South Dakota has a fairly high homeownership rate. About 68% of residents own a home, which is greater than the U.S. national average rate of 64%. That’s partly due to the state’s low property values. In South Dakota, the median property value is $171,500, which is less than the national median price of $229,700.
Because so many South Dakota residents own a home, there is a big market for home insurance companies. If you’re shopping for homeowners insurance, there are a few things you should keep in mind. Before you buy a policy, make sure you know how much coverage you need, what type of coverage you need and how much you can afford to pay for a deductible.
The top home insurance companies in South Dakota
Shopping for homeowners insurance can be difficult. There are so many companies on the market and it can be hard to determine which one is best for you. That’s why we put together a list of the best home insurance companies in South Dakota:
- Amica—Amica is a great home insurance company across the board. The company offers comprehensive coverage, great customer service and fast claims handling.
- State Farm—State Farm is known for its low rates and great discounts. If you’re shopping for insurance with price in mind, consider a policy from State Farm.
- Auto-Owners—Auto-Owners is one of the few major insurance companies that works primarily through agents. That means you’re getting great customer service and efficient claims handling, which can be hard to find with other companies.
- South Dakota Farm Bureau—South Dakota Farm Bureau is a membership organization that supports the state’s agriculture. If you’re a member, you can get home insurance through Farm Bureau Insurance.
These companies were rated highly in J.D. Power’s 2020 U.S. Home Insurance Study. They also have excellent financial strength ratings, good customer service, affordable prices and great coverage options. When ranking these companies, we also looked at their ratings from AM Best and BBB, which are included in the table below:
|J.D. Power||AM Best||BBB|
|State Farm||5/5 stars||A++||A|
|SD Farm Bureau (Farm Bureau Insurance)||N/A||A-||A|
Average homeowners insurance cost in South Dakota
The average cost of homeowners insurance in South Dakota is $1,202 per year, almost the same price as the U.S. national average, which is $1,211. However, keep in mind that home insurance rates are personalized. Factors like your age, zip code, credit score and claims history will influence your rate.
The table below indicates how the average price of homeowners insurance in South Dakota compares to nearby states:
|South Dakota||North Dakota||Nebraska|
The average cost of insurance in South Dakota and North Dakota are fairly similar, which is to be expected. However, Nebraska has a much higher average home insurance cost. In fact, it’s almost $300 more expensive than the price in South Dakota. The main reason why is because Nebraska tends to experience more severe weather, which puts homes at more risk and drives up the price.
Home insurance coverage options in South Dakota
When you purchase home insurance in South Dakota, a standard insurance policy will include a few different types of coverage. If your home is damaged or destroyed by a covered peril, such as fire or heavy winds, your policy’s hazard insurance will cover it. Anything else is covered by one of the following insurance types:
- Dwelling: Dwelling insurance protects the physical structure of your home, as well as attached structures, like a garage or porch.
- Personal property: Personal property coverage protects your personal items, like furniture, clothing, electronics, tools and more.
- Liability: Liability insurance will cover your legal fees if someone sues you for property damage or if someone gets hurt on your property and sues you for negligence.
- Medical payments: In the event that a guest gets hurt at your home, medical payments coverage will pay for their medical costs, even if you weren’t at fault.
- Loss of use: Loss of use coverage, also called additional living expenses, will pay for your hotel and restaurant bills if your home gets damaged and you have to temporarily move out while it gets repaired.
In addition to these basic coverages, many South Dakota homeowners choose to purchase flood insurance, which is not included with standard home insurance policies. Most private insurance companies sell flood insurance, or you can purchase it through the federally-funded National Flood Insurance Program.
Common causes of home insurance losses in South Dakota
Homeowners in South Dakota often face weather-related losses, mostly from tornadoes and wildfires. In September 2019, a major tornado swept through Sioux Falls, which caused significant property damage and cut power to thousands of buildings. Just recently, a wildfire burned over 150 acres in South Dakota’s Custer State Park, closing highways and requiring reinforcement from neighboring states.
Frequently asked questions
How much does homeowners insurance in South Dakota cost?
On average, home insurance in South Dakota costs $1,202 per year. However, you could pay more or less than the state-wide average based on a number of factors, like your age and credit score.
What is the best homeowners insurance in South Dakota?
The best homeowners insurance company in South Dakota is different for every resident. It depends on your budget and the type of coverage you need. That’s why it’s important to shop around and compare quotes from multiple providers.
What does homeowners insurance cover in South Dakota?
Standard homeowners insurance policies cover the exterior of your home, your personal belongings, liability, medical payments for guests and additional living expenses. You can also purchase add-on coverage for certain things like valuables.
How do I get homeowners insurance in South Dakota?
To get homeowners insurance in South Dakota, start by researching insurance companies that sell the coverage you want. Then, get a quote online or through an agent. You’ll be asked to share some personal information, like your age and gender, as well as home specs. Using that information, you’ll receive a quote. It’s a good idea to get quotes from a few different providers to determine which company can give you the best rate.