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Common Home Insurance Riders |
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Written by Jonathan Green
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Many insureds add additional coverage to their cheap home insurance policies. The provisions adding this additional coverage are known as riders, and can help insureds personalize their insurance policies to fit their individual needs.
A rider is defined as an additional document on an insurance policy that consists of provisions not included in the main policy. Riders are purchased to protect special property that isn't covered under a standard homeowner's policy, such as a stamp collection or expensive artwork.
In short, insureds purchase riders to their policy when they have valuable property that the limits of their standard policy may not provide adequate coverage for. While the vast majority of homeowners have a standardized home insurance policy, many of them have included riders to their policies.
RidersHere are a few common types of riders and what they cover:
- Personal property: Most homeowners' policies set a limit on the replacement cost they'll pay for personal property. If you have some expensive property, this rider will help you protect it. Adding this rider will help you insure your property to a higher limit. When purchasing this coverage, it's important to inventory your belongings to have documentation in case you need to use this insurance.
- Computer insurance: Computer equipment and electronics aren't always covered by your homeowners policy for all the things that may befall them. A rider providing specialized coverage for these items can help you be protected in the event of loss or damage to your computers, scanners, speakers, etc.
- Income property: If you own rental property, you can purchase a rider to your policy for your home that provides coverage to these other homes. This is an efficient, cost-saving way to insure your rental homes.
- Theft coverage: While theft is covered under a standard homeowners' policy, this coverage is usually strictly limited. You can buy a rider that gives more liberal terms to your coverage from theft.
- Watercraft and recreational vehicles: This rider provides coverage for any jet-skis, four-wheelers or other recreational vehicles at your residence. This coverage will protect you from claims that arise through the use of these vehicles.
- Secondary residence: If you own a beach home or cabin in the mountains, you can purchase this rider to your insurance policy to provide coverage for the property. This is generally cheaper than buying a separate policy for the additional home.
- Home business: This rider will provide you with coverage for any damages that may arise as a result of your operation of a home business. For example, this rider would provide coverage if a customer for you home business slipped and fell on a visit.
- Sewage back-up: While excluded by most policies, a rider for sewage or drain back-up will protect your property from damages that can occur because of sewage or drainage backing up onto your property.
- Landslides and subsidence: There are several regions in the country that are at an elevated risk of land slides and mine cave ins. For example, in Kentucky and West Virginia some houses have been damaged or destroyed by the collapse of mines that run underneath them or are nearby. A rider for landslides or mine subsidence will protect you from these disasters.
- Workers comp: If you're planning on hiring people to do extensive work to your home, you could be considered as an employer under law. You may also be considered as an employer if you have a regular lawn man or hire a babysitter frequently. If these employees are injured on your property, you could get hit with a big personal injury lawsuit, and fines if it's found that you should have provided your employees with worker's comp insurance. This rider can provide you with coverage for these claims.
These are some of the most common riders you see in homeowners' policies, but there are a variety of other riders you can buy to cover many types of occurrences.
Do I need one?Riders can be purchased for both homeowners and renters insurance. Everyone is looking for cheap house insurance. Riders will likely make your premiums go up, but you may be able to offset that by opting for a higher deductible. To determine what, if any riders, you need, consider your property and its worth, and also think about the likelihood of it being damaged or destroyed or causing an injury to another person in one of the events above. Also consult with your real estate agent or property owner. By wisely purchasing the riders you need, you can rest peacefully knowing that your family and your wealth are protected.
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