Value Reporting Form and Value of Covered Property

April 9, 2012

In the ISO CP 13 10, Value Reporting Form, the full reporting section contains these provisions: “(1) The values you reported for the location where the loss or damage occurred, divided by (2) The value of the Covered Property at that location on the report dates.” What does paragraph (2) mean by “the value”? For example, if the latest statement of values places the value of Building 1 at $1,000,000 on January 1, 2012 (beginning of the annual reporting period), but there is a loss on March 30, 2012, and the value at the time of loss is actually determined to be $1,500,000, does that mean that there is a coinsurance penalty now for Building 1?