Easy Rider: 7 Things to Know About Homeowner’s Insurance Riders

June 7, 2019

Do you know the value of your possessions and the actual coverage you need? Most home policies don’t adequately protect some of your items in your home. This is where you need to have insurance riders as they extend their covers to specific items.

This ensures that your priceless items are covered and protected from theft or damage.

Coverage for personal belongings is between 50 to 70 percent of the insurance on your house. This means the cover may not be enough to cover all your belongings. Hence you need to take inventory of all your possessions then access whether you need more coverage.

Moreover, coverage for such items like silverware, jewelry, furs, and collectibles is mostly under $2000. In most cases, this is not enough.

Here are the seven things you need to know about Homeowner’s insurance riders;-

1. What Is an Insurance Rider?

An insurance rider is a slight change or tweaks to your insurance policy. It allows you to have an increase in the coverage of your insurance for certain categories. Before deciding on getting an insurance rider, you need to access and read your current policy.

After that then decide whether you want to take up an additional insurance cover. When you take a rider insurance policy, you buy additional coverage for some of your possessions. If you have a vast and priceless art collection, you can take an insurance rider to cover it in case of damage or theft.

Taking an insurance rider allows you to make changes to a part of your insurance policy without the need to completely change it. Also, it allows you to have the insurance cover that suits you without getting a new policy.

2. When Do I Need an Insurance Rider Policy?

This is one of the questions most people ask themselves before deciding to get an insurance rider cover. You have to think of how much your art collection or antique is worth before making this decision.

Sometimes you may need additional insurance cover since some damages may not be covered in your home insurance policy. But in case you acquire priceless jewelry, art pieces, great antiques, and some expensive house items. You might want to add an insurance cover that will protect your belongings in case of any damage or theft.

You will be required to provide your insurance policy with a professional appraisal or receipt. This is to estimate how much you need to cover your items.

If you can’t clearly say how much your items are worth you may make use of a professional agent. The agent can come to your home and access the value of your belongings and tell you if it is wise to have an additional cover policy.

3. When Does Home Insurance Policy Cover Lost or Damaged Jewelry?

When your jewelry gets lost or damaged due to a listed peril like fire and theft, then it is usually covered by your home insurance. When your home is burglarized when you are not around, and some of your jewelry pieces are lost, then your insurance policy may cover all the losses.

Also, if your home was caught on fire, the insurance policy covers all the damages you suffered. However, sometimes, your jewelry may be lost or damaged in other ways that are not covered in your home insurance policy.

For, example, your ring may fall off down the drain while you are cleaning or may slip and be carried away by flood waters. If this happens, the ring may not be protected since the mode of damage is not covered by the insurance policy. This is when you may consider covering your jewelry with an additional insurance cover policy.

4. Insurance Rider Example

• Jewelry Rider

This is the most common form of insurance rider that most people have. This covers some of your most priceless jewelry pieces from rings, bracelets, and necklaces. Some of the jewelry pieces may be in your generation for years, and they are priceless.

Losing a family heirloom can be depressing, but having the assurance that it can be replaced eases your mind. You can insure some of the priceless pieces.

• Art and Antique Rider

Things like art and antique can’t be replaced, and therefore, you are given money equivalent to the current value of the item. This may be interpreted as depreciating for the item.

Since art and antiques appreciate with time. When you are signing an insurance policy, for these items ensure that you understand what the policy states.

• Silverware, Furs, and Rugs

Although, nowadays most people don’t have silverware, oriental rugs or furs. Some people may have them as an inheritance. These pieces are expensive.

If you have not stated them in your insurance policy, you might find that it is hard to replace them.

When you cover this item with the insurance rider policy, the items can be replaced in case of theft and damage.

5. How the Addition of an Insurance Rider Policy Can Protect Your High-Value Items

Insurance cover policy is set at a reasonable price to ensure that any homeowner can afford one. Although the covers vary according to how much your home value and possessions are worth. Still, the insurance policy does not cover some items.

You should never assume that your insurance policy covers everything!

If you happen to have high-value items as compared to the average population, you may need to have an additional insurance coverage policy. This ensures that all your possessions are protected.

Rider insurance definition states that it is a change that allows your priceless possession to be covered separately.

6. Difference Between Property Floater, Endorsements and Riders

Property endorsement and a rider policy are similar. This is additions to your homeowner insurance cover. They allow you to buy additional cover to a category of items like a jewelry collection or art collection.

A property floater, on the other hand, is different from an endorsement or rider. Instead of the floater increasing coverage to a collection, they extend their cover to specific items.

For example, if a policyholder has $4000 worth of jewelry, but only $1500 is covered in the current policy. Hence the current under insurance is $2500. If two items are worth $1000 watch and $1500 necklace respectively, they can then add two floaters to the policy to cover the two items.

7. How to File for a Claim

First, you need to read your policy in detail and get in touch with your agent. If any of your items have been stolen the first thing you need to do is report to the police. Ensure that the police have all the necessary information. 

On the other hand, if the items are damaged by floods, fire among others. Then document by taking pictures of your item if it has been destroyed.

You can ask for a copy of the report from the police then contact your insurance company.

Bottom Line

Having insurance riders ensure that some of your pricey possessions are protected. This means that in case of theft or damage, you can get the items replaced.

This adds more strength to your home policy without the need to change the policy. For more information, contact us and get an agent to walk you through our insurance policies.