What is the policy's payment if the first report of value is submitted late under the Value Reporting Form?

The Value Reporting Form in commercial property insurance allows a policyholder to report values throughout the policy period, adjusting the coverage as necessary. If a report is submitted late, it directly impacts the coverage amount the insurer is willing to provide.

In the case of a late report, the typical provision is that 75% of what would have been paid is covered. This means that while the insurer recognizes some coverage for the reported value, it does impose a penalty for the lateness of the report. The 75% figure reflects a compromise: the insured receives a significant portion of the coverage, acknowledging that there is still value in the report, but the reduction recognizes the importance of timely reporting in managing risk.

This structure is designed to encourage policyholders to remain diligent about reporting, which ultimately helps both the insured and insurer manage potential risks and claims more effectively. The approach balances coverage for the insured while also imposing consequences for late information submission.