The Best Home Insurance in South Dakota for 2025

Chubb, USAA and State Farm are among the best home insurance companies in South Dakota, according to our analysis.

To help you find the best home insurance in South Dakota, we gathered and analyzed data from insurance companies across the state. These are the insurers that earned 4.4 stars or more.

Rates are based on a sample homeowner with no recent claims, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

» MORE: The best home insurance companies

Below are more details about the best homeowners insurance companies in South Dakota.

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.

Chubb caters to affluent homeowners, offering coverage other insurers often charge extra for. For example, the company’s policies include extended replacement cost coverage for the structure of your home. This is useful in case it costs more than your dwelling limit to rebuild after a disaster. Chubb’s standard policies also cover water damage from backed-up sewers and drains.

Policyholders in South Dakota are eligible for free Wildfire Defense Services. These services include personalized recommendations for protecting your home and firefighters sent to your home if a wildfire is near.

» READ MORE: Chubb homeowners insurance review

Amica shines when it comes to customer service. It receives far fewer complaints than expected for an insurer of its size, according to the National Association of Insurance Commissioners. Amica also earned high marks in two recent J.D. Power surveys about home insurance and customer satisfaction.

The company stands out for its broad range of coverage options. For example, you can customize your policy with extra coverage above your dwelling limit. You may also want to add coverage for identity theft or damage from backed-up drains.

» READ MORE: Amica homeowners insurance review

State Farm stands out for offering policies that generally include extra dwelling coverage, in case it costs more than expected to rebuild your home.  It also offers several coverage options, including things like identity theft and water damage from backed-up drains. Another option may be to add an inflation guard rider to your policy. This automatically increases your policy limits to keep up with rising costs.

State Farm offers a free Ting smart plug to home insurance policyholders as a perk. This device monitors your home’s electrical network to help prevent fires.

» READ MORE: State Farm homeowners insurance review

Allstate offers lots of ways to customize your policy, including replacement cost coverage for your personal property and coverage for water damage caused by backed-up drains. Other options may include home-sharing coverage and reimbursement for replacing damaged items with energy-efficient versions.

You might be able to upgrade your policy with the Enhanced Package. One benefit of this package is Deductible Rewards, which takes $100 off your deductible when you sign up, plus an additional $100 off for each year you go without filing a claim. If you do file a claim, your rates won’t go up.

American Family is notable for offering broader coverage for your home’s structure than many insurers do. If you insure your home up to its replacement cost, American Family will automatically add extended replacement coverage to your policy. This means the insurer will pay a certain amount above your dwelling limit in case it costs more to repair or rebuild your home.

American Family has a long list of extras you can add to your policy. For instance, you can buy coverage in case a major appliance breaks down or an underground utility line needs repairs. Discounts may be available for installing smart-home devices, bundling multiple policies or setting up automatic payments.

» READ MORE: American Family homeowners insurance review

Auto-Owners’ homeowners policies include the basics, but you can also add coverage for things like backed-up drains or broken-down appliances. Guaranteed replacement cost coverage is another optional add-on. This allows you to rebuild your home even if it costs more than your dwelling limit.

Auto-Owners draws far fewer complaints than expected for an insurer of its size, according to the NAIC. It sells its policies through independent agents.

» READ MORE: Auto-Owners homeowners insurance review

Travelers offers a robust online experience. You can use the website to get a homeowners insurance quote, file and track claims, make payments, and learn about insurance basics.

Its coverage offerings are similarly strong. For example, you may be able to add extra coverage in case the dwelling limit on your home isn’t enough to rebuild your house after a disaster. You can also add coverage for water damage caused by a backed-up sewer or drain. One unique option is Travelers’ green home coverage, which pays extra if you want to use eco-friendly materials when repairing or rebuilding your home after a covered claim.

» READ MORE: Travelers homeowners insurance review

USAA sells homeowners insurance to active military members, veterans and their families. If that’s you, you may want to consider USAA.

The company offers perks that are specific to the military, like deductible-free coverage for military uniforms and equipment.

USAA homeowners insurance has certain features that many insurers charge extra for. For example, USAA covers your personal belongings on a replacement cost basis. Many companies pay only what your items are worth at the time of the claim.

» READ MORE: USAA homeowners insurance review

The average annual cost of home insurance in South Dakota is $3,345. That's 59% more than the national average of $2,110.

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 $6,135 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 83% more than those with good credit.

» MORE: Does your credit score affect home insurance rates?

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 $3,125 per year, while homeowners in Rapid City pay $4,045 per year, on average.

» MORE: What’s the average cost of homeowners insurance?

Here are the insurers we found with average annual rates below the South Dakota average of $3,345.

» MORE: The cheapest homeowners insurance

Here are a few of the most common risks you may face as a South Dakota homeowner, along with ways to insure your home 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 flood insurance to cover water damage caused by snowmelt.

Flooding

Flood damage isn't covered by standard homeowners insurance policies. For that, you’ll need flood insurance. You can get flood insurance at any time, but there’s often a 30-day waiting period before the coverage takes effect.

To check your flood risk, start by looking up your address on the Federal Emergency Management Agency's flood maps. However, FEMA’s maps don’t always capture all types of flood risk. You may want to check another source, like First Street, a private company that models climate hazards. Enter your address at the top of the page to see your home’s flood risk rating on a scale of 1 to 10.

Tornadoes

Homeowners insurance typically covers wind and tornado damage, but your policy may have a separate wind/hail deductible, usually from 1% to 5% of your dwelling coverage limit. 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.

» MORE: Do you need flood insurance?

Spring storms and hail

Hail damage is covered by most homeowners insurance policies, but as with wind damage, it may have a separate deductible.

Your policy may also limit how much time you have to file a claim for 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.

» MORE: Home insurance calculator: Estimate your rate

South Dakota insurance department

The South Dakota Division of Insurance regulates insurance in the state, oversees agent licensure and provides consumers with information about insurance.

If you’re in a dispute with your insurer, you can file a complaint on the division’s website. If you have questions, contact the division at 605-773-3563 or sdinsurance@state.sd.us.

How we rate homeowners insurance

NerdWallet’s star ratings reward companies for consumer-first features and practices. We evaluate factors such as consumer experience, coverage, discounts and financial strength.

In our research, we analyzed:

View our complete homeowners insurance rating methodology.