Standard home insurance policies cover many types of losses. However,
a “rider” (also called an “endorsement” or “floater”)
may be required to cover certain things that are limited or excluded
by the policy.
Conditions that Require a Rider:
Personal Property
The personal property coverage under a standard home insurance
policy is full of limitations. For example, some types of personal property
are covered, but only up to a specific amount and that amount may be
only a fraction of the actual value (i.e., jewelry, firearms, collectibles,
money, etc.). Additional coverage for the full value of such property
may require a rider.
Electronic Equipment
Coverage for computer equipment and data is often limited by standard
homeowners insurance. You may need to purchase a rider for additional
coverage.
Home Business
More than 20 percent of American households double as a business headquarters.
Standard homeowners insurance is very limited on coverage for property
used in business operations. Most policies are more restrictive toward
business-related liability (i.e., a customer is injured while in your
home), often excluding such claims altogether. If you operate any form
of business out of your home, consider adding a home-based business rider
to your policy.
Secondary Residence or Income Property
If you own another home that is used as a secondary residence or rental
property, you may be able to obtain coverage for that property by adding
a rider to your current homeowners insurance policy. If available, this
method may be cost effective versus separate policies for each property.
Sewer and Drain Back-Up
A backed up sewer or drain can cause significant damage to your home.
This type of loss may be excluded under your homeowners insurance. If
so, a rider may be necessary to add this coverage.
Theft
Coverage under your homeowners insurance policy may be limited for theft
of personal property. A rider may be available to increase coverage for
loss caused by theft.
To find out what rider is right for you, get
your free homeowners insurance quote today.
