Many homeowners assume their standard insurance policy safeguards them from nearly every scenario. Unfortunately, the moment a claim is filed is often when gaps become most visible. Some of the most costly risks require extra protection in the form of home insurance riders — also known as endorsements or floaters. These add-ons are easy to miss but can dramatically reduce out-of-pocket costs when the unexpected occurs.

With natural disasters becoming more frequent and homes continuing to age, riders have taken on an even more important role in maintaining financial protection. Flood-related events now account for roughly 90% of natural disasters across the U.S. At the same time, evolving building codes and environmental shifts mean that even mild tremors or extreme weather can cause damage your standard policy won’t cover. And with more people working from home or keeping high-value items in their living spaces, reviewing your policy every year is increasingly essential.

Below are several key riders homeowners should consider — and why they may be worth the investment.

1. Flood Insurance and Water Damage Protection

Most homeowners policies do not include coverage for flooding caused by water that originates outside the home. They also generally exclude water damage that wasn’t sudden or accidental. If you live in an area prone to flooding — or even one that has experienced unexpected water events — adding flood insurance can be critical. In fact, homeowners in high-risk zones may be required to carry additional protection. But with severe flooding now reaching areas previously considered low-risk, more households need to think seriously about this coverage.

A separate water-backup rider can also be valuable. This endorsement protects your home from damage caused by sewer backups, sump-pump failures, or groundwater intrusion — issues that standard insurance typically won’t cover.

Flood insurance through FEMA’s National Flood Insurance Program (NFIP) averages around $899 annually, with maximum coverage levels of $250,000 for a home’s structure and $100,000 for belongings. Private insurers may offer faster payouts or higher limits, which can be particularly helpful in regions where rebuilding costs exceed NFIP caps. And because one in three flood claims happen outside high-risk areas, homeowners shouldn’t assume they’re immune just because they’re “not in the floodplain.”

Water-backup riders usually cost between $50 and $250 per year and may provide $5,000–$25,000 in protection. Remember that insurers often draw a firm line between “flooding” (covered by flood policies) and “water backup” (covered by endorsements), so review your policy carefully. Upgrading your home with features like backflow valves or sump pumps with battery backups may also qualify you for a small discount on this coverage.

2. Earthquake and Seismic Coverage

Damage caused by earthquakes is typically excluded from standard homeowners policies unless you purchase a separate rider or standalone policy. While seismic coverage is often required in high-risk areas, homes outside those zones are not immune. Even minor ground movement can create cracks in foundations, plumbing issues, or structural damage — all of which may be costly to repair without added protection.

Most large insurers offer earthquake coverage either as an endorsement or separate policy, particularly in states like California, Washington, Oregon, and even parts of the Midwest. Deductibles often range from 2% to 20% of the insured home value. For a $500,000 home, that could mean paying $50,000–$100,000 before insurance kicks in. The deductible may seem steep, but seismic repairs can be exponentially more expensive. Many policies also include coverage for debris removal or emergency repairs following the event.

3. Building Code and Ordinance Upgrade Coverage

If your home needs to be repaired or rebuilt, it must meet modern building codes — even if the original structure predates current regulations. Without a building code or ordinance rider, you’re responsible for the added costs of bringing your home up to standard, which can be significant.

Building codes change frequently, especially in areas like energy efficiency, electrical systems, plumbing, structural integrity, and insulation. Upgrades related to code compliance can add 10%–20% to overall rebuilding expenses. Standard policies rarely cover this gap fully. Ordinance or Law endorsements generally offer additional coverage equal to 10%, 25%, or 50% of your dwelling limit, giving you financial breathing room in the event of code-mandated changes. Even repairs to one small room can trigger updates throughout the home, including areas not directly damaged. Ask your insurance provider whether your policy includes “increased cost of construction” coverage to avoid unpleasant surprises.

4. Scheduled Personal Property for High-Value Items

Homeowners policies include caps on how much you can claim for certain categories of valuables such as jewelry, collectibles, electronics, and firearms. If you own items that exceed these limits, you’ll want to consider a scheduled personal property rider. This endorsement allows you to list individual high-value items at their appraised worth, ensuring they’re fully protected.

Most standard policies include low sublimits — often $1,500 for jewelry, $2,000–$5,000 for firearms, and around $2,500 for silverware. Scheduling items expands your protection and typically offers “all-risk” coverage, meaning everything from theft to accidental loss is included. Premiums average between $1 and $2 per $100 of insured value; for instance, ensuring $10,000 of jewelry might cost about $200 per year.

It’s a good idea to update appraisals every few years and maintain a digital inventory with receipts and photos. Many scheduled personal property riders also offer worldwide protection, which is particularly useful if you travel with valuables.

5. Home-Based Business Coverage

If you run a business out of your home — whether full-time or part-time — your standard policy likely doesn’t provide adequate protection for business assets. A home-based business rider can help safeguard your equipment, inventory, or tools, and may even offer additional liability protection.

Typical homeowners policies cover only about $2,500 of business-related property inside the home and a mere $500 outside it. A rider can raise those limits to $10,000–$25,000, while a dedicated business policy can add essential liability coverage, especially if clients visit your home. Since many insurers updated their language after 2020, remote employees may also find their company-owned equipment excluded unless an endorsement is added. Entrepreneurs who depend on inventory or sensitive data may want to look into supplemental options like cyber coverage, business interruption insurance, or specialized inventory protection.

Final Thoughts

Insurance riders aren’t merely optional add-ons — they’re strategic safeguards that help protect you from significant financial loss. As natural disasters grow more intense, as building codes evolve, and as homeowners accumulate more valuable or business-related items, endorsements ensure your coverage reflects real-world risks. Make it a habit to review your policy every year, especially after major purchases, renovations, or life changes. Keeping organized digital records, photos, and receipts also makes the claims process far smoother. And don’t forget that bundling your policies can potentially save you up to 20%.

If you’d like help walking through your coverage or determining which riders might benefit you, don’t hesitate to reach out.