Without a Home Insurance Rider, Are Your Valuables Really Covered?

By Robert Lewis, InsWeb.com

You're a smart, responsible homeowner who pays his premium on time. So when a burglar makes off with your collection of antique clocks, your insurance will fully cover the losses, right? If your policy doesn't include a rider, don't count on it.

More than 2 million Americans are victims of burglary each year*, and while you may think your home insurance covers for the loss or theft of luxury items, that's not always the case. For particularly valuable items like jewelry, most standard policies only provide up to $1,000 in theft coverage.

Say, for instance, a diamond engagement ring worth $4,000 is stolen from your home. If you file a claim with your home insurance company, your policy's limit would fall a few thousand short of reimbursing your losses, leaving you empty-handed for the rest.

That's where a home insurance rider comes in.

Also called a "personal article floater" or "endorsement," a rider is a mini-insurance policy that provides coverage specifically for items limited or excluded by a standard policy. A jewelry rider, for instance, could increase coverage for lost, stolen or damaged jewelry items to $10,000 or higher—more than enough to cover the cost of a stolen diamond engagement ring.

Jessica, a self-employed mother from the Raleigh-Durham area in North Carolina, knew she needed additional coverage to protect her wedding and engagement rings, but it wasn't until she was passed down a valuable family heirloom that she decided to purchase a rider. "I received a bracelet that belonged to my mom, who had suffered both theft and damage to other jewelry, so I knew I wanted to insure it immediately," she explained.

For $8 per month, her rider covers $11,000 in coverage for theft, damage and loss. Most importantly, it provides peace of mind. "I can occasionally wear my mother's bracelet knowing that I can afford a replacement if anything happened, even though it could never be the same as the one she wore."

"Peace of mind is priceless," she added.

A rider will often provide broader protection for risks not included in the home insurance policy, and most policies don't require a deductible. Since coverage is so specific, most riders cost only a few dollars per month.

Computers, silverware, musical instruments, cameras, golf equipment, firearms, fine arts, furs, antiques —how many pricey items do you have in your home?

If your policy is lacking a rider or you feel you can't afford to add another dollar to your home insurance policy, compare free quotes with InsWeb.com and search for a more affordable policy.

*Federal Bureau of Investigation, 2005