Any time commercial property coverage is written on a blanket or agreed value basis, you will be asked for a Statement of Values.

From a blanket perspective, this provides an outline by location of everything the insured intends to have included under the blanket limit. It’s an opportunity to review property values, coverages, and coinsurance with an insured, and it may lend to better understanding of the blanket concept.

Completing a Statement of Values in conjunction with agreed value coverage is necessary for the insured to confirm these are the values being placed on the insured property. In exchange for the coinsurance clause suspension, the insured agrees the stated values are equal to a minimum of 80% for specific insurance, or 90% for blanket, of the value of the property. The agreed value provision expires at the policy expiration date. For agreed value coverage to extend to a renewal term a new Statement of Values must be submitted.

A signed Statement of Values is not only a company requirement for the above scenarios, but a good reminder for our insureds in the event of loss, that you did have a conversation related to property values and the impact to coverage. Taking this preliminary step may go a long way toward reducing frustration and misunderstanding at an already difficult time.