Your Guide to Insurance Riders in Texas

Homeowners and renters can need additional coverage at times specific to their needs. This could be from a change in life or a unique situation already present at the time of enrollment. Insurance policies have policy limits and won’t protect against everything. When more is needed to be added to a standard policy, an insurance rider is available to provide affordable protection and close coverage gaps for many different scenarios.

What Is a Rider in Insurance?

A rider in insurance is an additional coverage option for homeowners, renters, and condo owners in Texas. Adding insurance riders to your policy is important if you want your coverage to be more complete.

Also known as endorsements, an insurance rider is commonly used to protect expensive personal items including jewelry, and collectibles such as art, instruments, etc. Typically, they cover items that are either not already included on your insurance or the cost of which may outweigh what you’d get with a higher-tiered plan.

Auto insurance policies, while uncommon, may also use an insurance policy rider to better protect drivers. No matter what type of insurance is being adjusted, your rider for insurance coverage will alter your protection to better suit your needs.

Homeowners Insurance Endorsements in Texas

Common endorsements on homeowners insurance can vary in Texas because everyone’s needs are different. While there are many different considerations, here are popular examples for Texans:

Scheduled Personal Property Coverage

A popular amendment for homeowners in Texas, scheduled personal property coverage helps raise the amount of coverage that comes standard with your home insurance policy. This is particularly useful for expensive personal property that may otherwise exceed your policy limits.

Extended Replacement Cost Coverage

An extended replacement cost coverage insurance rider can increase the limits of your dwelling coverage. This protection helps you rebuild your home using similar materials as it was constructed at the time of your major loss.

Water Backup Coverage

Sewage and water backing up into your home is downright disgusting. It can also be quite expensive to remedy. Water backup coverage helps cover sump dumps, sewers, and water backup issues through affordable protection with a sizeable reimbursement payout.

Equipment Breakdown Coverage

Coverage for various appliances used around your home in the event of a mechanical or electrical failure. This includes computers, home security systems, HVAC systems, refrigerators, and more. Please note that equipment breakdown coverage doesn’t include wear and tear.

Service Line Coverage

When something goes wrong and damages the utility lines to your home, the cost to repair them is paid by the homeowner. Service line coverage helps cover these expenses.

Law/Ordinance Coverage

Getting things up to code due to new laws or ordinances can be pricey. This is particularly a problem for older homes that either suffer a loss, live in an area undergoing a revamp, or during renovations. This homeowner endorsement helps mitigate these costs.

Mold Remediation Coverage

If a sudden and accidental peril damages your home and causes mold, there’s a chance that you’ll be covered. The problem is when mold occurs from other means, as this is considered preventable. Mold remediation coverage helps pay for some of the costs of getting rid of it.

Identity Theft Coverage

Data breaches, skimming, and any other scam you could think of…Texas is a prime target for identity theft. Some home insurance policies may include some protection, but this insurance rider allows you specific coverage dedicated to this issue.

Home Business Coverage

A standard home insurance policy may have some allowance for items used for a home business, but these policy limits are often too low to pay for everything after a notable loss. Home business coverage helps increase these limits, though, liability coverage is not included.

Sinkhole Coverage

Not only is Texas one of the most susceptible states to sinkholes, but a disturbing trend is ongoing in West Texas. The Lone Star State has been home to the Wink Sinks, two infamous sinkholes, since 1980.

But a disturbing trend is showing that large portions of West Texas are sinking at an alarming rate surrounding the 4,000 square miles of these sinkholes. Many other areas throughout the Permian Basin are also at risk.

While it’s been an unlikely event so far, the threat is still there. If you are looking to protect your home and property against sinkhole damage then this insurance rider is the perfect option.

Earthquake Coverage

Earthquake insurance for homeowners is available, as it is also for renters because many home insurance policies won’t cover earthquake damage. However, West Texas homes are vulnerable to this threat, which continues to prove an unpredictable possibility for residents.

Additional Insurance Riders

There are many insurance riders available for both homeowners and renters. The best recommendation for anyone is to ask an agent and develop a game plan on how to best protect against risks specific to your needs. Here are a few more examples available:

• Loss of Rent Coverage
• Cyber Security Coverage
• Inflation Guard Endorsements
• Personal Injury Coverage

Create a Home Inventory List To Prepare Ahead

A step that is too often overlooked by homeowners is creating a home inventory list. These lists will help you stay prepared should you suffer a loss, however, they can also help you get the right amount of coverage for your personal items.

All homeowners and condo policies have policy limits. This means that if you have a particularly valuable item that goes beyond what a standard policy offers in protection, you’ll need to purchase the right insurance rider policy to keep it protected.

Our complete guide to creating your home inventory list can help you get started. Inside, there are tips, tricks, resources, and even a free template to help compile a comprehensive home inventory that will help you best understand your coverage needs as well as stay prepared should you need to file a claim.

The Cost of Adding a Rider to an Insurance Policy for Homeowners

In general, the cost of an insurance rider will be around 1%-2% of the cost of the dwelling coverage you possess. This means for every $10,000 in value you need to protect, you’ll pay around $100-$200 for the coverage in your insurance rider.

The cost of scheduling an item can vary depending on the type of endorsement you need and how much coverage you enroll in. Your cost will also be affected by many different risk factors associated with your home, personal factors, and whatever is in need of protection.

For example, if you are getting an insurance rider to cover a painting worth $5,000, you’ll likely pay less for coverage than someone using coverage to protect an engagement ring for $20,000.

Some coverages such as water backup coverage can be purchased for $50-$300 per year. Others, such as home business coverage, may be around $200-$500+ per year depending on the nature of your business.

Overall, each coverage and need is different and creates different pricing as a result. Taking the time to audit your insurance needs and speaking with your insurance agent will go a long way in finding the right coverage options and not having to overpay for them.

Who Needs a Rider on Home Insurance in Texas?

Insurance riders are perfect for homeowners and renters who require more protection. This can come as a result of having valuable personal belongings that exceed normal coverage, having a business run out of your home, or just looking for more coverage.

While an insurance rider can be added to your policy at the time of enrollment, they are also great options after you have your main form of coverage.

Life can change and with it so do our protection needs. Insurance riders are perfect to add to your coverage as you grow.

This is one of the many reasons we always recommend homeowners evaluate their coverage annually. Failing to do so can leave you under-protected against perils and will also likely leave money on the table, as you can shop for the same protection at a lower rate.

Consider Umbrella Insurance

While an insurance rider is a great option for protecting many physical aspects of your home and property, liability issues can also require supplemental coverage. An umbrella insurance policy helps homeowners and renters protect against liability issues with additional protection.

Cheap Homeowners Endorsements for Texans

If you’re looking to bolster your protection, Freedom Insurance Group is here to help. We’ve been serving Texans since 2005, helping our clients save an average of 40% on coverage.

Our partnership with 25+ top-rated insurance companies allows us to compare your coverage among many different brands to find the right policies at the lowest cost to you, including homeowners endorsements.

Insurance companies create the cost of premiums based on the amount of risk a client possesses when enrolling. More risk means higher costs and less risk means cheaper prices.

Each brand will also assess risk factors differently. This is why you can receive the same coverage from multiple insurance providers and receive multiple prices along the way.

Our agents are here to help you save time and money by comparing your rates among our network of partners to identify the best option for you and your specific needs. Get a homeowners insurance quote or contact us today about finding an insurance rider that meets your needs for less.