What is an insurance rider (endorsement)?

A rider (or endorsement) is a formal change to an insurance policy that adds new coverage, removes existing coverage, or adjusts the terms of protection. Rather than rewriting an entire policy, insurers issue riders as attachments that modify what the base policy covers.

In Ontario, common riders on home insurance include water damage endorsements that extend coverage beyond standard exclusions, sewer backup protection that covers costs from backed-up sewers or drains, and overland water coverage for surface flooding. Condo owners often add riders for improvements or betterments they have made to their units. Commercial policies frequently include riders for equipment breakdown, additional liability limits, or specific property classes not covered in the standard form.

Riders serve several practical purposes. They allow policyholders to customize protection without replacing their existing coverage, they create a clear paper trail of exactly what modifications have been made, and they help clarify what is and is not covered, reducing disputes at claim time. An endorsement is typically added at policy inception or renewal, though some can be requested mid-term. Each rider has its own terms, conditions, and usually its own cost, which is added to the base premium.