Short answer: Your South Dakota landlord's policy doesn't cover your belongings. Under SDCL 43-32-6.1, a deposit generally can't exceed one month's rent. Under §43-32-24, as amended in 2026, the landlord must return the deposit, or give you a written statement of the specific reasons for keeping any of it. The deadline is 21 days after the tenancy ends and the landlord receives your mailing address. If they don't comply, they forfeit the right to withhold.
This guide is general information for South Dakota renters. It isn't legal advice, and local ordinances can add rules. Your lease and policy wording control.
Your landlord's policy covers the building, not your belongings or liability. A renters policy (HO-4) covers personal property, personal liability and loss of use; flood is generally excluded (see FloodSmart). Coverage basics: renters insurance. Roommates: whether renters insurance covers roommates. Liability: how much renters liability coverage you need.
Step 1: Deposit cap
Under SDCL 43-32-6.1, a deposit generally can't exceed one month's rent. A larger deposit may be agreed to if special conditions pose a danger to maintenance of the premises.
Step 2: The 21-day rule
Under §43-32-24, as amended by 2026 Senate Bill 4, the landlord must return the deposit or give you a written statement of the specific reasons for withholding any of it. The deadline is 21 days after the tenancy ends and the landlord receives your mailing address or delivery instructions. Withholding is limited to unpaid rent, other funds due under an agreement, and restoring the unit, ordinary wear and tear excepted.
Step 3: Accounting and penalties
- On your request, the landlord must provide an itemized accounting within 45 days after the tenancy ends.
- A landlord who fails to comply forfeits all rights to withhold any portion.
- Bad-faith retention can bring punitive damages up to $200.
Step 4: Storms
Renters insurance typically covers your belongings for wind and hail damage. Flood is generally excluded; see FloodSmart.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in South Dakota.
Frequently asked questions
What's the maximum security deposit in South Dakota?
Generally one month's rent.
How long does a South Dakota landlord have to return my deposit?
21 days after the tenancy ends and they receive your mailing address, under the 2026 amendment.
What if a South Dakota landlord doesn't comply?
They forfeit the right to withhold. Bad-faith retention can bring up to $200 in punitive damages.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.