Home Insurance Rider Overview
Every family is different and their specific needs cannot be met with a boilerplate insurance policy. In order to tweak the coverage to specifically meet the demands of the individuals involved, “riders” are added to existing policies.
Within the homeowner and renters insurance industry, some riders are more common then others. Some examples of supplemental add-ons are:
- Scheduled personal property endorsement – With home insurance, generally a policy selects an overall lump sum amount to insure the entire contents of their house. Items like jewelry are covered within that, but if you own an especially expensive piece of jewelry, that boilerplate policy will not cover you for the full amount. Only an additional rider with an itemized list (created from independent appraiser documents) will do the trick and fill the void for coins, valuable paintings and the like.
- Computer coverage – If you invest tons of your hard-earned cash into the most modern and costly technological devices like computers, flat screen TVs and other electronic gadgets, your boilerplate plan may not provide for all your electronics.
- Theft coverage protection endorsement – The amount of money an insurance company owes you due to a theft may be capped at a much lower than anticipated level, and that is why you may want to secure an additional rider to protect your property.
- Home business – More and more people are starting home businesses as a way to gain freedom and boost their income. If your home truly doubles as an office with visitors and meetings, a business rider is a must to protect your bottom line and mitigate your risks.
- Sewer and drains – Since flood insurance is not automatically included in a policy, a rider specifically for this type of catastrophe may be a wise investment for home owners.
It is important to remember that for each rider you choose, you will pay extra money for that privilege. Only you can decide if the additional monthly expenditures are worth your effort and need to weigh the pros and cons before signing on for home insurance riders.