What Is A Homeowner’s Insurance Rider?

Homeowner’s Insurance Rider

Your home is probably the largest investment you will make in your lifetime. To protect it, it is crucial to have homeowner’s insurance. This covers you in the event of damage to your home, personal liability for accidents, and hotel rental while your house is being rebuilt. For any damage from a covered event, your insurance company will provide money to rebuild or replacement costs. 


Your clothing, furniture, appliances, and most contents in your home are covered. The insurance company would pay 50 to 75 percent of the coverage amount for your home. The Insurance Information Institute recommends having $300,000 worth of coverage. An additional rider can extend your coverage limits. If you have antiques or fine jewelry, they can be covered by a separate rider. 


What is not covered by homeowner’s insurance?


“Acts of God” such as natural disasters are excluded from most policies, leaving you to deal with the extraordinary costs after floods or tornadoes. If you live in an area that historically has experienced many earthquakes, tornadoes, or hurricanes, you should get a rider to cover damage from those events. If you live close to the shore of a body of water, you should also get a rider for flood coverage or additional flood insurance.


How does a homeowner’s insurance rider work?


A rider adds benefits or extends an existing insurance policy. Those with specific needs not covered by the basic policy can customize their benefits by adding a rider. One common homeowner’s insurance rider is an earthquake rider. For those living near fault lines, such as in California, adding a rider means their home is covered in the event of an earthquake causing damage.


What can a rider cover?


Riders can cover your home in the event of some damage not covered under your basic homeowner’s insurance, such as from floods, earthquakes, and hurricanes. If you are in an area that tends to experience those sorts of major weather events, it may save you a lot of money in potential damage and help to protect your assets. To insure other freestanding structures on your property, like sheds or barns, you can get a rider.


Why should you consider a rider?


If you own a home and are not adequately covered by your general homeowner’s insurance, you should look into a rider to cover the costs of specific property or damage from specific events.

For all of your questions about property and casualty insurance, speak with the experts at Redwood Agency Group.