What are riders and what do they have to do with homeowners insurance?

Insurance riders are used as endorsements and are not required to be used. However, by having a rider on your homeowners insurance, you can increase your coverage on your high-value items. Having a rider can be considered as having a smaller insurance policy on top of the homeowners policy you already have.

When is a rider needed?

Your homeowners insurance policy gives you a certain amount of coverage but is limited when it comes to personal belongings. The rider is there to extend your coverage above those limitations. If you want to make sure your belongings are covered and protected, then an insurance rider might be something to consider.

Investing in an insurance rider will raise your rates, but leaving your valuable items at risk could be more costly. However, the costs for the insurance riders can be lowered if you add extra precautions to your home to ensure the safety of not only you and your family, but your possessions as well. These precautions can be security systems or even fire extinguishers.

Riders can also be used to help cover identity theft and cover costs for property and casualty insurance.

Types of insurance riders

There are a variety of insurance riders to choose from depending on what type of extra coverage you are looking for. The most common insurance riders include, but are not limited to:

  • Jewelry Riders: This is the most common rider as it covers high-value jewelry and family heirlooms and will replace them if lost or stolen.
  • Art and Antique Riders: While these items can’t be replaced like jewelry can, you will be given its current cash value instead.
  • Silverware, Furs, and Rugs: These items can be replaced if stolen or damaged, but remember to state them in your insurance policy. Otherwise, it can be costly and time consuming to replace them.

Riders vs. endorsements vs. floaters

Besides riders, endorsements and floaters are other insurance policies that can be added onto your homeowners insurance to provide you with extra coverage. Riders and endorsements are actually not different in any means because they have the same type of coverage. Some insurance carriers just happen to use the two terms interchangeably.

Floaters are also similar to riders and endorsements, but there is one specific difference. When riders and endorsements extend coverage, they extend the coverage to certain categories in which those items fall under. For floaters, the coverage is extended straight to the item itself, not multiple items within a specific category.

Look at all your options

If you’re thinking about extending coverage onto your already existing homeowners insurance policy, don’t just settle with the first policy that sounds good. Speak with an agent to determine what options would work best for the type of coverage you’re looking for.