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

A "rider" in an insurance policy serves as an additional provision that modifies the original terms of the policy. It can provide extra coverage or change certain aspects of an insurance contract to better suit the policyholder's needs. For instance, a rider might include specific exclusions or enhancements, such as covering high-value items not included in the standard policy.

The function of a rider is important as it allows policyholders to customize their insurance coverage, addressing individual circumstances or risks that may not be fully covered by the base policy. This modification can ensure that the policy is more tailored to the insured's requirements, enhancing their protection against specific risks.

In contrast, the other options relate to different functions within an insurance policy. For example, stating covered perils is essential for understanding what risks the policy will provide coverage for, but this does not involve the modification aspect that a rider does. Similarly, the policy start date is a fundamental part of the contract's timeline but does not serve to alter the coverage as a rider would. Lastly, defining the insured party establishes who is covered by the policy, which is crucial for legal clarity but again does not modify the terms of the coverage itself, as riders do.