Marcia Hultman

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Division of Insurance - Homeowner's Insurance


Optional Extra Coverage Homeowners May Purchase


Extra Contents Coverage

Most coverage are a flat percentage of the amount of insurance on the home itself. For example, contents coverage is 50% of the insurance on the home itself. For an additional charge, you can increase the contents coverage without increasing the amount of insurance on the home itself.

Guaranteed Replacement Cost Coverage

Most companies offer "Guaranteed Replacement Cost Coverage" for an additional premium. Ask your agent if this is available and to explain the advantages of having this broader coverage. The most important coverage normally offered is full replacement cost coverage on your roof with no deduction for depreciation.

Personal Property Extensions of Coverage

Basic homeowner's insurance is designed to fit the coverage needs of the average insured so most policies have established limits for value on certain types of personal property. These established limits may be less than the value of the stolen property, especially in the case of furs, jewelry, firearms, or other items of high value. It is the consumer's responsibility to review the limitation placed on certain types of property and increase the coverage, if desired, by adding a "Scheduled Personal Property Endorsement" to the basic policy. Your local insurance agent can explain what endorsement options are available.

Additional Liability

You can also purchase additional liability coverage and medical payments coverage, for a nominal premium.

Another important area for additional coverage that might be desirable concerns the principal exclusions in a home owners policy. Even the broadest home owner's policy includes a few standard exclusions and the more important are against losses cause by floods and earthquakes.

Flood Insurance

The most important homeowner policy exclusion is flood; unfortunately many policyholders do not realize this until it is too late. If you live in a flood prone community, do not risk going without flood insurance. Speak with your local property/casualty insurance agent to obtain this type of coverage.

Earthquake Insurance

No standard insurance policy, including the home owner's policy, covers catastrophic damage that can be caused by an earthquake. For an additional premium, companies offer an earthquake endorsement with your home owner's policy that will protect you in case your home suffers earthquake damage. The New Madrid fault runs through the Midwest United States including parts of South Dakota. This coverage is typically inexpensive in our state and should be considered.

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