Home insurance riders you may be overlooking

Many homeowners believe their insurance policy covers every possible scenario, only to discover during a claim that several costly risks require extra protection. These optional add-ons, often called riders, endorsements, or floaters, are easy to miss but can offer significant financial relief when unexpected damage occurs.

As natural disasters become more frequent and homes continue to age, supplemental coverage is more important than ever. Flooding now plays a role in the majority of U.S. natural disasters, state and local building requirements grow stricter each year, and even minor seismic activity can cause damage that a standard policy won’t address. With more people owning high-value personal items, working remotely, or running businesses from their homes, setting aside time each year to revisit your coverage can offer meaningful protection.

Below are several types of riders worth evaluating and how they can help safeguard your home and belongings.

1. Flood insurance and water damage riders

Typical homeowners insurance does not cover damage caused by flooding that originates outside the home, nor does it cover gradual or non-accidental water damage. If you live in a flood-prone region, purchasing a separate flood policy is often essential. In certain high-risk zones, this coverage may even be required. But as flooding becomes more widespread nationwide, many people who don’t believe they are exposed to flood risks may benefit from additional coverage.

A water-backup endorsement provides another key layer of protection, covering backups from sewer lines, sump pumps, or groundwater — events that are treated differently than surface flooding. Both policy types work together to protect against different water-related hazards.

Flood insurance through FEMA’s National Flood Insurance Program (NFIP) averages around $899 per year and includes up to $250,000 of structural coverage and $100,000 for personal belongings. Private insurers may provide higher limits or faster claim processing, which is especially helpful in areas where rebuilding costs exceed federal caps. Because one in three flood claims come from outside high‑risk areas, homeowners should not assume they’re safe based on location alone.

Water-backup riders generally cost between $50 and $250 annually and usually provide $5,000–$25,000 of protection. Since insurers treat different water events uniquely, reviewing how your insurer defines “flooding” versus “backup” is crucial. Upgrading your home with tools like backflow valves or battery-supported sump pumps may even earn small discounts on your endorsement.

3. Building code and ordinance coverage

If your home needs repair after damage, any work performed must meet the building code requirements in place at the time of repair — not the standards in place when your home was originally built. Even a seemingly minor issue can trigger broader updates throughout your home. Without a rider that covers these code‑driven expenses, homeowners may find themselves responsible for substantial out-of-pocket costs.

Modern building regulations evolve rapidly, with frequent updates to electrical systems, insulation, plumbing, HVAC efficiency, and structural requirements. These improvements can increase overall rebuilding expenses by 10%–20%. Ordinance or Law riders typically offer additional protection equal to 10%, 25%, or 50% of your dwelling coverage, helping cover the cost of bringing your home up to modern standards.

Even a single-room fire can lead to broader code upgrades affecting untouched areas of the home. Reviewing your policy to ensure it includes “increased cost of construction” language is essential.

4. Scheduled personal property coverage

Most homeowners policies limit coverage for certain high-value belongings such as jewelry, collectibles, electronics, or fine art. If you own valuable items that exceed these limits, a scheduled personal property rider allows you to list individual pieces and insure them at their appraised value.

Sublimits on standard policies are often low — usually around $1,500 per jewelry item, $2,000–$5,000 for firearms, or $2,500 for silverware. Scheduling items gives you more robust protection, including coverage for theft, loss, or accidental damage.

Premiums are generally about $1–$2 per $100 of insured value. For example, $10,000 of jewelry might cost around $200 per year. Many carriers recommend updating appraisals every few years to keep valuations accurate. Several policies even cover scheduled items worldwide, which is particularly helpful while traveling. Keeping photos or receipts through a digital inventory app can simplify claims and speed up the process.

5. Home-based business endorsements

As more people operate businesses out of their homes, many are surprised to learn how limited their homeowners coverage is for business-related property. Standard policies usually include only $2,500 of protection for equipment kept in the home and just $500 for items stored off-site.

A business property endorsement can expand coverage to $10,000–$25,000 and is a helpful option for people who store equipment, maintain inventory, or rely on specialized tools. For those who see clients at home, a separate home business policy provides liability protection — a key safeguard for customer-facing operations.

After 2020, many carriers updated their policies to exclude remote employee equipment unless an endorsement is added, making it even more important for remote workers to review their coverage. Depending on your setup, you may also want to consider add-ons for cyber protection, business interruption, or inventory loss.

Final thoughts

Riders aren’t simply optional extras — they serve as essential layers of protection in an environment where natural disasters, inflation, and regulatory changes continue to evolve. Evaluating your coverage once a year, especially after home updates or significant purchases, can make a meaningful difference if a claim arises.

Keeping organized records, receipts, and updated inventories can streamline the claim process, and bundling policies may help reduce overall premiums. If you’d like help reviewing your coverage or determining which riders make sense for your home, we’re always here to support you.