This episode helps you navigate the fine print of insurance, distinguishing between riders, exclusions, and add-ons. It details essential riders for home, auto, and life insurance, such as those for valuables, water backup, or accelerated death benefits. The episode also highlights key exclusions, like flood and earthquake, and introduces broader solutions like umbrella and personal cyber insurance.
| Rider Name | What It Does |
| Scheduled Personal Property Rider | Covers specific expensive items (jewelry, fine art, watches) with no deductible. |
| Water Backup/Sump Pump Rider | Covers damage from sewer or drain backups (not in basic policies). |
| Home Business Rider | Provides limited coverage for a home-based business. |
| Ordinance or Law Rider | Pays for upgrades to meet current building codes when rebuilding. |
| Identity Theft Rider | Covers costs related to restoring your identity. |
Auto Insurance Riders
| Rider Name | What It Does |
| Roadside Assistance | Covers towing, tire changes, lockouts, and jump-starts. |
| Rental Reimbursement | Pays for a rental car while your car is being repaired. |
| Gap Insurance | Pays the difference if your car is totaled but you owe more than it’s worth. |
| Custom Equipment Rider | Covers custom parts like upgraded rims or stereos. |
| Rideshare Coverage | Fills the gap if you drive for Uber or Lyft and get into an accident. |
Life Insurance Riders
| Rider Name | What It Does |
| Accidental Death Rider | Pays more if you die in an accident. |
| Waiver of Premium | Keeps your policy active if you become disabled and can’t pay premiums. |
| Child Term Rider | Provides life insurance for your children under the same policy. |
| Accelerated Death Benefit | Lets you take part of the death benefit early if you’re terminally ill. |
| Guaranteed Insurability | Allows you to buy more insurance later without a medical exam. |
Travel & Other Personal Riders
| Rider Name | What It Does |
| Trip Cancellation for Any Reason | Lets you cancel your trip for almost any reason and still get reimbursed. |
| Adventure Sports Rider | Covers risky activities like scuba diving or skiing (often excluded). |
| Pet Injury Rider (Auto) | Pays for vet bills if your pet is injured in a car accident. |
| Personal Cyber Protection Rider | Covers you from identity theft, cyberstalking, and online fraud. |
Common Exclusions by Policy Type
| Policy Type | Common Exclusions |
| Homeowners | Flood, earthquake, mold, termites, wear and tear, ordinance/code upgrades. |
| Renters | Same as homeowners, plus roommates’ belongings and business equipment. |
| Auto | Intentional damage, racing, using the car for business (unless added), wear and tear. |
| Life | Suicide within 2 years, fraud on the application, some high-risk hobbies or travel. |
| Travel | Pre-existing medical conditions, war/terrorism, traveling against government advice. |
Optional Add-Ons (Bundled or Separate)
| Add-On | Who It Helps |
| Umbrella Insurance | Anyone who wants extra liability protection beyond auto/home policies. |
| Earthquake or Flood Coverage | Required for people in high-risk areas. |
| Legal Expense Coverage | Helps cover legal fees for things like property disputes or family law issues. |
| Pet Insurance | Pet owners who want to avoid surprise vet bills. |
| Home Cyber Protection | Those who work from home or store sensitive info on personal devices. |
Resources
National Association of Insurance Commissioners (NAIC) — “What You Need to Know About Adding an Endorsement or Rider to an Existing Insurance Policy”
This is a consumer-oriented guide from a regulatory body that explains how riders/endorsements work (additions, exclusions, costs) in insurance policies: What You Need to Know About Adding an Endorsement or Rider to an Existing Insurance Policy
NAIC / Consumer Insight — “Do You Know How to Use an Insurance Rider or Endorsement?”: Do You Know How to Use an Insurance Rider or Endorsement?
The Data that Drives Cyber Insurance: A Study into the Underwriting and Claims Processes – Academic / Preprint): The Data that Drives Cyber Insurance
McKinsey — “Navigating Shifting Risks in the Insurance Industry”. This article covers how insurers respond to rising exposures, emerging risk lines, and how clauses and coverage design (including exclusions and add-ons) are being rethought. Navigating Shifting Risks in the Insurance Industry
Consumer’s Guide to Home Insurance (NAIC): https://content.naic.org/sites/default/files/publication-hoi-pp-consumer-homeowners.pdf
