Many homeowners assume their insurance fully protects them, but key risks often require extra add-ons known as riders or endorsements. These additional forms of coverage help close gaps for situations a standard policy doesn’t address. As severe weather becomes more common and homes age, reviewing these optional protections can be crucial for avoiding costly surprises.
The following sections break down some of the most valuable home insurance riders and why they may be worth considering.
Flood Insurance and Water Damage Protection
A traditional homeowners policy typically excludes flood-related destruction that begins outside the home, as well as water damage that happens gradually or is not considered accidental. For anyone living near waterways, in coastal regions, or in areas experiencing heavier rainfall, dedicated flood insurance provides an essential safety net. In some high-risk flood zones, this coverage may even be required.
Recent increases in flooding severity mean that many people outside designated floodplains still face exposure. Because of this, more homeowners are choosing to add standalone flood policies or expand existing coverage. A separate water-backup endorsement offers additional protection for issues like sump-pump failures, sewer backups, or groundwater intrusion.
Flood insurance through FEMA’s National Flood Insurance Program averages about $899 per year and typically insures up to $250,000 for the structure and $100,000 for personal belongings. Private insurers may offer quicker payouts or higher protection levels, which can be helpful in high-cost rebuilding areas. With nearly one in three flood claims coming from non–high-risk locations, coverage is often more necessary than homeowners expect.
A water-backup rider usually costs around $50–$250 annually and provides $5,000–$25,000 in coverage. Because insurers define flooding and water backup differently, it’s important to understand how your policy interprets each type of water event. Adding sump-pump battery systems or backflow valves may even qualify you for small discounts on this endorsement.
Earthquake and Seismic Coverage
Homeowners often assume earthquake damage is included in their primary policy, but it’s usually excluded unless added separately. In states with known seismic activity — such as California, Oregon, and Washington — many insurers offer earthquake protection as either a separate policy or an add-on.
Even outside these regions, smaller tremors or soil shifting can lead to structural issues like cracked foundations, damaged plumbing, or wall movement. Because repairs from even a mild event can be expensive, adding a seismic rider may be a wise precaution.
Deductibles for this coverage commonly range from 2% to 20% of the home’s insured value. On a $500,000 property, this translates to a deductible of $10,000 to $100,000, depending on the policy structure. Although that may seem significant, rebuilding without the coverage could cost far more. Many policies also include debris removal and emergency stabilization, offering support immediately after an earthquake.
Building Code and Ordinance Upgrade Coverage
If your home needs repairs after a covered event, it must be rebuilt according to current building codes, even if those standards were not in place when the house was originally constructed. Without an ordinance or law rider, the cost difference for these upgrades typically falls entirely on the homeowner.
Codes evolve regularly, particularly in areas like energy efficiency, electrical systems, plumbing, roofing, and structural safety. These updates can add 10%–20% to total reconstruction costs. Because standard policies rarely cover this extra amount, many homeowners choose riders that provide an additional 10%, 25%, or even 50% of the dwelling coverage limit specifically for code-related improvements.
Even minimal damage can trigger extensive updates throughout the home, including rooms untouched by the original event. To make sure these added expenses are included, ask your agent whether your policy specifically includes protection for increased construction costs.
Scheduled Personal Property for High-Value Items
Most homeowners policies enforce strict limits on reimbursements for valuable items such as jewelry, antiques, collectibles, or premium electronics. If you own high-dollar belongings that exceed these limits, scheduling them individually ensures they’re insured at their appraised value.
Standard sublimits often include caps like $1,500 for jewelry, $2,000–$5,000 for firearms, or $2,500 for silverware. A scheduled personal property rider expands these protections and typically offers all-risk coverage, which includes accidental damage, theft, and loss.
Premiums generally fall around $1–$2 per $100 of value. For example, insuring $10,000 worth of jewelry could cost about $200 annually. Many policies also allow worldwide coverage, making this rider helpful for frequent travelers. Keep appraisals updated every few years and maintain a digital inventory with photos and receipts to simplify future claims.
Home-Based Business Coverage
Running a business from home — whether full-time or as a side job — often requires additional insurance. Most homeowners policies only offer minimal coverage for business-related property: typically around $2,500 inside the home and $500 outside it.
A business property rider increases those limits, often to $10,000–$25,000. For those who welcome clients into their home or operate a more complex business, a separate home business policy adds essential liability protection. Some insurance carriers have updated their rules in recent years and may exclude remote-worker equipment unless an endorsement has been added.
Professionals such as freelancers or consultants may need additional protections like professional liability coverage. Other options include inventory insurance, business interruption protection, or cybersecurity endorsements for those handling sensitive data or selling physical products.
Why These Riders Matter
Insurance riders aren’t simply optional extras — they help align your policy with real-life risks. As severe weather, inflation, and updated building requirements reshape the cost of repairs, endorsements can prevent unexpected financial burdens. Reviewing your policy annually, especially after major purchases or renovations, ensures your coverage stays current.
Maintaining organized digital records, receipts, and home inventories can make the claims process smoother. Bundling multiple policies may also reduce premiums by as much as 20%.
If you’re unsure which riders fit your situation, consider reviewing your policy with a trusted insurance professional. They can help you determine where additional protection may offer meaningful value.
