The Limited Coverage for Theft of Personal Property Located in a Dwelling Under Construction is an optional endorsement designed to protect materials and supplies on-site during a renovation. The main purpose of this endorsement is to preserve Coverage C (Personal Property) during a limited window of construction when a home is temporarily unoccupied.
Under standard HO-5 policy forms, theft of personal property from a dwelling under construction is typically excluded—this endorsement removes that specific exclusion. It can be added via the Coverage tab in the portal.
Coverage
- Scope: It extends Coverage C only.
- Peril: It covers the theft of building materials and supplies located in or at the dwelling for use in the construction or renovation.
- Duration: Coverage applies while the home is undergoing active renovation until the project is finished and the home is occupied.
- Eligible Policies: Primary and secondary / seasonal homes.
Exclusions
The following are excluded from this endorsement:
- Ineligible Policies: Openly Long-Term Rental (HO-3) policies are strictly ineligible for this coverage.
- Major Construction Risks: Ground-up new builds or properties undergoing major structural renovations are excluded (this endorsement is only permitted for unoccupied homes undergoing minor renovations).
- Theft Commenced After Occupancy: Once construction is complete and the home is occupied, this endorsement automatically terminates, and standard policy exclusions / limits apply.
Key Requirements & Underwriting Guidelines
This endorsement is designed for moderate remodels of existing homes, not major overhauls or new construction, which would be classified as a Builders’ Risk.
- Timeline Expectation: Openly expects the course of construction to be completed within 180 days.
- Occupancy Status: The home undergoing renovation is considered "under construction" and must be unoccupied for this endorsement to apply.
- Termination of Coverage: Once the home becomes occupied, this specific theft coverage extension no longer applies.
- Project Scope: The endorsement is meant for moderate remodels where the home remains fundamentally habitable. It is not intended for extensive, deep renovations that introduce major liability or safety concerns.
- No New Builds: This endorsement is not a replacement for a Builder's Risk policy. Openly does not have an underwriting appetite for brand-new home builds currently under construction.
For further assistance or to request state-specific policy forms, please reach out via our webform or Live Chat.
The above is meant as general information. This information does not modify any provisions, limitations, or exclusions expressly stated in any insurance policy. Descriptions of all coverages and other features on this page are necessarily brief; in order to fully understand the coverages and other features of a specific insurance policy, we encourage you to read the applicable policy. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. References to general claims handling steps, average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation.