There are a number of benefits to adding a rider to your homeowners insurance policy.
Increased coverage: Most home insurance policies contain “sublimits.” A sublimit is essentially a limit within a limit. For example, you may have a $100,000 limit in personal property coverage for your belongings. But your limit on jewelry may be $2,500. That means if your piece is worth $7,000 and you don’t add a rider for it, your insurance company won’t pay out more than $2,500 on a claim involving that item.
Low or no deductibles: Your personal property coverage may have a high deductible. Riders, though, often have low deductibles or none at all. Let’s say you have a musical instrument worth $3,000, and it’s stolen. If your property deductible is $2,000, then you’ll only receive $1,000 on an insurance claim. But, if you added a rider for that instrument and the rider deductible is $50, then your insurance payout would be $2,950.
Accidental loss coverage: Many basic insurance policies won’t protect you against loss by “mysterious disappearance.” That means if you accidentally lost your wedding ring at the gym, you may not be covered. However, had you scheduled the ring, you would be covered even in the “mysterious disappearance” scenario.