Coverage for the main dwelling includes the physical structure, fixtures, and systems, such as plumbing, heating, and electrical wiring. Additionally, it covers any attached structures, like a deck, porch, or garage.
In the event of a total loss of the main dwelling, Openly's policy covers whatever is required to reconstruct the dwelling, up to a maximum of $5 million. During the quoting process, we develop a replacement cost estimate (RCE) for rating and as a starting point for other coverages.
In a Stated Value State, the Coverage A limit can be adjusted. If a total loss covered under Coverage A occurs and the insured chooses not to repair or replace the dwelling, the loss amount will be considered the limit of liability for Coverage A, as stated in the Declarations.
Openly policies include guaranteed replacement cost coverage of the main dwelling structure regardless of whether it's a stated or non-stated value, except in Connecticut when the policyholder opts to insure the dwelling at 50% RCE. In those instances, the $5 million GRC is removed and replaced with a defined amount of coverage. Read more about Connecticut's state-specific aspects in our What Should I Know About Transverse? article.
With this in mind, Openly does not list a traditional Coverage A limit on the declaration page for non-stated value states.
Consider $5 million as the maximum amount we will pay under the Coverage A limit.
Pricing is based on Openly's estimate of the home's reconstruction cost. Therefore, more expensive homes have higher costs and vice versa, even though every home is guaranteed up to $5 million.
We believe this system is superior to a traditional Coverage A limit.
Why not show Coverage A?
- It reduces the risk of having a policy that is under-covered.
- It avoids the need to increase Coverage A to meet lending institution requirements.
- It reduces exposure to errors and omissions for agents.
- It simplifies the claims handling process.
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