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The State of South Dakota has quite the number of different types of homeowners insurance forms. While all of these provide protection for dwellings and contents (personal belongings and other valuables), they still vary in terms of coverage amounts, perils covered, and who can get them.

As the South Dakota Department of Labor and Regulation’s Division of Insurance stated, SD homeowners insurance policies come in eight forms. One of the most important things you need to know about it though is what you can expect from your very own policy.

Premiums and inclusions: The relationship between the two

The primary reason you want to know more about the state’s and the country’s average is so that you can compare them with the payments you make. This way, you can gain some insight on whether or not you have sufficient coverage, or if you are paying more than what’s normal. It’s possible that your inclusions may cover too little of your prized possessions. Through comparison, you can correct this problem, allowing you to ensure you indeed have a robust insurance policy.

Determining what your policy is to know about its inclusions

In the State of South Dakota, there are seven different types of homeowners insurance forms available. According to the NAIC, these include the Dwelling Fire Form, the Basic Form, the Modified Coverage Form, the Broad Form, the Special Form, the Tenants Form, and the Condominium Unit Owners Form.

Although all of these offer protection and coverage, they retain the above-mentioned differences. You need to make certain of the specific form you have, so that you can determine what its inclusion coverage is.

For instance, having a Dwelling Fire Form means you have just your house covered, but you won’t receive any assistance from your insurer for medical payments, personal property, or personal liability.

Below is a brief description of the inclusions for the other types of South Dakota homeowners insurance forms:

  • Basic Form – Fire, smoke, hail, windstorm, explosion, lightning, civil unrest, vehicles, theft, anSd vandalism coverage for both the dwelling and its contents
  • Broad Form – All of the Basic Form coverages plus dwelling and content protection against falling objects like trees; weight of snow, ice, and sleet; plumbing-related problems (overflows, frozen or ruptured pipes, etc.); and malfunctioning HVAC systems
  • Special Form – All potential perils with the exception of floods, earthquakes, wars, and nuclear accidents
  • Tenants and Condominium Unit Owners Form – Same coverage as the Broad Form, except only the contents are covered and not the dwelling itself
  • Modified Coverage Form – Offers the same coverage as the Basic Form, except that this only applies to old homes or buildings with historical value.

Some of the other, but lesser known types of forms in the housing industry apply to townhouses and mobile homes.

According to the NAIC, there are seven different types of homeowners insurance forms available in South Dakota: the Dwelling Fire Form, the Basic Form, the Modified Coverage Form, the Broad Form, the Special Form, the Tenants Form, and the Condominium Unit Owners Form.

Key Facts and Market Trends in South Dakota: The National Association of Insurance Commissioners  (NAIC) reported that SD homeowners make an annual average payment of $915. All 50 states, plus the District of Columbia, averaged at $1,096 by the end of the year 2013. 

Conclusion: You can save money when you know what your policy covers

There are numerous benefits to knowing what your policy’s included coverages are, and the greatest is ensuring you have sufficient protection. However, this knowledge will also allow you to save a lot of money, especially when it comes to out of pocket expenses, seeing as you can immediately make a move in creating a more robust and encompassing form.

References:

https://dlr.sd.gov/insurance/general_guidance/homeowners_forms.aspx

http://www.naic.org/documents/consumer_guide_home.pdf

http://www.iii.org/fact-statistic/homeowners-and-renters-insurance