When you contact an insurance agency to purchase a homeowner's insurance policy, the agent might talk about adding riders to your policy. A rider is a very common part of an insurance policy, and there are different types of riders you may want to add. Here is an explanation of what a rider is and how it works with a homeowner's insurance policy.
The Basic Definition
A rider is something you can find with many types of insurance products, including home insurance. Riders are called many things, including endorsements or floaters, but these words all mean the same thing. The basic principle of a rider is that you add one to your policy to have coverage on something that your policy does not cover. You pay extra for the rider, as it offers more coverage, but then you have the protection you need to have for the thing that was not originally protected.
The Types You Can Add
A common rider you might need to add to your policy is one that covers personal possessions that are valuable. This might be a diamond necklace you have, a historical painting, or an antique piano. These types of things would be covered under your normal policy but not for their actual values. Instead, they would only be covered for a portion of what they are really worth, but you can get the coverage you need by adding riders.
You can also add other types of riders, such as sewer or water backup coverage and identity theft coverage. You can ask an agent about the types available if you would like to learn more.
How It Works with a Claim
If you have a rider and end up needing to file a claim for the item or event covered, you could do so. When you do this, you might be responsible to cover the deductible amount for the rider, but the insurance company would then provide you with compensation for the rest of the claim. Without riders on your policy, you might stand to lose a lot more, especially if you own valuable items or experience a peril to your house that your policy would not normally cover.
Adding riders is often the only way you can obtain all the necessary coverages you need for your home and belongings. To find out if you should add riders, call a homeowner's insurance agency today.
For more information on homeowner's insurance, reach out to companies like Oliveira Insurance Agency.
