Many homeowners assume their insurance policy protects them from every possible scenario, only to discover during a claim that certain costly risks require extra coverage. These additional layers of protection—often called riders, endorsements, or floaters—are easy to miss but can make a significant financial difference when something unexpected happens.

As severe weather becomes more common, homes age, and lifestyle habits evolve, these optional add-ons play an increasingly important role in safeguarding your home and belongings. Flooding now occurs in the vast majority of U.S. natural disasters, building codes tighten year after year, and even smaller tremors can lead to structural issues a standard policy won’t cover. With more homeowners running businesses from home or owning high-value items, reviewing your coverage annually is a smart way to stay protected.

Below are several key riders worth considering—and the reasons they matter.

1. Flood insurance and water damage protection

Traditional homeowners insurance usually does not pay for flood-related damage caused by water entering from outside the home, nor does it cover gradual water issues. If you live near a flood-prone area, a separate flood policy is essential. Many homeowners are surprised to learn that this type of coverage can also be required based on your flood zone. Given today’s severe weather patterns, even those outside high-risk areas face increased exposure.

Flood insurance through FEMA’s National Flood Insurance Program (NFIP) averages around $899 annually and typically covers up to $250,000 for your home and $100,000 for belongings. Private insurers may offer higher limits or quicker claim processing, which can be valuable if rebuilding costs exceed NFIP maximums. Since one in three flood claims come from outside designated flood zones, relying solely on your location can give a false sense of security.

Adding a water-backup rider enhances your protection by covering sewer, sump pump, or groundwater backups—issues not included in flood policies. These riders generally cost $50–$250 per year and provide between $5,000 and $25,000 in coverage. Because insurers treat surface flooding and water backup as separate events, reviewing your policy language is key. Installing preventive devices such as backflow valves or a battery-powered sump pump may even qualify you for a small discount.

2. Earthquake and seismic coverage

Damage from earthquakes often requires its own form of protection, as many standard policies won’t cover tremors, ground shifting, or related structural issues. While some regions like California, Washington, and Oregon are known for seismic risk, even homeowners in moderate-risk states can experience costly damage from smaller quakes.

Most large insurers offer earthquake coverage as a standalone policy or optional endorsement. These policies typically carry deductibles between 2% and 20% of your home’s insured value, meaning a $500,000 home may still leave you responsible for $50,000–$100,000 out of pocket. Although that sounds steep, foundation repairs, wall cracking, and plumbing shifts often exceed that amount. Many seismic add-ons also include coverage for debris removal or emergency repairs following an event.

3. Building code and ordinance coverage

When part of your home is damaged and needs repair, local building codes require that the restored area—and sometimes the entire structure—meet current standards. If upgrades are required to bring your home up to code, those additional costs generally fall on you unless you have ordinance or law coverage.

Building codes frequently change, particularly in areas like electrical work, insulation, structural stability, or plumbing. These upgrades may increase rebuilding expenses by 10%–20%. A building code rider offers an extra cushion by covering a percentage of your dwelling limit, commonly 10%, 25%, or 50%. Even damage confined to one room can trigger updates to other parts of the home. To ensure you’re protected, confirm your policy includes coverage for increased construction costs.

4. Scheduled personal property for valuable items

Most homeowners policies limit how much they will reimburse for high-value items such as jewelry, collectibles, high-end electronics, or firearms. If you own valuable personal property, scheduling these items ensures they are insured for their appraised worth and covered for more scenarios than standard policies allow.

Typical policies cap valuables at low sublimits—for example, $1,500 for jewelry per item or $2,000–$5,000 total for firearms. By scheduling items, you gain broader “all-risk” protection for theft, accidental loss, and damage. Premiums often fall between $1 and $2 per $100 of insured value, meaning $10,000 of jewelry may cost around $200 annually. Updating appraisals every few years helps maintain accurate coverage, and many policies extend protection worldwide. Keeping digital photos and receipts makes future claims easier to process.

5. Home-based business coverage

Running a business from home is increasingly common, but standard homeowners insurance usually offers minimal protection for business-related equipment or inventory. Most policies only cover $2,500 of business property inside your home and as little as $500 off-site, which is rarely enough for today’s home office setups.

A business property rider increases those limits, often up to $10,000–$25,000. For those who have customers visiting their home or who need liability protection, a separate home business policy may be the better fit. Many insurers have updated policies since 2020 to exclude equipment used by remote employees unless an endorsement is added. Depending on your needs, you can also explore optional add-ons such as cyber protection, business interruption, or inventory coverage.

Final thoughts

Riders are more than optional extras—they’re strategic tools that help align your insurance with real-world risks. With rising construction costs, unpredictable weather, and evolving building standards, these endorsements ensure you’re not caught off guard by gaps in your coverage. Reviewing your policy each year—especially after renovations, major purchases, or life changes—helps keep your protection up to date. Organizing digital receipts, documents, and home inventories can also speed up the claims process, and bundling policies may reduce your premium by up to 20%.

If you’d like help evaluating which riders fit your situation, feel free to reach out anytime.