Essential home insurance riders you may be overlooking

Many homeowners assume their insurance automatically covers every major risk, only to learn during a claim that some of the most expensive types of damage require additional protection. These optional add-ons, commonly called riders, endorsements, or floaters, are often missed but can make a significant difference when the unexpected occurs.

As natural disasters become more frequent and homes continue to age, these supplemental protections play a larger role than ever. Flooding is involved in the majority of U.S. natural disasters, building codes grow more rigorous each year, and even small ground movement can cause structural issues that a standard policy typically will not cover. With more high-value items in homes and many people working remotely, reviewing your coverage annually is one of the most valuable steps you can take to safeguard your finances.

Below are several important riders to consider and what they help protect.

1. Flood insurance and water damage protection

Standard homeowners policies usually exclude flooding that originates outside the home, as well as water damage that is not sudden or accidental. If your area is prone to flooding, securing a dedicated flood policy is crucial. In some high‑risk zones, this coverage may even be required by lenders. Because flooding events have become more widespread and severe in the last decade, many homeowners who previously felt safe now face elevated exposure.

A water‑backup rider offers additional protection for sewer backups, sump‑pump failure, or groundwater intrusion. These incidents are not covered under typical flood policies, so many homeowners benefit from carrying both types of protection.

Flood coverage through FEMA’s National Flood Insurance Program (NFIP) averages around $899 per year and typically covers up to $250,000 for the structure and $100,000 for belongings. Private insurers may offer higher limits and faster claims resolution, which is especially helpful in areas with high rebuilding costs. Notably, about one in three flood claims occur outside designated high‑risk areas, meaning many homeowners underestimate their vulnerability.

Water‑backup riders usually cost between $50 and $250 annually and provide $5,000–$25,000 in protection. Because insurers differentiate between surface flooding and water backup, it’s important to understand how your policy defines each event. Some homeowners may even qualify for premium discounts by installing backflow valves or a battery‑powered sump‑pump backup.

2. Earthquake and seismic coverage

Damage from earthquakes is rarely included in a standard homeowners policy. If you live in a region where earthquakes are common, purchasing earthquake or seismic coverage may be essential. Even in lower‑risk areas, minor ground shifts can damage your foundation, plumbing, or structural supports, making this rider a valuable layer of protection.

Most large insurers offer earthquake coverage as a separate policy or endorsement, especially in states such as California, Washington, Oregon, and parts of the Midwest. Deductibles tend to range from 2% to 20% of the insured value of your home. For a home insured at $500,000, that could mean a deductible of $50,000 to $100,000—substantial, but often far less than the cost of repairing major structural damage.

Many policies include coverage for emergency repairs and debris removal, which can be incredibly helpful immediately following a seismic event.

3. Building code and ordinance upgrade coverage

If your home is damaged and requires repair or reconstruction, local building codes may require updates that bring the entire home—sometimes even unaffected parts—up to current standards. Without a specific rider, the cost of these upgrades may fall entirely on you. A building code or ordinance rider helps cover these expenses.

Building codes evolve often, especially concerning insulation requirements, electrical systems, plumbing, heating and cooling efficiency, and structural design. These mandated upgrades can increase total rebuilding costs by 10%–20%. Ordinance or Law endorsements typically offer additional coverage equal to 10%, 25%, or 50% of your dwelling limit to help close that gap. Even small incidents, like a contained fire, can prompt inspectors to require updates to undamaged rooms or systems.

When reviewing your policy, ask whether it includes language for “increased cost of construction,” which is key to ensuring coverage for these mandated improvements.

4. Scheduled personal property for valuable items

Most homeowners insurance includes strict limits on categories such as jewelry, collectibles, electronics, and specialty items. If you own high‑value belongings, a scheduled personal property rider allows you to individually list and insure those items at their appraised value.

Standard policies commonly cap jewelry at around $1,500 per item, limit firearms to $2,000–$5,000 in total, and cover silverware only up to $2,500. Scheduling items expands coverage, often providing protection against theft, loss, and accidental damage. Premiums usually cost around $1–$2 for every $100 of value. For example, insuring $10,000 of jewelry may cost roughly $200 per year.

Appraisals every few years help ensure accurate coverage, and many policies extend worldwide protection when traveling. Using a digital home‑inventory tool to store receipts and photos can make the claims process significantly smoother.

5. Home‑based business coverage

Many people now operate businesses from home or store work equipment in their living space. Unfortunately, a typical homeowners policy provides very limited protection—usually $2,500 for business property inside the home and just $500 away from the residence.

A business property rider can extend this to $10,000–$25,000, addressing the needs of modern home offices. For entrepreneurs who meet clients at home or freelancers who rely on specialized equipment, a separate home‑business policy may also be needed to add liability protection. Some insurers updated their guidelines after 2020 and now exclude coverage for remote‑worker equipment unless an endorsement is added.

Business owners may also consider related protections such as business interruption, cyber liability, or inventory coverage for those who sell physical products.

Final thoughts

Riders are not simply optional extras—they’re valuable tools that help fill the gaps left by standard homeowners policies. As natural disasters, inflation, and building requirements evolve, these endorsements help ensure your coverage keeps pace with real‑world risks. Review your policy each year, especially after major life changes, home improvements, or big purchases. Keeping digital records such as receipts and home inventories makes the claim process easier, and bundling your policies may help you save on premiums.

If you’d like help evaluating your current coverage or deciding which riders may be right for you, feel free to reach out anytime.