When can an insurer deny a claim based on a tenant's actions?

An insurer can deny a claim based on a tenant's actions if the tenant causes damage intentionally. Insurance policies typically have exclusions for intentional acts because they contradict the fundamental principle of insurance, which is to provide coverage for unforeseen and accidental events. When damage results from intentional acts—such as vandalism or purposeful destruction—it is not within the scope of coverage that the policy aims to protect against. Therefore, if a tenant causes damage with the intent to harm property, the insurer is justified in denying the claim based on that specific action.

In contrast, the other choices pertain to different aspects of insurance claims. Exceeding policy limits relates to the maximum amount the insurance will cover and does not involve tenant actions. Not being listed on the policy speaks to policyholder information and may affect coverage, but it is not directly about the actions of the tenant leading to the claim. Thus, the focus on intentional damage is the driving reason for the insurer's ability to deny a claim in this scenario.