SOUTH DAKOTA STATS
On average, South Dakotans are paying $1,255 every month on homeownership costs. There are 400,000 houses in Mount Rushmore State, 68% of which are occupied by owners.
- Population: 882,235
- Average value of homes that’s occupied by owners: $152,700
- Households: 339,458
- Average household income: $54,126
- High school grad or higher, percent of people age 25 years +: 91%
- Average travel time to work: 17 min
The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.
South Dakota’s climate is characterized by scorching dry summers and extremely cold winters. Warmer months in 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 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 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 plans 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.
South Dakota cheap home insurance
If we look at the reports published by Insurance Information Institute (III), South Dakota ranks in the 24th position in regard to homeowners insurance rates in 2016 (latest available data). The average annual homeowners insurance rate in the same year in SD is $1,125 while the national average is $1,192. If we look at the monthly average, South Dakota homeowners pay $94 on home insurance, which is lower than the national monthly average of $99. So, if you buy a home in South Dakota, you will have to pay comparatively lower premiums than in most of the states. But don’t just settle with the first insurance company you come across. The premiums and other terms & conditions of homeowners insurance vary from one insurer to another. Thus, it’s advisable that you study multiple companies before you make the final decision.
Average South Dakota Home Insurance Premiums
|National annual average||$1,192||$1,173||$1,132|
Top 3 insurers in South Dakota
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 that 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 of 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 is 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 a 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 windstorms & hail, and 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 of South Dakota’s homeowners insurance market. The company is known for offering premium quality coverage at highly affordable rates for 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 on 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 installing advanced home security features. Discounts are also available for new or renovated homes and homes with a roof made from impact-resistant materials.
Farmers cover 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 an 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 a 3 (About average) Power Circles Rating out of 5, in the line of overall customer satisfaction.
The company has impressed 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.
South Dakota Home Insurance Companies: Market Share and Summary of Ratings
|Rank||Insurer||Market Share %||AM Best||S&P||JD Power|
|4||Farmers Mutual Insurance Co. of NE||6.7||A||NR||NR|
Source: Insurance Information Institute, AM Best, S&P, JD Power
Section 504 home repair program
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 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 the Section 504 Home Repair program.
Tips on how to save
As much as home insurance shall protect every valued possession, it will not mean that it should cost you more amount than it is expected to cost. The following are some guidelines to help you in saving on insurance and watch your savings go up.
Increase your deductibles
Homeowners deductibles refer to the amount of risk that one is anticipating to and prepared to accept as well as pay whenever you need to make any claim on the relevant policy before the insurer pays out on the claim. Before raising the deductible, ensure that this amount is realistic and affordable to you if the event comes that you have to file a claim.
The policies will just cover your loss. Some elements such as the price of the land should not be included in the agreements. Otherwise, premiums cost more for nothing since they will not be compensated.
Increase safety measures
Installing some safety devices on your premises would be great. That will protect your family as well as minimize your insurance premiums substantially as most companies offer discounts to homeowners who put in the effort to make their homes safer. Check with your insurance provider to see what type of safety discounts they offer before making any drastic changes.
Discount and deals
Some people may think that an insurance provider will give them automatic discounts, which they may qualify for in their package. In most cases, it is up to the homeowner to find out which discounts they qualify for and notify their agents of this to get the discount. If you’ve done an upgrade on your home, it’s time to check your insurer policies again as you may qualify for discounts you were not eligible for before.
It would be great to choose the best insurance provider possible and strive to be loyal to the firm you want. Every company would love to reward the loyalty of their esteemed clients. Insurance companies are no different; sometimes they may even lower your deductible. That can be possible without increasing the premiums of any customer.
Taking some time to compare the prevailing rates could finally land you the most satisfying premium that will come with the best insurance packages. Take time and shop for the most competitive price possible that will not compromise your insurance needs. Our free comparison tool is geared to help you with your search as we provide you with a list of home insurers in your area instantly.
For more assistance, please contact your local state department of insurance:
South Dakota Division of Insurance