Many homeowners believe their insurance policy covers just about everything, only to discover during a claim that key risks require extra protection. These optional add-ons — often called riders, endorsements, or floaters — don’t always get the attention they deserve, but they can prevent major out-of-pocket costs when something unexpected happens.
As weather patterns shift, severe storms increase, and homes continue to age, these add-on protections have become more valuable than ever. Flooding now plays a role in most U.S. natural disasters, building standards have grown more demanding, and even small seismic movements can cause damage a standard policy won’t cover. With the rise of remote work, home-based businesses, and high-value personal items, reviewing your policy each year is one of the smartest financial steps you can take.
Below are several important riders to consider and how they can strengthen your coverage.
1. Flood Insurance and Water Damage Protection
Typical homeowners policies exclude damage caused by floodwater coming from outside the home or from water issues that aren’t sudden or accidental. For those living in flood-prone areas, a separate flood policy is essential — and in many cases required. But even homeowners outside designated flood zones may face risks as flooding events become more widespread.
A flood policy can be purchased through FEMA’s National Flood Insurance Program (NFIP), which averages around $899 annually and offers up to $250,000 in structural coverage and $100,000 for belongings. Private insurers may provide higher limits or quicker claim payouts, which is beneficial in areas with higher rebuild costs. Since roughly one-third of flood claims come from outside official high-risk zones, relying on location alone can leave you exposed.
Adding a water-backup rider is also important. This endorsement protects against damage from sump pump failures, sewer backups, and groundwater seepage — issues that aren’t covered under most flood policies. These riders typically cost between $50 and $250 per year and often provide $5,000–$25,000 in protection. Because insurers treat “flooding” and “water backup” as separate events, it’s worth reviewing your policy language so you understand what qualifies under each. In some cases, installing backflow devices or a battery-assisted sump pump can earn small discounts on this endorsement.
2. Earthquake and Seismic Endorsements
Damage caused by earthquakes usually isn’t covered under a standard homeowners policy unless you purchase additional protection. For residents of states with high seismic activity, this type of coverage may even be required. But it can still be worthwhile in areas that don’t see frequent earthquakes, as minor ground shifting can harm your foundation, plumbing, or home structure.
Most major insurers offer earthquake protection either as a standalone policy or an added endorsement. In states such as California, Washington, and Oregon, as well as portions of the Midwest, this coverage is especially common. Deductibles typically range from 2%–20% of your home’s insured value. For example, on a home insured for $500,000, the deductible could be $50,000–$100,000. Although this may seem steep, repairing structural damage after a quake can be far more expensive.
Many policies with seismic coverage also include debris removal and emergency repairs, reducing the immediate financial burden following an event. If earthquakes are even a remote possibility where you live, this endorsement provides an added layer of security.
3. Building Code and Ordinance Upgrade Coverage
If your home is damaged and needs repairs, it must be brought up to the current building code — even if the original construction predated modern standards. Without a rider that covers these updates, you may be responsible for the added costs of compliance.
Building codes change frequently, especially in areas like plumbing, electrical systems, insulation, heating and cooling, and structural safety. These required upgrades can easily add 10%–20% to rebuild costs, yet standard homeowners policies generally do not cover the difference. Ordinance or Law riders typically offer an additional 10%, 25%, or 50% of your dwelling coverage limit to help account for these mandated improvements.
Even a small fire or plumbing issue can trigger updates across your home, sometimes beyond the affected area. Asking your agent whether your policy includes “increased cost of construction” coverage ensures you’re protected from these unexpected expenses.
4. Scheduled Personal Property for Valuable Items
Homeowners insurance comes with caps on reimbursement for valuables like jewelry, collectibles, electronics, and fine metals. If you own high-value items, you may need added protection beyond the standard limits. A scheduled personal property rider allows you to individually list valuable belongings and insure them for their appraised worth.
Most policies have low limits — for example, around $1,500 per jewelry item or $2,500 for silverware — which isn’t enough for most high-end pieces. Scheduling these items provides broader, often “all-risk,” coverage that includes theft, accidental damage, and mysterious disappearance.
Premiums usually fall between $1 and $2 per $100 of insured value. That means about $200 annually to insure $10,000 worth of jewelry. Updating appraisals every few years helps keep coverage accurate, and many insurers extend protection worldwide. Using a home-inventory app to store receipts and photos can make filing a claim significantly easier.
5. Home-Based Business Coverage
If you run a business from your home or keep work-related equipment on-site, your regular homeowners policy may not offer enough protection. A business property rider can help safeguard business assets, inventory, or equipment tied to your operations.
Standard homeowners coverage often includes only $2,500 for business property inside the home and just $500 outside of it — an amount that falls short for most modern home offices. A rider can increase this coverage to $10,000–$25,000. For those who host clients at home or need liability protection, a separate home business policy may be the better option.
Some insurers no longer cover “remote workers” under standard equipment protections without endorsement updates. And while these riders are helpful, they do not replace professional liability insurance, which consultants or freelancers may still need. Additional options include cyber protection, business interruption coverage, and inventory protection for product-based businesses.
Final Thoughts
Riders aren’t simply optional extras — they provide targeted protection that fills major gaps in standard homeowners policies. With rising construction costs, evolving building codes, and more frequent natural disasters, these additional endorsements help ensure your coverage keeps up with real-world risks. Be sure to review your policy each year, especially after renovating, making major purchases, or experiencing significant life changes.
Maintaining digital records, receipts, and home inventories can simplify claims, and bundling insurance policies may even lower your premiums. If you’d like help reviewing your current coverage to determine which riders make sense, feel free to reach out anytime.
