Understanding Home Insurance Riders: What Is Worth the Extra Coverage?

What if you could finally give your home the protection it deserves?
You already protect your house with home insurance designed to protect it from the most common threats. Depending on where you live, though, your house may face other threats, including fires, floods, and earthquakes, that are not among the covered perils in your policy. When such disasters strike, you may be left with a costly bill you have to pay out-of-pocket.
It is possible to enhance your policy protection with the right home insurance riders. Unfortunately, the average homeowner does not know much about what these riders are and why they are important — at least, until it is too late and the disaster has passed.
Ready to learn about which forms of additional homeowners coverage are worth buying and which are worth skipping? And which common insurance riders are available to most homeowners? Keep reading to discover everything you need to know.
What Are Home Insurance Riders?
An insurance rider, simply put, is an add-on that you purchase for an existing policy. While “rider” is the most common term, these add-ons are sometimes referred to as home insurance endorsements. Regardless of the term your carrier uses, this extra home insurance coverage is designed as a way for you to supplement an existing policy and provide your house with additional financial protection.
Riders provide additional protection, but they come with an additional cost. Because of that, it is important to carefully weigh whether you want the feeling of security that comes from having a more robust policy or whether you would prefer to save money on your premium each month by not getting a rider in the first place.
That is a difficult question, and the answer will vary from owner to owner. To figure it out for yourself, you must first know a bit more about the difference between riders on homeowners insurance and standard coverage.
The Difference Between Riders and Standard Coverage
The primary difference between riders on homeowners insurance and standard coverage is that the riders cover a single, specific threat and your regular policy covers an entire range of threats. For example, if you check your current policy right now, you will discover a list of covered perils. If one of these perils affects your property, your policy will cover it, but if something happens that is not listed, you may be stuck footing the bill.
Riders are designed to cover perils that standard policies do not, which is why you can typically purchase additional homeowners coverage to protect against things like floods, earthquakes, and other major threats. With the rider in place, you will not have to worry about whether that specific peril will be covered when you file your claim.
Identifying the Need for Additional Protection
It is one thing to simply know that home insurance endorsements exist and another thing to know whether or not you actually need them. How, then, can you tell that you need a rider? For natural disasters, you need to consider how often they happen in your state and the risk to your home. Flood and earthquake riders, for example, might be unnecessary for those who live in areas that are not prone to floods and quakes but vitally necessary for those who are at major risk of these natural disasters.
Knowing whether to get a special rider also means knowing what the limits of your current policy are and whether your lifestyle demands additional protection. For example, those who own many high-value items (such as a major jewelry or art collection) may find that they need more financial protection than their standard coverage offers. In this case, a rider can provide peace of mind whenever the owner has to leave the house.
Some reasons you may need to consider additional home protection do not have anything to do with natural disasters, such as an expensive renovation or a decision to begin investing in art or antiques.
To decide whether or not additional protection is the right choice for you, it is important to know the common insurance riders available to most homeowners.
Common Types of Home Insurance Riders
Some insurance riders are designed to protect against natural disasters, including flood and earthquake endorsements. Another popular option is scheduled personal property riders, which allow you to purchase enhanced protection for your personal property. This is designed for high-value items or large collections whose value surpasses the limits of standard coverage.
Other than those, the most common riders are designed to protect your home against more uncommon forms of damage. For example, water backup endorsements can protect your home from damage caused by clogged pipes (something often not covered by a standard policy). And building code coverage helps protect older houses, covering the additional cost of repairs to help bring everything up to the most recent building code requirements.
Keep in mind that these riders do not take the place of regular maintenance in and outside of your home. If your pipes have been leaking or exhibiting signs of slow drainage for some time and you have not had a professional in to fix the problem, your claim may be denied. Not taking care of issues around your home that may turn into a larger problem are one of the reasons your homeowners insurance may not pay out.
Benefits of Adding Riders to Your Policy
If you are still on the fence about whether you need extra home insurance coverage, it may help to know the specific benefits of adding riders to your policy. The biggest and most obvious advantage is that you will have more coverage protecting your house and personal property. Furthermore, some homeowners end up saving money because a rider makes it easier to protect precious belongings compared to other solutions, such as buying an entirely separate policy.
The right policy can also protect your property from accidental loss, something that most standard policies do not cover. Finally, most riders come with low deductibles and some have no deductible, giving you one less thing to worry about if you have to file a claim.
Mistakes to Avoid When Selecting Home Insurance Riders
The primary mistake to avoid with home insurance riders is buying them when you do not need them. If your area has never had any earthquakes or floods, for example, buying separate endorsements for these natural disasters may be unnecessary. And unless you have very expensive items that your home limits will not cover, then scheduled property riders may be equally unnecessary.
Secure Coverage for Your Home
Now you know the most important things about home insurance riders, including what your options are and how they work. You also know how to decide whether or not you really need this extra coverage. However, do you know who you can trust when it comes to protecting your home from future disasters?
At InsureOne, we believe you should never have to choose between great insurance prices and superior service. Ready to stop compromising, get the customer service you deserve and give your home the protection it needs? When you are ready, get a quote online. Additionally, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to find an InsureOne office near you.