Which of the following is a reason for an insurer to deny coverage for personal property theft?

The reasoning behind the choice that states coverage can be denied if the property was not listed in the policy is grounded in the fundamental principles of insurance contracts. Insurance policies are binding agreements that specify what is covered and what is not. For personal property to be eligible for coverage, it must be explicitly named or described within the terms of the policy. If a piece of property is excluded from this list, the insurer cannot be held liable for losses related to that item, including theft.

This principle reflects a critical aspect of insurance: the relationship between the insurer and the insured, where clarity and mutual agreement about coverage is paramount. Policyholders must ensure that all significant possessions are documented within their policy to have a valid claim in case of theft or damage. It underscores the importance of reviewing one's insurance policy to ensure adequate coverage for all personal property.