South Dakota Home Insurance

For many South Dakota homeowners, their property is their most important asset — maintaining adequate home insurance is crucial for protecting such a major investment. To help residents keep track of their insurance needs, stay on top of their policies, and find the resources available to them, The Simple Dollar has gone to work compiling all the useful information and resources needed to get readers started. Read on to start making the most of your homeowners insurance.

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Stats in Your State

Visualizing the different elements that make up the housing market can be tough without the right data. To remedy this, we’ve put together a handful of different sets of information that illustrate various elements at work in the housing market, and will help homeowners compare their home insurance premiums with others in South Dakota and across the nation.

Homeowner Insurance Premiums

From 1999 to 2005, homeowners insurance premiums in South Dakota remained roughly $100 below the national average for yearly coverage, and paralleled the rise in homeowners premiums over those years. However, in 2006 South Dakota’s premiums leveled off while the U.S. average rates continued to rise, widening the gap to nearly $200 between South Dakota and U.S. premiums. Low home prices and relatively few natural disasters make homeowners insurance relatively cheap in South Dakota.

Renter Insurance Premiums

Through most of the early 2000’s, renters insurance cost less than $125 per year for South Dakota renters. Rates across the state remained roughly 33% less than the national average. A low demand market and relatively low property values make the cost of property insurance low across the state.

Existing Home Sales

South Dakota followed the trends of the early and mid-2000’s in terms of its housing market, with existing home sales skyrocketing early in the decade and peaking between 2005 and 2007. In 2008, like the U.S. as a whole, the market plummeted and by 2010 home sales had dropped by nearly 20%.

Flood Insurance in Region

Roughly $14 million in flood damages were claimed by 905 South Dakota claimants in 2011 and 2012, placing it third behind Missouri and North Dakota among its neighboring North-Midwest states.

Homes Built

South Dakota has seen tumultuous years of growth in terms of home construction, punctuated by decades of a near halt of housing development. Over a third of South Dakota homes were built between 1970 and 1999, though development has slowed significantly in the 2000’s.

Rules in Your State

For those who enjoy reading up on insurance regulations, readers can find a wealth of legislation at the links listed below. To get a better understanding of what they mean for you, be sure to contact the Insurance Division, and consult with an attorney if you feel your rights may have been violated by an insurance company.

South Dakota Division of Insurance Laws & Regulations: These regulations and laws apply to insurance companies in general, and address everything from corporate business practices to claims handling and policy sales.

Unfair Trade Practices: South Dakota has also listed specific unfair practices in the handling of insurance claims. If your insurer has partaken in any of these prohibited practices, consult with an attorney to find out your options for recourse.

Representatives & Resources in Your State

Below readers will find links to their local government agencies and resources to help them stay on top of their homeowners insurance needs. If you have a difficult insurance issue or need to file a complaint against an insurer, contact the Insurance Commissioner’s office to seek assistance. On their site you'll also find valuable guides to better understand the insurance industry in general.

South Dakota Department of Labor and Regulation: Insurance Division
South Dakota Division of Insurance
445 East Capitol Avenue
Pierre, SD 57501
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Consumer Complaint Information
Homeowners Insurance Information
The Insurance Division has written up a useful guide to educate homeowners on how insurance works in South Dakota, and what options to look for when choosing a homeowners insurance policy in South Dakota.
Flood Insurance Information
In addition to homeowners insurance, many insurers sell flood insurance separately for an extra price. Read up on it at the link above, particularly if you are at risk of flooding in your area.

Federal Emergency Management Administration: Region 8
The Federal Emergency Management Administration handles disaster relief and emergency response, but also provides information on disaster preparedness. Contact them for more information on the resources available to you.