Key Home Insurance Riders Many Owners Forget to Add

Most homeowners believe their insurance policy protects them from every major risk, but many only discover gaps in coverage when a costly claim is denied. That’s where home insurance riders—also called endorsements or floaters—come in. These optional add-ons may not get much attention, but they can make a meaningful difference when something unexpected happens.

With severe weather events becoming more common, aging homes requiring more updates, and more people working or running businesses from home, reviewing your policy each year has never been more important. Riders help close the gaps that standard policies leave behind, especially in situations that involve specialized risks or high-value items.

Below are several types of riders worth exploring and what they can help protect.

1. Flood Insurance and Water-Related Damage

Traditional homeowners insurance typically excludes flooding that comes from outside the home, as well as water damage that isn’t sudden or accidental. If you live in an area prone to flooding, a separate flood policy is essential—and in high‑risk zones, it may even be required. Even homeowners outside designated floodplains face real exposure, especially as storms become more unpredictable.

Flood coverage through FEMA’s National Flood Insurance Program (NFIP) costs an average of $899 annually and generally provides up to $250,000 for your home and $100,000 for belongings. Private flood insurers may offer quicker payouts or higher limits, which can be helpful in areas where rebuilding costs exceed NFIP’s caps. Since a large share of flood claims come from low- to moderate‑risk zones, relying on location alone isn’t a reliable safety strategy.

A water‑backup endorsement can also be worthwhile. This add‑on covers issues such as sewer backups, sump‑pump failures, and groundwater seepage—problems that aren’t considered “flooding” by most insurers. These riders usually cost between $50 and $250 per year and may offer $5,000 to $25,000 in protection. Some insurers even provide discounts if you install devices like backflow valves or battery‑powered sump pumps that help prevent damage.

2. Earthquake and Seismic Protection

Damage from earthquakes usually isn’t included in a standard homeowners policy unless you’ve added a specific rider. While this may be a must‑have in states like California, Washington, or Oregon, even homeowners in moderate‑risk regions can experience ground movement that leads to structural issues. A seismic endorsement helps protect against those unexpected costs.

Earthquake coverage can come as either a standalone policy or an endorsement, depending on your insurer. Deductibles are typically calculated as a percentage of your home’s insured value—often between 2% and 20%. For a home insured at $500,000, this means your deductible could fall between $50,000 and $100,000. Although this may seem steep, repairs to foundations, walls, and plumbing systems can cost far more.

Many earthquake riders also include coverage for emergency stabilization, debris removal, and other immediate post‑event needs. This extra protection can help reduce the financial strain of addressing damage right after a seismic event.

3. Building Code and Ordinance Coverage

When a damaged home is repaired or rebuilt, it must comply with current building codes—even if the original structure met older requirements. Without a building code or ordinance rider, homeowners are often responsible for paying the difference to bring the home up to modern standards.

Updates to wiring, insulation, plumbing, HVAC systems, and structural components can add 10%–20% to reconstruction costs. A standard policy generally doesn’t cover these additional expenses. Ordinance or Law riders help close this gap by offering additional coverage—often 10%, 25%, or 50% of the dwelling limit—to account for code‑mandated upgrades.

Even smaller incidents, such as a contained kitchen fire, can trigger code updates for undamaged areas of the home. It’s helpful to review your policy for “increased cost of construction” language to confirm whether these expenses are currently included.

4. Scheduled Personal Property for Valuable Items

Homeowners insurance includes coverage for personal belongings, but it often has low limits on certain valuables such as jewelry, artwork, collectibles, and high‑end electronics. If you own expensive items, a scheduled personal property rider can provide more appropriate protection by listing each item individually at its appraised value.

Many standard policies cap high‑value categories at modest amounts—such as $1,500 per jewelry item or $2,500 for silverware. With scheduled coverage, you’ll typically receive “all‑risk” protection, meaning your items are covered for loss, theft, and accidental damage. Premiums typically cost around $1–$2 per $100 of insured value.

Updated appraisals every few years ensure your coverage accurately reflects market value. Many policies also extend protection worldwide, which is especially helpful if you travel with valuable items. Keeping a digital home inventory with photos and receipts can make claims much quicker and easier.

5. Coverage for Home‑Based Businesses

Running a business from home has become increasingly common, but most homeowners policies offer only limited coverage for business‑related property. If you keep equipment, inventory, or supplies in your home, you may want to add a business property endorsement.

Standard policies usually include just $2,500 of coverage for business items stored at home and only $500 for those kept off‑site. A rider can increase this limit to $10,000–$25,000. For more robust needs—such as liability protection if clients visit your home—a separate home business policy may be more appropriate.

More recently, many insurers have updated their policies to exclude coverage for employer‑owned equipment used by remote workers unless an endorsement is added. Additional options like business interruption, cyber protection, and inventory coverage may be beneficial for consultants, freelancers, or anyone selling products from home.

Final Thoughts

Insurance riders aren’t just optional extras—they’re strategic tools that help protect homeowners from expensive surprises. As weather patterns shift, building standards evolve, and household needs change, endorsements ensure your policy keeps pace with real‑world risks.

Reviewing your coverage each year, especially after renovations or major purchases, is one of the most effective ways to stay protected. Keeping digital records, receipts, and updated inventories can simplify the claims process. And if you bundle multiple policies, you may even save on premiums.

If you’d like help determining which riders might fit your situation, feel free to reach out anytime.