What is a "rider" in an insurance policy?

A rider in an insurance policy refers to an endorsement or provision that adds coverage or modifies the terms of the policy. This is a common practice in the insurance industry, allowing policyholders to tailor their insurance to better meet their needs. For instance, an individual might add a rider to cover specific conditions or events that would not be included in the basic policy, enhancing the overall protection afforded by the insurance.

The ability to customize your coverage through riders ensures that you can address unique risks without having to purchase a completely separate policy. Riders can also adjust limitations or exclusions typically found in standard policies, providing added security and reassurance.

The other options do not accurately define what a rider is. For example, while a special policy for natural disasters might exist, it does not encompass the broader definition of a rider, which can apply to various types of coverage adjustments. Similarly, a fee added to the premium for coverage changes pertains to cost rather than the contract inclusion itself. Lastly, a document outlining policy exclusions describes what is not covered under the policy, which is different from the purpose of a rider that specifically enhances or alters coverage rather than detailing limitations.