Many homeowners assume their insurance policy protects them from nearly every scenario. Unfortunately, the moment a claim is filed is often when gaps become obvious. Some of the most costly risks require extra protection in the form of riders — also called endorsements or floaters — and they’re surprisingly easy to overlook. Yet these add-ons can make a significant difference when the unexpected happens.
As severe weather becomes more common and homes continue to age, the importance of these riders has only grown. Floods now play a role in the vast majority of U.S. natural disasters, building codes continue to tighten, and even minor seismic activity can cause structural issues that a standard policy may not cover. With more people working from home and owning high-value items, reviewing your insurance coverage each year is one of the simplest ways to protect your finances.
Below are several riders worth reviewing to see whether they’re a fit for your situation.
1. Flood Insurance and Water Damage Protection
Traditional homeowners insurance generally excludes flooding that originates outside the home, as well as water-related issues that aren’t sudden or accidental. If you live in an area with any level of flood risk, a separate flood insurance policy is important to ensure you’re fully protected. For homeowners in high-risk zones, this coverage may even be mandatory. But with flood severity expanding into new regions, more households need broader protection than ever.
A water-backup endorsement adds another layer of security by covering damage caused by sump-pump failures, sewer backups, and groundwater intrusion. These problems can occur even in homes with no history of flooding.
Flood insurance from FEMA’s National Flood Insurance Program (NFIP) costs an average of $899 annually and offers up to $250,000 in structural coverage and $100,000 for personal belongings. Private insurers may extend higher limits and provide quicker payouts, which can be especially helpful in areas where construction costs exceed NFIP maximums. And since roughly one in three flood claims happen outside high-risk zones, many homeowners may be more at risk than they think.
Water-backup riders typically run $50–$250 per year and cover around $5,000–$25,000 in damage. Because insurance companies usually treat surface flooding and water backup as separate events, it’s wise to confirm how your carrier defines each type of damage. Installing backflow preventers or battery-powered sump pumps may even qualify you for small discounts on this rider.
2. Earthquake and Seismic Coverage
Earthquake-related damage is usually excluded from standard homeowners plans unless you add specific coverage. If you live in a region known for seismic activity, this protection may be required, but even those outside high-risk zones can benefit. Small shifts in the ground can crack foundations, disrupt plumbing, or damage your home’s frame — all expensive to fix without proper coverage.
Many major insurers offer earthquake protection as a separate policy or add-on, especially in states like California, Oregon, and Washington, as well as certain parts of the Midwest. Deductibles often fall between 2% and 20% of the home’s insured value. For example, a $500,000 home might carry a $50,000–$100,000 deductible. While that may seem high, repair costs after even a moderate quake can easily surpass it.
Many endorsements also help pay for emergency work and debris removal, both of which can help reduce immediate financial strain after a seismic event.
3. Building Code and Ordinance Upgrade Coverage
If your home ever needs major repairs, you may be required to bring the affected areas — or even the entire structure — up to current code. Without a rider designed to cover these additional expenses, you could be responsible for paying the difference yourself.
Modern standards continue to evolve, especially for electrical wiring, plumbing, structural safety, and energy efficiency. These upgrades can easily raise rebuild costs by 10%–20%, and a typical homeowners policy won’t cover that extra expense. Ordinance or Law riders generally offer 10%, 25%, or 50% of your dwelling coverage amount to help meet these requirements. Even a small fire or isolated repair can trigger code upgrades throughout the home, including areas untouched by the initial damage.
It’s worth asking your insurance provider whether your policy includes language covering “increased cost of construction” to avoid surprises later.
4. Scheduled Personal Property for High-Value Items
Most homeowners policies place strict limits on how much they’ll reimburse for certain valuables such as jewelry, antiques, art, collectibles, or premium electronics. If you own high-end items, a scheduled personal property rider lets you list each piece separately so you’re insured for its appraised value.
Without scheduling, many policies cap valuables at low amounts — often around $1,500 per jewelry item or a few thousand dollars for firearms or silverware. Scheduling items gives you broader, often “all-risk,” protection, covering loss, theft, and accidental damage. Expect to pay around $1–$2 per $100 of value, which equates to approximately $200 per year for $10,000 worth of jewelry.
Updating appraisals every few years keeps values accurate, and many policies include worldwide protection, making this rider helpful for frequent travelers. Keeping organized records — including photos, receipts, or a digital inventory — simplifies the claims process if something happens.
5. Home-Based Business Coverage
If you run a business from your home, your homeowners policy may not extend enough coverage to safeguard your business equipment or inventory. A business property rider can help protect computers, tools, supplies, and other items tied to your operations.
Most standard homeowners plans cover only about $2,500 of business property inside the home and even less off-site. A rider can elevate that limit to $10,000–$25,000, while a dedicated home business policy also adds liability protection — crucial if customers or clients visit your home. Following recent policy changes, some insurers no longer cover equipment used by remote employees without a specific endorsement.
Keep in mind that this rider doesn’t replace professional liability coverage, so depending on your field, you may need both. Additional options like cyber protection, business interruption coverage, and inventory insurance can also help if you sell physical goods.
Final Thoughts
Riders aren’t merely add-ons — they’re important tools for filling coverage gaps and protecting your finances from major surprises. As natural disasters intensify, inflation rises, and building standards shift, endorsements help ensure your policy stays aligned with today’s risks.
Review your policy each year, especially after major changes like home updates, big purchases, or shifts in your lifestyle. Keeping digital backups of receipts and documents can make the claims process far smoother, and bundling policies may reduce your overall premiums.
If you’d like to talk through your current coverage or explore which riders might fit your needs, feel free to reach out anytime.
