Which coverage type utilizes an insured limit for each item specified?

The correct choice is Stated Amount/Stated Value. This type of coverage sets a specific dollar amount for each item that is outlined in the insurance policy. When an item is insured at a stated value, that value is the maximum amount the insurer will pay in the event of a total loss of that item. This coverage is particularly useful for unique or high-value items, as it allows policyholders to have clearer expectations regarding their compensation in the event of a loss.

In addition to defining the insured limit for each item, Stated Amount/Stated Value can also help ensure that the item is sufficiently covered, minimizing the gap between actual value and coverage limits. This approach contrasts with other coverage types that do not provide the same specificity or may have different mechanisms for determining payouts based on item value.