Key Home Insurance Riders You Might Be Overlooking

Many homeowners assume their insurance policy will cover every possible issue, only to discover during a claim that major risks often require extra protection. These optional add-ons—commonly called riders, endorsements, or floaters—are frequently missed but can make a significant difference when unexpected damage occurs.

As severe weather events increase and homes continue to age, reviewing these add-ons has become more important than ever. Flooding now represents the majority of natural disasters in the U.S., building standards grow more rigorous each year, and even minor ground movement can lead to costly structural issues. With more people working from home and owning high-value items, it’s smart to revisit your policy annually to ensure your coverage still fits your needs.

Here are several home insurance riders worth considering and why each one matters.

1. Flood insurance and water damage

 

Most homeowners policies exclude flooding caused by water entering from outside your home or any damage that wasn’t sudden and accidental. If you live in a flood-prone area, a separate flood insurance policy is essential—and in some cases, legally required. With flooding becoming more widespread and severe, many homeowners need more protection than they realize. A water-backup rider offers additional coverage for sewer backups, sump-pump issues, and groundwater intrusion.

Flood insurance provided through FEMA’s National Flood Insurance Program (NFIP) costs an average of $899 per year and covers up to $250,000 for your home’s structure and up to $100,000 for personal belongings. Private insurers may offer higher limits or faster claims processing, which is helpful when rebuilding costs exceed NFIP caps. Since about one-third of flood claims happen outside designated high-risk zones, even those who feel “safe” may still face significant risk.

Water-backup riders typically cost between $50 and $250 annually and often provide $5,000–$25,000 in protection. Because insurance companies often distinguish between external flooding and internal backups, it’s important to understand how your policy defines each situation. Adding features such as backflow valves or a battery-powered sump pump can sometimes lower the cost of this rider by 5%–10%.

2. Earthquake and seismic coverage

 

Damage caused by earthquakes typically isn’t covered without a dedicated endorsement. Homeowners in high-risk areas may need this protection, but even those outside major fault lines can experience smaller tremors capable of cracking foundations or shifting structures. Adding an earthquake rider can provide valuable financial security.

Many major insurance companies offer earthquake coverage as either a standalone policy or an optional endorsement, especially in states like California, Oregon, and Washington, along with parts of the Midwest. Deductibles often fall between 2% and 20% of your home’s insured value, meaning a $500,000 home may carry a deductible of $50,000–$100,000. While that number can feel high, seismic repairs are often far more expensive. These endorsements may also cover debris removal and urgent repairs, reducing out-of-pocket costs immediately after an event.

3. Building code and ordinance upgrade coverage

 

If your home is damaged and requires repair or rebuilding, it must meet today’s building standards—even if it was built under older regulations. This can lead to unexpected costs during reconstruction. A building code or ordinance rider helps pay for updates required by current safety and construction regulations.

Modern building codes evolve quickly, especially when it comes to wiring, plumbing, insulation, structural safety, and HVAC efficiency. These upgrades can add 10%–20% to the overall cost of rebuilding, and standard policies usually don’t cover that difference. Ordinance or law riders typically offer 10%, 25%, or 50% of your dwelling coverage as additional protection. Even a small fire or partial loss can trigger whole-home updates, including areas untouched by damage. Ask your insurance agent if your policy includes “increased cost of construction” language to avoid unexpected expenses.

4. Scheduled personal property for high-value items

 

Homeowners insurance often includes strict limits on compensation for valuable belongings such as jewelry, art, electronics, and collectibles. If you keep high-value items in your home, it’s wise to add a scheduled personal property rider so these possessions are covered at their appraised value.

Standard policies often cap reimbursement—such as $1,500 per jewelry item or $2,000–$5,000 total for firearms. Scheduling items gives you broader protection, often covering theft, loss, and accidental damage. Expect annual costs of roughly $1–$2 per $100 of insured value. For example, $10,000 of jewelry may cost around $200 per year to insure. Regular appraisals every few years help keep values accurate, and many policies include worldwide coverage. Using an inventory app to store receipts and photos can make future claims much easier.

5. Home-based business coverage

 

If you run a business from home or store work equipment there, your standard policy may not offer enough protection. A home-based business rider can help cover your equipment, inventory, or business-related liability.

Most homeowners policies provide only about $2,500 of coverage for business property inside the home and even less away from it—far below the value of many modern home offices. A rider can increase coverage to $10,000–$25,000, while a dedicated home business policy adds liability protection, which is critical if clients visit your home. Recent insurance updates often exclude coverage for remote worker equipment unless a rider is added. Depending on your business, you may also need protection for inventory, cyber issues, or lost income due to interruptions.

Final Thoughts

 

Riders aren’t just add-ons—they’re practical tools that can shield you from major financial setbacks. As natural disasters, inflation, and building requirements evolve, endorsements help ensure your policy reflects the realities homeowners face today. Review your policy at least once a year, especially after renovations, major purchases, or lifestyle changes. Keeping digital records and receipts can streamline future claims, and bundling your policies may help you save on premiums.

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