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Best homeowners insurance in South Dakota for 2023

Our picks for the best home insurance companies in South Dakota are USAA, Allstate, Travelers, Auto-Owners and State Farm.
Updated Sep 01, 2023
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Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
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Compare the best homeowners insurance companies in South Dakota

South Dakota home insurance averages $2,105 annually for $250K in dwelling coverage, which works out to $175 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.

USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
AM Best
A++
J.D. Power
884
/1,000
Average monthly premium
$130
Average annual premium*
$1,561
Get a quote
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
AM Best
A+
J.D. Power
815
/1,000
Average monthly premium
$155
Average annual premium*
$1,864
Get a quote
Travelers
Rating: 3.3 stars out of 5
3.3
Bankrate Score
Info
AM Best
A++
J.D. Power
794
/1,000
Average monthly premium
$160
Average annual premium*
$1,916
Get a quote
Auto-Owners
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
AM Best
A++
J.D. Power
825
/1,000
Average monthly premium
$205
Average annual premium*
$2,463
Get a quote
State Farm
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
AM Best
A++
J.D. Power
829
/1,000
Average monthly premium
$203
Average annual premium*
$2,433
Read review
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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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.

*USAA not officially ranked by J.D. Power due to eligibility restrictions.

The top five home insurance companies in South Dakota

USAA

Best for military-focused coverage

Rating: 3.7 stars out of 5
3.7 Bankrate Score
JD Power: 884/1,000 AM Best: A++

Average annual premium

$ 1,561 for $250k dwelling coverage
USAA Review Get a personalized quote

Why USAA made our list: Although USAA received the highest scores in the 2022 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.

Allstate

Best for potential discounts

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 815/1,000 AM Best: A+

Average annual premium

$ 1,864 for $250k dwelling coverage
Allstate Review Get a personalized quote

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 2023 Bankrate Award for Best Home Insurance Company, so it might be worth considering if you are not eligible for coverage from USAA.

Travelers

Best for green homes

Rating: 3.3 stars out of 5
3.3 Bankrate Score
JD Power: 794/1,000 AM Best: A++

Average annual premium

$ 1,916 for $250k dwelling coverage
Travelers Review Get a personalized quote

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. 

Auto-Owners

Best for coverage options

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 825/1,000 AM Best: A++

Average annual premium

$ 2,463 for $250k dwelling coverage
Auto-Owners Review Get a personalized quote

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.

State Farm

Best for customer service

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 829/1,000 AM Best: A++

Average annual premium

$ 2,433 for $250k dwelling coverage
State Farm Review Get a personalized quote

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 2022 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. State Farm also allows you to select specific financial protection for elements such as business property, firearms, watercraft, silverware and coin collections.

Who State Farm may be good for: If you prefer to develop a lasting relationship with 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.

How Bankrate chose the best home insurance companies in South Dakota

Bankrate’s insurance editorial team chose the best homeowners insurance companies in South Dakota by comparing average rates, coverage options, discount opportunities, digital tools and third-party rankings among carriers that write home insurance in the state. Our Bankrate Score weighs all of these factors and more to create a score on a scale of 0.0 to 5.0 points, with 5.0 being the highest possible score. The higher the rating, the more the company excels in each category. Bankrate Scores are designed to help you more easily and quickly compare providers during your search for homeowners insurance.

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46
years of industry expertise
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122
carriers reviewed
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20.7K
ZIP codes examined
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1.2M
quotes analyzed

How much is home insurance in South Dakota?

The average annual cost of homeowners insurance in South Dakota is $2,105 for $250,000 in dwelling coverage, according to 2023 rate data from Quadrant Information Services. This is 47 percent above the national average cost of $1,428 per year for the same coverage amount. It is also higher than the average cost of its neighboring states, with Minnesota at $1,930 per year and North Dakota at $1,900 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.

Average annual premium by dwelling coverage level in South Dakota

$150K
$1,121
$250K
$1,561
$350K
$1,981
$450K
$2,394
$750K
$3,528
$150K
$1,182
$250K
$1,864
$350K
$2,672
$450K
$3,465
$750K
$5,737
$150K
$1,230
$250K
$1,916
$350K
$2,570
$450K
$3,065
$750K
$4,800
$150K
$1,942
$250K
$2,463
$350K
$3,090
$450K
$4,000
$750K
$6,804
$150K
$1,721
$250K
$2,433
$350K
$2,970
$450K
$3,674
$750K
$5,734
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Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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.

Although your rate for South Dakota homeowners insurance is unique to your home and circumstances, there are some cities in the state where insurance averages tend to be below average. This may be because fewer claims are filed from these cities, meaning that insurers are taking on a lower risk in writing you a policy if you live here. Some of the cheapest cities in South Dakota, such as those below, have average annual rates that are 8 to 9 percent below the state average.

  • Valley Spring: $1,915
  • Brandon: $1,917
  • Milbank: $1,926
  • Aberdeen: $1,942
  • Goodwin: $1,943

Cities with more expensive average rates are likely to see an increased number of claims, often because they are more prone to natural disasters such as tornadoes or severe convective storms. These South Dakota cities have average annual rates between 8 and 14 percent higher than the state average. As always, though, remember that your rate is likely to differ from the average, and may even be lower, depending on the factors that your insurer takes into account when determining your premium.

  • Black Hawk: $2,409
  • Belvidere: $2,407
  • Wasta: $2,404
  • Philip: $2,402
  • Enning: $2,401

*Rates are for $250,000 in dwelling coverage.

How to find the best cheap home insurance in South Dakota

Although home insurance is not mandated by 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:

  1. Shop around: Don’t just get one quote for coverage when you start looking. It's a better idea to ask several carriers for a home insurance quote for the same coverage types and levels so you can compare costs and determine the cheapest company for your needs.
  2. Work on your credit score: Although it is restricted 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.  
  3. 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.
  4. 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.
  5. Increase your deductible: Your deductible is what you pay following a claim before insurance kicks in. The higher your deductible, the lower your payment; however, you should proceed with caution. Make sure that your deductible is an amount you are comfortable paying on short notice.

Common home insurance discounts in South Dakota

In addition to the tactics above, you may be able to save money if you ensure that 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.

Home insurance coverage options 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%. 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.
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Written by
Mary Van Keuren
Contributor, Insurance

Mary Van Keuren has written for insurance domains such as Bankrate, Coverage.com, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including Reviews.com and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.

Edited by Senior Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute