Best homeowners insurance in South Dakota of 2021
The average annual cost of home insurance in South Dakota for a $250,000 dwelling is $1,958. Approximately 68% of South Dakota residents own a home, a greater percentage than the U.S. national average rate of 64%.This is partly the result of the state’s low property values. The median property value in South Dakota is $171,500, while the national median price of a home is $229,700.
As a result of this high incidence of homeownership in South Dakota, there is a large market for home insurance. If you are shopping for homeowners insurance in South Dakota, there are a few things you should keep in mind. Before purchasing a policy, make certain you know the amount of coverage you need and the type of coverage that is right for you so you can find the best insurance company for your needs.
The top home insurance companies in South Dakota
Shopping for homeowners insurance can be challenging. There are many companies on the market, and it can be difficult to determine which one is best for you. To help you through this process, we put together a list of some of the best home insurance companies in South Dakota based on 2021 rate data from Quadrant Information Services, coverage options, discounts and third-party customer service ratings.
|Home insurance company||Average annual premium for $250K dwelling||J.D. Power customer satisfaction score|
Allstate is one of the largest insurance companies in the country and allows an insured homeowner to take advantage of an immense reservoir of resources. Allstate’s wealth of experience offers the prospective insured a wide variety of insurance options and choices to customize a homeowners policy specifically geared toward your needs. Allstate agents live in customer communities and therefore have a personal understanding of specific circumstances which influence your choices.
While Auto-Owners standard homeowners policies contain every coverage that most homeowners need, the company also offers a great selection of optional coverages. These include a unique add-on option that covers relatively minor home problems that normally would require an out-of-pocket payment to fix. Additionally, Auto-Owners is one of the few major insurance companies that works primarily through agents. This means you may receive more personalized customer service and efficient claims handling, benefits that can be hard to find with some other companies.
As the name suggests, Farmers Insurance first started selling insurance in 1928 to cover farm vehicles and equipment. The company has expanded significantly over the years and today offers its customers a wide array of insurance products to cover insureds’ most valuable assets. Farmers has developed an excellent reputation for customer service and in particular its well-regarded disaster response programs.
State Farm is one of the largest insurance companies in the country with expanded services also addressing customer banking and investment needs. State Farm is one of the best-known insurance companies in the U.S. and presently employs more than 19,000 agents. With this wide reach, State Farm is able to provide its customers with local and knowledgeable service. State Farm is known for its low rates and great discounts for eligible policyholders.
USAA Insurance has been meeting the growing needs of military veterans and their families for years with dedication and excellent service. A USAA homeowners policy specifically addresses two primary needs – general liability covering injury to third parties for which the insured is held responsible and real and personal property coverage. USAA also offers many options, including medical and flood coverage, to help customize your policy to meet your specific needs.
Average homeowners insurance cost in South Dakota
Homeowners insurance in South Dakota costs on average about $1,958 per year, which is a little more expensive than the national average of $1,477. However, rates within a state may vary significantly depending upon local conditions and your claims history. Rates are personalized to the individual and his or her locale.
In neighboring Nebraska, rates are higher with an annual average premium of $2,787. The main reason for the higher rate in Nebraska is largely the result of more severe weather trends, which puts homes in Nebraska at greater risk. Other states neighboring South Dakota which experience higher than average natural disasters throughout a given year have even higher average annual rates. Oklahoma, for example, with its destructive tornadoes, has an annual homeowners premium average of $4,067.
Overall, South Dakota compares favorably with the rest of the country in the price one will expect to pay for homeowners insurance.
Home insurance considerations in South Dakota
Common causes of home insurance losses in South Dakota
As mentioned, homeowners in South Dakota frequently face weather-related losses which impact insurance rates. Examples include tornadoes and wildfires as well as other unexpected disasters:
- In September 2019, a major tornado swept through Sioux Falls, causing significant property damage and cutting power to thousands of buildings.
- On May 7, 2020, a very violent EF5 multi-vortex wedge tornado destroyed the entire town of Murdo, South Dakota. The tornado left 47 dead and 79 injured.
- Recently, a wildfire burned over 150 acres in South Dakota’s Custer State Park, closing highways and requiring reinforcement from neighboring states.
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.
Frequently asked questions
How much does homeowners insurance in South Dakota cost?
On average, home insurance in South Dakota costs $1,958 per year. However, you could pay more or less than the state-wide average based on a number of factors such as your age, credit score, and claim history.
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 will typically cover physical damage to your home, your personal belongings, liability to third parties, medical payments for guests and additional living expenses. All companies provide some types of additional add-on coverage for certain things like valuables and incidental costs for moving items to other locations for example.
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 specifications. Based upon this information, the company will provide a quote. It is a good idea to get quotes from a few different providers to determine which company can give you the best rate.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Rates are determined based on 2021 Quadrant Information Services data.