Many homeowners assume their insurance policy has them fully covered, only to discover during a claim that major risks require extra protection. These optional add-ons—often called riders, endorsements, or floaters—are easy to miss but can make a tremendous difference when something unexpected happens.
As severe weather becomes more common and homes continue to age, these added layers of protection matter more than ever. Flood events are now connected to nearly 90% of natural disasters across the U.S., building standards grow stricter year after year, and even a minor shift in the ground can cause structural issues that standard policies won’t address. With more people working from home and investing in valuable personal property, an annual review of your coverage is one of the most effective financial safeguards available.
Below are several types of riders worth exploring—and why they may be more important than you think.
1. Flood Insurance and Water Damage Coverage
Most homeowners don’t realize that a standard policy usually excludes flooding caused by water originating outside the home. It also won’t cover water damage that develops gradually or isn’t considered sudden and accidental. If you live in an area prone to flooding, having a dedicated flood policy is essential for protecting your property. In high-risk zones, lenders may require it. However, the reality is that intensifying storms mean many people outside those zones still face meaningful flood exposure.
A separate water-backup rider is another valuable add-on. This endorsement helps cover damage from sewer backups, sump pump failures, or groundwater intrusion—issues typically not covered under a flood policy.
The National Flood Insurance Program (NFIP), administered by FEMA, averages around $899 annually and provides up to $250,000 in structural protection and $100,000 in contents coverage. Private insurers sometimes offer higher limits or quicker payouts, which can be helpful in areas where rebuilding costs surpass NFIP limits. Notably, about one in three flood claims come from outside designated floodplains, highlighting the widespread risk.
Water-backup endorsements usually cost between $50 and $250 per year, with coverage ranging from $5,000 to $25,000. Because insurers distinguish between “flooding” covered by a flood policy and “water backup” covered by a rider, it’s important to understand how your insurer defines each scenario. Installing preventative features like backflow valves or battery-powered sump pumps may qualify you for a 5%–10% discount on this coverage.
2. Earthquake and Seismic Coverage
Earthquake damage is another area where homeowners are often surprised by gaps in their standard policy. Without a dedicated rider or separate policy, repairs from earth movement are typically excluded. While this coverage is essential in states like California, Washington, and Oregon, homeowners in lower-risk regions aren’t immune to tremors or subtle ground shifts that can harm plumbing, foundations, or structural framing.
Most major insurers offer earthquake protection as either a standalone policy or an endorsement. Deductibles tend to fall between 2% and 20% of a home’s insured value. For a $500,000 home, that could mean owing $50,000–$100,000 before coverage applies. Though the deductible may seem high, repairing foundation cracks or realigning walls can be significantly more costly.
Many earthquake endorsements also include coverage for emergency repairs and debris removal immediately following a seismic event, which can help reduce out-of-pocket spending during a stressful time.
3. Building Code and Ordinance Upgrade Coverage
If your home suffers significant damage and requires repairs or rebuilding, insurers expect the work to meet current building codes—even if your home predates them. These updates can apply to wiring, insulation, ventilation, plumbing, HVAC efficiency, or structural safety. Without a building code or ordinance rider, the additional expense of those upgrades becomes your responsibility.
Because modern codes evolve frequently, required updates often add 10%–20% to total rebuilding costs. Standard policies rarely cover that extra amount. Ordinance or Law coverage typically offers 10%, 25%, or 50% of your dwelling limit to help fill this gap. Even damage isolated to a single room may trigger upgrades throughout the house, including areas untouched by the initial incident.
Ask your insurance agent whether your policy includes language covering “increased cost of construction,” which ensures mandated improvements are accounted for.
4. Scheduled Personal Property for High-Value Items
Many homeowners don’t realize that their policy includes strict limits on compensation for high-value items such as jewelry, fine art, collectibles, and certain electronics. If you own valuable items, adding scheduled personal property coverage allows you to list each piece individually, ensuring it's protected at its appraised worth.
Typical policies cap coverage for valuables—sometimes as low as $1,500 per jewelry item or $2,500 for categories like silverware or firearms. A scheduled property rider provides much broader, “all-risk” protection that includes theft, loss, and accidental damage.
Premiums are generally $1–$2 per $100 of insured value, making coverage for $10,000 of jewelry about $200 annually. Keeping appraisals updated every few years helps maintain accurate valuations. Many policies even extend protection worldwide, a significant benefit for frequent travelers. Using a home-inventory app to store photos and documentation can simplify the claims process.
5. Home-Based Business Protection
With more people running businesses from home or storing work-related equipment there, homeowners often assume their standard policy will protect these items—but coverage is usually very limited. Most policies provide only about $2,500 in business property protection at home and just $500 for items off-site.
A home-based business rider increases those limits significantly—often up to $10,000–$25,000. For those with clients visiting their home, a separate home business policy can also provide liability coverage, which is essential. Since many insurers updated their policies after 2020, equipment used by remote employees may not be protected without an endorsement.
Depending on your business type, additional options may include business interruption coverage, cyber and data protection, or inventory coverage for physical goods.
Final Thoughts
Riders aren’t merely optional upgrades—they’re strategic tools designed to protect you from costly surprises. As inflation, weather patterns, and building regulations continue to evolve, endorsements help ensure your insurance keeps pace with real-world risks.
Make a habit of reviewing your policy each year, especially after major purchases, improvements, or life changes. Keeping digital documentation, receipts, and a home inventory will make any claims process smoother. Bundling your policies may also offer meaningful savings.
If you’d like help reviewing your current coverage or determining which riders might benefit your home, don’t hesitate to reach out.