What is the function of a 'rider' in insurance policies?

A rider in insurance policies serves the purpose of modifying or adding to the coverage provided by the base policy. This means that it allows policyholders to customize their insurance to better fit their needs by including specific provisions, additional benefits, or adjusting coverage limits.

For example, if a homeowner wants to ensure that valuable jewelry is covered beyond the general limits of a standard homeowner’s policy, they can add a jewelry rider to specifically cover that asset. This flexibility is essential as it allows insurance products to be tailored to the unique situations and requirements of individual policyholders.

Additionally, riders can address various aspects such as adding coverage for specific events or enhancing benefits in certain conditions, making them a vital tool for comprehensive risk management in insurance.