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 Included
- 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).
- Standard Personal Property: Theft of general personal property or household contents not directly used as building materials or supplies for the active renovation project.
- 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.