What type of property must be insured in South Dakota against loss by fire, tornado, or lightning?

In South Dakota, real property must be insured against specific perils like fire, tornado, or lightning. Real property includes land and any structures permanently attached to it, such as homes, commercial buildings, and other fixed assets. Insuring against these natural events is crucial because they pose significant risks to physical structures, potentially leading to catastrophic financial losses.

This requirement often stems from the understanding that real property serves as a foundational asset for individuals and businesses. Insuring it provides a safety net, ensuring that homeowners or property investors can recover from substantial damages and maintain their financial stability.

While personal property, commercial property, and intangible assets may have their own insurance requirements and considerations, the focus on real property in this context is essential due to its tangible nature and the specific vulnerabilities it faces from defined natural disasters.