October 2014 Dec Page

Article of the Month

The essential purpose of any reporting form is to allow an insured with property that fluctuates in value, or who has property at changing locations, to be fully protected at all times and to pay a premium based on the values actually at risk; this is based on the principle that the 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.