South Dakota has low home insurance rates as compared to other regions of the country. Only Iowa has lower premiums. While the state of South Dakota doesn’t require you to buy home insurance, some mortgage lenders require it as a condition of approving your home loan. And home insurance can be essential – it protects your home against weather disasters, theft, vandalism, and personal liability during lawsuits.
When shopping for homeowner’s insurance in South Dakota, compare your policy options. Work with your insurance agent to create a policy that covers your personal coverage requirements.
Comparing South Dakota Home Insurance Rates
How much you pay for home insurance will depend on many factors, including your home's proximity to police and fire departments, as well as the deductible you choose. A higher deductible typically means lower premiums, and vice versa. However, if you choose a high deductible, you’re risking paying a high amount out of pocket should you need to file an insurance claim.
Some dog breeds also lead to higher South Dakota home insurance rates. These breeds include Bull Terriers, German Shepherds, Pit Bulls, Siberian Huskies, Chow Chows, and Rottweilers.
Other factors that affect your insurance premium include:
- The presence of smokers in your home
- Whether there is a security system in the home
- Your home's age
- The materials your home is made from (brick, stone, wood)
You can do other things to bring down your premiums. Consider installing deadbolts on all doors, updating your roof, and upgrading the home's electrical system.
South Dakota: A Wild Weather State
While South Dakota is technically part of Tornado Alley, fewer tornadoes touch down in this state than in other Tornado Alley states such as Texas and Oklahoma. However, South Dakota residents should get protection against the devastating effects of tornadoes. Tornadoes pose an especially significant risk to your home if you live on the eastern side of the state. Make sure your home insurance policy has comprehensive coverage for such damage.
In South Dakota, hail and lightning storms are frequent, and these can cause damage to your roof and other property. In the winter, blizzards and ice storms cause roof problems as the moisture builds up on overhangs and eaves, potentially leading to cracks and rot. The dry heat of summer causes wildfires in many parts of South Dakota, so make sure you have fire protection in your home insurance policy.
Severe thunderstorms can cause flooding in the summer months and a typical home insurance policy doesn’t cover flood damage. Homeowners that live in areas that have a high risk of flood should look into purchasing a separate flood insurance policy from the federal government's National Flood Insurance Plan.
Frequently Asked Questions About South Dakota Home Insurance
Here are some common questions asked about South Dakota home insurance:
1. What personal property does a South Dakota homeowner’s insurance policy cover?
Personal property refers to items you own inside your home. This includes clothing, furniture, kitchen appliances, electronics, and even your jewelry. When creating a policy, make a detailed inventory of your personal belongings. This ensures that everything you want covered has protection in the event of a loss.
2. If you rent a home, does the landlord's insurance policy cover your property?
Your personal property is not your landlord's property. The home's owner will have a policy protecting his or her property in the home, as well as the structure itself. If you want protection for your personal belongings, purchase a renter’s insurance policy which will protect you in the event of fire or theft.
3. What monetary limits are on a South Dakota insurance policy?
When you buy a policy, you set the limits. For example, you may decide that you want to cover your jewelry for $1,000. The higher you set the replacement value limits, the higher your premiums will be.
4. What if your insurance company refuses to pay a claim?
If you have a dispute with your insurance company, contact the South Dakota Insurance Guaranty Association for help. The officials there will view your claim and make a decision based on the facts that you and your insurer present.
How to Get Great Rates on South Dakota Home Insurance
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South Dakota Home Insurance Resources
SD Division of Insurance
Information resource to help you better understand insurance coverage