What is a rider in an insurance policy?

A rider in an insurance policy refers to an additional coverage that enhances or modifies the original terms of the contract. This can involve expanding coverage to include risks that were not initially covered, providing benefits that are specific to the insured's needs, or altering some aspect of the policy's applicability. Riders may include options like adding coverage for specific items (like jewelry or art), increasing coverage limits, or providing coverage for particular events (like natural disasters).

Utilizing riders allows policyholders to customize their insurance to better suit their personal needs or circumstances, ensuring they have protection for unique situations that may arise beyond the standard policy terms. This flexibility is crucial, as standard insurance coverage may not adequately address all risks faced by an individual or a business.