Homeowners Insurance - All You Need to Know about Insurance Riders

By Adams Bridges

Homeowners insurance rider is an endorsement policy. You can purchase this insurance endorsement if your basic insurance policy doesn't adequately protect you against all unexpected risks.

1-High-Dollars Items Rider

The basic homeowners insurance policy has limited coverage on expensive items such as jewelry, artwork, and personal computers. The homeowners insurance provider will compensate you with two thousand dollars in case you lost those valuable belongings. If you own jewelry or paintings worth more than this coverage limit you have to buy insurance rider to make sure your possessions adequately covered and the insurance company will reimburse you if your home high-dollars items were stolen. It's important to take inventory for all your valuables and keep its purchase receipts.

2-Flood Rider

Homeowners insurance companies labeled gulf states as high risk area. Some insurance providers stopped insuring against damage caused by floods in states such as Alabama, Mississippi and Texas. On the other hand flood damage insurance is dirt cheap and available in zones far from prone-floods areas. The standard homeowners insurance policy doesn't protect your dwelling against flood. You should purchase flood rider in case your home in flood-prone area. If you need to purchase flood insurance The National Flood Insurance Program provides you with flood coverage.

3-Mold Rider

Your homeowners insurance exclusions is an important part of your policy. Before you purchase the insurance you should ask your agent about what is covered and what is not. You have to read the fine print carefully to make sure you are not under-insured in case you need to file a claim. One of the most common exclusions is mold infestations. Due to increasing claims related to mold, Homeowners insurance companies decided to exclude mold from the covered perils. You need to buy mold rider to be certain your mold claim will not be denied in case you need to file one.

4-Umbrella Liability Rider

Standard homeowners insurance has limited liability coverage. If someone injured in your premises or your pet attacked a visitor and he sued you, the insurance company will pay out for legal and medical expenses but not more than $100.000. In this case you may lose your high-dollars assets due to the lack of your personal liability coverage. Therefore, you should raise your premium and expand your liability coverage amount up to $500.000. You should consider umbrella rider too. This policy has liability coverage up to 1 million dollars.

Homeowners insurance endorsement such as jewelry, flood, mold and umbrella riders is an extra-coverage added to your standard policy.