Understanding The Intricacies Of Insurance

Extend Your Coverage With A Homeowners Insurance Rider

A standard homeowners insurance policy is designed to cover a multitude of losses. However, for some homeowners, the standard coverage is not enough. These homeowners need specialized coverage, known as a rider, to secure their belongings properly. To ensure you have ample coverage for your needs, learn more about some of the riders available.

Commercial Property

If you own a small business and you store any of your commercial belongings in your home, you should consider investing in a commercial property rider. While your homeowners' insurance policy does offer protection for your household goods, any items used for commercial purposes are generally not covered, which includes things like business computers or products. The amount of the rider should be equal to the value of the business items you store in your home. 

Jewelry Coverage

Household good coverage does provide coverage for jewelry loss, but what many people do not understand is that coverage in this area is limited to a certain amount. For some policies, jewelry coverage could be limited to less than $1,000, for instance. If you have an extensive jewelry collection or you have several high-value pieces, you want to invest in a jewelry rider to ensure you are covered in the event of a loss. Documentation to support the claimed value of these items is also helpful.

Flood Coverage

Homeowners' insurance policies have set guidelines when it comes to flood coverage. Often, for the policy to cover losses from a flood, the source of the water must originate from within the home, such as a backed-up toilet. For protection from water that originates from outside the home, you will generally need a water damage rider in order to have this loss covered. Speak with your insurance representative to get the specifics about your policy. 

Rental Protection

A rider is also a good idea if you rent out your home to a tenant. Your homeowners' insurance policy will cover your home in the event of an unfortunate scenario, such as a fire. However, the policy will not cover any loss of rental income you incur while the home is inhabitable. A rental income rider will provide you with a form of compensation to cover your losses in the event you are unable to have a tenant in the home due to a loss.   

Speak with an insurance agent to learn more about rider policies. They can help you find the right ones for your specific needs.