Do You Need to Add Riders to Your Homeowner's Insurance Policy?
Updating your homeowner's insurance policy every year is always a smart move, as you may need to add or delete coverage, plus updating it offers a way to qualify for new discounts too. When you update your policy, it is also a good time to determine if you need to add riders to your policy. If you are not sure what these are, you should learn more about them, as many people add them to their policies to ensure that they have the coverage they need.
What a rider is
A rider is something that is also referred to as an endorsement or a floater, but all these terms refer to the same thing, which is an add-on of coverage to a policy. When you purchase a rider, it is because you have some type of item that you own that your regular home insurance policy would not cover. Items that fall into the category of uncovered items are typically items that are of high value, such as a diamond necklace, an expensive painting, or a musical instrument.
How you know if you need them
One of the hardest parts of riders is knowing when you need them, and this is why you should discuss your personal belongings with an insurance agent. During this conversation, you should discuss the types of belongings you have, and you should ask about any items that you can think of that are valuable. If you have any item that would be costly to replace, you might need a rider for it. You may need to add a rider for each specific item you would like coverage for.
How riders work if you file a claim
If you ever experience a loss of your belongings due to a storm, fire, theft, or another type of covered peril, you could file a claim for the losses you experienced. If any of the items you lost had riders on them, you would receive compensation for the items for the value you covered them for. You see, when you get a rider on an item, you must list the value of the item, as this is how the insurance company determines how much to charge you for each of the riders you have.
Adding riders is a very common event with homeowner's insurance. If you think that you may need some, you should talk to services such as Illinois Insurance Center Inc.