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Many homeowners assume their insurance policy protects them from every possible risk, only to discover during a claim that certain costly events require additional coverage. These optional add-ons—often called riders, endorsements, or floaters—are easy to overlook but can make a major difference when unexpected damage occurs.
As weather events intensify and homes continue to age, these supplemental protections have become even more valuable. Flood-related disasters now account for the vast majority of U.S. natural catastrophes, building regulations are consistently updated, and even minor seismic movement can lead to structural issues that aren’t included in a standard policy. With more people working from home and owning high-value items, reviewing your policy each year is a smart way to stay protected.
Here are several important riders to consider and why each one matters.
1. Flood Insurance and Water Damage Protection
A typical homeowners policy does not cover flooding that originates outside your home or water damage that occurs gradually. If your area is vulnerable to flooding—even occasionally—purchasing a flood policy is crucial. Homes located in high-risk flood zones may be required to carry this coverage. However, with more widespread flooding events, many people outside these zones benefit from the additional protection as well. A water-backup endorsement can also safeguard your home against sewer or sump-pump backups and groundwater intrusion.
Flood insurance through FEMA’s National Flood Insurance Program (NFIP) averages around $899 annually, with maximum limits of $250,000 for the structure and $100,000 for belongings. Private insurers may offer higher limits or quicker payouts, which can be helpful when repair costs exceed NFIP caps. Since roughly one-third of flood claims come from low-to-moderate risk areas, homeowners not labeled as “in the floodplain” may still face real risk.
A water-backup endorsement typically ranges from $50–$250 per year and usually provides between $5,000 and $25,000 in protection. Because insurers distinguish between outside flooding and internal water backups, it’s important to verify how your policy defines each event. Adding preventative measures like backflow valves or battery-supported sump pumps may qualify you for a small discount on this rider.
2. Earthquake and Seismic Coverage
Earthquake damage is rarely included in standard homeowners policies. If you live in a region with frequent seismic activity, dedicated earthquake coverage or a seismic endorsement may be required. Even in lower-risk areas, ground movement can still cause significant foundation or structural damage, making this rider a worthwhile consideration.
Most major insurers offer earthquake protection as a standalone policy or an add-on, particularly in states like California, Washington, and Oregon, as well as parts of the Midwest. Deductibles typically range from 2%–20% of your home’s insured value. For example, a $500,000 home could come with a deductible between $50,000 and $100,000. While this may seem steep, repair costs from seismic damage can be far higher. Many policies also include coverage for emergency repairs and debris removal to help reduce immediate out-of-pocket expenses.
3. Building Code and Ordinance Upgrade Coverage
If your home needs repairs or must be rebuilt after damage, it will have to meet current building codes—even if it didn’t before the loss occurred. Upgrades such as improved wiring, insulation, and structural reinforcements can add significant cost to the project. Without an ordinance or law rider, these additional expenses fall on the homeowner.
Modern building standards change frequently, especially for electrical systems, plumbing, HVAC efficiency, and structural safety. These updates can add 10%–20% to the cost of rebuilding, and basic policies usually do not cover the difference. Ordinance or Law riders typically offer 10%, 25%, or even 50% of your dwelling limit to cover code-related improvements. Even a small fire or isolated repair can require updates to unaffected parts of the home. Asking your agent whether your policy includes “increased cost of construction” language can help ensure you’re properly protected.
4. Scheduled Personal Property for High-Value Items
Most homeowners policies have strict limits on reimbursement for certain valuables like jewelry, collectibles, fine art, or electronics. If you own items that exceed these limits, scheduling them individually provides better protection and ensures they’re covered at their appraised value.
Standard policies often include low sublimits—such as $1,500 per jewelry item or a few thousand dollars for firearms or silverware. Scheduling valuable items grants “all-risk” coverage, meaning theft, loss, and accidental damage are typically included. Premiums usually run about $1–$2 per $100 of insured value, or around $200 annually for $10,000 worth of jewelry. Updated appraisals every few years help keep values accurate, and many policies extend protection even while traveling. Maintaining digital photos and receipts can also simplify the claims process.
5. Home-Based Business Protection
If you run a business from your home or store work-related inventory or equipment there, your standard homeowners policy may not offer enough coverage. A business property rider can help fill this gap by protecting your equipment, inventory, and certain liabilities connected to your business operations.
Most homeowners policies provide only $2,500 of business property coverage inside the home and $500 outside of it—far less than what many people keep in a home office. A rider can increase those limits to $10,000–$25,000, while a separate home business policy adds liability protection, especially important if clients visit your property. Many post-2020 policies exclude remote employees’ equipment unless a specific endorsement is added. Depending on your business type, you may also want to consider options like cyber coverage, business interruption protection, or inventory insurance.
Final Thoughts
Riders aren’t just optional add-ons—they’re practical layers of protection that can prevent unexpected financial burdens. As natural disasters, construction costs, and building standards evolve, endorsements help ensure your policy keeps pace with your real-world risks. Reviewing your coverage annually, especially after major purchases or home improvements, is a simple step that can save you money and stress. Keeping digital copies of receipts and inventories also helps streamline claims, and bundling policies can reduce your overall premiums.
If you’d like help reviewing your coverage or determining which riders make sense for your situation, feel free to reach out anytime.