Which of the following might be considered a primary reason for claim denial?

Insufficient policy coverage is often a primary reason for claim denial because it indicates that the insurance policy does not provide financial protection for the specific loss incurred. When a claim is submitted, the adjuster reviews the details against the coverage outlined in the policy. If the loss is not covered or exceeds the limits of the policy, the claim is likely to be denied.

The adjuster relies on the terms defined in the policy to determine if the damage falls within what the insurer is willing to cover. Therefore, if the coverage is inadequate for the nature of the claim, this leads to outright denial as there is no contractual obligation for the insurer to pay out in such cases. This highlights the importance of understanding the terms and limits of an insurance policy to ensure coverage aligns with potential risks.