What type of form pays coverage based on the inventory of the insured’s possessions?

The correct answer is a reporting form, as it is specifically designed to allow policyholders to report values of their possessions periodically. This type of coverage is based on the inventory submitted by the insured. As the insured reports or updates their inventory, the policy adjusts the coverage to reflect the current value of those possessions. This can be particularly useful for businesses or individuals who may acquire or dispose of items frequently, ensuring that their coverage remains adequate without needing to adjust the policy manually each time.

A named peril form covers only the specific hazards or risks listed in the policy. It does not base its coverage on the inventory value of possessions, but rather on the actual damage or loss resulting from the specific perils identified in the policy.

An open peril form, meanwhile, offers coverage for loss or damage from any peril not specifically excluded in the policy. Like the named peril form, it does not adjust according to an inventory but rather protects against a broad range of risks.

A valued policy form specifies a set amount of coverage for a particular item, often used for unique or high-value items, regardless of actual value at the time of loss. It also does not require the ongoing reporting of inventories and is not structured to adapt coverage based on changes in possessions.

Thus