South Dakota Home Insurance

If you are a homeowner in South Dakota, you might be wondering about the laws, policies and cost of home owners insurance in your state. Home owners insurance is a type of property insurance that covers your home and personal belongings from damage or loss caused by natural disasters, theft, vandalism, fire and other perils. Home owners insurance also provides liability coverage in case someone gets injured on your property or you cause damage to someone else's property.

Home owners insurance is not mandatory in South Dakota, but most mortgage lenders require it as a condition of your loan. The average cost of home owners insurance in South Dakota is $1,202 per year, which is lower than the national average of $1,477. However, the actual cost of your policy will depend on several factors, such as the size, age and condition of your home, the location and crime rate of your neighborhood, the amount and type of coverage you choose, and your credit score and claims history.

There are different types of home owners insurance policies available in South Dakota, each with different levels of coverage and exclusions. The most common ones are:

- HO-1: This is the most basic policy that covers only 10 named perils, such as fire, lightning, windstorm, hail, explosion, riot, smoke, vandalism, theft and volcanic eruption. This policy does not cover personal liability or medical payments.

- HO-2: This is a broader policy that covers 16 named perils, including the 10 covered by HO-1 plus falling objects, weight of ice or snow, accidental discharge of water or steam, sudden and accidental tearing or cracking of pipes or systems, freezing of pipes or systems, and damage from artificially generated electrical current. This policy also covers personal liability and medical payments.

- HO-3: This is the most popular policy that covers all perils except those specifically excluded by the policy. Some common exclusions are flood, earthquake, war, nuclear hazard, wear and tear, mold, fungus, insect or animal damage, ordinance or law enforcement, and intentional loss. This policy also covers personal liability and medical payments.

- HO-5: This is a comprehensive policy that covers all perils except those specifically excluded by the policy for both your dwelling and personal property. This policy offers more coverage than HO-3 for your personal belongings and has fewer exclusions. This policy also covers personal liability and medical payments.

- HO-6: This is a policy designed for condo owners that covers your personal property and any improvements you make to your unit. It also covers your share of the common areas and liability for damage to other units or common areas. This policy does not cover the structure of your condo building, which is usually covered by a master policy held by the condo association.

- HO-8: This is a policy designed for older homes that have a replacement cost that exceeds their market value. It covers the same perils as HO-1 but pays only the actual cash value of your home and personal property, which is the replacement cost minus depreciation.

As a homeowner in South Dakota, you should shop around and compare different policies and quotes from different insurers to find the best coverage and price for your needs. You should also review your policy periodically and update it if there are any changes in your home or personal situation. You should also take steps to protect your home from potential hazards and reduce your risk of filing a claim.

Home owners insurance is an important investment that can protect your home and financial security in case of an unexpected disaster or accident. By understanding the laws, policies and cost of home owners insurance in South Dakota, you can make an informed decision and choose the best policy for your home.