An insurance rider is an additional coverage to a standard insurance policy. Insurance companies offer riders for customers who need certain coverage that isn’t available through a standard policy. An example is a standard home insurance policy but the customer also wants coverage for earthquakes. Earthquake coverage can be added as an additional feature of the policy.
Riders come at a cost. Depending on what the rider covers, the cost can be high. However, if the customer is unable to self-insure or the value of the rider is worth it than the cost can make sense.
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