Insurance policies are designed to protect you from life’s uncertainties, but sometimes standard coverage isn’t enough to fully safeguard what matters most. That’s where insurance add-ons, also known as riders or endorsements, come in. These optional extras can tailor your policy to better suit your unique needs. While some add-ons are well-known, others often fly under the radar but can provide invaluable protection.
Here’s a look at some insurance add-ons you might not know you need:
1. Guaranteed Insurability Rider for Life Insurance
This add-on ensures you can purchase additional life insurance coverage in the future without undergoing a medical exam or proving insurability. It’s particularly useful for younger individuals or those planning for life changes, such as starting a family or buying a home.
- Why It Matters: Your health status can change unexpectedly, and this rider lets you increase your coverage without worrying about new health conditions affecting your premiums.
2. Identity Theft Protection
With cybercrime on the rise, many insurance companies now offer identity theft protection as an add-on to homeowners or renters insurance policies. This coverage helps with expenses related to identity theft, such as legal fees, lost wages, and credit restoration services.
- Why It Matters: Recovering from identity theft can be costly and time-consuming. This add-on offers peace of mind in an increasingly digital world.
3. Rental Car Reimbursement
If your car is out of commission after an accident, this auto insurance add-on covers the cost of a rental car while yours is being repaired.
- Why It Matters: Transportation disruptions can be inconvenient and expensive. This add-on ensures you won’t be left stranded.
4. Water Backup Coverage
Standard homeowners insurance typically doesn’t cover damage caused by water backing up through sewers, drains, or sump pumps. Water backup coverage protects you against these potentially costly issues.
- Why It Matters: Sewer and drain backups can lead to extensive and expensive home repairs, making this add-on a smart investment for homeowners.
5. Roadside Assistance
Roadside assistance is an auto insurance add-on that provides help if your car breaks down. It typically covers towing, tire changes, jump-starts, fuel delivery, and lockout services.
- Why It Matters: This add-on can save you from unexpected roadside emergencies and the high costs associated with towing and repairs.
6. Critical Illness Rider for Health or Life Insurance
This rider pays out a lump sum if you’re diagnosed with a covered critical illness such as cancer, heart attack, or stroke. The funds can be used for medical bills, lost income, or any other expenses.
- Why It Matters: Serious illnesses can lead to significant financial strain. This add-on provides a financial safety net during challenging times.
7. Personal Belongings Coverage for High-Value Items
If you own expensive items such as jewelry, artwork, or electronics, standard homeowners or renters insurance might not fully cover their value. This add-on allows you to insure high-value items individually.
- Why It Matters: You’ll have peace of mind knowing your prized possessions are adequately protected.
8. Disability Income Rider
For life insurance policies, a disability income rider provides monthly income if you become disabled and unable to work.
- Why It Matters: This add-on helps replace lost income, ensuring you can cover living expenses during periods of disability.
9. Business Property Coverage for Homeowners
If you operate a small business from your home, this add-on extends coverage to your business equipment and inventory.
- Why It Matters: Homeowners policies often exclude business-related losses. This add-on ensures your home-based business is protected.
10. Accidental Death Benefit Rider
This life insurance add-on pays an additional benefit if the insured dies in an accident.
- Why It Matters: It provides extra financial security for your loved ones in the event of an unexpected loss.
Final Thoughts
Insurance add-ons are an excellent way to customize your coverage to fit your lifestyle and needs. While they may increase your premiums, the added protection and peace of mind they provide can far outweigh the cost.
When reviewing your insurance policies, take the time to discuss these lesser-known add-ons with your agent or broker. Together, you can ensure you have a policy that offers comprehensive coverage, leaving no gaps in your financial safety net.
Investing in the right add-ons today can save you significant time, stress, and money in the future.