Important Home Insurance Riders You May Be Overlooking
Christian Huth | Feb 05 2026 18:44
The Overlooked Coverage Gaps That Can Cost Homeowners Thousands
Many homeowners assume their insurance policy protects them from every possible scenario—until a claim is filed and they discover certain costly losses aren’t covered. Those missing protections are often addressed through riders, endorsements, or floaters, and while they’re easy to overlook, they can make a significant financial difference when the unexpected happens.
As weather patterns shift, natural disasters intensify, and homes age, these supplemental coverages are becoming increasingly important. Flooding is involved in nearly 90% of natural disasters in the U.S., building codes continue to evolve, and even minor seismic activity can result in major structural damage that standard policies won’t cover. Add in the rise of remote work and home-based businesses, and it’s clear why an annual policy review matters more than ever.
Below are several riders worth considering—and why they deserve a closer look.
1. Flood Insurance and Water Damage Protection
Standard homeowners insurance typically excludes flooding, especially when water originates outside the home or develops gradually rather than suddenly. If your property is in a high-risk flood zone, a separate flood policy may be required—but floods don’t respect maps. In fact, one in three flood claims comes from homes outside high-risk zones, catching many homeowners off guard.
A flood policy through FEMA’s National Flood Insurance Program (NFIP) averages about $899 per year and generally provides up to $250,000 for the structure and $100,000 for personal belongings. Some private insurers offer higher limits, broader coverage, or faster claims payouts, which can be especially helpful when repair costs exceed NFIP caps.
In addition, a water backup endorsement protects against damage caused by sewer or sump pump backups and groundwater intrusion—events that are specifically excluded from flood insurance. These riders typically cost $50–$250 per year and provide $5,000–$25,000 in coverage. Because insurers distinguish between surface flooding and internal backups, understanding how your policy defines each scenario is critical. Upgrades like backflow valves or battery-powered sump pumps may even qualify you for small discounts.
2. Earthquake and Seismic Coverage
Earthquake damage is almost always excluded from standard homeowners insurance unless a specific endorsement or separate policy is added. While this coverage is well-known in places like California, Washington, and Oregon, it’s often overlooked elsewhere—even though minor ground movement can still crack foundations, rupture plumbing, or compromise structural framing.
Earthquake policies usually carry deductibles ranging from 2% to 20% of the home’s insured value. On a $500,000 home, that could mean a $50,000–$100,000 deductible. While that may sound high, foundation and structural repairs can easily exceed those amounts. Many policies also include coverage for emergency stabilization, debris removal, and temporary repairs, which can significantly reduce immediate out-of-pocket costs after a seismic event.
3. Building Code and Ordinance Coverage
When a home is damaged, repairs must comply with current building codes —not the standards in place when the home was originally built. Those required upgrades can dramatically increase rebuilding costs, and without a building code or ordinance rider, homeowners are often responsible for the difference.
Modern code changes frequently impact electrical systems, plumbing, insulation, roofing, HVAC systems, and overall structural integrity. These upgrades can add 10%–20% or more to rebuilding costs. Ordinance or Law endorsements typically provide 10%, 25%, or even 50% of your dwelling limit to help cover these mandatory improvements. Even a partial loss—like a kitchen fire—can trigger upgrades throughout the home, including areas untouched by the original damage.
4. Scheduled Personal Property for High-Value Items
Most homeowners policies place strict limits on reimbursement for valuables such as jewelry, firearms, collectibles, artwork, or specialty electronics. If you own items with significant individual value, a scheduled personal property endorsement allows them to be insured at their full appraised amount.
Typical policy limits are often surprisingly low—around $1,500 per jewelry item, $2,000–$5,000 for firearms, and $2,500 for silverware. Scheduling items expands coverage to include theft, loss, and accidental damage, often on an “all-risk” basis. Premiums generally run $1–$2 per $100 of insured value, meaning about $200 per year for $10,000 in jewelry. Most endorsements also provide worldwide coverage, and keeping updated appraisals, photos, and receipts makes the claims process much smoother.
5. Home-Based Business Coverage
If you work from home or run a business out of your residence, your standard homeowners policy likely offers very limited protection. Most policies cover only about $2,500 of business property inside the home and as little as $500 off-site.
A home-based business rider can increase those limits to $10,000–$25,000 and may also provide liability coverage if clients visit your home. Many policies updated after 2020 exclude coverage for employer-owned equipment unless an endorsement is added, making this review especially important for remote employees. Depending on your business, additional coverage such as professional liability, inventory protection, business interruption, or cyber insurance may also be appropriate.
Final Thoughts
Riders aren’t just optional add-ons—they’re strategic safeguards that help your insurance keep pace with real-world risks. As natural disasters intensify, construction costs rise, and building standards evolve, endorsements play a critical role in protecting your home and financial stability.
Reviewing your policy annually—especially after renovations, major purchases, or life changes—can help prevent costly surprises. Keeping digital records, receipts, and home inventories simplifies the claims process, and bundling policies may even reduce your overall premiums.
If you’d like help reviewing your coverage or identifying which riders make sense for your home, I’m always happy to help.