Many homeowners feel confident that their insurance policy has them covered for almost any situation. Unfortunately, that sense of security often disappears during a claim, when they discover that some of the most expensive risks require optional add-ons. These extras — commonly called riders, endorsements, or floaters — can be easy to miss but incredibly valuable when something unexpected happens.
As severe weather events rise, homes get older, and more people work or run businesses from home, these optional protections have become more important than ever. Flooding is linked to the vast majority of natural disasters in the U.S., building regulations are stricter than past standards, and even minor ground movement can cause damage your standard policy won’t touch. With high-ticket belongings and home offices becoming the norm, reviewing your policy each year is a key part of protecting your finances.
Below are several types of riders worth evaluating — and why they might matter more than you think.
1. Flood Insurance and Water Damage Protection
Traditional homeowners insurance typically excludes damage caused by floods that originate outside the home or issues involving water that wasn’t sudden or accidental. If your property is in an area prone to flooding, a separate flood policy isn’t just useful — it may be mandatory. But even in lower-risk areas, today’s changing climate means more homeowners face the possibility of flood damage. Pairing a flood policy with a water-backup endorsement creates a more complete layer of protection.
Coverage from FEMA’s National Flood Insurance Program (NFIP) costs an average of $899 per year. The program offers up to $250,000 in structural coverage and $100,000 for personal belongings. Some private insurers offer higher limits or quicker claim turnaround times, which can be helpful if your rebuilding costs exceed federal caps. With one in three flood claims occurring outside of high-risk zones, homeowners who assume they’re not vulnerable may still be at risk.
Water-backup riders usually cost between $50 and $250 annually and often include $5,000–$25,000 in protection for issues related to sump-pump failures or sewer backups. Because insurers differentiate between water entering from outside (flood insurance) and water backing up from drainage issues (backup rider), it’s important to understand how your policy defines each situation. Installing preventive devices such as backflow valves or backup-powered sump pumps might earn a small discount.
2. Earthquake and Seismic Coverage
Without a separate earthquake rider or policy, damage from seismic activity generally isn’t covered. If you live in a state with frequent earthquakes, this protection might be required. But even if you’re outside major fault zones, ground settling or tremors can still damage your home’s structure, plumbing, or foundation. A seismic endorsement can fill this gap.
Many large insurers offer earthquake policies and endorsements, particularly in states like California, Oregon, Washington, and certain parts of the Midwest. Deductibles often fall between 2% and 20% of your home’s insured value. For a $500,000 home, that means out-of-pocket costs between $50,000 and $100,000. While those numbers might seem high, repairs to foundations or significant structural elements can easily surpass that amount. Many earthquake-related endorsements also include coverage for debris cleanup and immediate temporary repairs.
3. Building Code and Ordinance Upgrade Coverage
If your home suffers damage and needs repair or reconstruction, current building codes will apply — even if your structure didn’t meet today’s requirements beforehand. Sometimes, a small issue can result in the need to upgrade systems or materials throughout your home. Without ordinance or law coverage, you could be responsible for these extra improvements out of pocket.
Building codes change regularly, particularly for areas like wiring, plumbing, insulation, HVAC standards, and structural safety. These mandatory upgrades can increase rebuilding costs by 10%–20%, and a standard policy typically won’t cover that difference. Building code riders often provide supplemental coverage equal to 10%, 25%, or even 50% of your dwelling limit. Even a contained fire or isolated incident can trigger requirements to update undamaged parts of the home. It’s worth confirming whether your current policy includes increased-cost-of-construction coverage.
4. Scheduled Personal Property for High-Value Items
Homeowners policies often cap reimbursement for valuable items such as jewelry, collectibles, electronics, and fine art. If you own items that would be expensive to replace, a scheduled personal property endorsement lets you insure each piece individually based on its appraised value.
Standard coverage might limit jewelry to $1,500 per item, restrict firearms to $2,000–$5,000 total, and cap silverware losses at around $2,500. Scheduling items gives you more robust “all‑risk” protection, covering theft, loss, and even accidental damage. Expect to pay around $1–$2 per $100 of value, or about $200 per year to insure $10,000 worth of jewelry. Most insurance companies require updated appraisals every few years, and many extend coverage internationally — which is helpful for frequent travelers. Keeping photos, receipts, and details in a home-inventory app can make future claims easier.
5. Home-Based Business Coverage
If you run a business out of your home or keep work equipment there, your homeowners insurance may not provide enough protection. A home-based business rider can increase coverage for business belongings, inventory, or liability associated with your operations.
Typical homeowners policies provide only about $2,500 of coverage for business property inside the home and even less for items stored elsewhere. A rider can increase that limit to $10,000–$25,000, while a dedicated business policy adds liability protection — essential if clients or customers visit your home. Since many updated policies exclude coverage for remote employee equipment unless you add an endorsement, reviewing your limits is important. Depending on your business type, you may also need separate coverage for professional liability, cyber issues, business interruption, or product inventory.
Final Thoughts
Riders aren’t simply optional extras — they’re strategic tools that help strengthen your financial protection where standard policies fall short. As construction costs, weather patterns, and building requirements continue to shift, endorsements help keep your coverage aligned with today’s realities. Make it a habit to review your insurance each year, especially if you’ve renovated your home, made major purchases, or experienced life changes. Organized digital records, receipts, and inventory lists can also simplify claims. And remember, bundling your insurance may reduce your overall premiums.
If you’d like support sorting through your coverage options or understanding which riders could be useful for your situation, we’re always here to help.