What is the purpose of an insurance rider?

An insurance rider is specifically designed to provide additional coverage or modify the terms of an existing policy according to the policyholder's needs. Riders can enhance a basic policy by adding specific protections, coverage limits, or benefits that are not included in the standard insurance contract. For instance, in a homeowner's insurance policy, a rider could be added to cover valuable items such as jewelry or art that might exceed standard coverage limits.

By allowing customization of coverage, riders enable policyholders to tailor their insurance according to their unique risks and situations, ensuring better protection for their assets and liabilities. This flexibility is a key feature of riders, making them an essential component of personal insurance planning.