Water damage insurance in South Dakota

The source of the water decides most claims

The South Dakota Division of Insurance describes several standard homeowners forms. For the common HO-3 form, it lists these exclusions: flood, surface water, sewer backup, tidal wave, earthquake, landslide, war and nuclear radiation. The more limited HO-2 form covers named perils, including the weight of ice and snow and, under certain conditions, steam or water damage other than flooding (SD Division of Insurance).

The division's homeowners page puts it this way: seepage through the walls is commonly excluded, while water resulting from a backup of the sewage system or from flooding groundwater may be covered, so review the policy with an agent (SD Division of Insurance). In practice that means checking whether the policy has a sewer or drain backup endorsement before you need it.

Call about water damage

Flood insurance

The division says most homeowners policies do not cover flood, and lists the National Flood Insurance Program at 800-427-4661 and FEMA disaster assistance at 800-621-3362 (SD Division of Insurance). Its guide to optional coverage calls flood the most important exclusion and recommends flood insurance for anyone in a flood-prone community (SD Division of Insurance). Around Brookings, that includes low ground along the Big Sioux River, which crested at 14.34 feet near Brookings in September 2019, close to its 1969 record of 14.77 feet (NOAA).

Other South Dakota rules worth knowing

• Total loss by fire, lightning or tornado. State law requires real property that is wholly destroyed by fire, lightning or tornado to be paid at the policy limits.
• Hail. The division says hail claims are generally paid on a replacement cost basis, with partial payments until repairs are complete.
• Mobile homes. Mobile home policies typically do not cover frozen pipes.
• Replacement cost options. The optional coverage guide describes replacement cost options, which are worth asking an agent about.

Claim steps from the Division of Insurance

The division's claims guidance (SD Division of Insurance) boils down to these steps:

1. Report the loss promptly and write down the claim number and adjuster's name.
2. Photograph the damage before making temporary repairs.
3. Make temporary repairs to prevent further damage, such as extraction, drying or tarping, and keep every receipt. These are usually covered.
4. Hold off on permanent repairs until the insurer inspects. Making them first can lead to a denied claim.
5. Expect a response. Insurers must respond to claim communications within 30 days.
6. Ask for an itemized settlement so you can compare it with the restoration estimate.
7. Get any denial in writing, with the specific policy language it is based on.

If a dispute cannot be resolved with the insurer, the division takes consumer calls at 605-773-3563.

Checking a contractor in South Dakota

South Dakota requires anyone who contracts to construct, repair or remodel real property to hold a contractor's excise tax license from the Department of Revenue before starting work, with no minimum job size (SD Department of Revenue). The tax is 2 percent of gross receipts, and there is no fee for the license (SD Department of Revenue). Ask any restoration or rebuild contractor whether they hold one.

Inside Brookings, the city issues building permits, and plumbing and electrical work must be done by trades licensed by the state and the city, or by the owner of an owner-occupied home, with state inspection (City of Brookings).

Working with the adjuster and the provider

• Give the adjuster the provider's moisture readings, photos and drying logs.
• Ask the provider to separate mitigation (extraction, drying, removal) from rebuild on the estimate.
• Keep damaged materials, such as a split pipe or a failed supply line, until the adjuster has seen them or says they can go.
• Track additional living expenses if the home is not livable, and keep receipts.

This page summarizes public guidance and is not legal or insurance advice. Policies differ; the policy itself and the insurer's written decisions control.

Call a restoration provider