Best homeowners insurance companies in South Dakota for 2024

Compare the best homeowners insurance companies in South Dakota

South Dakota home insurance averages $2,857 annually for $300K in dwelling coverage, which works out to $238 a month. After comparing and analyzing quoted annual premium data, coverage options and third-party agency ratings from AM Best, J.D. Power and Standard and Poor’s (S&P), Bankrate found that USAA, Allstate, Travelers, Auto-Owners and State Farm offer the best South Dakota homeowners insurance.

Our Bankrate Score is calculated on a 5.0 scale and is based on industry-standard third-party rankings, state availability and digital accessibility. Metrics for customer satisfaction, financial stability, pricing and available features are also weighed to create the Bankrate Score. This score helps provide an easier comparison when shopping for the best South Dakota home insurance company.

The top 5 home insurance companies in South Dakota

Additional South Dakota home insurance companies to consider

Farmers

South Dakota Farm Bureau

Cheapest home insurance companies in South Dakota

To get you started, Bankrate’s team researched the cheapest insurance providers in the state. Take a look at the following providers and their average rates. Remember that your exact premium will vary between providers, so read through policy quotes and coverage very carefully.

How to get cheap South Dakota home insurance

Although home insurance is not mandated by state law the way car insurance is, it is wise to consider purchasing a policy if you are a homeowner to protect your investment in your home. If you have a mortgage, your lender will require it. Mishaps such as fire or storm damage can happen to anyone, and you could end up paying thousands of dollars out of pocket for repairs if you do not have home insurance.

There are, however, several strategies you can consider to save money on your policy, including the following:

• Shop around: To ensure you find some of the most competitive rates, get home insurance quotes from several providers. Request the same coverage amounts and types, so you can do an apples-to-apples comparison of the quotes.
• Work on your credit score: Although it is restricted as a rating factor in some states, insurers in South Dakota are allowed to consider your credit history when calculating your premium. A higher credit-based insurance score is likely to earn you a lower rate on your policy since people with lower credit scores tend to file more claims.
• Repair or replace your roof: An old or damaged roof can be the cause of an expensive claim, so your insurer may charge you a higher premium if your roof is nearing the end of its lifespan.
• Bundle your policies: Most insurers offer a significant discount if you have more than one policy with them, so consider bundling your auto and home insurance with the same carrier for potential savings.
• Increase your deductible: Your deductible is the amount you agree to pay out of pocket when filing a claim for damage to your home. If you raise your deductible to a higher amount, you’ll pay a lower premium. However, keep in mind that this should be an amount you’re comfortable paying in a pinch.

Best home insurance discounts in South Dakota

In addition to the tactics above, you may be able to save money on your home insurance cost if you're getting all the discounts to which you are entitled. Almost every insurer offers at least a few potential discounts, and some are easy to earn. Here are some of the more common ones in South Dakota.

How to save on home insurance policy renewals in South Dakota

Don’t forget that you can continue to save on your home insurance premium after you’ve found the right provider for you. Here are a few ways you could save when it’s time to renew your policy:

• Maintain your roof: A new roof is less likely to fail in a story or other covered event, which is why insurers typically offer a new roof discount.
• Improve your credit score: While you can’t fix your credit score overnight, building your credit can help you earn better rates over time when it’s time to renew.
• Limit your claims: Although homeowners insurance is meant to protect your finances after covered events, frequently filing claims could cause your insurance company to raise your premium or decide not to renew your policy due the heightened risk of future claims.
• Install wind and flood mitigation updates: Ask your provider if you are eligible for a discount if you’ve gotten a home inspection or made home improvements like retrofitting your roof, installing storm or hurricane shutters, installing roof fasteners and installing impact-resistant windows.

How much is home insurance in South Dakota?

The average annual cost of homeowners insurance in South Dakota is $2,857 for $300,000 in dwelling coverage, according to 2024 rate data from Quadrant Information Services. This is 24 percent more than the national average cost of $2,304 per year for the same coverage amount. It is also higher than the average cost of its neighboring states, with Minnesota at $2,578 per year and North Dakota at $2,880 per year.

There are several factors that go into South Dakota homeowners insurance companies’ rates. The cost of labor and materials in the area contribute to premiums, as well as local weather hazards and the volume of property damage claims filed by homeowners. South Dakota is in Tornado Alley and susceptible to severe convective storms, which can lead to more costly claims, driving up insurance costs as a result.

South Dakota homeowners insurance rates by city

Regardless of what state you live in, your insurance rate will vary by city. This is also true of South Dakota, where you’ll see rates fluctuate based on the number of claims being filed. Take a look at the map and searchable data table to get an idea of how rates differ throughout the state.

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in South Dakota?

Before you sign a policy, determine what coverage you need and find out what types of coverage are included in the quotes you request. If a standard policy doesn’t include the coverage you’re looking for, the provider might offer an endorsement that would give you the protection you need. Here are a few of the common causes of damage that standard South Dakota home insurance covers:

• Wind and hail
• Fire and lightning
• Water damage and freezing
• Theft and all other property damage

Additional home insurance coverage types in South Dakota

Based on the common cause of losses in South Dakota, you might want to opt for additional coverage or endorsements to better protect your finances after a covered loss. You may want to consider these coverage options when shopping for South Dakota homeowners insurance:

• Flood insurance: Flooding can happen anywhere, and South Dakota has been known to experience severe flooding events. Standard home insurance does not cover floods, so you may want to consider purchasing a flood insurance policy from the National Flood Insurance Program (NFIP) or a private insurer.
• Food spoilage: Most standard home policies provide up to $500 in food spoilage if a covered claim causes a power outage. With some companies, you can increase that coverage to higher limits. By increasing food spoilage coverage, you could stock your fridge and freezer without worrying about being out-of-pocket for the overage if the power goes out for an extended time.
• Equipment breakdown: Lightning damage is common in South Dakota, doing roughly $10.8 million in property damage each year. When a power surge happens because of a covered peril, such as lightning, it can fry your appliances and other personal property. Coverage varies by carrier and is subject to property coverage limits. Equipment breakdown coverage could expand this coverage, ensuring you can replace or repair appliances if needed after a covered loss.
• Guaranteed replacement cost: Most South Dakota homeowners insurance companies offer extended replacement cost coverage, but not all offer guaranteed replacement cost coverage. Extended coverage usually offers a percentage over your dwelling coverage limit, typically around 25 percent. But with guaranteed replacement cost coverage, if your entire home needs to be rebuilt from damage caused by a winter storm, lightning strike or tornado, the cost to rebuild to the previous size and specifications is covered, no matter how much the total cost.

Common South Dakota home insurance problems

Although insurance providers haven’t been leaving the state, the market for home insurance in South Dakota can still be challenging to navigate for some. Rising costs and more claims mean that insurers are charging more, which is why it’s important to shop around for the best home insurance rates.

Here are a few of the challenges facing South Dakota homeowners:

• Rising insurance rates: The cost of repairs or rebuilds is significantly higher because of inflation and the severity of damage. Many insurers pass these extra expenses off to policyholders in the form of higher rates.
• Unable to get an insurance policy: Some insurance providers charge more or refuse coverage if an applicant has filed a lot of claims in the past, has a poor credit score, or let their insurance coverage lapse.

Frequently asked questions

Additional profiles:

• Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $35,000, $45,000, &75,000
• Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

Bankrate Scores 

Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.