Many homeowners assume their insurance policy protects them from every possible disaster, only to find out during a claim that important risks are excluded. That’s where home insurance riders—also known as endorsements or floaters—come in. These add-ons can provide crucial protection for situations your standard policy simply doesn’t cover.

As natural disasters become more frequent and homes age, these optional protections have grown increasingly important. Flooding accounts for the majority of natural disasters in the U.S., building codes are updated frequently, and even mild seismic activity can create serious structural issues. With more people owning expensive electronics, running businesses from home, and working remotely, reviewing your coverage each year is one of the smartest financial moves you can make.

Here are several insurance riders worth exploring and why they matter.

1. Flood insurance and water damage coverage

Standard homeowners insurance typically excludes losses caused by flooding that originates outside the home, and it also won’t cover gradual or non-accidental water damage. If you live in an area where flooding is possible, a separate flood policy is essential—and in some locations, it may even be required.

With flooding becoming more widespread across the country, many homeowners need more protection than ever before. A separate water-backup rider adds an additional layer of security by covering sewer backups, sump-pump failures, and groundwater intrusion.

Flood insurance through FEMA’s National Flood Insurance Program (NFIP) costs an average of $899 annually and offers up to $250,000 in structural coverage and $100,000 for contents. Private insurers may provide higher limits and faster payouts, making them appealing in areas with high rebuilding costs. Even homeowners outside designated flood zones are vulnerable—one in three flood claims comes from low- to moderate-risk areas.

Water-backup endorsements usually cost between $50 and $250 per year and provide $5,000–$25,000 in coverage. Because insurers separate “flooding” from “water backup,” it’s important to understand how your policy defines each type of event. Installing protective devices such as backflow valves or battery-backup sump pumps may qualify you for a small discount on the endorsement.

2. Earthquake and seismic coverage

Damage caused by earthquakes is rarely included in a standard homeowners policy. If you live in an earthquake-prone region, seismic coverage is especially important—but even in lower-risk areas, ground movement can lead to costly structural problems. A seismic rider provides peace of mind if your home experiences shaking or shifting.

Many insurers offer earthquake coverage either as a standalone policy or an add-on, particularly in states like California, Washington, and Oregon, as well as parts of the Midwest. These policies typically come with deductibles ranging from 2% to 20% of your home’s insured value. For a $500,000 home, that could mean paying $10,000–$100,000 out of pocket, but this is often far less than the cost of repairing damaged foundations or walls. Some endorsements also include coverage for emergency repairs and cleanup immediately after a quake.

3. Building code and ordinance upgrade coverage

If your home needs to be repaired after a covered loss, you may be required to bring it up to current building codes—even if the damage only affects part of the structure. Without an ordinance or law rider, any upgrades required by modern codes would be your responsibility.

Building standards evolve frequently, affecting insulation, plumbing, wiring, structural components, and energy efficiency requirements. These updates can add 10%–20% to the cost of reconstruction, and a standard policy usually won’t cover the difference. Ordinance or law riders typically cover 10%, 25%, or 50% of your dwelling limit, offering vital financial support for required improvements. Ask your insurance provider whether your policy includes language covering “increased cost of construction” to make sure you’re protected.

4. Scheduled personal property for high-value belongings

Your homeowners policy places limits on reimbursement for valuables like jewelry, collectibles, or specialized electronics. If you own high-value items, scheduling them under a personal property rider gives you more comprehensive coverage.

Many standard policies cap coverage with low sublimits—often around $1,500 per jewelry item, $2,000–$5,000 for firearms, and $2,500 for silverware. Scheduling items ensures they’re protected for their full appraised value and typically offers “all-risk” protection, including coverage for accidental loss. Premiums often run between $1 and $2 per $100 of insured value. For example, protecting $10,000 in jewelry might cost around $200 annually. Keeping updated appraisals and maintaining digital records through a home-inventory app can make future claims much easier.

5. Home-based business coverage

If you run a business from your home, your standard policy likely doesn’t provide enough protection for your equipment, inventory, or liability. A business property rider helps close that coverage gap and protects the tools you rely on for work.

Most homeowners policies include just $2,500 of coverage for business property stored inside the home and even less off-site. A rider can increase that limit significantly—often to $10,000–$25,000. For those who meet clients at home or have higher liability risk, a separate home business policy adds essential protection. Some post-2020 policies specifically exclude remote employee equipment unless you add the appropriate endorsement, making this coverage even more relevant.

Depending on your type of business, you may also want to consider additional protections like business interruption coverage, cyber liability, or inventory protection if you sell physical products.

Final thoughts

Insurance riders aren’t just optional extras—they’re strategic additions that can help shield you from large, unexpected expenses. With rising construction costs, evolving building standards, and increasingly unpredictable weather, endorsements ensure your coverage keeps pace with real-world risks.

Make reviewing your policy an annual habit, especially after renovations, major purchases, or life changes. Keeping digital documentation and updated inventories can make claims easier, and bundling policies may help you save on premiums.

If you’re unsure which riders make sense for your situation, consider reviewing your coverage with an expert so you can feel confident your home is protected from every angle.