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Best homeowners insurance companies in South Dakota for 2024
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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.
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737
/1,000 |
$138
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$1,660
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634
/1,000 |
$144
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$1,732
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631
/1,000 |
$204
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$2,443
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643
/1,000 |
$232
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$2,789
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609
/1,000 |
$171
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$2,047
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Bankrate's trusted insurance industry expertise
Read our full methodologyThe home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.
46
years of industry expertise
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
The top 5 home insurance companies in South Dakota
Best for military-focused coverage
4.7
4.7
Avg. premium for $300K dwelling
$138/mo
Avg. premium for $300K dwelling
$1,660/yr
Customer satisfaction
737/1,000
-
Why USAA made our list: Although USAA received the highest scores in the 2023 J.D. Power U.S. Home Insurance Study, it is considered rank-ineligible because membership is restricted to active-duty military, veterans and their families. However, USAA has the highest Bankrate Score on our list and an average annual premium more than $500 less than the average for the state. The company offers policies oriented towards the military community, with standard home insurance coverages and optional add-ons, like home-sharing and earthquake coverage.
Who USAA may be good for: If you are stationed at Ellsworth AFB, or are a veteran, USAA is worth your consideration. The company offers military-specific coverage options—such as coverage for your uniforms—as well as a robust online community.
Best for coverage options
4.6
4.6
Avg. premium for $300K dwelling
$144/mo
Avg. premium for $300K dwelling
$1,732/yr
Customer satisfaction
634/1,000
-
Why Auto-Owners made our list: Auto-Owners is a super-regional insurer with less market share than others on our list, offering insurance through independent agents in just 26 states, including South Dakota. However, it ranks well alongside some of the largest insurers in the nation, receiving high scores from J.D. Power for customer satisfaction as well as the highest possible financial strength rating from AM Best: A++ (Superior). Auto-Owners allows homeowners to include add-on coverage to round out their financial protection, such as identity theft protection, equipment breakdown and special personal property coverage. The company's Homeowners Plus package provides a range of additional coverages, including damage caused by appliance leaks, increased coverage limits for food spoilage and more.
Who Auto-Owners may be good for: Auto-Owners offers some nice functionality for homeowners who like to customize their policy by adding endorsements to create a one-of-a-kind package that works best for their home.
Best for potential discounts
4.2
4.2
Avg. premium for $300K dwelling
$204/mo
Avg. premium for $300K dwelling
$2,443/yr
Customer satisfaction
631/1,000
-
Why Allstate made our list: Allstate has the second-lowest South Dakota home insurance premium, on average on our list, making it a good choice to consider for the cost-conscious homeowner. A handful of potential discounts offers further savings, such as savings just for setting up an automatic payment plan. The insurer sells policies through independent and captive agents who are well-versed in Allstate policies and who live in the same communities as the policyholders they serve. Local Allstate agents are likely to be familiar with the specific types of coverage that matter most to South Dakota homeowners, like sports equipment coverage and green improvement reimbursement. Allstate did score below average for both customer and claims satisfaction, however, in the latest annual J.D. Power studies.
Who Allstate may be good for: Allstate may be a good option for first-time homebuyers or anyone who is pinching pennies after their home purchase. The company's average rate for South Dakota is well below the state average, and homeowners stand to save more through its discount opportunities. Allstate also tied with USAA for the 2024 Bankrate Award for Best Home Insurance Company, so it might be worth considering if you are not eligible for coverage from USAA.
Best for customer service
4.2
4.2
Avg. premium for $300K dwelling
$232/mo
Avg. premium for $300K dwelling
$2,789/yr
Customer satisfaction
643/1,000
-
Why State Farm made our list: Although State Farm has a higher-than-average home insurance premium in South Dakota, it is ranked highly in the 2023 J.D. Power Home Insurance Customer Satisfaction Study, scoring well above the industry average. State Farm is known for its extensive network of exclusive local agents. There are more than 30 State Farm offices in South Dakota, staffed with agents who have feet-on-the-ground knowledge of the needs of homeowners in the state. If you prefer to do your insurance business online, the company also has an excellent website and top-rated apps for both iOS and Android devices.
Who State Farm may be good for: If you prefer to have more direct access to your agent, State Farm's numerous local offices allow you to do so. You are likely to find an office nearby no matter where in the state you live.
Best for green homes
4.1
4.1
Avg. premium for $300K dwelling
$171/mo
Avg. premium for $300K dwelling
$2,047/yr
Customer satisfaction
609/1,000
-
Why Travelers made our list: Travelers offers robust policy options for homeowners with typical endorsements such as water backup, contents replacement cost and coverage for jewelry and valuable items. It also offers a more unusual endorsement that provides additional coverage for green homes, allowing them to be rebuilt to green standards after a covered loss. The company's average rate is below the South Dakota state average, and potential discounts include a loss-free discount, protective device discount and savings if your home is certified by the Leadership Energy and Environmental Design (LEED) organization. If customer service and claims management is top of your list, however, there may be better options. Travelers scored below average with J.D. Power in both customer and claims satisfaction.
Who Travelers may be good for: If caring for the environment is important to you, you'll be rewarded for making green adaptations to your home with Travelers home insurance.
Additional South Dakota home insurance companies to consider
Farmers
Homeowners who want to customize their home insurance coverage.
Farmers offers the best of both worlds to South Dakota homeowners. Those looking to select from various coverage options based on their individual needs will find they have the ability to personalize their policy. On the other hand, homeowners who prefer to select a ready-made policy can choose from three streamlined tiers of coverage. However, Farmers did score lower than average on J.D. Power’s Home Insurance Customer Satisfaction survey.
South Dakota Farm Bureau
Homeowners who are looking to bundle policies
South Dakota homeowners who work in the agricultural sector might consider becoming a Farm Bureau member. The provider offers agricultural discounts and writes a variety of insurance products, so homeowners can bundle insurance policies. Keep in mind that because Farm Bureau operates through regional branches, the company is not included in J.D. Power’s Home Insurance Customer Satisfaction survey. There is also an annual membership fee to consider in your overall cost.
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.
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$138
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$1,660
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- $1,197 |
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$144
|
$1,732
|
- $1,125 |
|
$171
|
$2,047
|
- $810 |
|
North Star Mutual
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$173
|
$2,080
|
- $777 |
$204
|
$2,443
|
- $414 |
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.
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Compare home insurance rates
Answer a few questions to see personalized rates from top carriers.
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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.
- Valley Springs: $2,550 per year — 11 percent below state average
- Yale: $2,552 per year — 11 percent below state average
- Milbank: $2,562 per year — 10 percent below state average
- Brandon: $2,563 per year — 10 percent below state average
- Goodwin: $2,566 per year — 10 percent below state average
- Hot Springs: $3,508 per year — 23 percent above state average
- Smithwick: $3,488 per year — 22 percent above state average
- Buffalo Gap: $3,463 per year — 21 percent above state average
- Fairburn: $3,456 per year — 21 percent above state average
- Custer: $3,447 per year — 21 percent above state average
*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.
Related content:
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
Methodology
Bankrate utilizes Quadrant Information Services to analyze November 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates for our base profile are based on the following characteristics and coverage levels:
Dwelling coverage
$300,000Other structures coverage
$30,000Personal property coverage
$150,000Loss of use coverage
$60,000Liability coverage
$500,000Medical payment coverage
$1,000The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
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.
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Cost & ratings 50%
-
Coverage & savings 30%
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Support 20%
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company's true score in each category out of a possible five points.