Best homeowners insurance in South Dakota for 2022

The average cost of homeowners insurance in South Dakota is about $2,426 per year, or $202 a month, which makes it one of the more expensive states in the U.S. for home insurance. 

However, the cost isn’t the only factor to consider when choosing a home insurance company. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in South Dakota.  

Best homeowners insurance companies in South Dakota

Of the companies we evaluated, Farmers has the lowest home insurance rates in South Dakota, with an average annual policy cost of $1,761 per year — around $700 less than the state average. Auto-Owners Insurance has the next lowest average home insurance rate at $3,174 per year.

Policygenius analyzed thousands of quotes from the 5 largest South Dakota insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of South Dakota residents to find the best homeowners insurance in South Dakota.

State Farm

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

• Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

• Get up to $1 million in personal liability coverage

• Score discounts for bundling, installing security devices, and choosing a high deductible

• File and track claims online, over the phone, in person, or through its mobile app

• High customer satisfaction and financial strength ratings

Cons

• No discounts for first-time homebuyers or going a year without a claim

Read our full State Farm home insurance review

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Why State Farm tops our best list

State Farm scored an impressive customer satisfaction rating of 835 out of 1,000 with J.D. Power. This means State Farm excels when it comes to pricing, policy options, claims handling, and more. State Farm’s easy-to-use claims system means customers can easily file and track claims online and through the mobile app.

How to get a quote

Online through State Farm

American Family

American Family's status as the 7th largest home insurance provider in the U.S. speaks to its popularity and reputation. Our fave perk? Its diminishing deductible program that lets you earn credits for every year you go without filing a claim.

Pros

• Unique coverage add-ons, like matching siding insurance and hidden water damage coverage

• Save up to 20% on home insurance and 29% on auto insurance for bundling the policies together

• Earn a $100 credit toward your deductible for ever year you go without filing a claim

• File claims online or on its mobile app — with 24/7 claims support

Cons

• Doesn't offer extended or guaranteed replacement cost coverage

• Above-average customer complaints according to the NAIC

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Why American Family tops our best list

American Family is the seventh largest home insurance insurance company in the country, making it a top choice for homeowners looking for superior coverage options and excellent customer service. American Family customers can earn a $100 credit toward their deductible for every year they go without a claim, and save up to 29% by bundling their home and auto insurance.

How to get a quote

Online through American Family

Farmers

Farmers is one of the largest and most reputable home insurance providers in the industry, offering special discounts for teachers, nurses, first responders, and non-smokers — plus the option to rebuild your home with green materials after a claim.

Pros

• Several discounts and unique ways to save, including claim forgiveness and declining deductibles

• 3 flexible coverage packages with varying levels of protection for most coverage and budget needs

• Offers extended and guaranteed replacement cost coverage options

• File claims online, via text, on its mobile app, or by calling its claims center

Cons

• Rates are typically more expensive

• Below-average customer satisfaction ratings

• No repair network to help you find a certified contractor or repair professional after filing a claim

Read our full Farmers home insurance review here

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Why Farmers tops our best list

Farmers is one of the largest carriers in the nation and offers a complete line of coverage options for every budget and protection need. Plus, we love the fact that homeowners can opt to use green materials to rebuild their home after a covered loss. File claims by text, through the mobile app, or by calling your local agent.

How to get a quote

Online through Farmer

Auto-Owners Insurance

Auto-Owners is the 12th largest home insurance provider in the U.S. thanks to its low rates, numerous discounts, and robust coverage options — including inland flood insurance.

Pros

• Excellent coverage add-ons, including inland flood insurance, guaranteed replacement cost, and equipment breakdown coverage

• Flood insurance covers belongings in your basement — a rare find

• Save on premiums by bundling policies, paying off your mortgage, choosing a high deductible, having a backup generator, and more

Cons

• Can't file claims online — you must call or visit an agent to get started

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Why Auto-Owners Insurance tops our best list

Auto-Owners insurance has been helping South Dakota residents with affordable home insurance coverage options for some time now. Auto-Owners' unique coverage offerings include inland flood insurance, equipment breakdown coverage, and guaranteed replacement cost dwelling coverage.

How to get a quote

Call or visit an Auto-Owners Insurance agent

Nationwide

Nationwide offers flexible home insurance policy options for every home type and income level. And we love its slew of discounts for everything from having a newish roof to living in a gated community.

Pros

• Offers lots of coverage add-ons, including flood and earthquake insurance

• Option to rebuild roof with stronger, safer materials after a covered loss

• Score discounts for living in a gated community, making home renovations, having a newer roof, and more

• Seamlessly submit claims online or through its mobile app

• Above-average claims satisfaction rating

Cons

• Below-average customer satisfaction ratings

• Water backup coverage is more expensive than with other insurers

Read our full Nationwide home insurance review here

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Why Nationwide tops our best list

With Nationwide, customers can trim those occasionally high premiums by getting a new roof, living in a gated neighborhood, or making home renovations. Nationwide customers can file and track claims online or through the mobile app.

How to get a quote

Online through Policygenius or Nationwide

Cheapest homeowners insurance companies by city in South Dakota

Looking at average home insurance costs for the 15 most popular insurers in South Dakota, we found that the cheapest homeowners insurance company in the state is State Auto, with an average annual premium in the $200 to $300 range in most South Dakota cities.

The average State Auto rate in the state capital of Pierre is $283 per year — over $2,000 less than the state average. Likewise, residents in Sioux Falls enjoy rates of $287 per year with State Auto.

Shopping for homeowners insurance in South Dakota

Shopping for home insurance in South Dakota may be the last thing on your to-do list, but its a necessary step to take to ensure you and your family are protected in case disaster strikes.

In this section, we break down the average annual home insurance rates in South Dakota for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies for dog and pool owners.

South Dakota home insurance costs by coverage amounts

Dwelling coverage is the section of your home insurance policy that pays to rebuild or repair your home from the ground up after a covered loss. Your dwelling coverage should be equal to your home’s replacement cost, whic is what it would cost to rebuild your home from the ground up — not its market value or purchase price.

Personal liability coverage is the portion of your home insurance policy that pays for the medical, legal, or repair bills if someone is injured or their property is damaged and you're held legally responsible.

South Dakota home insurance costs by deductible amount

Your policy deductible is the amount you’ll have to pay your home insurance provider before your insurance will reimburse you for a claim. A higher deductible means lower monthly payments, but larger out-of-pocket expenses when you file a claim. 

Home insurance discounts in South Dakota

With a population under one million, violent crime isn’t that common in South Dakota. However, a sparse population doesn’t mean that burglaries and other crimes don’t happen, so installing safety features is a smart choice to help protect your family.

While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in Mississippi with deadbolts, smoke alarms, or burglar alarms. 

Home insurance companies in South Dakota for dog owners

Pet owners in South Dakota may pay more for home insurance if they own certain dog breeds that insurance companies consider dangerous or aggressive. However, not all insurers weigh this factor as drastically, so its worth shopping around and comparing quotes if you own a pit bull, Rottweiler, or another dog breed that's causing your rates to skyrocket.

With an average rate of $1,761 per year, Farmers has the cheapest home insurance rates in South Dakota for a home with a dangerous dog breed, while American Family's average yearly rate of $4,212 is the highest.

Home insurance companies in South Dakota for poor credit

Late or missed payments on credit cards, cars, and monthly rent can lead to higher home insurance rates. Insurance companies consider a poor credit score to be an indicator of risky behavior and an increased risk of filing an insurance claim, so many charge higher rates to customers with bad credit. 

With an average rate of $3,302 per year, Farmers has the cheapest home insurance rates in South Dakota for a homeowner with poor credit. Meanwhile, American Family has the most expensive rates in South Dakota at $5,633 per year.

Home insurance companies in South Dakota for pool owners

South Dakota weather doesn’t allow for many months to enjoy outdoor weather in a swimming pool unless it's heated. If you have one, your home insurance rates will likely be higher, as insurance companies consider pools to be an injury and liability risk.

With an average rate of $1,761 per year, Farmers has the cheapest home insurance rates for South Dakota homes that have a swimming pool, while American Family has the most expensive rates at $4,215 per year.

How to buy homeowners insurance in South Dakota

It’s easy to buy homeowners insurance in South Dakota if you know where to start. We’ve rounded up a list of handy tips to guide you as you shop for home insurance.

1. Reach out to a licensed Policygenius agent. Our team of licensed home insurance experts will help you find the right policy to suit your coverage needs, all while saving you time and money.

2. Consider separate flood insurance. A basic home insurance policy doesn't cover damage causing by flooding, so consider separate flood insurance coverage if you live in a floodplain.

3. Figure out how high of a deductible you can afford. A higher deductible means you’ll pay less upfront for your insurance, but more out of pocket on each covered claim. A Policygenius agent can help you pick out a deductible that works within your budget.

4. Compare quotes from a Policygenius agent. Once you identify your coverage needs and input a few brief details about you and your house, a Policygenius agent will send over quotes from several top companies.

5. Sign on the dotted line and pay your first premium. After you’ve settled on a home insurance policy that works for you, all you need to do is sign and pay your first premium. Policygenius will handle the rest.  

Methodology

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

• Dwelling: $300,000

• Other structures: $30,000

• Personal property: $150,000

• Loss of use: $60,000

• Liability: $300,000

• Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.