Many homeowners assume their insurance policy automatically protects them from every major risk. Unfortunately, it often takes a stressful claim to reveal that some of the most costly losses require extra coverage. These optional add-ons—commonly called riders, endorsements, or floaters—are easy to miss but can make a substantial difference when something unexpected happens.
As homes age and severe weather becomes more frequent, reviewing your insurance needs each year is increasingly important. Flooding now plays a role in the vast majority of natural disasters across the U.S., building codes continue to tighten, and even minor ground movement can cause structural issues not covered under standard policies. With more people working from home and owning high-value belongings, riders have become a crucial part of a well-rounded protection plan.
Below are several types of riders that may be worth adding to your policy and why they matter.
1. Flood insurance and water damage
A typical homeowners policy doesn’t cover flooding that originates outside your home or water damage caused by gradual issues. If you live in an area that could experience flooding, a separate flood insurance policy is essential. In some high‑risk zones, it’s even required. But with changing weather patterns and increasingly widespread flooding events, many homeowners outside documented flood zones also face potential losses.
Flood coverage through FEMA’s National Flood Insurance Program (NFIP) costs an average of $899 per year and typically provides up to $250,000 in structural coverage and $100,000 for personal belongings. Private insurers may offer higher limits or faster claim processing—useful when rebuilding costs exceed NFIP maximums. Because roughly one in three flood claims occur outside designated flood zones, it’s risky to assume you’re not vulnerable.
A water‑backup endorsement can also protect you from damage caused by backed‑up sewers, sump‑pump failures, or groundwater intrusion—issues not covered by standard flood insurance. These riders usually range from $50–$250 annually and may offer $5,000–$25,000 in protection. Since insurers distinguish between surface flooding and water backup, reviewing your policy’s definitions is key. You may even qualify for small discounts by installing backflow devices or sump‑pump backup systems.
2. Earthquake and seismic coverage
Damage caused by earthquakes is typically excluded from standard homeowners insurance unless you purchase a specific rider or separate policy. If you live in an area known for seismic activity, this coverage may be required. However, even regions not considered high risk can experience ground shifts, cracks, and structural damage during mild tremors.
Most large insurers offer seismic protection, especially in states like California, Washington, and Oregon, as well as certain parts of the Midwest. Deductibles for earthquake coverage usually range from 2%–20% of your home’s insured value. For a home insured at $500,000, that could mean a deductible between $10,000 and $100,000. While that’s a significant amount, repairing foundation damage or structural displacement often costs much more. Many policies also include coverage for emergency stabilization and debris removal, which can help reduce immediate expenses after an earthquake.
3. Building code and ordinance upgrade coverage
When your home is repaired or rebuilt after damage, it must meet current building-code requirements—not the standards in place when it was originally constructed. If your home is older, even small issues can trigger major updates to wiring, insulation, plumbing, structural components, and more. Without this rider, those added expenses land on you.
Modern building codes evolve quickly, increasing overall reconstruction costs by 10%–20% on average. Standard policies typically don’t cover that gap. Ordinance or Law riders allow you to add 10%, 25%, or even 50% of your dwelling coverage to help pay for code‑required upgrades. This coverage becomes especially valuable after events like kitchen fires or storm damage, which can require updates throughout the home—even in areas that weren’t affected.
It’s helpful to confirm whether your policy includes wording such as “increased cost of construction,” which ensures code‑mandated improvements are covered.
4. Scheduled personal property for valuable items
Most homeowners policies limit reimbursement amounts for high‑value belongings such as jewelry, electronics, collectibles, and specialty items. If your valuables exceed these sublimits, a scheduled personal property rider allows you to list specific items at their appraised value for broader protection.
Common policy caps include around $1,500 per jewelry item, $2,000–$5,000 total for firearms, and roughly $2,500 for silverware. Scheduling items provides “all‑risk” coverage that includes theft, accidental loss, and damage—far more comprehensive than default limits. Premiums are usually about $1–$2 per $100 of insured value, making it roughly $200 per year to cover $10,000 in jewelry. Many insurers require new appraisals every few years to keep values accurate, and some policies extend coverage worldwide. Keeping digital photos and receipts in a home inventory app can make filing claims much smoother.
5. Home-based business coverage
If you run a business out of your home or store work‑related equipment there, your standard homeowners policy may not offer enough protection. Most policies cover only a small amount—around $2,500 for business equipment in the home and just $500 for items off‑site. For remote workers, freelancers, or home‑based entrepreneurs, that’s often far below what’s needed.
A business property endorsement can raise that limit to $10,000–$25,000, which is more in line with modern home office setups. If clients visit your home, a separate home business policy may also be necessary to provide liability coverage. Many post‑2020 policies exclude remote‑employee equipment unless specifically added, so checking your policy language is particularly important. Depending on your work, you may also need optional protections like cyber coverage, inventory replacement, or business interruption insurance.
Final thoughts
Insurance riders aren’t simply optional extras—they’re essential tools that help fill gaps in traditional homeowners coverage. As natural disasters intensify, inflation rises, and building standards evolve, these add-ons ensure your policy reflects real‑world risks rather than outdated assumptions.
Reviewing your coverage each year, especially after major purchases or renovations, can help you stay protected. Keeping digital records and receipts can speed up claims, and bundling policies may reduce overall premiums. If you’d like help determining which riders make sense for your situation, we’d be happy to walk through your options with you.
