Overlooked Home Insurance Riders: Are You Missing Crucial Coverage?

Many homeowners believe their insurance will step in for almost any kind of damage — but that’s not always the case. Some of the most expensive risks fall outside standard policies and require additional protection. These optional add-ons, often called riders, endorsements, or floaters, can be easy to forget but make a major difference when the unexpected happens.

With severe weather on the rise and aging homes facing new vulnerabilities, the need for riders has grown significantly. Flooding now plays a role in the vast majority of natural disasters in the U.S., building requirements continue to get stricter, and even minor earthquakes can create structural issues not covered by a basic policy. On top of that, more people own high-value belongings and work from home, making annual coverage reviews an essential part of financial planning.

Below are several key riders to consider — and why they deserve a closer look.

1. Flood Insurance and Water Damage Protection

Typical homeowners insurance doesn’t cover flooding from external sources or water-related damage that isn’t sudden. If your property is in an area prone to flooding, a separate flood insurance policy is essential. In some high‑risk zones, your lender may even require it. But with flood events widening in scope and intensity, many homeowners outside of designated floodplains also need this extra layer of protection. A water-backup endorsement helps cover damage from sump-pump failures, sewer backups, and groundwater intrusion.

Flood insurance through FEMA’s National Flood Insurance Program (NFIP) averages around $899 per year and offers up to $250,000 in structural coverage and $100,000 for belongings. Private flood insurers may provide better limits or faster payouts, which is especially valuable if local rebuilding costs exceed NFIP boundaries. Since roughly one-third of flood claims come from outside high‑risk zones, even those who don’t consider themselves vulnerable may still face significant risk.

Water-backup riders usually cost between $50 and $250 per year and generally add $5,000–$25,000 in coverage for damage tied to backups or pump failures. Because insurers treat flooding and water backup as separate issues, be sure you understand how your policy defines each event. Installing a backflow valve or a battery-supported sump pump may help you qualify for discounts of 5%–10% on your endorsement.

2. Earthquake and Seismic Coverage

Earthquake-related damage isn’t typically included in a standard homeowner policy. If you live in a region with higher seismic activity, dedicated earthquake insurance may be required. But even areas considered low- or moderate-risk can experience tremors that affect your home’s foundation, plumbing, or structure — making a seismic rider a smart way to strengthen your protection.

Most major carriers offer earthquake policies or endorsements, particularly in states such as California, Washington, and Oregon, as well as some parts of the Midwest. Deductibles for these policies are usually calculated as 2%–20% of your home’s insured value. For example, if your home is insured for $500,000, your deductible might fall between $50,000 and $100,000. Although that may seem high, repairs to foundations, walls, or masonry can be far more expensive. Many riders also include emergency services and debris removal, which can help reduce immediate costs after a quake.

3. Building Code and Ordinance Upgrade Coverage

If damage requires you to repair or rebuild your home, you may also be required to bring the entire structure up to current building codes. Even a small repair can trigger expensive upgrades. Without proper coverage, the added cost of these mandatory improvements comes directly out of your pocket. A building code or ordinance rider helps offset these additional expenses.

Building standards change frequently — especially in the areas of insulation, electrical work, plumbing, energy efficiency, and overall structural design. These mandated improvements can add 10%–20% to rebuilding costs, and basic policies rarely account for this difference. Ordinance or Law riders typically offer extra coverage equal to 10%, 25%, or 50% of your dwelling limit, giving you flexibility for required updates. Something as simple as a kitchen fire could mean code updates for your entire home, including sections that weren’t damaged. Ask your agent whether your policy includes “increased cost of construction” language so you’re not left paying for upgrades on your own.

4. Scheduled Personal Property for High-Value Items

Most standard policies place strict limits on reimbursement for valuable belongings like jewelry, art, electronics, and collectibles. If you own high-dollar items, a scheduled personal property rider allows you to list and insure each piece individually at its appraised value.

Standard sublimits can be surprisingly low — often around $1,500 per jewelry item, $2,000–$5,000 total for firearms, and $2,500 for silverware. Scheduling items gives you broader protection, often covering theft, loss, and accidental breakage. Rates typically run about $1–$2 per $100 of insured value. That means a $10,000 jewelry collection might cost roughly $200 a year to insure. Updating appraisals every few years helps maintain accurate coverage, and many policies extend protection worldwide. Using a home inventory tool to keep photos and receipts in one place makes the claims process much smoother.

5. Home-Based Business Coverage

If you operate a business from home, store inventory there, or rely on specialized equipment, your standard policy may not provide enough protection. A business property rider can help cover materials, gear, or liability connected to your operations.

Typical homeowners policies only offer around $2,500 of coverage for business items stored at home — and even less when the items are off-site. A rider can increase this protection to $10,000–$25,000. A separate home business policy adds liability coverage, which is crucial if customers or clients visit your property. Many policies written after 2020 also exclude coverage for remote employees’ equipment unless you add an endorsement. Keep in mind that business property riders don’t replace professional liability coverage, so freelancers and consultants may need additional policies. Other useful add-ons include business interruption protection, cyber and data coverage, and inventory insurance for those selling physical products.

Final Thoughts

Insurance riders aren’t just optional extras — they’re targeted protections designed to reduce your financial exposure during major events. As natural disasters intensify, inflation rises, and building codes continue to evolve, endorsements help ensure that your coverage keeps up with real-world risks. Revisit your policy every year, especially after major upgrades, purchases, or life changes. Keeping digital records, receipts, and a home inventory can make claims easier, and bundling your insurance policies may save you up to 20% in premiums.

If you’d like help reviewing your coverage or determining which riders might benefit you, we’re always here to help.