Many homeowners assume their insurance policy will protect them from nearly any mishap, only to be surprised when a claim reveals gaps they didn’t even know existed. Some of the most important protections aren’t included in a standard policy at all — they require add-ons known as riders, endorsements, or floaters. These additional layers of coverage are easy to miss but can make a tremendous difference when something unexpected happens.
With natural disasters on the rise, stricter building regulations, and more high‑value belongings in the average home, reviewing your policy regularly has become more important than ever. Remote work, home-based businesses, and aging properties all contribute to new risks that traditional policies may not fully address. Taking the time to evaluate your riders each year can help keep your coverage aligned with today’s realities.
Below are several commonly overlooked riders and why they may be worth adding to your policy.
1. Flood Insurance and Water Damage Protection
Most homeowners are surprised to learn that flooding from sources outside the home — such as overflowing rivers, storm surge, or heavy rainfall — is typically not covered under a standard policy. Likewise, water damage that isn’t sudden or accidental often isn’t included either. If you live in an area with even moderate flood risk, a separate flood insurance policy can be crucial. In some high‑risk zones, lenders require it.
Flooding plays a role in nearly 90% of U.S. natural disasters, and even properties outside designated floodplains are seeing increased exposure. FEMA’s National Flood Insurance Program (NFIP) averages around $899 annually, offering up to $250,000 for structural coverage and $100,000 for personal belongings. For homeowners in areas with high rebuild costs, private insurers may offer higher limits and faster claims processing.
Another important add‑on is a water‑backup rider, which specifically protects against sewer, drain, or sump-pump backups. These events aren’t considered “flooding,” so they fall outside traditional flood policies. For $50–$250 per year, you can secure $5,000–$25,000 in coverage — often more than enough to repair flooring, drywall, and belongings damaged by backups. Adding preventive features like backflow valves or battery-backed sump pumps can sometimes reduce your premium by up to 10%.
2. Earthquake and Seismic Coverage
Earthquake damage is another major risk that standard homeowners insurance does not automatically cover. If you live in a region where tremors or ground shifting are common — such as California, Washington, Oregon, or even parts of the Midwest — earthquake protection may be essential. Even areas considered “low risk” are not immune, and a small tremor can still affect your home’s foundation or plumbing.
Most major carriers offer earthquake insurance either as a standalone policy or an endorsement. Deductibles usually range from 2% to 20% of your total insured value. For a $500,000 home, that means you could be responsible for $50,000–$100,000 before insurance pays out. While this may seem high, repairs for foundation issues, wall displacement, or structural damage often exceed that amount. Many policies also include important extras like emergency repairs, temporary housing, and debris removal.
3. Building Code and Ordinance Upgrade Coverage
If your home experiences significant damage and needs to be repaired, you may also have to update parts of the home that weren’t originally up to current building codes. These code-related upgrades can quickly add thousands to a rebuild or repair project, and standard policies rarely pay for those expenses. A building code or ordinance rider helps cover the cost of bringing the rest of your home up to modern standards.
Building codes evolve frequently, especially in areas like wiring, plumbing, insulation, and structural safety. These updated requirements often increase rebuilding costs by 10%–20%. Ordinance or Law riders typically offer additional coverage equal to 10%, 25%, or even 50% of your dwelling limit, providing crucial financial support when code upgrades are required. Even damage to a single room — such as from a kitchen fire — can trigger code-related updates throughout the house. Ask your insurance professional whether your current policy includes “increased cost of construction” coverage to avoid paying for these updates out-of-pocket.
4. Scheduled Personal Property for High‑Value Items
While homeowners insurance does cover personal belongings, it usually sets strict limits on high‑value items. Jewelry, collectibles, art, and certain electronics all have sublimits that may fall far below their actual worth. If you own items of significant value, scheduling them individually can ensure they’re protected.
Typical policies might cap jewelry losses at $1,500 per item or place a total limit of $2,500 on categories like silverware or firearms. A scheduled personal property endorsement allows you to insure individual items at their appraised value, often with broader “all‑risk” coverage. That means theft, accidental damage, and even loss may be covered. Premiums usually run $1–$2 per $100 of insured value, making it fairly affordable to fully protect expensive items.
To keep values accurate, insurers may require updated appraisals every few years. Many endorsements also extend coverage worldwide, which is especially helpful if you travel with valuables. Maintaining a digital inventory with photos, receipts, and appraisals can make claims much smoother.
5. Home‑Based Business Coverage
More homeowners are running businesses from their living spaces or storing work‑related equipment at home. Unfortunately, a standard homeowners policy usually provides only minimal protection for business-related items — often as little as $2,500 inside the home and $500 outside it. If you rely on equipment, inventory, or client visits, this could leave major gaps in your coverage.
A home‑based business rider can increase your protection for business property to $10,000–$25,000 or more. For those who see clients in their homes, a separate home business policy may offer liability coverage as well. After 2020, many insurers adjusted policies to exclude employer‑owned equipment used by remote workers unless a rider is added, making supplemental coverage even more important.
Depending on your needs, you may also want to explore additional options like cyber liability coverage, business interruption protection, or inventory insurance — especially if you sell physical goods or store sensitive information.
Final Thoughts
Riders aren’t unnecessary add-ons — they’re strategic tools that help close important coverage gaps and protect you from costly surprises. As building codes evolve, natural disasters grow more frequent, and the value of personal belongings increases, endorsements help ensure your policy keeps pace with real-world risks.
Make it a habit to review your insurance annually, especially after you renovate, make major purchases, or experience life changes. Keeping digital records, updated appraisals, and organized home inventories can streamline future claims. And don’t forget — bundling policies can help reduce premiums by as much as 20%.
If you’d like help reviewing your current coverage to determine whether these riders are a good fit, feel free to reach out anytime.
