Overlooked Home Insurance Riders: Are You Missing Important Coverage?

Many homeowners believe their insurance policy protects them from every possible scenario, only to discover during a claim that some costly risks require extra coverage. These optional add-ons — often called riders, endorsements, or floaters — are easy to miss but can be essential when an unexpected issue arises.

With natural disasters increasing and homes aging, these add-ons are more valuable than ever. Floods now play a part in nearly 90% of natural disasters in the U.S., building codes continue to tighten, and even minor seismic activity can cause damage not covered under a standard policy. Plus, with more households owning expensive personal items, running home-based businesses, or working remotely, taking time each year to review your policy can make a major difference in your financial protection.

Below are several home insurance riders worth reviewing — and why they are becoming increasingly important.

1. Flood Insurance and Water Damage Protection

In most cases, a basic homeowners policy does not pay for damage caused by floods that originate outside of your home, nor does it cover gradual water intrusion. If you live in an area prone to flooding, having a dedicated flood policy is essential. Properties in high-risk flood zones may even be required to carry this coverage. With storms intensifying and rainfall increasing nationwide, flood coverage is becoming a smart choice for many more homeowners.

For additional protection, a water-backup rider covers sewer line backups, sump-pump failures, and groundwater seepage — issues often excluded from standard flood coverage.

Flood insurance under FEMA’s National Flood Insurance Program (NFIP) averages around $899 per year, offering up to $250,000 in structural coverage and $100,000 for personal belongings. Private flood insurers may provide higher limits and faster claim payouts, which can be crucial in areas where rebuilding costs exceed NFIP maximums. Since nearly one-third of flood claims come from homes outside designated high-risk zones, it’s a common misconception that only “floodplain” homeowners need this protection.

Water-backup riders usually range from $50 to $250 per year and typically offer between $5,000 and $25,000 in coverage. Because insurers treat surface flooding and water backup as separate events, it’s important to understand how your policy defines each one. Installing backflow valves or a battery-backed sump pump may even qualify you for a small endorsement discount.

2. Earthquake and Seismic Coverage

Damage from earthquakes generally isn’t included in standard homeowners insurance. If you live in a higher-risk region, carriers may require you to purchase seismic protection. But even if you’re not in a well-known earthquake zone, ground movement and minor tremors can still damage your home’s structure, foundation, or plumbing. That makes an earthquake rider a practical option in more areas than you might expect.

Major insurers offer this coverage either as a standalone policy or as an endorsement — particularly in states like California, Washington, and Oregon, along with parts of the Midwest. Deductibles usually fall between 2% and 20% of your home’s insured value, meaning a $500,000 home could come with a $50,000 to $100,000 deductible. While that may sound steep, earthquake repairs often cost far more. Many policies also include debris removal and emergency repairs, which offer immediate relief after an event.

3. Building Code and Ordinance Coverage

If your home needs repairs or a full rebuild, modern building codes may require upgrades that go beyond replacing what was damaged. Even small repairs can trigger updates across larger portions of your home — and without the right coverage, those additional costs fall on you.

Building codes evolve quickly, especially regarding insulation, wiring, structural safety, and energy efficiency. These updates can add 10% to 20% to reconstruction costs, and most standard policies won’t cover the difference. A building code or Ordinance and Law rider typically offers 10%, 25%, or 50% of your dwelling coverage to help pay for these upgrades. Even something as simple as a kitchen fire could require updates to undamaged areas of your home.

Check whether your current policy includes “increased cost of construction” coverage to ensure that required improvements are covered.

4. Scheduled Personal Property for Valuables

Homeowners insurance often includes strict limits for valuables such as jewelry, collectibles, art, and high-end electronics. If these items are important to you, a scheduled personal property rider provides a way to protect specific valuables at their full appraised amount.

Standard policies typically cap payouts at low amounts — for example, around $1,500 per jewelry item, or $2,000 to $5,000 total for firearms. By scheduling items, you receive more comprehensive “all-risk” coverage, which includes loss, theft, and accidental damage. Premiums usually cost about $1 to $2 for every $100 in insured value, meaning $10,000 in jewelry would run about $200 annually.

Most insurers require updated appraisals every few years, and many riders extend coverage to your items worldwide. Keeping a digital inventory with photos and receipts makes the claims process much easier.

5. Home-Based Business Coverage

More people now operate businesses or work remotely from home, but standard homeowners insurance provides very limited protection for business-related property — typically just $2,500 at home and $500 away from home. If you rely on work equipment or keep inventory on-site, a home-based business rider could be essential.

This endorsement can raise property limits to $10,000 to $25,000, while a separate home business policy adds liability protection if clients or customers visit your home. Some insurers now exclude remote work equipment from coverage unless a rider is added, making it even more important to review your policy.

Freelancers and consultants may also need separate professional liability coverage. Additional add-ons like business interruption, cyber protection, or inventory insurance can help round out your coverage based on your operations.

Final Thoughts

Insurance riders aren’t optional extras — they’re valuable tools that help you prepare for modern risks and avoid large, unexpected expenses. As natural disasters, inflation, and regulatory requirements evolve, endorsements help keep your policy aligned with the realities of homeownership today.

Make it a habit to review your policy annually, especially after major purchases, renovations, or life changes. Keeping digital records of receipts, inventories, and documents can make any future claim faster and easier. And don’t forget — bundling policies may help reduce your costs by up to 20%.

If you’re unsure which riders may benefit you, reach out anytime for a personalized review of your coverage.