Rider

Glossary

When you take out an insurance policy, you’ll find that the contract is pretty generic. However, riders are special provisions you can have added to the policy that provide added benefits you won’t find in the original contract. The reason they are referred to as “riders” is because without the policy, they have no force and effect. In other words, they are “riding” the policy.

“Term” policies can come in the form of riders attached to a permanent policy to provide the insured with supplementary or specialized coverage for a limited amount of time. Riders that add benefits to a policy normally come with an additional premium, but riders can also be used to subtract benefits from a policy. This type of rider is usually called a “waiver,” and obviously no premium is charged for the removal of benefits. As an example, a stunt player might have a waiver attached to his policy that prohibits payment of benefits for death caused on the job.

Riders are also available for insureds who need temporary coverage for special events, or to add additional property to the insurance policy. You should ask your insurance agent about coverage for the loss of a pet.

Some renter’s insurance providers have special limits on certain types of personal property. An apartment renter might therefore need a rider that provides additional insurance to cover antiques, fur coats, jewelry, or computer equipment, if these items have a value greater than that provided by the broad policy. The coverage usually extends to protect the items when they are away from the residence as well, such as a laptop computer that gets stolen while on a business trip. A renter might also want to get a rider for “additional living expenses” above his or her normal rent payment in the event the apartment is uninhabitable (i.e., in case of fire damage).

It’s a good idea to do a home inventory when you’re thinking about getting renter’s insurance. This way, you’ll be better able to determine whether you will need any riders for particularly valuable items. The easiest way to make your inventory is to video record the contents of each room in your home, while commenting about each item or set of items, including the following types of information:

• Date of purchase;
• Cost;
• Number of items in each group;
• Estimated present value;
• Any distinctive qualities.

If you do not have access to a video recorder, make a list describing each item in detail, including the above information, and keep this list in a safe place, along with receipts, appraisals, and photographs of valuable items. It is best to keep a copy of this information in a different location (in case of fire or other disaster); i.e., at a friend’s home or in a safe deposit box.

If you live in an area susceptible to floods, hurricanes, or earthquakes, you will probably want to get a rider that covers damage caused by these disasters, since standard policies do not cover them.