A standard Utah homeowners insurance policy will cover the structure of your home, provide liability protection and cover your personal belongings up to a specified monetary amount. For many this is enough coverage, but not for everyone. There are other items that may need to be insured and there are other conditions and perils that may need to be accounted for. This is the reason for homeowners insurance riders.
Below is a list of the most common Utah homeowners insurance riders and how they may be beneficial.
Protection of Expensive Items
The most common rider is one for expensive personal items. This can include anything, but is usually purchased for the following items.
- Collectible items
- Engagement rings
- Oriental rugs
When purchasing a rider for any type of expensive item, make sure the coverage is for damage as well as for theft. Also, make sure you keep up with any changes in market value for the items.
A standard policy may not provide coverage for the damage caused by a sewer or drain backup. This type of problem can be extremely costly because of the water damage it can do to the home. It will probably require repairs to your sewage system or other plumbing repairs which can also be costly. A rider to cover this sort of damage is inexpensive in comparison.
If you have a home office, you may need to add a rider to your policy. Most likely, you will have some expensive office equipment such as computers, scanners, fax machines, copiers or a certain amount of inventory. In addition, if you have clients visit your home office, you may want to look into a liability rider in addition to what is included in your standard policy.
Worker’s Compensation Rider
If you have people working on your property then you really should consider a worker’s compensation rider. This can cover babysitters, pool boys, home builders and landscapers. Anyone who is doing work is considered a temporary employee and can get hurt.
If someone does get hurt, you may not have the coverage for this specific instance under the liability portion of your policy. At the very least, you should check with your homeowners insurance company to see how to handle these temporary employees.
Rebuilding Old Homes to Code
If you own an older home, an insurance rider may be necessary to rebuild the home to code. Older homes are generally grandfathered-in when new building codes are enacted. However, if your home is destroyed it will have to be rebuilt to the existing code and this extra cost is generally not included in a standard homeowners insurance policy. A rather inexpensive rider on your policy can save you a considerable amount of money in the future.
Loss of Income Riders
If you rent out a portion of your home, or have a second home that you rent out, you may want to consider a loss of income rider. If the property you rent out is damaged and cannot be used to accrue income for a period of time, this rider will compensate you through your insurance policy.
Rate Quotes for Cheap Riders
Just like a standard homeowners insurance policy, you can get rate quotes for riders as well. These riders will vary in how much they increase your premiums and each company will charge differently. Utah homeowners insurance quotes for any riders that you are considering can help you to save money on the coverage you need.