Mysterious Disappearance Clause

Updated: 11 March 2024

What Does Mysterious Disappearance Clause Mean?

A mysterious disappearance clause is a provision in a property, renter’s, and homeowner’s insurance policy that excludes coverage for a lost item of considerable value if the cause of the loss cannot be sufficiently explained by the insured.

Insuranceopedia Explains Mysterious Disappearance Clause

It can be a diamond ring, a newly purchased laptop, or an expensive handbag—it’s gone but there is no sign of forced entry and the area is exactly as it looked the last time the owner or tenant saw it. The policyholder makes a claim for the lost item but is at a loss for words when it comes to explaining how that item could have possibly disappeared. That, in essence, is what the insurance industry considers a mysterious disappearance. If this clause is in the policy, the loss will not be covered and the policyholder will not get any money from the insurance company to replace the missing item.

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