The Best Home Insurance in South Dakota for 2024

Auto-Owners and State Farm are among the best home insurance companies in South Dakota.

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Updated · 4 min read
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Written by Kayda Norman
Lead Writer
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Assistant Assigning Editor
Fact Checked
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Co-written by Sarah Schlichter
Lead Writer

The average cost of homeowners insurance in South Dakota is $2,810 per year, or about $234 per month, according to a NerdWallet analysis. For comparison, the national average is $1,915 per year.

NerdWallet analyzed data from numerous insurance companies to help you find the best home insurance in South Dakota in the following categories:

The rates in our analysis are estimates based on many factors, so your rate may differ.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state. Even if an insurer serves your state, it may not write policies for all homes in all areas.

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

Our sample homeowner had good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

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Best affordable homeowners insurance in South Dakota: Auto-Owners

insurance-product-card-logo

Auto-Owners

5.0

NerdWallet rating 
Auto-Owners offers plenty of ways to customize your policy and save money on home insurance.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Far fewer than expected

Auto-Owners

5.0

NerdWallet rating 
Auto-Owners offers plenty of ways to customize your policy and save money on home insurance.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Far fewer than expected

In South Dakota, the average annual premium for Auto-Owners is $1,825, which is well below the state average of $2,810.

Auto-Owners has been in business for more than a century. Its homeowners policies include all the basics, but you can also add coverage for things like identity theft or the failure of major appliances. Guaranteed replacement cost coverage is another optional add-on, enabling you to rebuild your home after a total loss even if your dwelling coverage limit is too low.

Auto-Owners sells homeowners insurance through independent agents.


Best homeowners insurance in South Dakota for coverage: State Farm

insurance-product-card-logo

State Farm

4.5

NerdWallet rating 
Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Fewer than expected

State Farm

4.5

NerdWallet rating 
Well-established insurer with a lengthy list of coverage options.

Coverage options

More than average

Discounts

Average set of discounts

NAIC complaints

Fewer than expected

As America’s largest insurer, State Farm stands out for its long list of coverage options. Its policies generally include extra dwelling coverage in case it costs more than expected to rebuild your home after a covered disaster. You may also be able to add coverage for things like identity theft, damage from backed-up drains and personal injury liability.


Best homeowners insurance in South Dakota for consumer experience: American Family and Nationwide

insurance-product-card-logo

American Family

4.5

NerdWallet rating 
Customizable coverage and discounts for smart-home devices.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Far fewer than expected

American Family

4.5

NerdWallet rating 
Customizable coverage and discounts for smart-home devices.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Far fewer than expected

American Family receives fewer consumer complaints than expected for a company of its size. Its user-friendly website offers features such as bill payments, claim reporting, online quotes and general insurance information.

Homeowners may be able to save on their premiums by installing smart-home devices, bundling multiple policies or setting up automatic payments.

Get more information in our American Family homeowners insurance review.

insurance-product-card-logo

Nationwide

4.5

NerdWallet rating 
For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Fewer than expected

Nationwide

4.5

NerdWallet rating 
For shoppers seeking a broad range of coverage options, Nationwide may fit the bill.

Coverage options

About average

Discounts

Great set of discounts

NAIC complaints

Fewer than expected

Nationwide offers a robust digital experience, including a website that makes it easy to manage policies, file and track claims, and set up automatic billing. It also has a highly rated app for Android and iOS that allows customers to file and track claims, review policy documents, and set up autopay.

In addition, Nationwide’s customers have several ways to get assistance, such as reaching out to their agent or calling the company’s customer service hotline. Outside of business hours, they can use the Nationwide website to get proof of insurance, pay bills and schedule callbacks. A chatbot is also available to answer basic questions.


Full list of the best homeowners insurance in South Dakota

NerdWallet analyzed home insurance companies across the state to find the best home insurance in South Dakota. Here are all of the insurers that received a NerdWallet star rating of 4.5 or higher:

Company

NerdWallet star rating

Average annual rate

5.0

NerdWallet rating 

Not available

5.0

NerdWallet rating 

Not available

4.5

NerdWallet rating 

$4,530

5.0

NerdWallet rating 

$1,825

4.5

NerdWallet rating 

$3,085

4.5

NerdWallet rating 

$2,885

4.5

NerdWallet rating 

$2,750

5.0

NerdWallet rating 

$2,515

*USAA homeowners policies are available only to active military, veterans and their families.

How much does homeowners insurance cost in South Dakota?

The average annual cost of home insurance in South Dakota is $2,810. That's 47% more than the national average of $1,915.

In most U.S. states, including South Dakota, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In South Dakota, those with poor credit pay an average of $5,060 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 80% more than those with good credit.

Average cost of homeowners insurance in South Dakota by city

How much you pay for homeowners insurance in South Dakota depends on where you live. For instance, the average cost of home insurance in Sioux Falls is $2,725 per year, while homeowners in Rapid City pay $3,045 per year, on average.

City

Average annual rate

Average monthly rate

Aberdeen

$2,460

$205

Belle Fourche

$2,905

$242

Black Hawk

$3,075

$256

Box Elder

$3,325

$277

Brandon

$2,645

$220

Brookings

$2,585

$215

Dell Rapids

$2,705

$225

Harrisburg

$2,655

$221

Hartford

$2,885

$240

Hot Springs

$3,710

$309

Huron

$2,590

$216

Madison

$2,655

$221

Mitchell

$2,585

$215

North Sioux City

$2,710

$226

Pierre

$2,510

$209

Pine Ridge

$3,345

$279

Rapid City

$3,045

$254

Sioux Falls

$2,725

$227

Sisseton

$2,270

$189

Spearfish

$3,080

$257

Sturgis

$2,990

$249

Tea

$2,545

$212

Vermillion

$2,585

$215

Watertown

$2,535

$211

Yankton

$2,675

$223

The cheapest home insurance in South Dakota

Here are the insurers we found with average annual rates below the South Dakota average of $2,810.

Company

NerdWallet star rating

Average annual rate

5.0

NerdWallet rating 

$1,825

North Star

4.0

NerdWallet rating 

$2,005

Farm Bureau Financial Services

4.0

NerdWallet rating 

$2,500

Farmers Mutual of Nebraska

Not rated

$2,615

4.5

NerdWallet rating 

$2,750

5.0

NerdWallet rating 

$2,515

*USAA homeowners policies are available only to active military, veterans and their families.

What to know about South Dakota homeowners insurance

You may face certain risks when living in South Dakota. Here are a few of the most common, along with steps you can take to insure your home properly against them.

Winter weather

Homeowners insurance generally covers damage caused by winter storms, but some types of damage may require additional coverage. For instance, you’ll typically need a separate flood insurance policy to cover flood damage caused by snowmelt.

Tornadoes

Standard homeowners insurance will cover wind and tornado damage, but your policy may have a separate wind/hail deductible, typically from 1% to 5%. If your house has $250,000 worth of dwelling coverage and a 1% deductible for wind claims, you’d have to pay for the first $2,500 of wind damage yourself.

Flooding

Flood damage can be pricey for homeowners, as flood insurance is not part of standard homeowners insurance. Homeowners in flood-prone areas should consider purchasing separate flood insurance.

To find out your risk, check out the Federal Emergency Management Agency's flood maps and RiskFactor.com, a website from the nonprofit First Street Foundation. Even if your property is deemed low risk, it may be worthwhile to purchase flood insurance for extra peace of mind.

Remember that while you can buy flood coverage at any time, there’s typically a 30-day waiting period before the insurance takes effect. Here’s more information about flood insurance and waiting periods.

Spring storms and hail

Hail damage is covered in standard homeowners insurance policies, but, like wind damage, it may have a separate deductible.

Your policy may limit how much time you have to address hail damage. In addition, your insurer could limit how much it pays for hail damage to your roof if it’s been damaged by hail before and you chose not to repair it. Read your policy closely to make sure you understand any limitations on hail coverage.

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South Dakota insurance department

The South Dakota Division of Insurance is the agency that regulates insurance in the state. It oversees agent licensure and provides general information about insurance.

The division also helps consumers who have disputes with their insurers and offers an online portal for filing complaints. If you have questions before filing your complaint, contact the division at 605-773-3563 or [email protected].

Frequently asked questions

Homeowners insurance is not required by South Dakota state law. However, your lender may require you to purchase homeowners insurance. For more information, read Is Homeowners Insurance Required?

Standard homeowners insurance in South Dakota will cover hail damage. However, you may have a separate deductible for hail claims.

There are several ways to save money on home insurance in South Dakota:

  • Shop around to make sure you’re getting the best rate.

  • Choose a higher deductible. In case of any claims, you’ll pay more out of pocket, but your premiums will be lower.

  • Bundle your home and auto insurance for a lower overall rate. See the best home and auto insurance bundles.

  • Ask your insurer if you qualify for any home insurance discounts.

Amanda Shapland contributed to this story.

Methodology

NerdWallet calculated median rates for 40-year-old homeowners from various insurance companies in every ZIP code across the state. All rates are rounded to the nearest $5.

Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1984. They had a $1,000 deductible and the following coverage limits:

  • $300,000 in dwelling coverage.

  • $30,000 in other structures coverage.

  • $150,000 in personal property coverage.

  • $60,000 in loss of use coverage.

  • $300,000 in liability coverage.

  • $1,000 in medical payments coverage.

We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.

We changed the credit tier from “good” to “poor,” as reported to the insurer, to see rates for homeowners with poor credit.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

Star rating methodology

NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts and online experience. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our full homeowners insurance rating methodology.

Complaint methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2020-2022. To assess how insurers compare with one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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