Purchasing a home can fill you with a lot of pride. It's a wonderful achievement and one that typically requires a lot of discipline and sacrifice to obtain. Getting the mortgage approval from a lender starts the process, and there are several steps that must occur before you finally close on the house and have the keys in your hand. Because you've just made such a huge investment it's important for you to protect it. When taking out homeowner's insurance, here are a couple of reasons why you should add a rider to your policy.
Riders Expand Your Coverage
If you don't come from an insurance-related background it can be fairly easy to misunderstand some of the terms of your policy. There is a stated limit for each particular kind of coverage, and you may think that if the amount is relatively high you are in the clear. The issue is that the blanket limit may not apply to everything that falls into each category. It's important for you to read through the documents so you can ensure that you have the coverage you need to protect your belongings.
For example, you might request a $25,000 dollar limit for your personal property and assume that is enough to cover what you own. However, there could be a clause that limits the amount you can receive for antiques or jewelry that is much less than this number. This could become a problem if you are the victim of a burglary where the intruder takes your precious stones or other heirlooms.
Riders provide you with additional protection that expands the coverage you have within your basic policy. Think about the value of the items that have smaller limits within your standard policy and add on a rider so you'll be able to recover in case something happens.
Fill In Those Pesky Gaps With An Insurance Rider
There are certain perils that are not covered by a basic homeowner's insurance policy. Flooding is usually one of these perils, and if you don't have a rider or outside policy, you might be left holding the bill in case your house becomes encased with water.
Getting a rider provides peace of mind. You'll already have the coverage in place for some of the more obscure risks that could take place.
Insurance riders are all about pumping up your protection. Talk with your insurance agent about how you can add on the necessary riders to your homeowner's insurance policy today.