Many homeowners believe their insurance policy shields them from every possible disaster—until a claim proves otherwise. Some of the most financially significant risks aren’t covered by a standard policy and require additional protection. These optional add-ons, often called riders, endorsements, or floaters, can easily be missed but may save you thousands during an unexpected event.
As severe weather becomes more common and homes age, the need for the right riders continues to grow. Flooding now plays a role in nearly 90% of natural disasters in the U.S., building standards are tougher than ever, and even minor ground movement can cause structural issues a basic policy won’t cover. With more people working from home and owning valuable personal items, reviewing your policy each year is one of the most reliable ways to stay protected.
Below are several important riders to consider and why each one matters.
1. Flood Insurance and Water Damage Coverage
A typical homeowners policy won’t pay for flood damage caused by water entering your home from outside, nor does it usually cover water issues that aren’t sudden or accidental. If your home is in an area where flooding is possible, a separate flood policy is essential. In some high-risk zones, it’s even required. But with flooding increasing nationwide, more homeowners need to evaluate whether additional protection makes sense.
A water-backup endorsement adds coverage for issues like sewer backup, sump-pump failure, or groundwater seepage—problems that can be just as costly as surface flooding.
Flood insurance through FEMA’s National Flood Insurance Program (NFIP) averages around $899 annually and typically includes up to $250,000 in building coverage and $100,000 for belongings. Private flood insurers may offer higher limits or quicker payouts, which is useful where rebuilding expenses exceed NFIP maximums. Since one in three flood claims occur outside designated flood zones, homeowners who think they’re “safe” may still face meaningful risk.
Water-backup riders often cost between $50 and $250 per year and can add $5,000–$25,000 in protection. Because insurers differentiate between flood damage and backup-related damage, it’s important to understand how your policy defines these events. Installing preventative equipment like a battery-powered sump pump or a backflow valve may even earn you a small discount.
2. Earthquake and Seismic Protection
Most homeowners insurance excludes earthquake damage unless you purchase extra coverage. People living in earthquake-prone regions may already know this, but even low-risk areas experience ground movement that can harm plumbing, foundations, or walls. A seismic endorsement adds a crucial layer of safety.
Many insurers offer earthquake coverage as a separate policy or an added rider, especially in states like California, Washington, and Oregon, as well as certain parts of the Midwest. Deductibles usually land between 2% and 20% of your insured dwelling value. For a home insured for $500,000, this means shouldering $50,000 to $100,000 before coverage kicks in. While that may seem steep, repairing structural damage can be even more costly. Many policies also include debris removal and emergency repairs, helping homeowners manage immediate needs after a quake.
3. Building Code and Ordinance Upgrade Coverage
If your home is damaged and needs repairs, it must be rebuilt according to modern building codes. Even small repairs can trigger updates to electrical systems, plumbing, insulation, or structural components. Without ordinance or law coverage, any required upgrades come out of your own pocket.
Today’s construction standards evolve quickly, often adding 10%–20% to rebuilding expenses. A standard policy usually doesn’t account for these added costs. Ordinance or law endorsements typically cover 10%, 25%, or even 50% of your dwelling limit, giving you the flexibility to meet current requirements. Even damage limited to one room may require improvements throughout the home, including areas untouched by the original issue. Ask your agent whether your policy includes language covering “increased cost of construction” to avoid costly surprises.
4. Scheduled Personal Property for High-Value Items
Homeowners policies often limit how much you can claim for valuables like jewelry, antiques, firearms, electronics, and collectibles. If you own high-value items, scheduling them individually provides more complete protection and reimburses you for their appraised worth.
Most policies set low sublimits—often around $1,500 per jewelry item, $2,000–$5,000 total for firearms, or $2,500 for silverware. Scheduling items typically gives you broader, “all‑risk” coverage that includes theft, accidental damage, and loss. Premiums usually run $1–$2 per $100 of appraised value, meaning coverage for $10,000 in jewelry may cost about $200 annually. Appraisals every few years keep values accurate, and many policies protect scheduled items even while traveling. Keeping photos and receipts in a home-inventory app can streamline claims.
5. Home-Based Business Coverage
If you run a business from home, your current policy likely provides limited coverage for business property. A business property endorsement increases your protection for items like equipment, tools, inventory, and supplies.
Standard homeowners policies usually cover only about $2,500 of business-related property inside the home and just $500 outside it—far less than many home offices contain today. A rider may increase this coverage to $10,000–$25,000, while dedicated home business policies can add liability protection, especially useful if customers or clients visit your home.
Recent policy changes sometimes exclude remote‑work equipment unless specifically added through an endorsement. And remember, business property coverage is not the same as professional liability insurance, so freelancers and consultants may need additional protection. Other add-ons may include cyber coverage, business interruption insurance, or inventory protection for those selling physical products.
Final Thoughts
Riders aren’t optional luxuries—they’re strategic tools that help fill critical coverage gaps and shield you from large, unexpected expenses. As building standards evolve, natural disasters intensify, and lifestyles change, endorsements ensure your policy keeps pace with real-world risks.
Reviewing your policy once a year—particularly after major purchases, renovations, or life changes—can help you stay properly protected. Keeping digital records, receipts, and inventories also makes filing claims faster and easier. And bundling your policies may even reduce your premiums.
If you’d like help evaluating which riders fit your situation, feel free to reach out anytime.