Umbrella Insurance in South Dakota

Experts break down umbrella insurance costs, coverage, companies, and more in South Dakota.

Ann Herro, Insurance Expert Written by Ann Herro
Ann Herro, Insurance Expert
Written by Ann Herro

Ann Herro has been writing about insurance and employee benefits for over 15 years. She has covered topics as easy as insuring a car, and as difficult as transparency in healthcare costs.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Brand new suburban house in sunny summer afternoon. Find South Dakota umbrella insurance.

These days, million-dollar judgments for bodily injury claims are not uncommon. If someone is injured on your property or if you cause a car accident, would your home or auto insurance cover a major settlement if you're sued?

The extra liability protection offered by umbrella insurance in South Dakota can provide the peace of mind you need.

Umbrella insurance bridges the gap between your basic personal insurance policies and a million-dollar judgment against you. An independent insurance agent in South Dakota can help you find umbrella insurance that fits your needs and budget.

What Is Umbrella Insurance?

Liability insurance pays for repairing or replacing the damaged property of others. It also pays for medical expenses for injured parties, and it even pays your attorney fees, court costs, and any financial settlements or judgments you have to pay if you are sued.

Both your auto insurance and your home insurance provide limited amounts of liability coverage. If you’re sued, your policy limits may not be sufficient to cover a large financial settlement.

Umbrella insurance in South Dakota offers excess liability coverage that kicks in when the limits of an underlying policy—including homeowners insurance, renters insurance, condominium insurance, or auto insurance—have been exhausted.

What Does Umbrella Insurance Cover in South Dakota?

Umbrella policies in South Dakota offer "follow form coverage." This means that the umbrella policy typically covers what the underlying policy does. What's more, an umbrella policy may offer expanded coverage, including covering you worldwide. So if you cause a car accident while driving abroad, your South Dakota auto insurance policy might not cover you, but your umbrella policy would.

Here are some examples of where an umbrella policy might cover you:

  • Your dog bites a neighbor who suffers severe injuries as a result. The neighbor sues you for payment of her medical bills and seeks additional compensation for lost wages and pain and suffering. Your defense costs and the settlement agreement exceed the liability limits of your South Dakota homeowners policy, so your umbrella policy kicks in and covers the excess amount.
  • Your teen son runs a red light and causes a car accident. The other driver and the passenger are seriously injured. They sue you for medical expenses, lost wages, and pain and suffering. The two injured parties' legal fees and financial payouts far exceed the $500,000 bodily injury liability limit on your auto insurance policy, and then your umbrella policy kicks in, saving you from bankruptcy.

Umbrella insurance might also cover a few circumstances that the underlying policy does not, such as claims for libel, slander, and false imprisonment.


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Who Needs Umbrella Insurance in South Dakota?

You may have heard that only wealthy people or those with a big house or significant personal assets need an umbrella policy. And while it's true that certain people might have more assets to protect—making them more vulnerable to lawsuits—anyone who wants protection from the devastating effects of a lawsuit should at least consider purchasing umbrella insurance in South Dakota.

Even if you’re not a high-risk individual, you can still be sued at any time. A personal injury lawsuit can result in an award of hundreds of thousands of dollars or more. Million-dollar judgments are not uncommon. You might be more likely to be sued if you:

  • Own a home
  • Own a rental property
  • Have a trampoline, pool, or hot tub
  • Host large parties
  • Have a teenage driver
  • Own a dog
  • Own a large home

If any of these characteristics fit you, consider talking to your independent insurance agent about your need for umbrella insurance.

How Much Umbrella Insurance Do I Need in South Dakota?

Umbrella insurance is typically sold in $1 million, $2 million, or $5 million increments. To determine how much umbrella insurance you need, assess your net worth and evaluate your current liability coverage for your home and your vehicles. Your age, profession, ZIP Code, and other personal characteristics will also be factored into the amount of umbrella coverage ideal for your needs.

You’ll need both home and auto insurance in South Dakota to purchase umbrella insurance. South Dakota doesn’t set eligibility requirements for purchasing umbrella insurance. But the insurance company selling you the policy will have underlying insurance requirements that you'll need to meet to buy your policy.

Can You Deduct Umbrella Insurance On Your Taxes in South Dakota?

Personal umbrella insurance premiums are not usually tax-deductible in South Dakota. But you may be able to deduct a portion of your premiums as a business expense if you own rental properties that are covered along with other personal assets under one personal umbrella policy.

Your premiums may be tax-deductible if you own a business and have a business umbrella policy in addition to other business liability coverage.

What Are the Best Umbrella Insurance Companies in South Dakota?

It can be simple to find the best umbrella insurance companies in South Dakota. A local independent insurance agent can help you get umbrella insurance quotes from multiple insurance companies so that you can select the best policy for your needs and budget.

Why Shop Umbrella Insurance with a South Dakota Independent Insurance Agent?

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 claim time comes. 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.

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