DO YOU NEED AN INSURANCE RIDER?

Certain items you own may exceed the limits of a standard insurance policy

By Caitlyn Callahan

AAA World Article

Whether it’s an antique china set you recently inherited or your expensive new diamond engagement ring, certain items you own may exceed the limits of your standard insurance policy.

An insurance rider, also known as an endorsement, is an insurance policy provision that adds additional benefits or amends the terms of your insurance policy. The rider can help ensure that these and other valuables are covered if they’re stolen or damaged.

You can add a rider to your policy at any time, and it can provide additional coverage, restrict or limit coverage for your auto, home, life, and other belongings. While there is an additional cost for riders, you may find you have specific needs not covered by standard insurance policies, and riders can create insurance coverage that meets those needs.

There are three primary changes to an insurance policy that an endorsement can provide:

  1. Add to the coverage of the insurance policy
  2. Limit or delete coverage of a policy
  3. Adds or deletes people and locations on an insurance policy

There are also a variety of items that can be covered by endorsements, so be sure to talk to your insurance agent to see whether any would make sense for you. Although your unique valuables may not be able to be replaced with identical items, endorsements give you peace of mind that you will at least be compensated for their loss.

You may want to consider an insurance rider if you have any of these types of items. Keep in mind, endorsements offered by state can vary, so check with your agent or company to learn your options.

  • Jewelry
  • Comic books and trading cards
  • Furs and garments trimmed with fur
  • Cameras, projection machines, films, and related articles or equipment
  • Musical Instruments and related articles of equipment
  • Postage stamps
  • Silverware, silver-plated ware, gold ware, gold-plated ware, and pewter ware
  • Golf clubs, golf clothing, and golf equipment
  • Fine arts
  • Rare and current coins
  • Firearms

You can also get riders on auto and watercraft insurance policies, among others, to help ensure all of your special belongings are protected. An endorsement is valid for as long as your insurance policy is in force, so you can have peace of mind knowing you’re covered.

Whenever you have changes to your life, make a big purchase, or grow your family, you should talk to your insurance agent to make sure you have the coverage you need for your life and circumstances. They can help you determine if you need an insurance rider to cover above and beyond your traditional policy coverage.