Insurance Rider Coverage: How to Cover Valuables Without Buying a New Policy

Apr 26, 2023 | Commercial Insurance, Home Insurance, Insurance

As an insurance policy owner, you probably know your coverage has limits. Your home insurance will help replace your home but may not cover the entire cost. Commercial property coverage will help protect damaged equipment, but only up to a point. That’s why you need to know about insurance rider coverage.


What is an insurance rider?


An insurance rider, also known as an endorsement, changes the terms of an original policy, often to add benefits or increase coverage limits. This amendment comes with an additional fee, although the cost is usually low and involves little-to-no deductible.


People often use riders to insure specific items or alter policy details. For example, you can use a “term conversion rider” to change an existing term life insurance policy into permanent life insurance without undergoing a medical exam.


Why would you want to purchase this coverage?


A rider can save money since you won’t have to purchase a new policy to insure, say, your engagement ring or expensive art collection. It can also provide extra coverage not found in traditional insurance. For instance, a rider might help replace a lost laptop, even though basic insurance policies don’t cover misplaced items.


How does a rider work?


Let’s look at a personal property rider as an example. Most home insurance policies include coverage for personal property, but they often have sub-limits for specific items. For instance, you may have $100,000 in personal property coverage but a $5,000 sub-limit for jewelry. That’s a problem if you own several expensive items.


So, you can purchase rider coverage to extend your sub-limit and provide full protection for all the earrings, necklaces, and bracelets you value. That way, you won’t have to worry so much about keeping each piece under lock and key.


Can you drop a rider?


Yes! You can drop a rider from an insurance policy at any time. It’s as easy as filling out a form.


Contact your Hibbs agent to know more about insurance rider coverage and if it’s right for you. We’re ready to explain details and help customize a policy to suit your needs.

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