Endorsements, riders and floaters: what the words mean

An endorsement is a written form attached to a homeowners policy that changes it: it can add coverage, raise a limit, remove a peril or alter how a loss is paid. A rider is an informal word for the same thing, borrowed from life and health insurance. A floater is a kind of coverage, not a kind of paperwork. It insures listed movable items, such as jewelry, cameras or art, for a stated amount wherever they go, and it can be sold as an endorsement or as a separate policy.

So the three words are not three parallel choices. "Endorsement" is the legal mechanism, "rider" is slang for it, and "floater" describes what some endorsements and some standalone policies do. What matters is whether the change is in writing, on your declarations page, and says what you were told it says.

Why a verbal "rider" is not coverage

The standard ISO homeowners form (HO 00 03 05 11) has a condition called Waiver Or Change Of Policy Provisions. It says that a waiver or change of a provision "must be in writing by us to be valid." An agent who says on the phone that you are covered for your engagement ring has not changed the contract; a form attached to the policy has.

The form also says, in the Liberalization Clause, that if the insurer broadens coverage in this edition of the policy without charging more, the change applies to you automatically. That clause does not cover changes made through a general program revision that includes both broadenings and restrictions, or through an amendatory endorsement. In practice, expansions you want come as endorsements you ask for and pay for, and restrictions arrive as endorsements the insurer adds. Both control over the base form wherever the two conflict.

What an endorsement can do

Think of the base form as the default and endorsements as the exceptions. Here is where the defaults sit in the standard 2011 ISO form, and what endorsements commonly change.

ISO's newer 2022 forms raise several of these limits (jewelry theft to $2,000 and money to $300, for example), but they are only starting to reach policyholders: North Carolina's version takes effect June 1, 2027. Your declarations page and policy jacket show which edition you have.

The figures in the left column come from the 2011 ISO form (see the Maine Bureau of Insurance copy); many insurers use their own forms and limits, so read yours. The NAIC's consumer page on homeowners insurance describes the same idea, listing scheduled personal property, guaranteed replacement cost, extra contents coverage, additional liability and earthquake coverage as add-ons.

Not every endorsement expands coverage. Plenty restrict it:

• A roof surfacing payment schedule or ACV roof endorsement lowers what the insurer pays for an older roof. See Roof payment schedules and ACV roof endorsements.
• A cosmetic damage exclusion typically removes coverage for hail dents that mar a roof's appearance without affecting how it works.
• A separate wind, hail or hurricane deductible changes how much you pay on certain losses.
• An exclusion for a named structure, animal or activity removes coverage for that item.

Others rewrite the form to fit state law. A state amendatory endorsement is the common one; it changes things like cancellation and nonrenewal notice periods and the time to sue, and many policies carry one without the homeowner noticing. Still others are administrative, such as adding an additional insured or a mortgagee.

Where "rider" comes from

In life and health insurance, a rider is an optional benefit you add to a policy, such as a waiver of premium. The word carried into everyday talk about property policies, so agents sometimes say "a jewelry rider" or "a water backup rider." The paperwork that arrives is normally an endorsement carrying a form number. Some insurers use "rider" in their marketing or their own form titles.

The difference matters only if the word misleads you. Whatever it is called, the question is the same: is it attached to the policy, does it appear on the declarations page, and what does it change? A label is not a coverage.

What a floater is

A floater insures specific movable property. The name comes from the idea that the coverage "floats" with the property instead of being tied to your address. Typical scheduled items are rings and watches, fine art, cameras, musical instruments, silverware and collectibles.

The base policy treats these items poorly in two ways. Special limits cap theft of jewelry, firearms and silverware at the amounts above, so a valuable item may be paid at a fraction of its worth. And the form says it does not cover "articles separately described and specifically insured" in this or other insurance, which is why a scheduled item moves out of the general contents pool and onto its own line. Scheduled items are usually insured for a stated value, with broader causes of loss than the named perils on standard contents coverage, and often without a deductible, though terms differ by insurer.

You can buy a floater in two ways:

1. As an endorsement to your homeowners policy, such as the ISO scheduled personal property endorsement. It is priced per item and appears on your declarations page. It is usually the easiest to arrange.
2. As a standalone personal articles policy. It is a separate contract with its own declarations, deductible and claims history, which some owners of high-value collections prefer. See jewelry insurance: homeowners rider or standalone policy?.

Either way, expect to provide a receipt or recent appraisal, and expect to update values every few years. A stale schedule underinsures the very item you meant to protect. For the mechanics, see scheduling jewelry, art and valuables and test your own items with the valuables coverage checker.

At a glance

Hypothetical example

Say your policy has a $1,500 theft limit for jewelry and you own a $6,500 ring. Unscheduled, a theft claim for the ring is capped at $1,500 under the standard wording, subject to your deductible. Scheduled at $6,500 by endorsement, the ring is insured for its own line item, and loss settlement follows the schedule's terms. If the ring simply goes missing, the base form's named perils would not respond, while many scheduled-property forms do. Ask your insurer exactly which causes of loss the schedule includes.

How to read your own list

1. Find the forms and endorsements list on the declarations page. It usually has form numbers and short titles. Ask your agent for a copy of every listed form, since the title alone can hide a restriction.
2. Sort the list into three piles: forms that add coverage, forms that restrict or condition it, and state or administrative forms.
3. Read the restricting forms first. A roof payment schedule, a cosmetic damage exclusion or a special deductible can change a claim more than any added coverage helps.
4. Compare to the last renewal. New forms appear at renewal, and states may require advance notice if the change reduces coverage. Read the renewal packet.
5. Before you rely on any "rider," get the form number, limit, deductible, cost and effective date in writing. Then see the list in homeowners endorsements worth considering for what is worth asking about.

Key takeaways

• An endorsement is a written change to your policy. "Rider" is an informal word for it, and "floater" is a kind of coverage that can be sold as an endorsement or as its own policy.
• A promise from an agent is not a change. Under the standard form, a change or waiver must be in writing from the insurer.
• Endorsements can restrict as well as expand coverage, so read the forms that lower payments before the ones that add coverage.
• Scheduling valuables replaces the base policy's low special limits with individual stated amounts, but only if you update the values.
• Your declarations page lists every form attached to your policy. If it is not listed, assume you do not have it until your insurer confirms in writing.