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South Dakota climate is characterized by scorching dry summers and extremely cold winters. Warmer months in The Mount Rushmore State often bring disastrous thunderstorms and tornadoes. As per the reports from National Oceanic & Atmospheric Administration (NOAA), the State experiences something like 28 tornadoes annually. In 2017, using the NOAA data, Insurance Information Institute (III), reported 21 tornadoes with 0 fatalities in SD, ranking at 25th out of the 51 states. On the other hand, the terribly cold winters here bring heavy snowfall and related hazards like burst pipes and mold buildup due to trapped moisture. All these factors deeply affect the home insurance rates in South Dakota. However, the homeowners insurance premium is relatively low in the State. But, still, it’s wiser to take a comparative study on multiple insurance companies to find out the most competitive rates for your home. You can use our free online comparison tool to get you started. We’ll provide you with a list of home insurers in your area so that you can be made aware of the providers available to you. Read more below to find out more about home insurance in SD.
As the largest asset any person will ever own, your home will require some adequate insurance coverage against all kinds of losses. Quality insurance plan shall mitigate the risks of loss in case of fire, theft or even storm damage. A home insurance policy does not necessarily cover losses from incidences such as earthquakes and/or floods, so if you live in a high-risk area, extra coverage may be needed to protect your home.
If we look at the reports published by Insurance Information Institute (III), South Dakota ranks in the 23rd position in regards to homeowners insurance rates in 2015 (latest available data). The average annual homeowners insurance rate in the same year in SD is $1,096 while the national average is $1,173. If we look at the monthly average, South Dakota homeowners pay $91 on home insurance, which is lower than the national monthly average of $98. So, if you buy a home in South Dakota, you will have to pay comparatively lower premiums than most of the States. But don’t just settle with the first insurance company you come across. The premiums and other terms & conditions of a homeowners insurance vary from one insurer to another. Thus, it’s advisable that you study multiple companies before you make the final decision.
|National annual average||$1,192||$1,173||$1,132|
Here is a brief on three leading homeowners insurance companies in South Dakota. Added to a detailed outline of each company, the reviews also feature ratings received from AM Best, S&P and JD Power. AM Best is a leading American credit rating firm which offers an independent opinion on the financial strength of an insurer operating in the country. S&P is an esteemed financial services company and one among the big 3 credit rating organizations. On the other hand, JD Power is a California-based global marketing information services company. The Power Circles Rating are the sole source of consumer ratings that are derived on the basis of unbiased & independent feedback.
A name of big repute in the nationwide homeowners insurance scene, State Farm boasts 20 percent market share in South Dakota. The company extends homeowners insurance for almost all kinds of residential units in South Dakota. A standard home insurance policy from the firm offers coverage for damages from a number of perils like windstorm & hail, lightning as well as theft & vandalism. Policyholders will be able to customize the policies as per their specific needs. If you want increased protection, you can opt for the add-ons like protection against identity theft, injury and personal liability.
The company has received A++ (Superior) rating from AM Best which stands for the powerful financial hold of the company. It has also received AA (Very Strong capacity) from S&P which again highlights the great financial footing of the insurer. In regards to JD Power ratings, State Farm has got a good 3 (About average) out of 5 Power Circles, in regards to customer support, policy offerings, claims, and billing & payment.
A unique aspect of the company is its Discount Double Check tool that ensures high savings for each homeowners insurance policyholder. The tool automatically assures a policyholder has received every kind of deduction in his insurance premium as per his eligibility.
State Farm is known for prompt response in times of emergencies. The company enables its clients to report claims easily and anytime over the phone with its 24/7 hotline, in-person visit or through its mobile app (Pocket Agent).
Established in 1927, American Family has been catering to homeowners insurance needs here for nearly a century now. The company occupies an 11 percent share in South Dakota’s homeowners insurance market. The company is known for offering premium quality coverage at highly affordable rates for the SD homeowners.
A standard homeowners insurance policy from AmFam offers coverage for most of the damages encountered by a dwelling property. It also includes coverage for temporary living expenses in case you have to stay somewhere else while repairing your damaged home. Then, add-on coverage is also available for liability protection & personal injury, identity theft and the replacement of personal property. If you run your office from home, you will get to choose from additional coverage opportunities for workplaces inside a residential unit.
American Family has received an A rating (Excellent) from AM Best which speaks volumes of its powerful financial footing. It proves the insurance company holds the needed high financial backup to address all claims in full and on time.
It’s to note here, American Family ensures that homeowners get the best probable premium in the South Dakota market. The company counts in various variables like client loyalty & longevity, premium discounts, and claims history to find out the most compatible rate for the client. Besides, you will receive discounts on bundling insurance plans and for installing advanced home security features. Discounts are also available for new or renovated homes and home with a roof made from impact-resistant materials.
Farmers covers the third largest share at 7.5 percent in the State homeowners insurance market. Founded in 1926, Farmers Insurance is widely renowned for its powerful financial strength, huge agent network as well as a comparatively lower range of complaints.
Farmers Insurance has received A (Excellent) rating from AM Best and A (Strong capacity) from S&P which only proves the company holds the strong capacity to address its financial commitments to clients. In regards to JD Power ratings, the company has received 3 (About average) Power Circles Rating out of 5, in the line of overall customer satisfaction.
The company has impressed the customers with its easy claim-filing procedure and standard insurance coverage that caters to almost all major damages. Homeowners will also get to choose from around 9 types of discounts here that keep the premium rates low.
|Rank||Insurer||Market share %||AM Best||S&P||JD Power|
|4||Farmers Mutual Insurance Co. of NE||6.7||A||NR||NR|
The program offers loans for low-income residents here who are looking to modernize or improve their dwelling units. The program even caters to elderly low-income homeowners (minimum 62 years) who need to repair their homes to improve safety standards.
Eligible homeowners can get loans up to $20,000 and grants up to $7,500, which can be combined for a total of $27,500. While loans can be used to improve and modernize homes, grants must be used to remove health and safety hazards. To qualify for this program, the applicant must be a homeowner living in the house who is unable to get affordable credit anywhere else. The applicant’s family income must fall below the 50 percent of the average income in their area. Grants are for elderly applicants, 62 years of age and older, who are not able to repay loans for repairs in their homes.
To learn more, please visit the USDA website that outlines in more detail about the Section 504 Home Repair program.
For more assistance, please contact your local state department of insurance:
South Dakota Division of Insurance