What is an insurance rider? 8 types to know

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Types of insurance riders

Wondering what types of insurance endorsements you might need? The list of insurance endorsements is almost endless, but we’ll go over some of the more common endorsements. As a homeowner, you may want to consider these options to ensure you are fully protected.

Amendment provided for personal property

This rider adds coverage for valuable personal items you own, such as jewelry, artwork, or collectibles. Using this rider allows you to increase your coverage limits, so in the event of theft or damage, you can be adequately reimbursed.

Recommended if: You have valuable jewelry, works of art or other personal items in your home.

Water / sewer backflow rider

Water damage can be costly, especially if the problem leads to additional issues like mold. If your water or sewer lines are overflowing and causing damage to your home or personal property, water / sewer back-up endorsements can help cover the costs.

Recommended if: You live in a town with known sewer issues, or the previous owner reported sewer issues.

Flood rider

Most standard home insurance policies do not cover flooding.3 If you live in a high-risk area, adding flood coverage to your policy can protect you in the event of a disaster. Some areas may even require you to add flood coverage to your policy.

Recommended if: You live in a high risk flood area or if state laws require it.

Earthquake approval

Earthquake endorsements can help cover the costs associated with earthquake damage. This can include anything from debris removal to necessary living expenses while your home is being repaired. Some exclusions apply – possibly damage to the ground or the vehicle – so be sure to ask your insurance agent what your policy covers.4

Recommended if: You live in an earthquake-prone area, such as California.

Identity theft rider

This endorsement can help cover the costs of identity theft. Coverage options vary depending on your policy, but can usually help pay for ID replacement, fraud services, or associated legal fees.

Recommended if: You don’t want to have to monitor your own credit reports for any fraudulent activity.

Canine liability exclusion rider

Home and pet insurance go hand in hand. However, many standard home insurance policies come with dog liability exclusions. These limit the liability of the insurer with the costs incurred by your dog. Standard policies generally cover liability for dog bites or damage to someone else’s property caused by your dog. If you want additional coverage, such as veterinary services, ask your agent what coverage options are available to you.

Recommended if: You have a dog and you do not have supplemental pet insurance.

Additional insured rider

Additional insured riders add coverage to another person under the primary policyholder. This extends the liability coverage so that the additional insured can sue if a claim is made against him. In real estate, landlords may require a tenant to add coverage to their Tenant insurance the landlord is therefore covered by the tenant’s policy.

Recommended if: You want to extend liability coverage to other people not originally included in your standard policy.

Home Business Endorsement

If you operate a small business from home, the costs associated with your business are probably not covered by standard home insurance. This means that damaged or stolen supplies or work equipment would not be covered. If you have a home business, consider adding a home business rider to your policy to stay protected.

Recommended if: You run a small business from your home.

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