Homeowners insurance in South Dakota averages $2,790 annually for a policy with a $1,000 deductible and $300,000 in dwelling coverage. Some of the cheapest home insurance companies in the state are Farmers, Austin Mutual, Auto-Owners, and Allstate.
Rates in South Dakota are slightly above the national average of $2,532, partly due to the state’s flooding and wildfire risk. South Dakota averages 62 floods per year, and the Black Hills National Forest area sees about 100 wildfires per year. While homeowners insurance covers wildfires, it doesn’t protect against floods. You’ll want to buy flood insurance separately or add it as an endorsement.
Comparing companies, coverages, and discounts is the best way to find an affordable homeowners insurance rate in South Dakota. Keep reading to learn how to secure the best coverage for your situation.
Some of the best homeowners insurance companies are in South Dakota, but the best one really depends on what you're looking for. One size doesn’t fit all, so it’s important to examine the different levels of coverage options and pick the company that fits your situation the best.
The average rate of homeowners insurance varies, but Farmers Insurance leads the pack for the most affordable coverage in South Dakota.
You’ll find competitive home insurance rates and discount options to further reduce your costs by installing safety features like smoke alarms and fire sprinklers. Plus, sticking with Farmers for the long term opens the door to even more savings through its Declining Deductible program.
The table below compares the cheapest homeowners insurance rates from top insurers in South Dakota.
The cost of South Dakota homeowners insurance runs an average of $2,352 per year — but that’s just the average. Your price depends on several factors, from the age and type of construction of your home to how close you are to a fire hydrant or fire station. Plus, the more types of homeowners coverage you need, the higher your premium might climb.
Discounts also play a role in your rates. You could pay more if the company you choose doesn’t offer many discounts or if you don’t qualify for the available ones.
The more it costs to rebuild or repair your home, the higher your dwelling coverage needs to be — and that means higher premiums. Dwelling coverage is what pays to restore your home after losses like fires, hail, lightning, or wind take a toll. Since the insurer may have to cover more if you file an insurance claim, higher coverage levels raise your costs.
Just remember: Rebuilding costs aren’t the same as what you paid for your home. Rebuilds may cost more due to materials and labor prices, especially for older homes.2
Here’s how your coverage limit will affect your premium.
Your deductible is the amount you pay out of pocket before your insurance steps in to cover a claim. Choosing a lower deductible means you’ll pay less when something happens, but it usually results in a higher premium. Opting for a higher deductible can get you a lower price on your home insurance bill, but it increases what you owe if you file a claim.
Most insurers suggest a deductible of at least $500, according to the Insurance Information Institute (Triple-I).
Here’s how different deductibles compare.
Getting cheap homeowners insurance in South Dakota isn’t impossible — you just need to know where to look and what to ask for. Many companies offer discounts or ways to lower your quote if you meet certain criteria.
Here are a few common ways to reduce your home insurance costs:3
If you take out a mortgage, your lender will require you to have homeowners insurance. But the coverage your lender requires may not be enough to fully protect you. It’s crucial to understand exactly what your homeowners policy covers. This way, you’ll know whether it’s enough to stand between you and risks like fire, hail, or other common disasters in South Dakota.
At a minimum, your home insurance policy should cover 80% of your home’s replacement cost.4 You may also want to consider additional coverage for personal belongings, liability, or natural disasters your standard policy doesn’t cover. This ensures you’ll have enough coverage to rebuild after a catastrophe.
Some of the biggest risks when owning a house in South Dakota can lead to costly damage. Here are three perils you need to know about and how standard home insurance handles them.
Flooding: South Dakota is prone to flooding, with Rapid City, Sioux Falls, Sturgis, and Watertown having the most properties at risk. Standard homeowners insurance doesn’t cover flood damage. For protection, you must add a flood insurance endorsement to your existing coverage or purchase a separate policy through a private insurer or the National Flood Insurance Program.
Hailstorms: A standard homeowners policy protects against hail damage, which can cause damage to your roof, siding, and windows. South Dakota sits in “Hail Alley,” and hail season has grown from 138 days on average in the 1970s to 173 days between 2014 and 2023. Ask your insurer questions about hail coverage to make sure you have enough protection.
Wildfires: Homeowners insurance covers wildfire damage, including to your home and personal property. Since wildfires are common in South Dakota, it’s a good idea to take a few precautions. Pre-fire activities — like keeping your yard tidy, clearing out brush around your house, installing a fire-resistant roof, and making sure emergency vehicles have an easy path in and out — can help reduce damage.
Homeowners insurance is an important financial decision. If you still have questions, check out these answers below.
Homeowners insurance in South Dakota costs an average of $2,352 per year with $300,000 in dwelling coverage. South Dakota homeowners may want to add additional flood coverage if they live in a high-risk flood zone.
Farmers has the cheapest homeowners insurance in South Dakota, averaging $101 per month.
No. Homeowners insurance isn’t required in South Dakota, but your mortgage lender will require you to have home insurance to protect its asset.
But even if you’ve paid off your mortgage, it’s still a good idea to have homeowners insurance. In the event of a covered peril like wind damage or theft, insurance can help you financially. Without insurance, you’re on the hook for any repairs or replacements.
Yes. In 2014, South Dakota became the 10th state to adopt matching into insurance. This means that if your home is damaged, insurers are required to match the original look of the home before the damage, depending on your policy type. This helps to retain the uniform look for a home and its property value.
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