Many homeowners believe their insurance policy covers every possible scenario—right up until they file a claim and discover large gaps in their protection. That’s where home insurance riders come in. Also called endorsements or floaters, these optional add-ons help safeguard you from costly risks that standard policies often exclude. While they’re easy to forget about, riders can make a life-changing difference when unexpected damage occurs.
As homes age and severe weather becomes more common, supplemental coverage has become increasingly important. Flooding now plays a role in nearly 90% of all natural disasters in the U.S., building codes continue to evolve, and even small earthquakes can cause structural issues not covered by the average policy. Add in today’s higher-value belongings, widespread remote work, and growing home-based businesses, and reviewing your policy each year becomes a crucial step in protecting your financial wellbeing.
Below are several home insurance riders worth exploring—and why they may be essential for your peace of mind.
1. Flood Insurance and Water Damage Protection
Most standard homeowners policies exclude flood damage, especially when water originates from outside the home. If you live in an area where flooding is possible, purchasing separate flood coverage is one of the most important steps you can take. For those in high-risk zones, flood insurance may even be mandatory. And because flood severity has been rising nationwide, even homeowners outside these zones face significant risk.
A standalone flood policy, such as one through FEMA’s National Flood Insurance Program (NFIP), typically costs around $899 per year and offers up to $250,000 in structural coverage and $100,000 for personal belongings. Private insurers may offer more flexible coverage limits or quicker claims processing—an advantage in regions where rebuilding costs exceed federal caps. It’s also worth noting that roughly one-third of flood claims occur outside designated high-risk areas, making broader coverage a smart consideration for many homeowners.
A water-backup rider is another valuable add-on. It protects you from sewer backups, sump-pump failures, and groundwater intrusion, which are typically not included under flood insurance or the base homeowners policy. These riders usually cost between $50 and $250 per year and often provide $5,000 to $25,000 in coverage. Because insurers draw a clear distinction between surface flooding and water backup, reviewing how your policy categorizes different types of water damage is essential. Upgrading your sump pump system or installing backflow valves may even qualify you for a small discount on this endorsement.
2. Earthquake and Seismic Protection
Earthquake damage is another common exclusion in standard home insurance policies. To be covered, you typically need to add specialized seismic protection. Homeowners in states like California, Washington, and Oregon may be familiar with the recommendation—or requirement—to carry this coverage. However, even people outside high-risk regions can experience tremors or shifting soil that lead to significant structural damage.
Earthquake insurance is often offered as an endorsement or a separate policy. Deductibles usually range from 2% to 20% of the insured home value. That means a $500,000 home may carry a $50,000 to $100,000 deductible—high, but still far less than the potential cost of repairing a cracked foundation or reinforcing damaged walls. Many policies also help pay for emergency repairs, temporary safety measures, and debris removal immediately following a seismic event.
3. Building Code and Ordinance Upgrade Coverage
If your home is damaged and requires repairs, rebuilding will need to meet today’s building code standards—even if your home was compliant when it was originally built. Without the proper rider in place, you may be responsible for the upgrade costs yourself. A building code or ordinance rider helps bridge that gap.
Modern requirements for wiring, insulation, plumbing, structural reinforcements, and HVAC efficiency have grown more robust over time. These updates can increase rebuilding expenses by 10% to 20%, and most standard policies don’t account for that difference. An ordinance or law endorsement typically adds 10%, 25%, or even 50% of your dwelling coverage limit to accommodate code-related improvements. Even damage to a single room can trigger updates throughout the home, including undamaged spaces. Ask your insurance agent whether your policy includes language covering “increased cost of construction,” as this can significantly reduce unexpected out-of-pocket expenses.
4. Scheduled Personal Property for Valuable Items
Homeowners policies often place strict reimbursement limits on valuables such as jewelry, antiques, collectibles, and high-end electronics. If you own items that exceed those limits, a scheduled personal property rider allows you to insure them individually at their full, appraised value.
Typical sublimits—such as $1,500 per jewelry item or $2,500 for silverware—may not come close to the value of your possessions. Scheduling items provides broader “all-risk” protection that covers theft, accidental loss, and damage. Expect premiums of about $1 to $2 per $100 of insured value—for example, around $200 per year for $10,000 worth of jewelry. Appraisals every few years help ensure your coverage remains accurate, and many policies extend protection while you travel. Keeping digital copies of receipts and photos can also make future claims easier to process.
5. Home-Based Business and Remote Work Coverage
If you run a business from home or store business-related equipment there, your homeowners policy may not offer sufficient coverage. Standard policies typically insure only $2,500 of business property at home and just $500 when that property is off-site. A home-based business rider can increase those limits to $10,000 to $25,000 or more, depending on your needs.
For remote workers, recent policy updates may exclude coverage for company-owned equipment unless a specific endorsement is added. If clients visit your home, consider a broader home business policy that includes liability protection—something a business property rider alone won’t provide. Depending on the nature of your work, additional protections such as cyber liability, business interruption, or inventory coverage may also be helpful.
Final Thoughts
Home insurance riders aren’t simply optional extras—they’re strategic safeguards that help shield you from expensive surprises. With rising repair costs, evolving building standards, and increasingly unpredictable weather, adding the right endorsements ensures your coverage keeps pace with today’s risks.
It’s wise to review your policy every year or after major life events such as renovations, big purchases, or business changes. Maintaining organized digital records, receipts, and home inventories makes claims more efficient, and bundling policies can often reduce your overall premiums.
If you’re interested in reviewing your current coverage or determining whether these riders might make sense for your home, we’re always happy to help.