What is an Insurance Rider?

Answer:
Insurance riders add additional coverage to

a policy that is specifically not included in the main policy. The additional coverages or options “ride on” the main policy. The reason riders are required is because most policies place limits on losses for certain items or specifically exclude certain losses. If you have items that aren’t fully covered under the standard policy, you can purchase a rider that covers the item.

For example, some homeowner’s insurance policies have limits for expensive items such as jewelry and electronics. Instead of remaining underinsured, if you have items that exceed the policy’s limits, you can purchase a rider to cover it. The cost of the rider is added on to your insurance premium.

You can get riders for a variety of insurance policies including commercial insurance, homeowner’s insurance, auto insurance, and life insurance. For example, cost of living riders are available to increase your insurance benefits to adjust for inflation. A homeowner can add riders that cover earthquakes, floods, and other coverages not included on the original policy.


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