Whether you have owned your Sioux Falls condo for years and are looking for a new provider, or you are thinking about buying a Rapid City condo and need insurance, finding the right South Dakota condo insurance policy can be time-consuming and confusing. It doesn't have to be that way, however.
Before you search for condo insurance quotes, there are several factors to keep in mind.
Condo Living in South Dakota
According to real estate trackers and census data:
- South Dakota condos range in value from $80,000 to more than $400,000.
- Housing prices in the state have increased significantly during the past few years.
- The average condo resident owns about $30,000 worth of personal property.
What Is Condo Insurance?
Condo insurance provides coverage for the inside of your condominium, while the external areas fall under the jurisdiction of your condo association. They type of condo insurance policy you need depends on the type of master policy your association carries.
In addition to covering your belongings in the event of a loss, your condo insurance also protects you against liability claims in the event you are responsible for another person’s injury or property damage, or you have legal fees to pay due to a lawsuit.
What Does Condo Insurance Cover in South Dakota?
A condo insurance policy should cover what the condo association master policy does not. A condo association master policy can be of two types:
- All-in master policy: Also known as a single-unit master policy, this type of policy covers the fixtures in your condo, such as the appliances, wiring, plumbing and carpets, but does not cover personal property that you own.
- Bare walls-in master policy: This does not cover anything contained within your walls. It may or may not cover the plumbing and electrical systems. Be sure to carefully review your association master policy to determine what your condo insurance policy needs to cover.
You will need to buy more condominium insurance of your own if your association has a bare walls-in condo master policy than if it has an all-in master policy.
Your condo insurance policy will cover you for loss or damage to your personal possessions and provide coverage for personal liability and medical payments. Additionally, it will often cover loss of use in the event that your condominium becomes damaged by a fire or a weather-related event and you need to live elsewhere during repairs. Insurance for a specific condo is known as an HO-6 policy. HO-6 policies typically provide you with coverage for a range of causes of loss. You may have to purchase additional coverage, known as insurance riders, for specific items such as artwork, jewelry and other items of value.
Am I Required to Carry Condo Insurance in South Dakota?
Many South Dakota condo associations require residents to carry, at a minimum, liability insurance. Others may have additional stipulations regarding insurance coverage.
You may also be required by your lender to obtain insurance if you are still paying the mortgage on your condo. If you rent instead of own, you may be required to carry renters insurance. Even if not mandated, it's a good idea to protect your personal property with a renters insurance policy.
How Much Condo Insurance Do I Need?
Determining the amount of coverage needed is a little trickier for condo residents than for traditional homeowners. Most homeowners insurance policies cap the coverage amounts at the value of the structure. Because condo residents do not have to cover the building itself, these amounts are less easily calculated.
First, you should conduct an inventory of all your possessions. Go room to room assigning a dollar value to your property, such as appliances (if you own them), furniture, electronics, books and even clothing. The total amount should give you an idea of how much personal property coverage you need.
Second, determine the type of coverage you want. Most insurance providers will give you the optionof choosing between replacement cost value and actual cash value reimbursement methods to protect your personal property.
- Actual cash value: This type of reimbursement takes depreciation into account. If your 10-year-old TV is damaged or destroyed by fire or a severe weather event, your insurance company will reimburse you the amount it takes to purchase a used, 10-year-old TV.
- Replacement cost value: This method of reimbursement ignores depreciation. Using the same example, your insurance company will compensate you the amount it takes to purchase a brand new TV with similar features.
What Will My Condo Insurance Quote Look Like?
Condo insurance costs can vary significantly from provider to provider. Generally, however, condo insurance is far more affordable than homeowners insurance because you are not responsible for covering the building itself. The quotes you find from South Dakota insurance providers depend on several factors, including:
- Where you live
- The amount of personal property coverage you need
- The coverage options you choose
- Whether you need additional riders
Typcially, condo insurance for units in high-crime neighborhoods will have higher quotes than those in relatively safe areas. While the replacement cost value coverage option may increase your premium quote, you may want the additional protection if you own many older, big-ticket items.
The cost of condo insurance ranges from $100 to $400 per year on average, depending on the value of your personal property and the type and amount of coverage you carry.
Where Can I Find Condo Insurance?
You have worked hard to fill your condo with belongings you cherish. You want the protection only a comprehensive condo insurance policy can offer.
Knowledgeable, independent insurance agents on the Trusted Choice® network are always available to answer your questions, suggest coverage options best suited for you and your condo, and even assist you in filing a claim.
These agents have years of experience working with South Dakota insurance providers, enabling them to find you a number of quotes from a variety of companies. Contact a Trusted Choice member agent near you to find out how you can obtain the perfect condo insurance policy with the best coverage at the most affordable rates.