Riders boost insurance policies by adding narrowly defined coverage to a policy's standard protections. If you have a home insurance policy, here are some common riders that could increase the protections your homeowners policy offers.
Water Backup Rider
Plumbing issues that lead to leaks or backups can cause significant damage to a house, and this damage isn't covered by a standard homeowners insurance policy. If your toilet overflows, dishwasher line leaks, or a pipe bursts during winter, a standard home insurance policy will leave you responsible for repairing the damage.
A water backup coverage rider adds protection against this specific risk. Should you have water problems in your home, the coverage will help pay labor and material costs for repairs. You'll still need to pay a deductible, but that will likely be much less than the total cost of repairs.
Building Code Rider
Should your home be significantly damaged or destroyed, you'll have to rebuild it so that the new structure meets all current building codes. These may be more stringent than the building codes that were in place when the home was initially built — especially if it's an older home — and stricter codes often result in higher rebuilding costs.
Without building code coverage, your home insurance would only cover the cost of rebuilding your house as it was. You'd have to pay any additional material or labor costs that were associated with new building codes.
A building code coverage rider adds protection against potentially higher rebuilding costs that new building codes lead to. This is an especially important rider to consider, as you won't get a certificate of occupancy until a rebuilt home meets all current building codes.
Scheduled Personal Property Rider
Home insurance comes with personal property coverage that provides protection for your personal belongings, but this coverage commonly has low limits for certain high-value goods. Jewelry, firearms, musical instruments, and other high-value possessions might exceed the limit of your homeowners policy's personal property coverage.
Should you need to add personal property coverage for one or more high-value goods, a scheduled personal property rider lets you list specific possessions and their values. The possessions are then insured up to the agreed-upon value.
In many cases, the rider also extends protection to wherever the possessions are taken — even if that's outside your home. Standard personal property coverage in a home insurance policy might only protect belongings that are on your home's actual grounds.Share