Many homeowners assume their standard insurance policy protects them from every possible mishap. Unfortunately, that’s not usually the case. Some of the most costly risks require extra coverage — known as riders, endorsements, or floaters — and they’re often easy to miss. These optional additions can make a major difference when the unexpected happens.
As severe weather events rise, building standards evolve, and households accumulate more high‑value items and business equipment, reviewing your policy annually has become increasingly important. Flooding now accounts for nearly 90% of U.S. natural disasters, building codes continue to tighten, and even small household changes can introduce risks not covered by a traditional homeowners policy. With more people working from home and owning expensive electronics, these supplemental protections matter more than ever.
Below are several riders worth evaluating and why adding them could strengthen your financial safety net.
1. Flood Insurance and Water Damage Protection
Most homeowners are surprised to learn that standard policies rarely cover flooding that originates outside the home or water damage that happens gradually. If you live in an area prone to flooding, a separate flood insurance policy is essential — and in high‑risk zones, it may even be required. But even households outside designated floodplains face significant risk, as one in three flood claims occur in low‑ to moderate‑risk areas.
Flood insurance through FEMA’s National Flood Insurance Program (NFIP) costs an average of $899 per year and typically covers up to $250,000 for the building and up to $100,000 for personal belongings. Private flood insurers may offer higher limits and quicker payouts, which can be crucial in areas where rebuilding costs exceed federal caps.
In addition to flood insurance, a water‑backup endorsement provides coverage for sewer backups, sump‑pump overflows, or groundwater intrusion — typically $5,000–$25,000 in protection for $50–$250 annually. Because insurers draw clear distinctions between “flooding” and “water backup,” it’s essential to review how your policy defines each scenario. You may even earn discounts by installing backflow valves or battery‑powered sump pumps.
2. Building Code and Ordinance Upgrade Coverage
When you repair or rebuild after a covered loss, your home must meet current building codes — even if it met all requirements at the time it was built. If your home is older, bringing it up to modern standards can dramatically increase repair expenses. Without a building code or ordinance rider, these additional costs fall entirely on you.
Building codes frequently change, especially when it comes to electrical systems, plumbing, insulation, HVAC efficiency, and structural safety. These upgrades can add 10%–20% to rebuilding costs. Ordinance or Law coverage typically provides an additional 10%, 25%, or 50% of your dwelling coverage to help pay for mandated improvements. Even a small kitchen fire could trigger whole‑home updates, sometimes in rooms untouched by the incident.
3. Scheduled Personal Property for High‑Value Items
Standard homeowners insurance limits how much you can claim for valuables such as jewelry, fine art, collectibles, or high‑end electronics. These caps are usually much lower than the value of the items — often around $1,500 per jewelry item or $2,000–$5,000 total for certain categories.
Scheduling your valuables lets you insure each item individually at its appraised value. This coverage typically extends to loss, theft, and accidental damage and may also protect items while traveling. Expect to pay roughly $1–$2 per $100 of insured value — about $200 annually for $10,000 in jewelry. Keeping updated appraisals and a digital inventory with photos and receipts makes future claims easier.
4. Home‑Based Business Coverage
If you run a business from your home — whether you’re a freelancer, consultant, online seller, or remote worker — your standard homeowners policy may not protect the equipment or inventory you rely on. In many policies, business property coverage is limited to just $2,500 inside the home and $500 off‑site.
A home‑based business rider can increase this coverage to $10,000–$25,000, depending on your needs. For business owners who see clients at home, a separate home business policy can also include liability protection. Many insurers have recently tightened rules around equipment used by remote employees, making specific endorsements even more important. Depending on your work, you might also consider coverage for business interruption, cyber risks, or product inventory.
Final Thoughts
Home insurance riders aren’t simply optional extras — they’re intentional upgrades that help protect your finances from unexpected challenges. As natural disasters, inflation, and household risks evolve, endorsements ensure your coverage stays aligned with real‑world conditions.
Review your policy each year, especially after renovations, major purchases, or changes in how you use your home. Maintaining digital records, receipts, and home inventories can simplify claims. And if you bundle multiple policies, you might save up to 20% on your premiums.
If you’d like help evaluating your coverage or determining which riders make sense for your situation, we’re always here to support you.