Rental Policy Red Flags That Trigger Denied Claims

Introduction:

Insurance policies are dense, confusing, and often misleading, and that’s a problem when the language you overlook can void a six-figure claim.

Here are 3 red flags we regularly find in landlord and rental property insurance policies:

1. Incorrect Property Use Classification

If your policy says "owner-occupied" but you're renting it, even part-time, you may have a coverage problem. This is the #1 reason claims are denied in our reviews.

2. Personal vs. Entity Mismatch

If your property is owned by an LLC or trust but the policy lists your personal name, that creates a disconnect and a potential denial during payout.

3. Water Damage and Mold Exclusions

Many rental policies exclude slow leaks, seepage, or mold even from covered events. These are high-cost risks that often get overlooked.

What You Can Do:

• Don’t assume your policy is correct verify it.

• Get a second opinion from someone who understands investor risk.

We built the Insurance Clarity Report to simplify this entire process. For a small fee, we’ll review your policy, highlight gaps, and tell you what to fix, no insurance sales, no upsells, just clarity.