Guaranteed Insurability Rider (Life/DI): Lock In Your Future Health!

Guaranteed Insurability Rider (Life/DI): Lock In Your Future Health!

The Option to Buy More Coverage, No Matter What

At 28, as a new lawyer, I could only afford a small disability insurance policy. I added a “Guaranteed Insurability” rider. It gives me the right to buy more coverage every few years as my income grows, without another medical exam. At 32, I was diagnosed with a chronic illness. Normally, I’d be uninsurable. But because of that rider, I was still able to exercise my option and triple my disability coverage at a standard rate. It allowed me to lock in my good health when I was young.

Accelerated Death Benefit Rider (Life): Use Your Death Benefit While Alive?

The Living Benefit From My Dad’s Life Insurance

My dad was diagnosed with a terminal illness with less than a year to live. The medical bills were piling up, and he wanted to get his finances in order. We discovered his life insurance policy had an “Accelerated Death Benefit” rider, which is common and often free. It allowed him to access a large portion of his own death benefit while he was still living. The insurance company advanced him $200,000 of his $300,000 policy. This cash gave him peace of mind and helped pay for his care.

Waiver of Premium Rider (Life/DI/LTC): My Policy Paid Itself!

The Bill That Vanished When I Needed It To

I was paying the premiums on my disability and life insurance policies for years. Then, a serious accident left me disabled and unable to work. I was worried about how I’d keep paying for these crucial policies with no income. That’s when the “Waiver of Premium” rider kicked in. After my 90-day waiting period, my obligation to pay the premiums was waived by the insurance company. My coverage stayed in full force, but the bills just stopped coming. It’s a small rider that makes a huge difference.

Child Term Rider (Life) vs. Separate Small Policy for Kids: Cheap Way to Cover Little Ones?

The $6 Add-On That Protected My Whole Family

When my wife and I bought our life insurance policies, our agent asked if we wanted to add a “child term rider” for an extra $6 a month. For that tiny cost, it added a $10,000 term life benefit for all of our children, including any we might have in the future. The most valuable part is that it guarantees their right to convert it to their own permanent policy as adults, regardless of their health. It was a much cheaper and simpler way to get some basic protection and future insurability than buying separate policies.

Accidental Death Benefit Rider (Life): Double Payout if Accidental? Or Gimmick?

The “Double Indemnity” That Rarely Pays

An agent tried to sell me an “Accidental Death Benefit” rider, calling it “double indemnity.” He said if I died in an accident, my family would get double the payout. It sounded great, but the fine print was full of exclusions. It wouldn’t pay if the death was related to an illness, a medical error, or a dozen other things. I realized it was better to put that extra premium money toward buying a larger base life insurance policy that would pay out for death from any cause, not just the narrow definition of an accident.

Return of Premium Rider (Life/DI): “Money Back” Sounds Great, But Is It a Good Deal?

I Did the Math and Skipped the Rider

My agent offered me a term life policy for $40 a month. Then he showed me a version with a “Return of Premium” rider. It cost $95 a month, but if I outlived the 20-year term, I’d get all my premiums back. It sounded like free insurance. But I did the math: the extra $55 a month invested at 7% over 20 years would grow to over $28,000. The premiums I’d get back were only $22,800. It was a better deal to buy the cheaper policy and invest the difference myself.

Cost of Living Adjustment (COLA) Rider (DI/LTC): My $3k/Month Felt Like $1k!

The Rider That Fights Inflation

My uncle became disabled in his 40s and started receiving a $3,000 monthly benefit. That was great in the 1990s. But after 20 years of inflation, that $3,000 has the purchasing power of about $1,700 today. His benefit never grew. My disability policy has a 3% compound Cost of Living Adjustment (COLA) rider. If I’m on a long-term claim, my benefit will increase by 3% each year. It’s a critical rider to ensure your income keeps its value over a long period.

Additional Insured Endorsement (Home/Auto/Business): My Client Sued ME For My Contractor’s Error!

The Endorsement That Shared My Shield

As a general contractor, I hired an electrical subcontractor for a project. I made sure his insurance policy added my company as an “additional insured.” A few months later, his faulty wiring caused a fire. The building owner sued both of us. Because I was an additional insured on his policy, his insurance company had to provide a legal defense and coverage for me, too. It extended his liability shield to protect me from his specific work, a non-negotiable requirement for anyone who hires subcontractors.

Scheduled Personal Property Rider (Home/Renters): My $10k Ring Was Only Covered for $1500!

The Fine Print on My Fiancée’s Ring

When I bought my fiancée her engagement ring, I assumed my renters insurance covered it. After it was stolen, I filed a claim for its $10,000 value. The adjuster pointed to a clause in my standard policy: the maximum payout for theft of jewelry was only $1,500. To get the full value, I would have needed to add a “scheduled personal property” rider. This inexpensive add-on specifically lists high-value items and insures them for their full appraised value with no deductible. It was an expensive lesson.

Water Backup & Sump Pump Overflow Endorsement (Home): My Basement Flooded – Insurance Said “Not Covered”!

The $40 Rider That Saved Me $15,000

A massive rainstorm overwhelmed the city sewers, and water came pouring up through the floor drain in my basement. I thought my homeowners insurance would cover the mess. It didn’t. Standard policies specifically exclude damage from water that backs up through sewers or drains. Luckily, my agent had convinced me to add a “water backup and sump pump overflow” endorsement for an extra $40 a year. That one rider covered the entire $15,000 cleanup and repair bill. It’s one of the most important add-ons you can get.

Ordinance or Law Endorsement (Home/Business Property): Rebuilding Cost 20% More Due to New Codes!

The Surprise Bill From the Building Inspector

A fire destroyed my 50-year-old garage. My insurance paid to rebuild it. But when my contractor filed for the permit, the city inspector said the new structure had to meet all current building codes, which required different wiring and structural supports. This added $5,000 to the cost. My basic policy wouldn’t pay for those mandatory upgrades. I was saved by my “Ordinance or Law” endorsement. This rider is specifically designed to cover the extra costs required to comply with modern building codes during a repair.

Service Line Coverage Endorsement (Home): $10k Bill for Broken Sewer Pipe Under My Yard

The Hole in My Yard Became a Hole in My Wallet

My toilets started backing up, and a plumber delivered the worst news: the main sewer line connecting my house to the street had collapsed. He said because the break was on my property, it was my responsibility to dig up the yard and replace it—at a cost of over $10,000. I was in shock. Then I remembered my agent had added a “Service Line” endorsement to my homeowners policy for about $30 a year. That little-known rider covered the entire excavation and repair, saving me from a financial catastrophe.

Equipment Breakdown Endorsement (Home/Business): My Fancy HVAC System Exploded

The Internal Failure My Property Policy Ignored

My expensive, high-efficiency central air conditioning unit suddenly failed due to an internal electrical surge, ruining the compressor. The replacement cost was $7,000. My homeowners policy denied the claim, stating it covers damage from external perils like fire or wind, not internal mechanical failure. Thankfully, I had added an “Equipment Breakdown” endorsement. This rider specifically covers the cost to repair or replace critical home systems—like HVAC, water heaters, and appliances—when they suffer a sudden mechanical or electrical breakdown.

Identity Theft Expense Rider vs. Standalone ID Theft Service: Is My Insurance Add-On Enough Protection?

The Rider That Helped Me Clean Up the Mess

My wallet was stolen, and a thief went on a shopping spree, opening credit cards in my name. It was a nightmare. I remembered my homeowners policy had an identity theft rider. It didn’t monitor my credit, but it provided a case manager who spent hours on the phone with me, helping me file police reports and dispute the fraudulent charges. It also reimbursed me for the costs of certified mail and lost wages for time I took off work. It was a huge help in the recovery process.

Business Use Rider (Personal Auto): My Side Hustle Deliveries Weren’t Covered!

My Pizza Deliveries Voided My Policy

To make extra money, I started delivering for a local pizza shop using my own car. I didn’t think it was a big deal. When I got into a minor fender bender while on a delivery, my personal auto insurer denied the claim. They said my policy excluded commercial use. What I should have had was a “business use” rider. It’s a cheap add-on that provides limited coverage for using your personal car for some business activities, like sales calls. It’s a must-have for any side hustle involving your car.

Personal Injury Endorsement (Home/Renters): My Teen’s Mean Online Post Led to a Lawsuit!

The Libel My Liability Policy Didn’t Cover

My teenager wrote a nasty, untrue post on social media about a classmate. The classmate’s parents sued us for defamation and libel. My standard homeowners liability coverage wouldn’t help, as it only covers bodily injury and property damage. Luckily, I had added a “personal injury” endorsement. This inexpensive rider expanded my liability coverage to include non-physical injuries, like slander, libel, and invasion of privacy. It paid for our legal defense and ultimately saved us from a very expensive lawsuit over a dumb teenage mistake.

Home Daycare Endorsement (Homeowners): My “Small” At-Home Daycare Invalidated My Home Insurance!

Watching One Extra Kid Was a Major Risk

To help a friend, my wife started watching her child along with our own during the day. We didn’t think of it as a business. But when another child had a minor fall in our home, our homeowners insurer told us that because we were receiving payment for childcare, we were operating a business and any related liability was excluded. We learned we needed a “home daycare” endorsement. It provides limited liability and property coverage for small, in-home daycares, filling a dangerous gap in a standard policy.

Earthquake Endorsement (Home): Assuming “It Won’t Happen Here”

The Tremor That Cracked My Foundation

I live in an area with occasional, minor earthquakes. I always declined the earthquake endorsement on my home insurance to save $100 a year. Then, a moderate 5.0 quake hit. It didn’t knock my house down, but it caused thousands of dollars in damage in the form of cracked drywall and a significant crack in my foundation. Standard homeowners policies explicitly exclude all earth movement. I had to pay for the entire expensive repair myself. That $100 a year would have been a wise investment.

Flood Endorsement (Private Flood Insurance) vs. NFIP Policy: More Options Than Just the Government Program?

My Private Policy Was Cheaper and Better

My house is in a flood zone, and for years my only option was a policy from the government’s National Flood Insurance Program (NFIP). It was expensive and had limited coverage. Last year, my agent told me about the growing private flood insurance market. I got a quote from a private insurer. Not only was the premium 20% cheaper than the NFIP policy, but it also offered much higher coverage limits for both my house and my personal belongings. It pays to shop around for more than just the government option.

Inflation Guard Endorsement (Home/LTC): My Coverage Didn’t Keep Up With Rebuilding Costs!

The Automatic Increase That Saved My Home

When I bought my house, I insured it for its rebuild cost of $300,000. I never thought about it again. My policy included an “inflation guard” endorsement, which automatically increased my dwelling coverage by a few percent each year. Ten years later, a fire destroyed my home. Due to rising labor and material costs, the rebuild cost was now over $420,000. That automatic rider was the only reason I had enough coverage to rebuild my house completely. Without it, I would have been severely underinsured.

Spousal Continuance Rider (LTC/Annuity): What Happens to My Spouse’s Coverage if I Die First?

The Annuity That Continued for My Grandma

My grandfather purchased an annuity with a guaranteed lifetime income. He named my grandmother as the beneficiary. He chose a “spousal continuance” rider. When he passed away, instead of my grandmother receiving a lump sum, the annuity contract seamlessly continued for her. She kept receiving the same monthly check he had been getting, for the rest of her life. It ensured there was no interruption in her income and provided a stable, predictable cash flow after he was gone.

Residual Disability Rider (DI): I Could Work Part-Time, But My Income Dropped 50%!

The Rider That Paid Me for a Partial Recovery

After recovering from an illness, I was cleared to return to work, but only 20 hours a week instead of my usual 40. My income was cut in half. My main disability policy stopped paying because I wasn’t “totally disabled.” However, my “residual disability” rider kicked in. Because my income had dropped by more than 20% due to my ongoing condition, the rider paid me a proportional benefit to replace most of my lost earnings. It supported me financially during my gradual return to full-time work.

Own-Occupation Rider (DI): They Said I Could Be a Greeter – My Surgeon Career Was Over!

The Definition That Saved My Income

My friend, a surgeon, injured his hand and could no longer operate. His disability policy had a weak “any-occupation” definition. The insurer argued that since he could still work as a medical consultant, he wasn’t disabled, and they denied his claim. My policy, as a graphic designer, has a true “own-occupation” rider. It states that I am considered disabled if I cannot perform the duties of my specific job, even if I could work as a telemarketer or a cashier. It’s the most critical rider for a skilled professional.

Non-Forfeiture Rider (LTC): Got Some Benefit Back Even After I Cancelled!

The Safety Net for Lapsed Premiums

My dad paid premiums for his Long-Term Care insurance for 18 years. He was worried that if he couldn’t afford the premium in the future, he would lose all that money. He paid extra for a “non-forfeiture” rider. It stipulates that if he ever lets the policy lapse, he won’t walk away with nothing. Instead, the policy will convert to a “paid-up” status, with a smaller benefit pool equal to the total amount of premiums he has already contributed. It’s a valuable safety net.

Pet Injury Rider (Auto): Was Fido Covered in the Crash?

The Vet Bill My Car Insurance Paid

I was in a car accident, and my dog, who was in the back seat, was injured. My car repairs were covered, but I was worried about the unexpected $800 vet bill for my dog’s broken leg. I was relieved when I checked my auto policy and saw it included a “pet injury” rider. It was a small, built-in benefit that covered up to $1,000 in veterinary expenses if my pet was injured in a covered auto accident. It was a great perk I didn’t even know I had.

New Car Replacement Rider (Auto): My 1-Year-Old Car Was Totaled – I Got a Brand New One!

The Best Rider for a New Car Owner

I bought a brand-new car and added the “new car replacement” rider to my auto policy. It cost a little extra, but it was worth it. Just eight months later, I was rear-ended and the car was declared a total loss. Normally, the insurance would pay me the “actual cash value,” which would have been thousands less than what I paid due to depreciation. But because of the rider, the insurance company paid to replace it with a brand new car of the same make and model.

Gap Insurance (Auto Loan/Lease Rider): Owing Thousands After Your Totaled Car is Paid Off

The Rider That Covered the “Gap”

I bought a new car with a small down payment. A year later, I totaled it. The insurance company paid me the car’s actual cash value, which was $20,000. The problem was, I still owed $23,000 on my auto loan. This $3,000 “gap” was my responsibility. I was going to be stuck paying for a car I no longer owned. Luckily, I had purchased Gap Insurance. This rider specifically paid off that remaining $3,000 loan balance, saving me from a huge financial headache.

Rental Reimbursement Rider (Auto): Paying for a Rental Car Out-of-Pocket for Weeks

The Best $6 I Ever Spent

After an accident, my car was in the body shop for three full weeks. Without a car, I couldn’t get to work. I was looking at a rental car bill of over $800. I was so relieved when I remembered I had added the “rental reimbursement” rider to my policy. For an extra $6 per month, it covered my rental car costs up to $40 a day. That small rider saved me hundreds of dollars and a ton of stress.

Roadside Assistance Rider (Auto) vs. AAA Membership or Pay-Per-Use

The Convenient but Basic Option

I added roadside assistance to my auto policy because it was only $15 for the whole year, much cheaper than a full AAA membership. It came in handy when I got a flat tire. They sent a tow truck within an hour. I learned, however, that the coverage was basic. It only covered towing to the nearest repair shop. My friend’s AAA membership offered more features, like towing to their preferred mechanic and trip interruption benefits. The insurance rider is a great, cheap option for basic emergencies.

Cyber Protection/Data Compromise Rider (Home/Business): Dealing With a Personal Hack Alone

The Expert Who Helped Me After I Was Hacked

My personal computer was hacked, and I was a victim of a ransomware attack. It was terrifying. I remembered I had a “cyber protection” rider on my homeowners insurance. It was amazing. The policy connected me with an expert who walked me through restoring my data from a backup. It also provided coverage for credit monitoring services and professional help to ensure my identity wasn’t compromised. It was a modern rider that provided a real solution for a very modern problem.

Sinkhole Collapse Endorsement (Home): My Yard Started Disappearing!

The Ground Gave Way, But My Insurance Didn’t

I live in Florida, and one morning I woke up to find a huge depression forming in my backyard. It was a sinkhole, and it was getting dangerously close to my house’s foundation. My standard homeowners policy specifically excludes any damage from “earth movement,” including sinkholes. Thankfully, because I live in a high-risk state, I had purchased a “sinkhole collapse” endorsement. This rider added back the coverage for this specific peril, and it paid for the expensive process of stabilizing the ground and repairing my foundation.

Mold Remediation Rider (Home): The $20k Fungus Problem My Insurer Initially Refused

The Cap on My Mold Coverage

After a hidden pipe leak, we discovered a massive black mold problem in our wall. The remediation quote was a staggering $20,000. I was shocked when my homeowners insurer told me my standard policy had a cap and would only pay a maximum of $5,000 for mold damage. This is a very common limitation. Fortunately, when I bought the policy, I had paid extra for a “mold remediation” rider that increased my coverage limit to $25,000. That rider was the only reason we were able to get the problem fixed completely.

Building Ordinance or Law “Increased Period of Restoration” Rider: My Rebuild Took Longer Due to Code Issues

The Rider That Paid My Rent for an Extra Three Months

A fire forced us out of our home. Our “Loss of Use” benefit was set to cover our rent for up to 12 months. However, our rebuild was significantly delayed because our contractor had to navigate new, complex building codes. The project took 15 months. We would have had to pay for the last three months of rent ourselves, but our policy had an “Increased Period of Restoration” rider. This rider extended our Loss of Use benefits to account for delays caused specifically by ordinance or law compliance.

Green Upgrades Rider (Home): Rebuild My Home More Eco-Friendly After a Loss?

The Rider That Rebuilt My House Better Than Before

After a storm damaged my home, I dreaded replacing my old windows and appliances with basic, contractor-grade stuff. Then I discovered my policy had a “Green Upgrades” rider. It provided an extra 10% on top of the repair cost to allow me to use more energy-efficient and environmentally friendly materials. I was able to install ENERGY STAR appliances and better-insulated windows. The rider didn’t just restore my home; it helped me rebuild it to a higher, more efficient standard.

The “Matching Siding/Roofing” Endorsement Battle: Getting it Added vs. Insurer Only Paying for Damaged Portion

My House Didn’t Look Like a Checkerboard

A hailstorm damaged one entire side of my home’s 15-year-old vinyl siding. The insurance company’s initial offer was only to replace the damaged side. The problem was, they couldn’t find a perfect color match for the faded, older siding, and my house would look like a patchwork quilt. Because I had a “matching siding” endorsement, I was able to argue that to be restored to my pre-loss condition, the entire house needed to be resided to ensure a uniform appearance. The endorsement paid for the full job.

Contingent Liability for Operation of Building Laws Rider (Commercial Property)

The Tenant’s Mistake That Became My Problem

I own a commercial building and lease space to a tenant. The tenant made unpermitted modifications to their space, which violated the local building code. A fire, unrelated to their work, damaged the building. The city inspector then discovered the tenant’s illegal modifications and required me, the building owner, to make costly upgrades to the entire building to bring it up to code. My “Contingent Liability” rider covered these costs, which were triggered by the tenant’s actions but became my responsibility.

Spoilage Coverage Endorsement (Business): Losing Thousands in Refrigerated Stock After Power Outage

The Power Went Out, and My Profits Melted

I own a small ice cream shop. A transformer blew during a summer heatwave, and we lost power for two full days. Everything in my freezers—tubs of ice cream, cones, toppings—was a complete loss, totaling over $5,000 in ruined inventory. A standard business property policy doesn’t cover this. My “Spoilage Coverage” endorsement, however, was designed for exactly this scenario. It reimbursed me for the full value of my lost stock, allowing me to restock and reopen as soon as the power came back on.

Utility Services—Direct Damage & Time Element Endorsement: Business Shut Down by Off-Premises Power Failure

The Problem Wasn’t In My Building, But It Still Shut Me Down

A water main break a mile away from my manufacturing plant cut off the water supply to our entire industrial park for three days. We had no physical damage to our property, but we couldn’t operate without water, forcing us to shut down and lose revenue. Our standard Business Interruption policy wouldn’t pay because the cause of the loss was off-premises. Our “Utility Services” endorsement saved us. It extends our business interruption coverage to include losses caused by a failure of a utility away from our location.

Leader Property Endorsement (Business Interruption): My Main Supplier’s Factory Burned Down, Shutting Me Down Too!

When My Supplier’s Disaster Became My Disaster

My company assembles furniture, and we get all of our custom-made hinges from a single, specialized supplier. One day, their factory had a massive fire and had to shut down for six months. We couldn’t get our essential parts, which meant we couldn’t produce our furniture. We had no physical damage, but our business was crippled. Our “Leader Property” endorsement covered our lost income. It extends our business interruption coverage to losses we suffer because of a direct physical loss at a key supplier or customer location.

Glass Breakage Rider (Auto/Home): My $800 Windshield Had a $0 Deductible

The Rock on the Highway That Didn’t Cost Me a Dime

A truck kicked up a rock on the highway, and it put a huge crack in my windshield. The replacement cost was a painful $800. I was dreading paying my $500 collision deductible. I was relieved when I called my insurer and remembered my policy had a full “glass breakage” rider. In my state, this meant that any glass repair or replacement came with a $0 deductible. A mobile glass company came to my office the next day and replaced the windshield, and it didn’t cost me anything out-of-pocket.

Understanding Rider Costs: Bundled In vs. Itemized Extra Premium

Is This “Free” Rider Really Free?

When I was comparing two disability insurance quotes, they both included a “waiver of premium” rider. On one quote, the rider was listed with a specific cost of $8 a month. On the other quote, it was just listed as “included,” with no itemized cost. The second agent tried to tell me it was “free.” But I realized the overall base premium for his policy was higher. The cost wasn’t broken out, but it was bundled into the price. It’s important to know if a rider’s cost is transparent or just baked into the cake.

When to Add a Rider: Policy Inception vs. Mid-Term (If Allowed)

The Rider I Couldn’t Add Later

When I bought my life insurance policy, I declined the child term rider because we didn’t have kids yet. Two years later, our first child was born, and I called my agent to add the rider. He told me that specific rider could only be added when the policy was first issued. If I wanted to add it now, I would have to go through a new application and underwriting process. I learned that many valuable riders are only available at the inception of the policy, so you have to plan ahead.

Riders That Overlap: Paying Twice for Similar Protection?

The Redundant Roadside Assistance

I was paying for roadside assistance through a rider on my auto insurance policy. Then I signed up for a premium credit card that also offered roadside assistance as a free perk. My friend pointed out I was essentially paying for the same benefit twice. I looked at both and found the credit card’s coverage was just as good. I called my auto insurer and removed the rider, saving me a few dollars a month by eliminating the redundant coverage.

“Named Peril” Rider on an “All-Risk” Policy: Why Would I Limit My Coverage?

The Endorsement That Gave Coverage Back

My homeowners policy was an “all-risk” policy, but it had a specific exclusion for damage from sewer backup. To fix this, my agent added a “named peril” endorsement back onto my policy. The endorsement specifically named “sewer backup” as a covered peril. It felt strange to add a “named” coverage to an “all-risk” policy, but what it was really doing was buying back a specific piece of coverage that had been excluded from the main contract. Endorsements can add, remove, or modify coverage in many ways.

The “Hidden” Riders: Automatic Policy Benefits You Didn’t Know You Had

The Lifeline That Was Already in My Policy

When my dad was diagnosed with a terminal illness, we were scrambling to figure out his finances. I was helping him read his old life insurance policy and discovered it automatically included an “accelerated death benefit” provision. We hadn’t purchased it as a separate rider; it was just part of the base contract. This allowed him to access a portion of his death benefit while he was still alive. It was a powerful, valuable benefit we didn’t even know we had. Always read the full policy!

State-Mandated Riders/Endorsements: What My Policy MUST Include vs. What I Choose

The Coverage I Didn’t Choose, But Had to Have

When I moved to Florida and got car insurance, I noticed my policy included “Personal Injury Protection” (PIP) coverage, which I hadn’t asked for. My agent explained that Florida is a “No-Fault” state, and PIP coverage is mandated by state law. It wasn’t an optional add-on. Every single auto policy issued in the state must include it. This was different from optional riders like rental reimbursement, which I could choose to add or reject. Some parts of your policy are determined by law.

Removing a Rider to Save Premium vs. Losing Valuable Protection for a Few Bucks

The $10 a Month That Wasn’t Worth Saving

My disability insurance premium was getting expensive, and I was looking for ways to cut the cost. I considered removing my “residual disability” rider, which would save me about $10 a month. I talked to my advisor, who strongly advised against it. He said the ability to receive benefits if I can only work part-time is one of the most valuable features of the policy. Saving a small amount of money by shedding a critical piece of protection was a poor trade-off.

How Riders Affect Claim Payouts: Specific Conditions Met vs. General Policy Terms Still Apply?

The Rider Had Its Own Rules

My Accidental Death Benefit rider promised to pay an extra $100,000 if I died in an accident. When my uncle passed away after a fall, his family thought they would get this extra benefit. The insurance company denied the rider portion of the claim. While his death was accidental, the rider had a specific exclusion for any death where a contributing cause was a pre-existing illness. His heart condition had contributed to the fall. The main policy paid, but the rider’s own specific terms prevented it from paying.

Reviewing Riders at Renewal: Still Need This Extra Coverage vs. My Needs Have Changed?

The Rider I No Longer Needed

For years, I had a special rider on my auto insurance that provided coverage for a custom stereo system I had installed. At my policy renewal this year, I realized I had sold that car two years ago. I was still paying an extra $25 every six months for a rider protecting equipment I no longer owned. It was a small but silly waste of money. It prompted me to do a full review of all my policies and riders to make sure they still aligned with my current needs.

The “Catch-All” Rider vs. Specific Peril Riders: Is “Comprehensive” Always Better?

Broad vs. Deep Coverage

When setting up my business insurance, I could add a “comprehensive” endorsement that bundled a dozen small coverages together. Or, I could pick and choose specific riders, like a higher-limit spoilage coverage and a utility services endorsement. The comprehensive rider was cheaper and covered more things, but the benefit for each was small. The specific riders were more expensive but provided much deeper coverage for the two risks that were most likely to bankrupt my business. I chose deep coverage over broad, shallow coverage.