Many homeowners assume their insurance policy covers just about anything that could go wrong. Unfortunately, the reality often becomes clear only when it’s time to file a claim. Some of the most costly types of damage require additional protection in the form of home insurance riders, also known as endorsements or floaters. These optional add-ons can easily be missed, but when something unexpected happens, they can make a major financial difference.
As homes age and extreme weather events become more frequent, riders have grown increasingly important. Flooding now accounts for the majority of natural disasters in the United States, building standards continue to tighten, and even minor earth movement can create structural issues that a standard policy won’t cover. With more people working remotely, running businesses from home, and owning valuable electronics and personal items, reviewing your insurance annually is more important than ever.
Below are several home insurance riders worth exploring — and why each may be essential.
1. Flood Insurance and Water Damage Protection
Typical homeowners insurance won’t pay for flood damage caused by water entering from outside your home or for water-related issues that weren’t accidental or sudden. If you live in a flood-prone area, a dedicated flood policy is often a must. In some regions, it may even be required by your lender. But even homeowners outside designated high-risk zones face growing risk as severe weather events become more common.
A water-backup rider adds another layer of financial protection by covering sewer or sump pump backups and groundwater damage. While these situations aren’t technically considered flooding under most policies, they can cause just as much destruction.
Flood insurance through FEMA’s National Flood Insurance Program (NFIP) typically costs around $899 per year, offering up to $250,000 in building coverage and $100,000 for personal belongings. Homeowners who need higher limits may find more flexible options from private insurers, which can be especially helpful in areas where rebuilding costs exceed NFIP limits. Because nearly one-third of flood claims happen outside high-risk areas, even those who believe they’re safe could still benefit from coverage.
Water-backup endorsements generally range from $50 to $250 annually and can provide $5,000–$25,000 in coverage. Since insurers differentiate between water-backup events and flooding, it’s important to clarify how your policy defines each one. Installing preventative devices such as backflow valves or a sump pump with battery backup can sometimes qualify you for discounts of 5%–10% on your rider.
2. Earthquake and Seismic Protection
Most standard homeowners policies exclude earthquake-related damage unless you specifically add coverage. If you live in a region known for seismic activity, this coverage may be required. Even if your home isn’t in a high-risk zone, earth movement — including minor tremors — can still create expensive structural and plumbing problems.
Many major insurers offer earthquake coverage as a standalone policy or endorsement, particularly in states such as California, Oregon, and Washington, as well as parts of the Midwest. Deductibles typically fall between 2% and 20% of the insured value of the home. For a property insured at $500,000, that means paying $50,000–$100,000 out of pocket before coverage begins. While the deductible is substantial, it’s often far less than the cost to repair foundation or structural damage.
Some earthquake riders also cover emergency stabilization and debris removal, offering immediate assistance after a seismic event.
3. Building Code and Ordinance Upgrade Coverage
If you ever need to repair or rebuild part of your home after damage, current building codes must be met — even if your home didn’t previously comply with updated standards. This means even small repairs can trigger extensive upgrades throughout the home. Without this coverage, the additional cost of those improvements falls on you.
Today’s building codes evolve quickly, particularly around insulation, electrical work, plumbing standards, energy efficiency, and structural safety. These required upgrades can increase reconstruction expenses by 10%–20%. Basic homeowners insurance usually doesn’t cover these additional costs.
Ordinance or Law riders typically provide an additional 10%, 25%, or 50% of your dwelling limit to account for these mandated improvements. Even a small fire in one room may trigger upgrades throughout the rest of the house — including areas unaffected by the event. Ask your insurance provider whether your policy includes coverage for “increased cost of construction” to avoid unexpected expenses.
4. Scheduled Personal Property for Valuables
Most homeowners policies cap reimbursement for certain valuables such as jewelry, collectibles, fine art, or high-end electronics. If you keep items in your home that exceed those limits, scheduling them through a rider ensures they are covered at their full appraised value.
Common coverage limits for valuables can be surprisingly low — often $1,500 for jewelry, $2,000–$5,000 for firearms, and around $2,500 for silverware. Scheduling items upgrades your coverage to “all-risk,” meaning your belongings are protected against theft, damage, and even accidental loss.
Premiums usually run about $1–$2 per $100 of insured value, so insuring $10,000 worth of jewelry might cost around $200 annually. Most insurers require updated appraisals every few years to keep valuations accurate. Many scheduled property riders also extend worldwide coverage, making them especially useful for frequent travelers.
Keeping a digital inventory with photos and receipts can simplify the claims process if you ever need to file one.
5. Coverage for Home-Based Businesses
If you operate a business from your home, your standard homeowners policy likely provides only minimal protection for equipment or inventory. A rider designed for home-based businesses can fill that gap by covering items related to your operations.
Standard policies often include just $2,500 of business property coverage inside the home and $500 for items off-site — not nearly enough for most modern home offices. A business property endorsement can increase limits to $10,000–$25,000. For entrepreneurs who need even broader protection, a separate home business policy extends liability coverage, which is particularly important if clients visit your home.
Many policies updated after 2020 specifically exclude coverage for remote-work equipment unless an endorsement is added, so reviewing your policy carefully is essential. Depending on your work type, you may also need additional options, such as coverage for business interruption, cyber protection, or inventory loss.
Final Thoughts
Insurance riders aren’t simply optional extras — they are strategic tools that help protect you from major financial surprises. As natural disasters, inflation, and building regulations continue to evolve, endorsements help ensure your policy reflects real-world risks. Reviewing your coverage annually — especially after home upgrades, major purchases, or changes in your lifestyle — is one of the best ways to stay protected.
Storing digital documentation, receipts, and home inventories can make filing a claim much smoother. Bundling your policies may also help reduce premiums by as much as 20%.
If you’d like help reviewing your current coverage or exploring whether any of these riders are right for you, feel free to reach out anytime.
