individual for damages in a rented property?

The assertion that claims can be denied based on policy exclusions is accurate because insurance policies typically contain specific terms and conditions that outline the circumstances under which claims will be honored. Exclusions are particular situations or factors that the insurer does not cover. For instance, if a claim arises from an excluded cause, such as damage resulting from neglect or intentional acts, the insurer has the authority to deny the claim based on these exclusions.

Understanding that liability insurance is built around defined criteria—where both covered and uncovered risks are stipulated in policy documents—is critical. It illustrates the importance of reviewing the terms of an insurance policy to comprehend what is and isn't covered, which is a fundamental aspect of insurance principles. This knowledge informs renters about potential risks and helps them take necessary precautions when renting properties.