Important Home Insurance Riders Many Homeowners Forget to Add

Many homeowners believe their insurance offers comprehensive protection, only to discover during a claim that some of the most costly risks fall outside standard coverage. That’s where home insurance riders — sometimes called endorsements or floaters — come in. These optional add-ons can make a major difference when unexpected damage or loss occurs, yet they’re often overlooked.

With natural disasters becoming more frequent, construction standards evolving, and more people owning valuable items or running businesses from home, reviewing your policy each year is one of the smartest financial steps you can take. Below are several key riders worth evaluating, along with why they may be essential for your household.

1. Flood Insurance and Water-Related Protection

Most homeowners don’t realize that a typical policy excludes flood damage originating from outside the home. If rising water, storm runoff, or overflowing rivers impact your property, you generally won’t be covered without a separate flood policy. For households located in designated flood zones, lenders may require flood insurance — but even outside those areas, the risk is rising.

Flooding plays a role in nearly 90% of U.S. natural disasters, and the severity of these events continues to grow. FEMA’s National Flood Insurance Program (NFIP) provides coverage averaging around $899 annually, with limits up to $250,000 for the structure and $100,000 for belongings. Private insurers sometimes offer higher limits or quicker payouts, which can be valuable in regions with high rebuilding costs.

It’s also important to understand the difference between flooding and water backup. Water-backup riders protect against sewer line issues, sump-pump failures, and groundwater intrusion — events not typically covered by flood insurance. These riders usually cost $50–$250 per year and may provide $5,000–$25,000 in coverage. Since insurers differentiate between “flooding” and “backup,” it’s essential to clarify exactly how your policy defines each event. Installing protective devices like sump-pump battery backups or backflow valves may even qualify you for small discounts.

2. Earthquake and Seismic Coverage

Earthquake damage often catches homeowners off guard because many standard policies exclude it. Whether you live in a well-known seismic zone or not, earth movement can still damage foundations, plumbing, or structural components. Adding an earthquake or seismic rider ensures you’re prepared for sudden ground shifts.

In states like California, Washington, and Oregon — and even parts of the Midwest — insurers typically offer earthquake protection as a separate policy or an add-on. Deductibles tend to fall between 2% and 20% of your home’s insured value, so a $500,000 home may require you to pay $50,000–$100,000 before coverage kicks in. While that may seem high, major quake repairs often exceed these deductible amounts by a significant margin.

Many of these policies also include coverage for emergency services, temporary repairs, and debris removal immediately after a seismic event. Having these costs covered can ease the financial burden during a stressful time.

3. Building Code and Ordinance Upgrade Coverage

Building standards evolve constantly as new safety, efficiency, and structural requirements are introduced. If your home is damaged and must be repaired or rebuilt, local codes will require that the entire structure — not just the damaged section — meet current standards. Without a building code or ordinance rider, those upgrade costs fall entirely on you.

These updates can significantly increase overall rebuilding expenses, often adding 10%–20% more than the original estimate. Ordinance or Law riders typically cover 10%, 25%, or even 50% of your dwelling limit to accommodate these mandated improvements. Even a smaller incident, like a kitchen fire, may trigger full-home updates involving electrical systems, insulation, or plumbing.

To make sure your policy already includes this, ask your agent whether it has “increased cost of construction” coverage. If it doesn’t, adding this rider is a smart safeguard.

4. Scheduled Personal Property for High-Value Belongings

While homeowners insurance does cover personal items, it often imposes strict limits on certain categories. Jewelry, collectibles, electronics, and silverware — just to name a few — commonly have low sublimits. If you own valuable pieces, a scheduled personal property rider allows you to insure individual items at their appraised value.

Most policies cap reimbursement at amounts like $1,500 per jewelry item, $2,000–$5,000 total for firearms, or $2,500 for silverware. Scheduling your items provides broader “all-risk” protection, meaning loss, theft, and accidental damage are covered. Premiums typically fall around $1–$2 per $100 of insured value — about $200 per year for $10,000 in jewelry.

To keep values accurate, insurers often recommend updated appraisals every few years. Many policies also extend coverage worldwide, which is especially helpful for frequent travelers. Using a digital home-inventory tool is also beneficial, as photos and receipts can speed up the claims process.

5. Home-Based Business Coverage

Running a business from home introduces new risks that regular homeowners insurance doesn’t fully cover. Standard policies usually include just $2,500 of protection for business equipment at home and only $500 for items off-site — amounts that fall far short for most modern home workspaces.

A home-based business rider can raise these limits significantly, offering $10,000–$25,000 in protection. If your work involves meeting clients at your home, consider a dedicated home business policy, which includes liability coverage. This is especially important because many post-2020 policies no longer protect remote employees’ equipment unless an endorsement is added.

Depending on your business model, you may also need additional options like cyber liability protection, inventory coverage, or business interruption insurance. Freelancers, consultants, and online sellers in particular may benefit from layering these protections.

Final Thoughts

Home insurance riders aren’t simply “nice extras.” They help bridge critical gaps in your policy and protect you from high, unexpected expenses. As natural disasters become more common, inflation pushes repair costs higher, and building standards continue to evolve, these endorsements play an essential role in keeping your coverage up to date.

Be sure to review your policy annually — especially after major purchases, renovations, or lifestyle changes. Keeping organized digital records, receipts, and home inventories will also make any future claims smoother. And remember: bundling policies may offer savings of up to 20%.

If you’d like help reviewing your coverage or want to explore whether any of these riders would benefit you, feel free to reach out anytime.