South Dakota Homeowners Insurance

 
South Dakota Homeowners Insurance

Residents in South Dakota pay an average of $91 per month or $1,096 per year in home insurance premiums. 


There are  almost 400 thousand homes in the Mount Rushmore State, sixty-eight percent of which are owner-occupied.

The average monthly cost for a homeowner with a mortgage in SD is $1,255.

Residents in South Dakota pay an average of $91 per month or $1,096 per year in home insurance premiums. 


There are  almost 400 thousand homes in the Mount Rushmore State, sixty-eight percent of which are owner-occupied.


The average monthly cost for a homeowner with a mortgage in SD is $1,255.

Shop around and save.

Compare insurers to find the cheapest rates around.

 

South Dakota Statistics*

​882,235

Population

​$152,700

Average value of owner-occupied housing units

​339,458

Households

$54,126

Average household income

91.4%

High school grad or higher, percent of people age 25 years +

17 min

Average travel time to work

*Data from the U.S. Census Bureau


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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.

​SD premiums at a glance


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. 

Average South Dakota home insurance premiums

 201620152014
Monthly average$93.75$91$83
Annual average$1,125$1,096$995
National annual average$1,192$1,173$1,132
Rank242328
Source: The annual average premiums came from the Insurance Information Institute's latest recorded data. We calculate the estimated monthly insurance costs based on the data provided.

Our top 3 home insurance companies 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 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.


State Farm


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).


American Family 


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


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. 

South Dakota home insurance companies: Market share and summary of ratings

RankInsurerMarket share %AM BestS&PJD Power
1State Farm20.1A++AA3
2American Family11.1ANR3
3Farmers7.5AA3
4Farmers Mutual Insurance Co. of NE6.7ANRNR
5Nationwide6.6A+A+3
6Farm Bureau4.8A-NR3
7Auto-Owners4.2A++AA3
8Liberty Mutual4.2AA3
9USAA4.2A++AA+5
10North Star3.8A+NRNR
NR: Not rated
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 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.

Tips on how to save on home insurance


As much as a home insurance shall protect every valued possession, it will not mean that it should cost you more amount that 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. 


Avoid over-insuring


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 it will not be compensated.


Increase safety measures


Installing some safety devices in 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 home 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 upgrade on your home, it’s time to check your insurer policies again as you may qualify for discounts you were not eligible before. 


Loyalty discounts


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.


Compare rates


Taking some time to compare the prevailing rates could finally land you on 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

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