The provisions of the builders risk reporting form require an insured to report the value of the property covered on a monthly basis. The insured must select a day of the month on which reports of value are effective; the selection made within 30 days of policy inception. Once a day is chosen, reports are due each month within 30 days of that day. (This could, in effect, give the insured 60 days to file the initial report.)

The policy is then endorsed to show the increase in value indicated by the report--the difference between the actual cash value at the current date and what it was a month before.  An additional premium is charged for the reported increase for the unexpired term of the policy and is computed from the date midway between the dates of the current and preceding report.

The insured must report the full increase in value each month. A full reporting clause, the equivalent of a 100% coinsurance clause, limits the proportion of any loss that the last reported value before the loss bears to the actual cash value on the date for which the report was made.  A penalty occurs if the insured fails to submit reports as required, since payment becomes no more than the actual cash value stated in the last report filed before the loss.  A severe penalty is imposed if the insured has not filed any reports; in that case, the insurer pays no more than the actual cash value as of inception date.