Which endorsement is intended to guard inventory during seasonal peaks?

• A. Peak Season
• B. Building Ordinance
• C. Value Reporting
• D. Inflation Guard

Answer: (A)

Peak Season coverage is designed to protect stock when seasonal demand causes inventory values to spike. By scheduling a defined time period, it temporarily increases the amount of property coverage for your inventory, so you’re not underinsured during holidays, sales events, or other peak times. This helps prevent coinsurance penalties if the actual inventory value during that period exceeds the standard limit. The endorsement usually outlines the peak period, the extra amount or percentage added to coverage, and how the premium adjusts for that temporary increase. When the season ends, coverage reverts to the normal limit.

Other endorsements don’t target seasonal inventory peaks: inflation guard automatically rises limits with inflation over time; value reporting focuses on keeping declared values up to date; and building ordinance coverage handles costs to upgrade buildings to current codes after a loss.