A detailed homeowners insurance guide should always uncover the intricacies of home insurance riders or insurance riders in a homeowners policy. In this article, you will learn what the term home insurance riders really means.
Also referred to as a floater or an endorsement, an insurance rider is an optional add-on to a basic insurance policy. Typically, a homeowner insurance rider amends your standard homeowners policy, allows you to increase your coverage limits, expands coverage for a particular property, or extends protection to help cover additional risks. A rider serves as an extended security to protect your home based on your specific needs.
Do I Need a Homeowners Insurance Rider?
A home insurance policy typically has a set of standard protections like dwelling coverage, other structures coverage, personal liability coverage and personal property coverage. However, every standard protection covers specific perils, subject to coverage limits with probable restrictions, exclusions, or sub-limits. Depending on your identified need, you can expand the scope of your standard coverage with a rider. For instance, your policy has a coverage limit of $35,000 for personal property coverage and a sub-limit of $1,250 for your valuable, expensive antique. If your expensive antique is stolen or burned in a fire, you will only be reimbursed up to $1,250 for its replacement. However, a rider will help expand this limit to the value cost.
Variants of Homeowners Insurance Riders
You may add some of these homeowners insurance riders to your policy:
- Scheduled Personal Property Coverage – A scheduled personal property rider increases coverage for certain valuables like furs, jewelry, or antiques. It expands the coverage limits for your scheduled items, usually up to each item’s appraised value. Moreover, it protects against additional risks such as loss or misplacement, which is not covered in a standard homeowners policy.
- Water Backup Coverage – This endorsement covers water damage from a backed-up drain or sump pump. It helps to pay for the repair of certain types of water damage, such as the cost of replacing furniture or removing water after unexpected backup causes damage to your home.
- Building Code Coverage – If your home is not up to current building codes when it is damaged, standard dwelling coverage in your policy will not cover it and you might have to pay the difference out of pocket to bring it up to code. A building code floater helps pay the additional cost to comply with local building codes required for the repair of your home after a covered claim.
- Business Property Coverage – This rider helps provide additional protection to your home-based business property. It also helps protect business-related items stored in your home, including products you are planning to sell.
- Identity Theft Restoration Coverage – This floater helps reimburse you for costs incurred after identity theft, such as legal fees, lost wages, or loss of mail.
Follow this homeowners insurance guide but consult with your agent to understand additional home insurance riders, like landscaping or renovation projects that may be available.
When you identify a coverage gap, it is right to add a rider to cover the difference. Your insurer may offer many types of home insurance riders, so it is good to talk with your agent about your situation. Usually, an annual review of your policy would help identify where the gaps lie.
It is important to schedule an annual insurance review so as to identify the needs to protect your home. The experts at Burton A. Harris Insurance Group are here to make sure that you have the right insurance in place. We are ready to assist you with all your coverage needs today.