Many homeowners assume their insurance policy protects them from every major risk, only to learn during a claim that several costly exposures require extra coverage. These optional add-ons—often called riders, endorsements, or floaters—are easy to miss but can make a major difference when unexpected damage occurs.

With natural disasters becoming more frequent, aging homes needing more upkeep, and the rise of remote work and home-based businesses, reviewing your policy each year is more important than ever. Risks like flooding, seismic activity, code upgrades, and expensive belongings can leave surprising gaps in a standard policy. Below are some commonly overlooked riders that may provide valuable protection.

1. Flood Insurance and Water Damage Coverage

Most homeowners policies don’t cover flooding caused by outside sources or water damage that isn’t sudden and accidental. If your property sits in a flood-prone area, you may need a separate flood insurance policy—some homeowners are even required to carry one. However, as storms become more intense and widespread, many people outside traditional flood zones are now experiencing significant water damage.

Flood insurance through FEMA’s National Flood Insurance Program (NFIP) typically costs around $899 annually and generally offers up to $250,000 for the structure and $100,000 for contents. Private insurers may provide higher limits or faster claims processing, which is especially useful in areas where rebuilding costs can exceed NFIP guidelines. Surprisingly, about one-third of all flood claims occur outside high-risk areas, meaning even homeowners who don’t consider themselves “at risk” may still be vulnerable.

A water-backup endorsement offers separate protection for issues like sump-pump failures, sewer backups, or groundwater intrusion. These riders usually cost between $50 and $250 per year and provide $5,000–$25,000 in coverage. Because insurance companies treat external flooding and internal water backups differently, it’s worth verifying how your policy defines each event. Installing protective devices such as backflow valves or battery-powered sump pumps can sometimes result in a small discount on this endorsement.

2. Earthquake and Seismic Protection

Earthquake damage typically requires its own coverage. If you live in a region with frequent seismic activity, this type of protection may be mandatory. Even outside high-risk zones, ground movement can still cause significant structural or plumbing damage, making a seismic rider a beneficial safeguard.

Insurers often provide earthquake coverage as either a separate policy or an add-on, especially in states like California, Washington, and Oregon, as well as parts of the Midwest. Deductibles often fall between 2% and 20% of a home’s insured value, which means that a $500,000 home could leave the homeowner responsible for $50,000–$100,000 before coverage kicks in. Despite the high deductible, repair costs from foundation cracks or shifting walls can be much higher. Many riders also include emergency repairs and debris removal, offering immediate financial relief after a quake.

3. Building Code and Ordinance Coverage

If your home is damaged and needs repairs, it must be rebuilt to current building codes—even if those standards weren’t in place when your home was originally constructed. In many cases, even minor damage can require updates throughout the entire house. Without a building code rider, these additional improvements become out-of-pocket expenses.

Building codes evolve rapidly, particularly in areas involving electrical systems, plumbing, insulation, HVAC efficiency, and structural safety. These upgrades can increase rebuilding expenses by 10%–20%, and standard homeowners policies rarely cover the added cost. Ordinance or Law coverage generally provides 10%, 25%, or 50% of your dwelling limit to help absorb these expenses. Even a small kitchen or bedroom fire can trigger whole-home updates, so it’s important to check whether your policy includes language related to “increased cost of construction.”

4. Scheduled Personal Property Protection

Homeowners policies include specific limits for valuable items such as jewelry, collectibles, specialty electronics, or fine art. If you own expensive belongings, a scheduled personal property rider provides individualized protection based on each item’s appraised value.

Many standard policies restrict coverage for valuables to low sublimits—for example, $1,500 per jewelry piece, $2,000–$5,000 for firearms, or around $2,500 for silverware. Scheduling items expands this coverage and typically provides “all-risk” protection, meaning it covers theft, accidental loss, and damage. Premiums usually cost between $1 and $2 per $100 of insured value, so insuring $10,000 worth of jewelry might cost about $200 annually. Regular appraisals help keep values updated, and many policies extend this protection worldwide. Maintaining a digital home inventory—with photos and receipts—can make claims processing faster and more accurate.

5. Home-Based Business Coverage

More people are operating businesses or remote offices from home, but standard homeowners policies provide very limited coverage for business-related property. If you store tools, equipment, inventory, or client files at home, you may need an additional rider to ensure these items are properly protected.

Typical policies cover only about $2,500 of business equipment inside the home and as little as $500 off-site. A home-business endorsement can raise these limits to $10,000–$25,000. In some cases, a separate home business policy may be necessary, especially if customers or clients visit your residence, since these policies often include liability protection. Many post-2020 policies exclude “remote employee” equipment unless a specific endorsement is purchased. Depending on your industry, you may also want to look into options like business interruption coverage, cyber protection, or expanded inventory insurance.

Final Thoughts

Home insurance riders aren’t just add-ons—they’re essential tools that help protect you from financial surprises. As natural disasters increase and building requirements change, endorsements ensure your coverage keeps pace with real-world risks. It’s smart to review your policy once a year, particularly after major life events, renovations, or large purchases.

Organizing digital documents, receipts, and home inventories can streamline the claims process, and bundling your insurance policies may help you save up to 20% in premiums. If you want help reviewing your coverage or exploring whether any of these riders could benefit you, feel free to reach out anytime.