Question

Matt, a real estate developer, must submit a report to his insurer every 30 days listing the value of all his properties over the past month. In turn, the insurer adjusts Matt's premiums based on the values he submits. Which optional coverage does Matt subscribe to?

A. Value Reporting
B. Optional Reporting
C. Agreed Value
D. Adjusted Income

Answer 1

Matt subscribes to a Value Reporting insurance policy which requires him to report the value of his properties every 30 days to adjust his coverage and premiums according to the current values.

Step-by-step explanation:

Matt, a real estate developer, must submit a report to his insurer every 30 days listing the value of all his properties over the past month. This practice relates to an insurance mechanism known as Value Reporting. Under a Value Reporting policy, the insured must periodically report the value of the insured property.

In Matt's case, this ensures that his insurance coverage reflects the current value of his properties, and therefore, the premiums can be adjusted accordingly. This option is particularly useful for businesses with assets that fluctuate in value over time. It allows for a more accurate reflection of the coverage needed and the premiums paid.