Homeowners insurance in South Dakota

The cost of homeowners insurance in South Dakota is $2,177 a year for the average amount of coverage. South Dakota residents can compare rates from multiple companies with Policygenius.

Kara McGinley

Kara McGinley

Published September 10, 2020

KEY TAKEAWAYS

  • The average cost of homeowners insurance in South Dakota is $2,177 for $100,000–500,000 in coverage

  • The cheapest homeowners insurance company in South Dakota is Stillwater, according to Policygenius quote data

  • When deciding on policy coverage, South Dakota residents should consider the state’s severe thunder and lightning storms

Homeowners insurance protects your house, personal property, and assets in the event of the unexpected. South Dakota is made up of beautiful rolling hills, rivers, and lakes, but the state is also located in the so-called Tornado Alley and experiences frequent severe thunderstorms. If you’re part of the 68% of South Dakotans who own a home, you may want to consider a comprehensive homeowners policy to protect your home and belongings.

The statewide average cost of homeowners insurance in South Dakota is $2,177 per year, but policy premiums can differ greatly based on specific factors related to your home and the details of your policy. Your rates will be directly impacted by your home’s condition and style of build, its location, your credit and claims history, and your policy deductible amount. Rates also vary from company to company for the same level of coverage, which is why it’s so important to compare policies from different companies — that’s where we come in.

To help simplify your shopping experience, Policygenius reviewed the five best homeowners insurance companies in South Dakota offered through our website. We also calculated the cheapest and most expensive cities in South Dakota for home insurance based on hundreds of submitted quotes.

Compare South Dakota quotes here

IN THIS ARTICLE

The 5 best homeowners insurance companies in South Dakota

A great homeowners insurance company is financially stable, has dependable customer service, affordable coverage, flexible policy options, and high quality discounts.

Using those benchmarks, we determined the following five insurers were the best homeowners insurance companies in South Dakota. Read about our methodology here.

Best company for a cheap quote: Stillwater

Stillwater provides the cheapest South Dakota home insurance quote of any Policygenius partner carrier. The average quote with Stillwater is $1,388 for $100,000–500,000 in coverage, which is over $600 cheaper than the statewide average of $2,177. If you’re a South Dakota homeowner looking for a budget pick, Stillwater may be your best bet.

Read our full review of Stillwater here

Best replacement cost policy: MetLife

If you’re looking to maximize coverage to the structure of your home, MetLife may be a smart choice. MetLife offers guaranteed replacement cost coverage, a coverage enhancement that reimburses you the full rebuild value of your house after a loss, regardless of the cost. Homeowners can also insure personal belongings with replacement cost coverage, meaning you’re reimbursed for new items after a loss, rather than the depreciated value of the damaged or stolen property.

Read our full review of MetLife here

Best company for personal property coverage: Safeco

Homeowners looking for enhanced protection for their personal belongings may want to consider Safeco. Safeco offers robust personal property coverage and additional coverage options, like equipment breakdown coverage for larger appliances that wouldn’t be covered under a standard policy. If you’re looking for superior personal property protection, Safeco may be your best bet.

Read our full review of Safeco here

Best financial standings: Travelers

One important indicator of an insurance company’s ability to pay out claims in an effective and timely manner is their financial stability, and Travelers is among the highest-rated insurers in that area. With an A++ rating with A.M. Best, Travelers has the highest score a company can receive with the insurance company credit rating agency. Travelers also has high marks with Standard & Poors, which measures long-term financial stability, as well as Moody’s, which measures what the expected losses would be if a company were to go into default.

Read our full review of Travelers here

Best company for high-value homes: AIG

If you live in a high-value home in South Dakota, AIG may be the right company for you. AIG offers a “Private Client Group” package, which has all the primary coverage you’ll find in a standard policy — dwelling, other structures, personal property, loss-of-use, liability, and medical payments coverage — but with higher limits of liability and more flexible loss-settlements than you’d find in a standard carrier policy.

Read our full review of AIG here

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Average cost of homeowners insurance in South Dakota by company

When comparing insurance companies, South Dakota residents may find that rates differ greatly from company to company for the same level of coverage. A more expensive policy may provide more coverage add-ons in a basic plan than their competitors, but some companies may simply charge more for coverage in certain areas than others.

After reviewing hundreds of quotes submitted with Policygenius, we found that Stillwater is the cheapest insurance company in South Dakota with an average annual premium of $1,388 for $100,000–500,000 in coverage. Safeco is the most expensive with an average annual premium of $3,127.

CompanyPolicygenius RatingAverage Cost
MetLife6.5/10$2,759
Safeco7.3/10$3,127
State AutoNot rated$1,471
Stillwater7.6/10$1,388
Travelers7.7/10$2,531

Average cost of home insurance in South Dakota by coverage amount

The average cost of homeowners insurance in South Dakota will also differ considerably based on the amount of insurance you have for your home. Below is the average homeowners insurance quoted rates for five different levels of coverage.

Coverage AmountAverage Cost
$100,000-$200,000$ 1,441
$200,000-$300,000$ 2,025
$300,000-$400,000$ 2,156
$400,000-$500,000$ 3,643
Greater than $500,000$ 4,048

Average cost of home insurance in South Dakota by city

Insurance companies will also price policies differently based on where you live. We found Brookings has the lowest rates in the state with a $1,415 average annual premium for $100,000-500,000 in coverage. The most expensive area on average is Rapid City with an annual premium of $2,743 for the same amount of coverage.

CityAverage cost
Box Elder$1,684
Brookings$1,415
Mitchell$1,969
Rapid City$2,743
Sioux Falls$1,620

We selected the 5 largest cities in South Dakota by population where customers have submitted quotes with Policygenius. Quotes are based on a coverage amount between $100,000 and 500,000.

Guide to homeowners insurance in South Dakota

Common causes of home insurance loss in South Dakota

Though South Dakota is located in the so-called Tornado Alley, thunder and lightning storms are actually the most common and most expensive threats to South Dakota homeowners, with storms costing the state $10.8 million per year in annualized property losses. Homeowners insurance does cover lightning damage, but South Dakota residents who experience frequent storms should consider installing lightning protection systems and surge protector devices for extra protection.

Winter storms are the second most common and expensive natural hazards in The Mount Rushmore State, causing $8.5 million per year in annualized property losses. Homeowners insurance has you covered if the weight of snow and ice causes your roof to fall through or damages your foundation, but you should still be mindful to keep your roof clear of ice dams and excessive snow.

Does homeowners insurance cover flooding in South Dakota?

No, homeowners insurance does not cover flooding in South Dakota or any of the other 49 states. State residents can supplement that gap in coverage by purchasing a flood insurance policy.

Flood insurance can typically be purchased through the same insurance company that insures your home. Most flood policies are sold by private companies but administered by the federal government’s National Flood Insurance Program (NFIP). An NFIP flood policy can cover up to $250,00 for the structure of your home and up to $100,000 for personal belongings.

South Dakota Department of Insurance

The South Dakota Division of Insurance is a valuable resource both for South Dakota homeowners purchasing coverage for the first time or for those who are already insured. The SDDOI website has helpful information about what to prioritize when selecting your coverage, preparing for natural disasters, and buying flood insurance.

What if I can’t get homeowners insurance?

Homeowners insurance companies can cancel your insurance for a number of reasons — maybe the insurance company no longer offers coverage where you live, or maybe they determined your home was too risky to insure after a recent inspection.

Unlike other states, South Dakota doesn’t offer Fair Access to Insurance Requirements (FAIR) Plan. If you’re unable to get homeowners insurance with a standard carrier, look into coverage with a surplus or excess lines insurer. Surplus carriers specialize in risks that are typically rejected by traditional insurance companies.

A couple of downsides to getting coverage through a surplus carrier is it’s typically expensive and the companies aren’t admitted with the state, meaning they aren’t subject to the same rules and regulations as traditional insurance companies. But surplus lines coverage is a solid option if you’re an South Dakota resident looking for last minute coverage.

Not where you live? We've got you covered, check out our guide to homeowners insurance in your state

About the author

Insurance Editor

Kara McGinley

Insurance Editor

Kara McGinley is an Insurance Editor at Policygenius. She previously worked as a freelance writer and a copywriter for various startups. Her work can be found in Teen Vogue, The Culture Crush, Mask Magazine, and more.

Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.

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