Many homeowners believe their insurance policy automatically covers every possible threat, only to discover during a claim that some of the biggest risks require additional protection. These optional add-ons—commonly called riders, endorsements, or floaters—can be easy to overlook but may save you a significant amount of money when something unexpected happens.
As homes age and extreme weather becomes more frequent, these riders are more important than ever. Flooding is involved in the vast majority of natural disasters in the U.S., building codes continue to tighten, and even small seismic shifts can lead to costly structural issues not included in a typical policy. And with more people owning high-value items, running businesses from home, or working remotely, reviewing your coverage each year is one of the smartest steps you can take to stay protected.
Below are several commonly overlooked riders and why they may be worth adding to your policy.
1. Flood Insurance and Water Damage Protection
A standard homeowners policy usually doesn’t cover flooding from outside your home or water damage that isn’t sudden or accidental. If you live in an area prone to flood risk, a separate flood policy is often necessary—and sometimes required. But given how widespread flooding has become, even homeowners outside designated flood zones may want additional coverage.
Federal flood insurance through FEMA’s National Flood Insurance Program (NFIP) typically costs around $899 per year and offers up to $250,000 in structural coverage and $100,000 in personal property protection. Private insurers may extend higher limits or offer quicker payouts, which can be especially helpful in regions with high rebuild costs. Because about one-third of all flood claims come from outside high-risk areas, relying on your zone designation alone can leave you exposed.
A water-backup endorsement provides another layer of defense by covering sewer or sump-pump backups and groundwater intrusion. These riders generally cost $50–$250 per year and often include $5,000–$25,000 in coverage. Since insurers differentiate between flooding from surface water and backup-related damage, it’s important to clarify how your policy defines each scenario. You may also qualify for discounts if you install protective features like backflow valves or battery-powered sump pumps.
2. Earthquake and Seismic Coverage
Damage caused by earthquakes is usually excluded unless you’ve added a specific rider or separate policy. In high-risk areas, such as parts of California, Washington, and Oregon, seismic coverage may be strongly recommended—or even required. But even in regions considered low risk, ground shifts and minor tremors can still crack foundations, damage plumbing, and affect structural integrity.
Most major insurers offer earthquake protection either as a standalone policy or an endorsement. Deductibles often fall between 2% and 20% of your home’s insured value, which means a $500,000 home could have a deductible of $10,000–$100,000. Although the deductible may seem high, earthquake repair costs can easily exceed that amount. Many policies also include extras such as debris removal and emergency repair coverage, which can help minimize immediate out-of-pocket expenses.
3. Building Code and Ordinance Upgrade Coverage
If your home is damaged and needs repairs, you may also be required to bring the entire structure up to current building codes—even if only one part of the home was affected. Without a building code or ordinance rider, the additional costs associated with these updates are typically your responsibility.
Modern codes evolve quickly, especially regarding electrical systems, insulation, plumbing, HVAC efficiency, and structural safety. These updates can add 10%–20% to the total cost of repairs or reconstruction. Ordinance or Law riders often provide 10%, 25%, or 50% of your dwelling coverage limit, giving you room to handle these mandated improvements. Even small incidents—such as a kitchen fire—can trigger major code-related upgrades throughout the home. Ask your insurance provider whether your current policy includes “increased cost of construction” coverage to avoid surprises later.
4. Scheduled Personal Property for High-Value Items
Most homeowners policies include strict limits for valuables like jewelry, electronics, collectibles, and specialty items. If your items exceed those limits, scheduling them individually can ensure full protection at their appraised value.
Typical policies cap individual jewelry claims at around $1,500 and often limit firearms, silverware, and other valuables to a few thousand dollars total. Scheduling your property gives you broader “all-risk” protection, including theft, accidental loss, and damage. Costs are usually around $1–$2 per $100 of insured value—for example, roughly $200 per year to insure $10,000 in jewelry. Insurers often request an appraisal every few years to maintain accurate valuations, and many policies extend coverage worldwide, which is helpful if you travel with expensive items. Keeping a digital inventory with photos and receipts can also make claims easier to process.
5. Coverage for Home-Based Businesses
If you operate a small business out of your home, your existing homeowners policy probably doesn’t provide enough protection for equipment, inventory, or business-related liability. A business property rider can help fill that gap.
Standard policies usually include only $2,500 of business property coverage inside the home and $500 for items off-site—far less than what many remote workers or home-based businesses require. A rider can increase protection to $10,000–$25,000, and a separate home business policy can add essential liability coverage if clients or customers visit your home. Many insurers also exclude coverage for remote employees’ equipment unless an endorsement is added. Depending on your business, you may also want options like cyber protection, business interruption insurance, or inventory coverage.
Final Thoughts
Riders aren’t simply optional extras—they’re critical layers of security that help protect you from large, unexpected expenses. As natural disasters, rebuilding costs, and building requirements continue to evolve, endorsements ensure your coverage stays aligned with modern risks. Reviewing your policy annually—especially after renovations, major purchases, or life changes—can give you peace of mind and prevent costly gaps in protection.
Keeping digital copies of receipts, documents, and home inventories can make future claims smoother, and bundling policies may even help you save on premiums. If you want help reviewing your coverage or determining which riders might be right for your situation, don’t hesitate to reach out.