Landlord Insurance in South Dakota
Experts break down landlord insurance costs, coverage, companies, and more in South Dakota.
South Dakota is a growing state of around 895,000 people with renters occupying approximately 30% of the housing units in the state. If you own one of the many rental properties in South Dakota, you need landlord insurance to protect your investment. You can get landlord insurance to cover any rental home, townhouse, or apartment complex that you rent out to tenants.
A local independent insurance agent can help you get landlord insurance quotes from multiple insurance companies in South Dakota, so you can find the policy that best meets your needs and budget.
What Is Landlord Insurance?
Landlord insurance is similar to homeowners insurance in that it protects your property if you experience a fire, storm damage, or some other type of property loss.
But the coverage in a landlord insurance policy is designed to protect landlords specifically. While it covers damage to the structure of a rental property, it does not cover the tenants' personal property. And the liability coverage in landlord insurance is designed for the increased risk of lawsuits that landlords face.
How Much Does Landlord Insurance Cost in South Dakota?
Landlord insurance costs about 25 percent more than a standard homeowners insurance policy because rental properties are riskier than private dwellings to insure. Insurance companies assume that landlords are more likely to file some insurance claims.
Landlord insurance premiums are based on the type of rental property and your unique set of risk factors. In general, landlord insurance premiums are based on characteristics such as:
- The size and location of your property
- The age and construction of your building
- The weather and crime risks in your city
If your buildings have fire sprinklers, burglar alarms, gated access, or other security systems, you may be able to save some money on your landlord insurance premiums.
A local independent insurance agent can help you get multiple quotes for landlord insurance in South Dakota.
What Does Landlord Insurance Cover in South Dakota?
Landlord insurance in South Dakota typically provides the following types of coverage:
- Property insurance: Covers the building itself and any other structures such as a garage or shed for any physical damage caused by fire, lightning, wind, hail, ice, snow, or other covered perils. It covers any personal property you may have on the property (e.g., maintenance equipment, appliances, etc.). It does not cover your tenants’ possessions.
- Landlord liability coverage: Protects you if someone is injured on your property or if you are responsible for damaging someone else’s property. Landlord liability insurance covers the costs of any medical treatment or property repairs required. It also covers legal costs (e.g., attorney fees, court costs, and financial settlements or judgments).
- Loss of rental income: Coverage for your lost rental income if your tenants have to move out so you can make repairs to your building after a fire, storm, or some other covered peril.
A local independent insurance agent can help you decide if you need additional forms of coverage for your rental property.
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Can a Landlord Require Renters Insurance in South Dakota?
Landlord insurance is not required by law in South Dakota, nor is renters insurance.
As a landlord, you can choose to require your tenants to purchase renters insurance. In these cases, the insurance requirements must be specified in the lease agreement, with specific tenants' responsibilities and the consequences for not providing proof of insurance made clear.
Does Landlord Insurance Cover Tenant Damage in South Dakota?
Your landlord insurance in South Dakota covers damage caused by tenants only under certain conditions.
Sudden and accidental damage caused by a tenant is usually covered by landlord insurance. If, for example, a tenant accidentally causes a kitchen fire, the ensuing damage to walls, countertops, cabinets, and other structural parts of the building should be covered by your landlord insurance.
But any fire damage to your tenants' furniture, cookware, or other possessions will not be covered by your landlord insurance. It will, however, be covered by the tenants' renters insurance if they have it.
If an appliance that you own (e.g., the oven) is damaged in the same fire, it would likely be covered under the landlord insurance policy. But if that same appliance breaks due to normal wear and tear, landlord insurance in South Carolina typically would not cover the necessary repairs.
A standard landlord insurance policy won’t protect you if a tenant causes damage by punching in a wall, kicking in a door, painting graffiti, or otherwise intentionally damaging some part of a unit. But you may be able to purchase additional vandalism coverage that covers certain kinds of intentional damage to your rental property.
What Are the Best Landlord Insurance Companies in South Dakota?
Local independent insurance agents make comparison shopping for landlord insurance easy. They can obtain quotes from the best landlord insurance companies in South Dakota and ensure that you're getting your policy at a competitive price.
Why Shop Landlord Insurance with an Independent Insurance Agent in South Dakota?
Instead of getting an online quote, find an independent insurance agent now, and get a one-on-one consultation and affordable options for the best coverage for your unique needs. Your agent will work with you free of charge, offering you a variety of options so you can make the best choice.
What’s more, your agent will be there for you when it's time to file a claim. They know the ins and outs of the process and will make sure your claim is handled appropriately.
Contact an agent today for a free, no-obligation consultation.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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