North Star Mutual offers the cheapest homeowners insurance in South Dakota, with rates averaging $125 a month. Price is an important factor to consider when shopping for homeowners insurance, but you also need the right amount of coverage and responsive service in the event of a claim. Here’s our guide to the best home insurance companies in South Dakota.
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How much is homeowners insurance in South Dakota?
The average cost of homeowners insurance in South Dakota is $2,377 a year, or $198 a month, for a typical house. The rate is 36% higher than the national average of $146 a month. Among all states, South Dakota has the 13th-highest average homeowners insurance rate.
Insurance companies review several factors about you and your home to determine your rate. These include:
- Your home’s location, age, construction features and safety devices
- The estimated cost of rebuilding your home
- Your insurance and credit history
- Any discounts you may be eligible to receive
Since insurance companies tend to place different weights on each factor and offer different discounts, you may qualify for significantly better rates with one company than you do with others. This is why it’s best to compare quotes from multiple companies when you shop.
Who offers the cheapest home insurance in South Dakota?
North Star Mutual offers the cheapest average rate on home insurance in South Dakota, $125 a month, followed by USAA, $187 a month, and Farm Bureau Financial Services, $190 a month.
USAA is only available to current and former members of the military and their families. Access to Farm Bureau insurance is among the benefits of becoming a member of the South Dakota Farm Bureau, which costs $60 a year.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| North Star Mutual | $1,495 | $125 |
| USAA | $2,247 | $187 |
| Farm Bureau | $2,286 | $190 |
| Allstate | $2,312 | $193 |
| Farmers | $2,324 | $194 |
| State average | $2,377 | $198 |
| State Auto | $2,545 | $212 |
| State Farm | $2,883 | $240 |
| American Family | $2,923 | $244 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
See rates from top home insurance companies
South Dakota’s best homeowners insurance companies
USAA and Farm Bureau have the best customer service ratings among South Dakota’s homeowners insurance companies, while State Farm is most popular and North Star Mutual is best for saving money.
Best customer service ratings: USAA and Farm Bureau Insurance
Among the South Dakota homeowners insurance companies in our analysis, USAA has the highest overall customer satisfaction rating from J.D. Power, and Farm Bureau Insurance has the lowest complaint rating from the National Association of Insurance Commissioners (NAIC).
J.D. Power’s overall customer satisfaction index rankings are based on customer surveys ranking home insurance companies on interaction, policy offerings, price, billing process, policy information and claims.
USAA tops the rankings with a score of 882, on a 1,000-point scale, followed by State Farm, 835, American Family, 831, and Allstate, 229.
| Company | Overall satisfaction index ranking |
|---|---|
| USAA | 882 |
| State Farm | 835 |
| American Family | 831 |
| Allstate | 829 |
| Segment average | 825 |
| Farmers | 813 |
| Farm Bureau | Not included |
| North Star Mutual | Not included |
| State Auto | Not included |
| Source: J.D. Power 2021 U.S. Home Insurance Study | |
The NAIC’s Complaint Index compares insurance companies by confirmed complaints. A confirmed complaint is one that leads to a finding of fault by the insurance commissioner in the state in which it is filed.
A company with a 2.0 Complaint Index rating has twice as many confirmed complaints as expected for its size, while a 0.5 Complaint Index rating reflects half as many.
Farm Bureau leads the South Dakota home insurance companies in our analysis with the lowest, or best, Complaint Index rating, 0.07, followed by State Auto, 0.08.
Both companies have less than one-tenth the amount of confirmed complaints as expected for their size.
| Company | Complaint Index |
|---|---|
| Farm Bureau | 0.07 |
| State Auto | 0.08 |
| American Family | 0.12 |
| North Star Mutual | 0.18 |
| USAA | 0.2 |
| Farmers | 0.21 |
| State Farm | 0.32 |
| Allstate | 0.43 |
| National Complaint Index | 1.0 |
| Source: National Association of Insurance Commissioners | |
South Dakota’s most popular home insurer: State Farm
Even though other companies may offer lower rates, State Farm is South Dakota’s most popular home insurance company, based on its position as the state’s largest company.
State Farm’s high overall customer satisfaction index ranking reflects the company’s ability to meet its customers’ expectations. State Farm offers generous discounts for bundling your homeowners policy with your car insurance and/or any other coverage. A home security system typically gets you an additional discount.
| Company | Market share* |
|---|---|
| State Farm | 20.1% |
| American Family | 12.4% |
| Farmers | 7.6% |
| Nationwide | 6.3% |
| Farmers Mutual of Nebraska | 6% |
| *Based on written premium in 2021. Source: National Association of Insurance Commissioners. | |
Best for saving money: North Star Mutual
North Star Mutual combines prices that are well below the state average with reliable customer service, as reflected by its low Complaint Index rating.
Established in 1920 in Redwood Falls, Minnesota, North Star Mutual serves customers in eight states, is the eighth-largest home insurer in South Dakota and is rated A+ (superior) by AM Best.
How much is home insurance in South Dakota’s largest cities?
Among South Dakota’s largest cities, homeowners insurance rates range from $174 a month in Aberdeen to $203 a month in Rapid City. The average cost of home insurance in Sioux Falls is $200 a month.
| City (by population ranking) | Average monthly rate | Average annual rate |
|---|---|---|
| Sioux Falls | $2,400 | $200 |
| Rapid City | $2,433 | $203 |
| Aberdeen | $2,089 | $174 |
| Brookings | $2,229 | $186 |
| Watertown | $2,160 | $180 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
North Star Mutual offers the lowest average rate in each of South Dakota’s five largest cities, but companies with the next-best rates vary by location.
For example, USAA has the second-lowest rate in Sioux Falls, but American Family has the second-lowest rate in Rapid City. Allstate has the second-lowest rates in Aberdeen and Watertown, while Farm Bureau Insurance offers the second-lowest rates in Brookings.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| North Star Mutual | $1,624 | $135 |
| USAA | $2,130 | $178 |
| Allstate | $2,252 | $188 |
| City average | $2,400 | $200 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| North Star Mutual | $1,944 | $162 |
| American Family | $2,248 | $187 |
| Farmers | $2,273 | $189 |
| City average | $2,433 | $203 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| North Star Mutual | $1,305 | $109 |
| Allstate | $1,545 | $129 |
| Farm Bureau | $1,929 | $161 |
| City average | $2,089 | $174 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| North Star Mutual | $1,305 | $109 |
| Farm Bureau | $1,997 | $166 |
| USAA | $2,130 | $178 |
| City average | $2,229 | $186 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| North Star Mutual | $1,305 | $109 |
| Allstate | $1,545 | $129 |
| Farm Bureau | $2,115 | $176 |
| City average | $2,160 | $180 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Find cheap home insurance in South Dakota
Home insurance for natural disasters in South Dakota
If you’re new to South Dakota or homeowners insurance, you should know that standard homeowners insurance includes coverage for some natural disasters, including tornadoes and hailstorms, but not floods or earthquakes.
Wind, hail and winter freezes
A standard HO-3 homeowners insurance policy includes coverage for extreme wind and hail, including those accompanying thunderstorms and tornadoes, as well as burst pipes and collapses from ice and snow buildups, which can accompany a deep freeze.
Some companies offer HO-1 and HO-2 policies, which are homeowners insurance policies that protect against fewer things than an HO-3. As you shop, you should check to make sure the policies shown in your quotes cover all the standard home insurance perils.
Flood insurance in South Dakota
Since homeowners insurance generally excludes flood damage, you have to purchase flood insurance separately for financial protection from this peril.
South Dakota’s flood risks are greatest in spring, when rainfall can combine with snowmelt to overflow rivers and streams, and summer, when thunderstorms can create devastating flash floods.
If you apply for a mortgage on a home in one of South Dakota’s high-risk flood zones, your lender is likely to require you to purchase flood insurance. You can also purchase flood insurance on an optional basis if you don’t have a mortgage or live outside a high-risk area.
Most flood insurance is purchased through the National Flood Insurance Program (NFIP), which is managed by the Federal Emergency Management Agency (FEMA), but several private companies also offer flood insurance.
The average cost of NFIP flood insurance in South Dakota is $94 a month, with those in high-risk areas paying more than those in moderate- and low-risk areas.
If you’re not sure about your home’s flood risk, or the flood risk of a home you want to buy, you can look it up in the Flood Map Service Center on FEMA’s website.
Insurance for other types of water damage
In addition to excluding floods, the coverage homeowners insurance provides for water damage is extremely limited. It usually includes damage from burst pipes and damage that occurs after a covered peril — such as wind or a falling tree — allows water to get into your home, but not much else.
Most home insurance policies exclude damage from backups of your home’s sewer and drainage systems, but many companies offer a water backup endorsement that covers this risk.
Some companies also offer an endorsement that covers water damage from plumbing or appliance leaks, which is otherwise also excluded.
Earthquake insurance
Earthquakes are not as common in South Dakota as they are along the West Coast, but they can happen just about anywhere in the U.S. Standard homeowners insurance excludes earthquakes, but you can purchase separate insurance to protect against this peril.
Some South Dakota insurance companies offer earthquake insurance as an endorsement to your homeowners insurance policy, and some companies offer it as stand-alone coverage.
Frequently asked questions about homeowners insurance in South Dakota?
Is homeowners insurance required in South Dakota?
Homeowners insurance is not legally required in South Dakota, but if you have a mortgage, your lender will probably require it. If you apply for a mortgage for a home in a high-risk flood zone, your lender is likely to also require flood insurance.
How much does homeowners insurance cost in South Dakota?
The average cost of homeowners insurance in South Dakota is $2,377 a year, or $198 a month, for a typical house.
Does homeowners insurance cover food spoilage?
Standard homeowners insurance typically limits coverage for food spoilage to situations in which damage to your home from a covered peril, such as fire or wind, causes your refrigerator to stop working. However, some insurance companies offer a residential equipment breakdown endorsement that includes expanded coverage for food spoilage.
Methodology
We obtained quotes for a standard HO-3 homeowners insurance policy on a typical house in every South Dakota ZIP code. Unless otherwise noted, standard policies included the following limits and deductibles:
- Dwelling coverage: $275,000
- Other structures: $27,500
- Personal property: $137,500
- Loss of use: $55,000
- Liability: $100,000
- Medical payments: $5,000
Sources:
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