Summary: The essential purpose of any reporting form is to allow an insured with property that fluctuates in value to be fully protected at all times and to pay a premium based on the values actually at risk—provided values are reported correctly and promptly and a sufficient limit of insurance is maintained to cover the highest value at any one time. In other words, if the insured lives up to the policy requirements, he or she will have complete and automatic coverage, will avoid the dangers of both underinsurance and overinsurance on the property, and will be spared the necessity of increasing and decreasing amounts of insurance as values move up and down.

This discussion is based on the language and rules recommended by the Insurance Services Office (ISO) for reporting form, CP 13 10 06 95, which replaced the monoline fire reporting endorsements in 1986 as part of the ISO simplification program. (See Value Reporting Form for a discussion of this specific form). Much of this treatment, dealing with the general principles of reporting policies, has equal application to any of the reporting versions of other programs or policies. It should also be noted that while some of the court decisions cited here were based on other, older forms, they remain clearly applicable to forms incorporating reporting principles in current use.