Many homeowners assume their standard insurance policy protects them from nearly every possible risk. Unfortunately, that’s rarely the case. Some of the most costly losses are only covered if you’ve added optional protections known as riders, endorsements, or floaters. These add-ons are easy to overlook, but they can make a tremendous difference when unexpected damage occurs.
As weather events intensify, building standards evolve, and households accumulate more valuables and equipment, riders have become increasingly important. Floods now play a role in roughly 90% of natural disasters in the United States. Homes built decades ago may not meet updated safety requirements, and even small seismic shifts can create damage not covered by a typical policy. With more people working from home or running side businesses, reviewing your coverage each year is one of the smartest financial moves you can make.
Below are several important riders worth exploring — and why they may be essential for your home.
1. Flood Insurance and Water Damage Protection
Standard homeowners insurance generally does not pay for damage caused by flooding from external sources or water issues that develop slowly. If your home is located in a flood-prone area, carrying a dedicated flood policy is crucial. In some zones, lenders even require this protection. But the rise in flood severity means many homeowners outside “high-risk” areas still face real exposure.
Flood insurance through FEMA’s National Flood Insurance Program (NFIP) costs an average of $899 per year and typically covers up to $250,000 for the home structure and $100,000 for belongings. Private insurers may offer higher limits or faster payout timelines, which can be especially helpful if rebuilding costs exceed NFIP’s maximums. Since a third of flood claims come from moderate- or low-risk zones, assuming you're safe based on location alone can be a costly mistake.
A separate water-backup rider protects you from sewer line backups, sump-pump overflow, and groundwater intrusion. These riders — often priced between $50 and $250 per year — commonly provide $5,000–$25,000 in coverage. Because insurers distinguish between surface flooding (covered by flood insurance) and water backup (covered by endorsements), it’s essential to know how your policy defines each type of event. You may even qualify for discounts of 5%–10% by installing backflow valves or backup sump pump systems.
2. Earthquake and Seismic Coverage
Earthquake-related damage is usually excluded from a standard homeowners policy unless you’ve added specific coverage. In high-risk states like Washington, Oregon, and California, this protection is often recommended or required. But even regions with minimal seismic activity aren’t completely immune to ground movement. A small shift can crack foundations, break pipes, or damage walls — all of which can be expensive to repair.
Most insurers sell earthquake coverage as a separate policy or an endorsement. Deductibles commonly range from 2% to 20% of the insured value of your home. For a $500,000 property, that could mean a deductible of $10,000–$100,000. While this may feel steep, the cost of repairing structural displacement or restoring a damaged foundation can be significantly higher. Many earthquake riders also include debris removal and emergency repair benefits, helping reduce the immediate financial strain after a quake.
3. Building Code and Ordinance Upgrade Coverage
If your home is damaged and needs repairs, local building codes require that all rebuilt portions meet current standards — even if the rest of your home was built under older regulations. Without a rider designed to cover these upgrades, you may be responsible for a large portion of the cost.
Building codes evolve quickly, with new requirements related to electrical systems, plumbing materials, structural strength, insulation, HVAC efficiency, and more. These updates often add 10%–20% to the cost of reconstruction. Ordinance or Law coverage typically offers protection equal to 10%, 25%, or 50% of your dwelling coverage, giving you the room you need to bring your home up to modern standards. Even a small fire in one room could trigger updates for unaffected areas, making this endorsement particularly valuable. Ask your agent whether your policy includes “increased cost of construction” wording so you’re not caught off guard during a rebuild.
4. Scheduled Personal Property Coverage for Valuables
Most homeowners policies cap what they’ll pay for certain high-value items such as jewelry, fine art, electronics, or collectibles. If you own valuable belongings, you may need enhanced protection to avoid financial loss. A scheduled personal property rider allows you to list individual items and insure them for their appraised value.
Many policies limit jewelry coverage to about $1,500 per item, restrict firearm coverage to a few thousand dollars, and cap silverware coverage at around $2,500. Scheduling these items provides “all-risk” protection — meaning theft, loss, and accidental damage are all included. Expect to pay $1–$2 annually per $100 of insured value. For example, insuring $10,000 in jewelry would cost around $200 per year. Regular appraisals help keep valuations up to date, and many riders extend coverage globally, protecting your valuables even when you travel. Using an inventory app to store item photos and receipts can make future claims smoother.
5. Home-Based Business Coverage
If you run a business out of your home or use specialized equipment for remote work, your standard policy may not offer enough coverage. Most homeowners policies cover only $2,500 of business property at home and $500 off-site — limits that fall short for most modern work setups.
A home-based business rider can increase coverage for equipment, supplies, and inventory to $10,000–$25,000. For those who invite clients into their home, a separate home business policy adds essential liability protection. Recent policy changes often exclude equipment used by remote employees unless an endorsement is in place. Keep in mind that this type of rider doesn’t replace professional liability insurance, so consultants, freelancers, and small business owners may still need separate policies. Additional add-on options include business interruption coverage, cyber protection, and inventory coverage for those who sell goods from home.
Final Thoughts
Riders aren’t simply optional upgrades — they’re strategic safeguards that help protect you from large, unexpected expenses. As natural disasters grow more intense, inflation drives up rebuilding costs, and building regulations become more complex, endorsements ensure your policy keeps pace with real-world risks.
Make a habit of reviewing your policy each year, especially after big purchases, renovations, or life changes. Keeping digital records of receipts, appraisals, and home inventory lists can simplify claims and speed up reimbursement. And don’t forget: bundling policies can sometimes reduce premiums by as much as 20%.
If you’d like help reviewing your coverage or want to explore whether any of these riders fit your needs, feel free to reach out anytime.