What is a "rider" in an insurance policy?

A "rider" in an insurance policy refers to an extension or alteration of the policy coverage. Riders are used to add specific benefits or coverages to the main policy that might not be included in the standard terms. This allows policyholders to customize their insurance coverage according to their individual needs. For instance, a rider can provide additional protection for valuable items like jewelry or electronics, or it can offer coverage for specific risks that are not typically covered under the base policy.

Understanding this concept is vital, as riders can significantly impact the scope of protection a policyholder has. Being aware of riders helps consumers make informed decisions about which additional coverages they may want to add to ensure they have comprehensive protection tailored to their circumstances.