The Best Homeowners Insurance in South Dakota for 2023

The average cost of homeowners insurance in South Dakota is $2,605 per year, or about $217 per month, according to a NerdWallet analysis. That’s more than the national average of $1,820 per year.

We’ve analyzed rates and companies across the state to find the best homeowners insurance 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. Even if an insurer serves your state, it may not write policies for all homes in all areas.

If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the best homeowners insurance companies.

See more details about each company to help you decide which one is best for you.

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.

Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.

Some Farmers policies also come with perks that can save you money. For example, with claim forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.

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. 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.

We like Nationwide for its wide variety of coverage options. For example, its standard homeowners insurance policy generally includes ordinance or law coverage, which can help pay to bring your home up to current building codes after a covered claim. You can add other coverage for things like identity theft and damage from backed-up sewers and drains.

Depending on how much personal assistance you need, you can get a quote for homeowners insurance on the Nationwide website or work with a local agent instead. You can also use the website to pay bills, file claims or check claim status.

Founded in Madison, Wisconsin, American Family receives fewer consumer complaints than expected for a company of its size. You may be able to customize your policy with optional add-ons such as identity theft, equipment breakdown or service line coverage, which pays for repairs to water, power or other underground lines that run to your house.

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

USAA sells homeowners insurance to veterans, active military and their families. If you fall into one of those groups, you might want to look into USAA’s offerings. The company’s homeowners policies include some unique perks such as deductible-free coverage for military uniforms and coverage for identity theft.

Homeowners in South Dakota can take part in the company’s Connected Home program, which gives you a discount on your policy if you buy and install approved smart home devices. These include water leak sensors, cameras and thermostats.

The average annual cost of home insurance in South Dakota is $2,605. That’s 43% more than the national average of $1,820.

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 $5,165 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 98% more than those with good credit.

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 $2,525 per year, while homeowners in Rapid City pay $2,915 per year, on average.

Here are the insurers we found with average annual rates below the South Dakota average of $2,605.

South Dakota homeowners should be aware of the risk seasonal severe weather poses for their homes. Consider winter weather, tornadoes, hail and flooding when shopping for homeowners insurance.

When winter weather hits South Dakota, it can be harsh, with heavy snowfall, ice storms and freezing temperatures. For homeowners, this weather can result in roof damage, downed tree limbs and frozen pipes.

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.

South Dakota is no stranger to tornadoes and the damage caused by strong winds. 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.

Tornadoes aren’t the only risk that accompanies spring storms in South Dakota; hail is also a concern. Even minor hail storms can damage roofs, windows and siding. 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.

Rapid snowmelt and heavy rains can cause flooding in South Dakota. 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 purchase 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.

The South Dakota Division of Insurance is the agency that regulates insurance in the state. It oversees agent licensure and provides consumers with 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].