Which optional coverage suspends coinsurance and has an expiration date?

The correct choice is Agreed Value, which is an optional coverage available in commercial property insurance. This coverage is significant because it suspends the coinsurance requirement and provides a specified amount for which property is insured, removing the penalty that may apply if the insured property is underinsured at the time of a loss.

With Agreed Value, both the insured and insurer establish a mutually agreed-upon value for the covered property, making claims settlement more straightforward. This arrangement means that the policyholder will not face any reductions in the insurance payout due to insufficient coverage, as long as the claimed amount does not exceed the agreed value.

Additionally, Agreed Value coverage typically includes an expiration date, which is essential for understanding how long the agreement will be in effect. The ability for the coverage to have an expiration date allows for periodic reviews and adjustments as property values may fluctuate over time.

The other choices don't specifically allow for the suspension of coinsurance paired with a set expiration. Inflation Guard, for instance, adjusts policy limits automatically for inflation but does not suspend coinsurance. Replacement Cost refers to the settlement method for claims based on current costs to replace lost or damaged property without depreciation and doesn't address coinsurance or an expiration aspect. The Extension of Replacement Cost might pertain