Many homeowners assume their insurance policy protects them from every possible disaster, only to learn during a claim that certain costly risks aren’t included. These additional layers of protection—often called riders, endorsements, or floaters—are easy to miss but can prevent major financial stress when something unexpected happens.
As severe weather becomes more frequent and homes continue to age, riders are more essential than ever. Flooding now plays a role in roughly 90% of natural disasters in the U.S., building codes grow more rigorous each year, and even mild ground movement can create structural issues that standard insurance won’t cover. With more people owning high-value items, running businesses from home, and working remotely, reviewing your policy annually is a smart financial move.
Below are several important riders to consider and why they matter.
1. Flood Insurance and Water Damage Protection
Your standard homeowners policy generally does not cover damage from external flooding or water issues that weren’t sudden or accidental. If your area has flood exposure—even minimal—you may need a separate flood policy to fully safeguard your home. In high-risk areas, this coverage may even be required. But with flooding becoming more common across the country, many homeowners benefit from adding protection regardless of zone.
A supplemental water-backup rider can also protect your home from issues like sump-pump failures, sewer backups, or groundwater intrusion—events that are usually excluded from a traditional policy.
Flood insurance from FEMA’s National Flood Insurance Program (NFIP) averages around $899 per year and typically includes up to $250,000 in structural coverage and $100,000 in contents coverage. Private insurers may offer higher limits or faster claim processing, which can be crucial in high-cost areas. Since one in three flood claims occur outside designated flood zones, homeowners who assume they’re “safe” may still face substantial risk.
Water-backup endorsements usually cost between $50 and $250 annually and can provide $5,000 to $25,000 in protection. Because insurance carriers differentiate between types of water damage, it’s essential to understand how your policy defines these scenarios. Some upgrades—like backflow valves or battery-powered sump pumps—may even earn small discounts on your endorsement.
2. Earthquake and Seismic Coverage
Damage caused by earthquakes is often excluded unless you purchase a specific policy or rider. While seismic activity is most associated with the West Coast, ground shifting and minor tremors can occur in many parts of the country. A seismic endorsement can help cover foundation problems, structural cracks, or plumbing damage caused by earth movement.
Most insurers offer earthquake coverage separately or as an add-on in higher-risk states such as California, Washington, and Oregon, as well as parts of the Midwest. Deductibles typically range from 2% to 20% of your home’s insured value—meaning a $500,000 home might carry a $50,000 deductible. Although that may seem significant, repairing foundation or structural damage can be even more expensive. These policies often include coverage for emergency repairs and debris removal, helping reduce immediate out-of-pocket costs.
3. Building Code and Ordinance Upgrade Coverage
If your home needs repairs after a covered loss, it must be rebuilt to meet the current building codes—not the regulations in place when your home was built. Even small repairs can trigger widespread updates. Without the proper rider, you may be responsible for these additional costs yourself.
Building codes change frequently, especially regarding insulation, electrical systems, plumbing, heating and cooling efficiency, and structural safety. These updates can add 10% to 20% to rebuilding costs. Ordinance or Law riders typically offer coverage equal to 10%, 25%, or even 50% of your dwelling coverage limit, giving you room to meet today’s standards. Ask your agent whether your policy includes “increased cost of construction” coverage to ensure you’re protected for these upgrades.
4. Scheduled Personal Property for High-Value Items
Most homeowners policies limit how much you can be reimbursed for certain categories of valuables, such as jewelry, electronics, fine art, and collectibles. If you own high-value items, you may want a scheduled personal property rider to protect them at their full appraised value.
Typical policies have low sublimits—perhaps $1,500 per jewelry item or small caps on categories like firearms or silverware. Scheduling items gives you broader, “all-risk” protection for things like theft, accidental loss, or damage. Premiums usually cost around $1–$2 per $100 of insured value, making coverage for $10,000 in jewelry roughly $200 per year. Keeping items appraised every few years ensures accuracy, and many insurers provide worldwide coverage. Using a home-inventory app to document your valuables can also speed up the claims process.
5. Home-Based Business Coverage
If you run a business from your home, your homeowners policy may not provide enough protection for your equipment, inventory, or business-related liability. A home-based business rider can significantly expand your coverage.
Standard homeowners insurance often includes just $2,500 of coverage for business property inside the home—and only $500 if it’s off-site. A rider can increase this to $10,000–$25,000. A separate home business policy can also add vital liability protection, particularly if clients or customers visit your home. Many insurers updated their policies after 2020 to exclude remote work equipment without a specific endorsement, making these riders even more helpful.
Depending on your work, you may also need coverage for business interruption, cyber liability, or inventory. Freelancers, consultants, and product sellers may benefit from combining several types of protection.
Final Thoughts
Riders aren’t just optional—they’re strategic tools that help protect you from costly surprises. As natural disasters evolve, inflation affects rebuild costs, and building standards become stricter, endorsements help keep your insurance aligned with current risks. Review your policy each year, especially after major purchases, renovations, or life changes. Keeping digital records, receipts, and inventories can make claims easier, and bundling policies may save you up to 20% on premiums.
If you’d like help reviewing your coverage or exploring which riders might be right for you, feel free to reach out anytime.
