Many homeowners assume their insurance policy will cover any situation that comes their way. Unfortunately, it often takes a costly claim to discover that several major risks require additional protections. These optional add-ons — often called riders, endorsements, or floaters — may not always be top‑of‑mind, but they can make a huge difference when the unexpected happens.
With natural disasters becoming more frequent and homes aging across the country, these coverage boosts are more valuable than ever. Flooding now plays a role in nearly 90% of natural disasters in the United States, and evolving building codes continue to raise the cost of repairing or rebuilding a home. Meanwhile, remote work, side businesses, and high‑value household purchases have become more common. That means reviewing your coverage yearly is now a smart financial habit rather than an optional one.
Below are several insurance riders worth exploring and how they help fill major protection gaps.
1. Flood Insurance and Water Damage Coverage
A typical homeowners policy doesn’t include coverage for flooding that comes from outside your home, nor does it protect against water damage that isn’t sudden or accidental. If your property sits in a flood-prone area, securing a separate flood policy is often essential — and in some zones, required. But with severe and widespread flooding on the rise, more homeowners outside these high‑risk areas need to consider added protection.
A water-backup endorsement provides an extra layer of defense by covering issues like sewer or sump-pump backups and groundwater seepage — events generally not included in a flood policy. This helps ensure your home is protected from multiple types of water-related damage.
The National Flood Insurance Program (NFIP), managed by FEMA, offers flood insurance averaging about $899 per year. Policies typically provide up to $250,000 in coverage for the structure and $100,000 for personal property. Many private insurers offer higher coverage limits and often process claims faster, which is particularly helpful in areas where rebuild costs exceed NFIP caps. And since roughly one in three flood claims comes from areas outside designated high‑risk zones, assuming you’re safe because you’re not “in the floodplain” can leave you exposed.
Water-backup riders usually cost between $50 and $250 annually and can offer $5,000 to $25,000 in protection. Because insurance companies treat surface flooding (covered by flood policies) differently from water backup (covered by endorsements), it’s important to verify how your insurer defines each type of event. In some cases, installing backflow preventers or a battery-powered sump pump can also earn you a 5%–10% discount on this rider.
2. Earthquake and Seismic Protection
Damage caused by earthquakes generally isn’t included in a standard homeowners policy. If you live in a region with frequent seismic activity, you may already know that earthquake coverage is recommended or required. Still, even homeowners in low-risk areas can face structural shifting, foundation cracks, or plumbing damage after a minor tremor.
Most insurance carriers offer earthquake coverage either as a stand-alone product or an add-on, especially in states like California, Oregon, and Washington, as well as certain pockets of the Midwest. Deductibles usually fall between 2% and 20% of your home’s insured value — meaning a $500,000 home might require you to cover $50,000 to $100,000 before insurance kicks in. While that may sound steep, repairing a damaged foundation or compromised walls can cost significantly more.
Many endorsements also help pay for emergency repairs and debris removal immediately after the event, reducing your upfront expenses during a stressful time.
3. Building Code and Ordinance Upgrade Coverage
If your home ever requires repair or a full rebuild due to damage, you’ll also need to bring it up to today’s building standards — even if the original construction predated those requirements. Sometimes a seemingly small repair can trigger updates throughout your entire house. Without this coverage, you are responsible for those additional costs.
Modern building codes continue to evolve, especially in areas such as energy efficiency, electrical safety, plumbing systems, HVAC performance, and structural strength. These mandated improvements can raise reconstruction costs by 10%–20% or more, and standard homeowners policies typically don’t cover that added expense.
Ordinance or Law riders generally offer 10%, 25%, or 50% of your dwelling limit to help cover these upgrades. Even a fire affecting one room may require updates throughout the home, including undamaged areas. Check with your insurance agent to confirm whether your policy includes “increased cost of construction” coverage so you’re not caught by surprise.
4. Scheduled Personal Property Coverage
Most homeowners policies cap reimbursement limits for valuable items like jewelry, collectibles, or high-end electronics. If you own expensive or sentimental items, you may need extra coverage to fully protect them. A scheduled personal property rider lets you list specific items and insure them at their appraised value.
Typical sublimits for valuables are relatively low — often around $1,500 per jewelry item, $2,000–$5,000 total for firearms, and $2,500 for silverware. Scheduling your valuables provides broader, “all‑risk” protection that includes loss, theft, and even accidental damage.
Premiums often cost $1–$2 per $100 of insured value, which means you might pay about $200 per year for $10,000 worth of jewelry coverage. Many policies extend protection worldwide, offering peace of mind while traveling. Keeping digital records — such as photos, receipts, and appraisals — can help make the claims process much simpler and faster.
5. Home-Based Business Protection
If you run a business from your home or store work-related items there, your standard homeowners policy may not provide enough coverage. A business property rider expands protection for equipment, inventory, and potential liabilities related to your home operations.
Most homeowners policies include just $2,500 of business property coverage inside the home and only $500 for items stored off-site — far less than what many remote workers or small business owners require. A rider can increase limits to $10,000–$25,000, while a separate home business policy can include liability coverage, which is crucial if clients visit your home.
After 2020, many insurers updated their policies to exclude employer-owned equipment used by remote employees unless a specific endorsement is added. Business property riders also don’t replace professional liability coverage, so freelancers, consultants, and entrepreneurs may need both. Additional add-ons like business interruption or cyber coverage can help protect against digital threats or inventory loss.
Final Thoughts
Insurance riders aren’t simply optional extras — they’re practical tools that help shield you from significant out-of-pocket expenses. As natural disasters intensify, building requirements evolve, and household needs change, endorsements can help ensure your policy keeps pace with real-world risks.
Try to review your policy annually, especially after making major purchases, renovating your home, or updating your lifestyle. Keeping detailed digital records and home inventories can make filing claims quicker and easier, and bundling policies may save you up to 20% on premiums.
If you’d like help reviewing your current coverage or determining which riders might be a good fit, feel free to reach out anytime.