Important Home Insurance Riders You May Be Overlooking

Many homeowners assume their standard insurance policy will take care of any major issue, only to discover that some of the costliest problems require extra protection. These optional add-ons—often called riders, endorsements, or floaters—are easy to miss but can make a significant financial difference when something unexpected happens.

As natural disasters become more frequent and homes continue to age, specialized coverage has never been more valuable. Flooding now plays a role in the vast majority of U.S. natural disasters, building standards are stricter, and even mild ground movement can lead to damage that isn’t included in a typical policy. With more people owning expensive items, running businesses from home, or working remotely, reviewing your insurance each year can be a smart financial move.

Below are several riders worth exploring and why they may be beneficial for your home.

1. Flood Insurance and Water Damage Protection

Traditional homeowners insurance usually excludes flooding that originates outside the structure, along with water damage that isn’t sudden or accidental. If you live in an area that experiences flooding, a dedicated flood policy can be essential. In some high-risk zones, you may even be required to carry flood insurance. But with floods becoming more widespread and severe, many homeowners outside these zones are finding they also need added protection. A water‑backup endorsement can further protect your home from sewer backups, sump‑pump failures, or groundwater seepage.

Flood insurance from FEMA’s National Flood Insurance Program (NFIP) averages around $899 per year and generally provides up to $250,000 in coverage for the structure and $100,000 for personal belongings. Private carriers may offer higher limits or quicker payouts, which can be helpful in areas where rebuilding costs exceed NFIP limits. Since roughly one‑third of flood claims come from outside high‑risk zones, it’s risky to assume you’re fully protected just because you’re not officially in a floodplain.

Water‑backup riders usually cost between $50 and $250 annually and may offer $5,000–$25,000 in protection for issues like sewer or sump‑pump backups. Because insurers draw clear distinctions between surface floods and water‑backup incidents, it’s important to understand how your policy defines each event. Some carriers may even provide discounts of 5%–10% for installing backflow devices or battery‑powered sump pumps.

2. Earthquake and Seismic Coverage

Damage caused by earthquakes is typically not covered unless you’ve added a specific endorsement or separate policy. In high‑risk regions, seismic coverage may be a requirement. Even in low‑risk areas, minor tremors or shifting soil can still cause foundational or structural issues, making this coverage worth considering.

Many major insurers offer earthquake protection, especially in states like California, Washington, and Oregon, along with parts of the Midwest. Deductibles often range from 2%–20% of your home’s insured value. For a home insured at $500,000, that could mean a deductible between $50,000 and $100,000. While that’s a sizable amount, repairing a damaged foundation or realigning walls can cost far more. Some endorsements may also include emergency repairs and debris removal, providing immediate financial relief after a seismic event.

3. Building Code and Ordinance Upgrade Coverage

If your home needs repair or reconstruction, current building codes must be met—even if your original structure wasn’t up to modern standards. Even small repairs can trigger updates throughout the home. Without a rider that covers these expenses, you may be responsible for the added cost. A building code or ordinance rider helps ensure your home can be rebuilt to meet today’s regulations.

Building standards evolve quickly, especially in areas involving electrical systems, insulation, plumbing, HVAC performance, and structural requirements. These updates can add 10%–20% to the overall rebuilding cost, and this added expense usually isn’t covered by a standard policy. Ordinance or Law riders commonly provide 10%, 25%, or even 50% of your dwelling coverage to help cover these requirements. Sometimes even a fire in one room can lead to upgrades throughout the entire property, including areas untouched by the event. Ask your insurance agent whether your policy includes language such as "increased cost of construction" for full clarity.

4. Scheduled Personal Property for High‑Value Items

Homeowners policies often place low limits on reimbursement for valuable belongings such as jewelry, collectibles, and electronics. If you own expensive pieces, a scheduled personal property rider allows you to list these items individually at their appraised value for added protection.

Typical policy sublimits might cap jewelry at $1,500 per item, limit firearm coverage to $2,000–$5,000 total, and restrict silverware coverage to around $2,500. By scheduling your valuables, you receive broader protection—including coverage for theft, loss, and accidental damage. Premiums generally cost $1–$2 per $100 of insured value, so insuring $10,000 in jewelry may cost around $200 annually. Updated appraisals every few years ensure your coverage stays accurate, and many policies offer worldwide protection. Using a home inventory app for photos and receipts can also make claims easier to process.

5. Home‑Based Business Coverage

If you run a business from your home, your homeowners insurance may not fully cover your business‑related items. A business property rider increases protection for equipment, inventory, and other work‑related assets tied to your operations.

Most homeowners policies only cover $2,500 of business property inside the home and $500 while off‑site, which falls short for many home offices today. A rider can raise this protection to $10,000–$25,000, while a separate home business policy may include liability coverage—important if clients visit your home. Since many insurers updated policies after 2020 to exclude remote‑employee equipment unless you add an endorsement, double‑checking your coverage is essential. Remember that business property riders do not replace professional liability insurance, so consultants and freelancers may need both. Additional coverage options may include business interruption, cyber protection, and inventory insurance for those selling physical goods.

Riders aren’t just optional extras—they provide valuable layers of financial protection in a world where risks are constantly evolving. With inflation, changing building requirements, and more extreme weather events, endorsements help keep your insurance aligned with today’s realities. Consider reviewing your policy each year, especially after renovations, large purchases, or major life changes. Keeping digital copies of receipts, documents, and home inventories can simplify the claims process, and bundling insurance products may reduce premiums by up to 20%.

If you’d like help reviewing your policy or determining whether any of these riders might benefit you, don’t hesitate to reach out.