• Homeowners insurance protects the structure and contents of your house from any loss or damage that may occur due to unforeseen events such as fires, natural disasters, etc. While having homeowners insurance is crucial for safeguarding your home against unfortunate incidents, it may not be adequate to cover personal belongings like jewelry, collectibles, or other valuable items in the event of theft or damage. This is precisely where add-ons or insurance riders come into play.
• Continue reading if you want to understand why obtaining riders is crucial and the various types of riders you can select based on your needs. Let’s get started by explaining what riders are and how they function.

What are riders and how do riders work?

• Insurance riders are optional additions or minor adjustments to your homeowners insurance that provide extra protection at a modest cost. These additional benefits, for an extra fee, enhance the coverage of your homeowners insurance policy. Many individuals often overlook the advantages offered by riders for a nominal charge. A standard policy may not be sufficient in certain situations, so riders help tailor the insurance to meet your specific needs. It is wise to evaluate your requirements before determining whether basic insurance is adequate or if opting for an additional rider would be beneficial in the long term.

Types of home insurance riders

• When you incorporate insurance riders into your basic home insurance policy, the coverage limit is elevated and the protection expands to items not originally included in the standard homeowners insurance. Below is a list of various types of home insurance riders that, when purchased, can enhance your homeowners insurance from basic to comprehensive.

● Personal property rider –
Your home is not merely bricks and beams; it is filled with valuables and antiques you have accumulated over the years. A treasured piece of art, collectibles, jewelry, etc. , are among the valuables that require protection. A basic home insurance policy may not provide coverage for all your valuables. Acquiring a personal property rider would enhance the coverage and protect your valuables in the event of any damage, loss of items, or theft.
● Personal accident rider –
A personal accident rider offers protection for you and your family members named in the policy in case of an accident leading to injury, disability, or death. The cause of the accident can vary from natural disasters like earthquakes, floods, etc. , to man-made dangers such as theft, burglary, fire, etc. Any such accidents resulting in injury to you or your family members on the property premises are covered under the personal accident rider.
● Living expenses rider –
In situations where the level of damage to the home is significant enough that you cannot remain in the house. The living expenses rider takes care of the costs associated with your temporary lodging or the insurer provides housing for you until your home is rebuilt or repaired. This rider reimburses you for meals, rent, hotel accommodations, or any other incidental expenses until your house is livable again.
● Theft cover rider-
Before purchasing the insurance policy, it is essential to assess your requirements and choose the riders accordingly. A typical homeowner’s insurance policy includes coverage for theft or burglary incidents. At times, the protection provided in the standard policy may not be sufficient for your needs. Therefore, it is wise to comprehend the extent of coverage and select a theft cover rider to augment the protection against damages or losses due to theft.

Why choose a rider when there’s adequate coverage in the standard policy?

• Few people recognize the advantages of having a rider until they encounter situations where the protection given by the standard policy falls short of the losses experienced.
• Let’s consider an example to illustrate how riders function and can be beneficial for you. To maintain a reasonable and affordable insurance cost for the average homeowner, jewelry coverage under a basic homeowner’s insurance policy is typically capped at INR 10,000. However, this limit may not suffice if your jewelry is valued in lakhs. You would likely be uncomfortable with the thought of receiving only 10,000 in reimbursement for jewelry worth lakhs. In such instances, obtaining a rider on your homeowner’s insurance can be beneficial.

Conclusion

• In summary, choosing insurance riders enhances your standard homeowner’s insurance policy. Whether it is a personal property rider, living expenses rider, theft cover rider, etc. , improving the coverage of your policy can assist you significantly when the need arises. For a nominal fee, you can acquire these additional riders to support you in scenarios where the coverage of a standard homeowner’s insurance policy is insufficient.

Disclaimer:

• The information above is for illustrative purposes only. For further details, please consult the policy wordings and prospectus before finalizing the sales.