Essential Home Insurance Riders You May Be Overlooking

Chris Osullivan | Feb 05 2026 16:00

Many homeowners believe their insurance policy protects them from every possible risk, only to discover during a claim that certain costly scenarios require extra coverage. These optional add-ons—often called riders, endorsements, or floaters—are easy to miss but can make a significant financial difference when the unexpected happens.

As severe weather becomes more frequent and homes continue to age, these supplemental protections are more important than ever. Flooding now contributes to the vast majority of natural disasters in the U.S., building requirements grow more complex each year, and even mild ground movement can result in expensive structural issues not covered by a typical policy. With more people working from home and owning high-value items, reviewing your policy each year is a smart habit.

Below are several types of riders worth considering and the role they play in protecting your home and belongings.

1. Flood Insurance and Water Damage

Standard homeowners insurance usually excludes damage caused by water entering the home from outside, as well as water issues that develop gradually. If you live in a location with any flood exposure, a dedicated flood insurance policy is an important safeguard. In high-risk flood zones, it may even be required. Given how widespread flooding has become, homeowners far from traditional floodplains are also seeing increased risk.

Policies available through FEMA’s National Flood Insurance Program (NFIP) average around $899 per year and offer coverage up to $250,000 for the structure and $100,000 for belongings. Private insurers may provide higher coverage limits or faster claim payouts, which is helpful in areas where rebuilding costs exceed NFIP limits. Since roughly one-third of flood claims happen outside high-risk zones, many homeowners who assume they’re safe may actually face substantial exposure.

A water-backup rider can add protection for sewer, sump pump, or groundwater backups—issues that flood insurance does not typically cover. These endorsements usually cost between $50 and $250 annually and offer $5,000 to $25,000 in coverage. Because insurers differentiate between types of water events, make sure your policy clearly explains these definitions. Adding backflow devices or a battery-powered sump pump may even earn a discount on your coverage.

2. Earthquake and Seismic Protection

Earthquake damage is not included in most homeowners policies unless you purchase coverage specifically for it. While this is essential in high-risk areas, even regions not known for large quakes experience ground shifting that can damage walls, plumbing, or foundations. A seismic rider can provide valuable financial protection in these situations.

Many insurers offer earthquake policies or endorsements in states like California, Washington, Oregon, and parts of the Midwest. Deductibles commonly range from 2% to 20% of your home’s insured value. For a home insured for $500,000, this could mean paying $50,000 to $100,000 out of pocket. While the deductible may seem high, repairing major structural damage can cost far more. These endorsements often include coverage for emergency repairs and debris removal as well, reducing your immediate expenses after a seismic event.

3. Building Code and Ordinance Coverage

If your home needs major repairs after a covered loss, current building codes may require updates that go beyond simply fixing the damaged area. Without additional coverage, these upgrades become your financial responsibility, even if the rest of the house was previously up to code. A building code rider helps cover these unexpected expenses.

Modern codes change frequently, especially around electrical updates, plumbing standards, HVAC performance, insulation quality, and overall structural safety. These upgrades can increase repair costs by 10% to 20%, and standard policies rarely account for this difference. Ordinance or Law riders typically offer 10%, 25%, or 50% of your dwelling limit, giving you flexibility for mandatory improvements. Even a small fire affecting one room can trigger code updates for parts of the home that weren’t damaged. Check whether your policy includes language about increased construction costs so you’re not caught off guard.

4. Scheduled Personal Property for High-Value Items

Many homeowners don’t realize their policy imposes strict limits on valuables like jewelry, collectibles, antiques, or specialty electronics. If you own high-value possessions, adding scheduled personal property coverage ensures they’re protected at their appraised value.

Typical policies cap jewelry coverage at around $1,500 per item and impose similarly low limits for items like firearms or silverware. Scheduling your valuables expands protection and often shifts them to “all-risk” status, meaning loss, theft, and accidental damage are all covered. Expect premiums of roughly $1 to $2 per $100 of insured value—about $200 per year for $10,000 worth of jewelry. Keeping appraisals current every few years ensures accurate coverage, and many policies extend this protection worldwide. Using a digital home-inventory tool to track receipts and photos simplifies the claims process significantly.

5. Home-Based Business Protection

Running a business from home has become increasingly common, but most homeowners policies provide minimal protection for business-related items. If you store inventory, equipment, or specialized tools at home, a business property rider can fill gaps in your existing coverage.

Standard policies generally include only $2,500 of business property coverage inside the home and even less off-site. A rider can raise that limit to $10,000 or $25,000, while a dedicated home business policy adds liability protection—important if clients or customers visit your home. Many newer policies also exclude coverage for remote-work equipment unless you purchase an endorsement. Keep in mind that business property riders do not replace professional liability insurance, so freelancers and consultants may need separate policies. Additional coverage options can include cyber protection, business interruption, and inventory insurance for those who sell products.

Final Thoughts

Riders are more than policy add-ons—they’re strategic tools that help shield you from significant financial setbacks. With rising repair costs, frequent natural disasters, and evolving construction standards, endorsements help ensure your policy reflects current risks. Review your coverage annually, especially after major purchases or renovations, and maintain digital records to make the claims process smoother. Bundling policies may also help you save on premiums.

If you’d like help reviewing your coverage or deciding whether these riders are right for you, feel free to reach out anytime.