Important Home Insurance Riders You Might Be Overlooking

Many homeowners assume their standard insurance policy provides full protection, only to discover the opposite when they file a claim. Some of the most expensive types of damage fall outside basic coverage and require special add-ons. These optional protections — often referred to as riders, endorsements, or floaters — can easily be missed but make a major difference when unexpected issues arise.

As severe weather events grow more common and homes continue to age, these additional layers of coverage have become increasingly important. Floods now play a role in the majority of U.S. natural disasters, construction codes have tightened dramatically, and even minor seismic activity can create structural damage that isn’t covered by a standard policy. With more households storing high-value items and running businesses from home, reviewing your insurance each year is a smart financial move.

Below are several riders worth evaluating and why they matter for protecting your home.

1. Flood Insurance and Water Damage Coverage

Typical homeowners policies don’t cover flooding that originates outside your home or water-related damage that isn’t sudden and accidental. For anyone in a flood-prone area, a separate flood policy is essential — and sometimes required. Given how widespread flooding has become, even homeowners outside designated flood zones face meaningful risk. Pairing flood insurance with a water-backup endorsement can offer added security, especially for sewer, sump pump, or groundwater issues.

Flood insurance through FEMA’s National Flood Insurance Program (NFIP) averages around $899 annually and covers up to $250,000 for the structure and $100,000 for personal belongings. Some private insurers offer higher limits or faster claims processing, which can be helpful if rebuilding costs exceed NFIP guidelines. Since many flood claims occur in moderate or low-risk areas, homeowners shouldn’t assume they’re fully protected without reviewing their policy.

Water-backup riders generally cost between $50 and $250 per year and typically provide $5,000 to $25,000 in protection for backup-related damage. Because insurers draw a clear line between surface flooding (covered by flood insurance) and backup issues (covered by an endorsement), understanding how your policy defines each scenario is essential. Installing features like backflow preventers or a battery-powered sump pump can sometimes qualify you for a small discount on this coverage.

2. Earthquake and Seismic Coverage

Damage caused by earthquakes is rarely included in standard homeowners policies. If you live somewhere with a high risk of seismic activity, earthquake coverage may be mandatory. But even in areas not known for frequent quakes, ground movement can still cause structural problems. Adding a seismic rider can offer valuable peace of mind.

Many large insurers sell earthquake protection either as an endorsement or as a separate policy. This is especially common in states such as California, Washington, Oregon, and parts of the Midwest. Deductibles often range from 2% to 20% of your home’s insured value, which means coverage for a $500,000 home may come with a $50,000–$100,000 deductible. While that sounds high, structural repairs after an earthquake can far exceed these numbers. Some endorsements also help cover immediate costs like debris removal or temporary repairs.

3. Building Code and Ordinance Upgrade Riders

If your home ever needs repairs or reconstruction, current building codes will apply. If your house didn’t meet today’s standards before the damage occurred, the required upgrades can be surprisingly expensive. Without a building code or ordinance rider, homeowners are often left to pay these additional costs themselves.

Building codes change frequently and can significantly increase repair expenses — especially upgrades related to plumbing, wiring, insulation, and structural systems. These improvements can add 10% to 20% to the total rebuild cost. Ordinance or Law riders usually offer extra coverage at levels like 10%, 25%, or 50% of your dwelling limit to help offset these expenses. Even a small fire in one part of the home can trigger full-code compliance across areas that weren’t damaged, so it’s wise to confirm whether your policy includes coverage for increased construction costs.

4. Scheduled Personal Property for High-Value Items

Most homeowners policies place strict limits on reimbursements for valuables such as jewelry, collectibles, art, and electronics. If you own expensive personal items, a scheduled personal property rider allows you to individually list and insure them at their appraised value.

Basic policies often cap coverage at low amounts — for example, around $1,500 per jewelry item or just a few thousand dollars in total for certain categories. Scheduling your valuables typically provides broader “all-risk” protection, meaning loss, theft, and accidental damage are usually included. Pricing commonly falls around $1–$2 per $100 of insured value, or about $200 per year for $10,000 in jewelry. Regular appraisals help keep values updated, and many policies extend protection globally, which is helpful when traveling. Keeping digital photos and receipts stored in a home inventory system also speeds up claims.

5. Protection for Home-Based Businesses

If you run a business from your home, your current insurance may not adequately cover work-related property. A business property rider can help safeguard equipment, inventory, and materials tied to your operations.

Most standard homeowners policies only include around $2,500 in business property coverage inside the home and about $500 for items taken off-site. A rider can raise that limit substantially, often up to $10,000–$25,000. For businesses that involve client visits, a standalone home business policy may be a better fit since it adds liability protection. Some newer policies don’t automatically cover remote work equipment unless a rider is added. Depending on your type of business, you may also need additional protections such as cyber coverage, professional liability, or business interruption insurance.

Final Thoughts

Riders aren’t optional extras — they’re important safety nets that help protect you from large, unexpected expenses. As weather patterns shift, inflation rises, and building codes evolve, endorsements ensure your coverage stays aligned with true risks. Make a habit of reviewing your policy every year, especially after major purchases or renovations. Keeping digital documentation and a home inventory makes the claims process easier, and bundling policies can lead to meaningful savings.

If you’d like help evaluating your coverage and determining whether any of these riders are a good fit, we’re always here to assist.