What does a 'rider' do in an insurance policy?

A rider in an insurance policy serves to enhance or modify the benefits provided by the original policy by adding specific coverage options. This additional coverage can address particular needs or risks that may not be included in the standard policy. For example, a homeowner’s policy might have a rider for personal property such as jewelry, which provides coverage beyond what is typically included in the basic policy terms.

The idea behind a rider is to tailor the insurance policy to better fit the insured's individual needs without the necessity of creating an entirely new policy. This flexibility can be essential for ensuring that all potential risks are adequately covered. It is an important aspect of insurance that allows policyholders to customize their protection and ensure they have the appropriate coverage for their circumstances.