The Best Home Insurance in South Dakota for 2024
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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:
Best for affordability: Auto-Owners.
Best for coverage: State Farm.
Best for consumer experience: American Family and Nationwide.
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.
Best affordable homeowners insurance in South Dakota: Auto-Owners
Auto-Owners Insurance
Coverage options
Discounts
NAIC complaints
Auto-Owners Insurance
Coverage options
Discounts
NAIC complaints
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.
Learn more with our Auto-Owners home insurance review.
Best homeowners insurance in South Dakota for coverage: State Farm
Coverage options
Discounts
NAIC complaints
State Farm
Coverage options
Discounts
NAIC complaints
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.
Learn more with our State Farm homeowners insurance review.
Best homeowners insurance in South Dakota for consumer experience: American Family and Nationwide
Coverage options
Discounts
NAIC complaints
American Family
Coverage options
Discounts
NAIC complaints
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.
Nationwide
Coverage options
Discounts
NAIC complaints
Nationwide
Coverage options
Discounts
NAIC complaints
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.
Learn more with our Nationwide homeowners insurance review.
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 |
|---|---|---|
Not available | ||
Not available | ||
$4,530 | ||
$1,825 | ||
$3,085 | ||
$2,885 | ||
$2,750 | ||
USAA* | $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 |
|---|---|---|
$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 |
$2,750 | ||
USAA* | $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.
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].
Amanda Shapland contributed to this story.
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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