Best Homeowners Insurance Companies in South Dakota

Best Homeowners Insurance Companies in South Dakota

Homeowners insurance isn't the most exciting thing to shop for, but it certainly is one of the most important purchases you'll make. We looked into insurance rates and satisfaction scores for home insurance companies across South Dakota to help you find the best possible coverage.

Compare Home Insurance Quotes from Providers in South Dakota

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For South Dakota, we found that rates can go as low as $580 for a year of coverage on a typical home. However, our research also indicated that price isn't the only thing to keep in mind when you choose your home insurance. Here are our recommendations for the best homeowner coverage in South Dakota.

See our recommendations below or enter your details above to see local home insurers near you.


Best for most people: Auto-Owners

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Best customer service: State Farm

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Best for military families: USAA

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Methodology

Best for most homeowners: Auto-Owners

As the name suggests, Auto-Owners can help you save money on coverage for your car as well as your house.
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Insurer details

  • Average cost in South Dakota: $730
  • J.D. Power rank: 6 of 24
  • A.M. Best Financial Strength Rating: A++ (Superior)

Read our full review of Auto-Owners

Auto-Owners turned out to offer the lowest average rate for homeowners insurance in South Dakota, but we chose it as the best overall option for more than just its affordability. Home insurance at Auto-Owners comes with service good enough to earn a top ranking in overall satisfaction, according to J.D. Power's most recent consumer survey, which covered categories such as billing and claims handling.

Across all South Dakota ZIP codes, the average cost of a standard Auto-Owners home insurance policy came out to $730 per year. That figure was 45% less than the average among all the insurers we considered in our analysis. From there, you may qualify for discounts on your premium if you do any of the following:

  • Bundle multiple Auto-Owners policies.
  • Request a quote in advance.
  • Pay your annual premium upfront.
  • Post 36 months’ worth of on-time payments.
  • Opt into paperless/online billing.
  • Install leak/smoke detectors.

Auto-Owners also gives you opportunities to expand your policy if you need extra coverage, although doing so will increase your premium. The most significant of these is guaranteed replacement cost coverage for your home. If you suffer a loss that ends up costing more than the amount you're covered for, this option will ensure Auto-Owners pays for a full replacement anyway.

Best customer service: State Farm

Although its premiums are higher than average, State Farm offers the stability and consistent quality of a nationally recognized brand.
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Insurer details

  • Average cost in South Dakota: $1,765
  • J.D. Power rank: 5 of 24
  • A.M. Best Financial Strength Rating: A++ (Superior)

Read our full review of State Farm

State Farm isn't the cheapest available option for South Dakota homeowners, but those who prioritize customer service may find it worthwhile. The National Association of Insurance Commissioners (NAIC) tracks consumer complaints for each insurer in the country, and State Farm's NAIC Complaint Index of 0.19 indicates the company receives complaints at about a fifth of the typical rate.

As the biggest insurance company in the country, State Farm is also financially solid. Where smaller local companies may be overwhelmed both financially and in terms of meeting customer service demands, State Farm's sheer scale allows it to weather natural disasters and economic stress equally well.

While we saw fairly expensive home insurance quotes from State Farm in South Dakota, we believe that the added cost is justified if you prefer a home insurance company that's somewhat less likely to dispute your claim or fail to meet its obligations.

Best for military families: USAA

Whether it's home insurance or almost any other financial service, USAA is a top choice for qualifying veterans and military personnel.
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Insurer details

  • Average cost in South Dakota: $1,329
  • J.D. Power rank: Tied for 1 of 24
  • A.M. Best Financial Strength Rating: A++ (Superior)

Read our review of USAA

Military families face many unique challenges, but one decision that's relatively easy is where to go for financial services. USAA's history of meeting the specific needs of service members makes it the best option for military families who need insurance, loans and banking services. The company's excellent record of customer service and preferential rates for qualifying members make it an easy first choice.

Membership with USAA is limited to veterans, service members and their direct family members. If you qualify, you'll have access to home insurance coverage that earned J.D. Power's No. 1 rating overall in categories such as claims handling and customer interactions.

In South Dakota, the typical cost of a policy with USAA was right at the average level for the state as a whole. However, this actually represents a cost savings given that the default homeowners insurance policy from USAA includes replacement cost coverage for your home and possessions, which costs extra at competing providers.

How we chose the best home insurers in SD

In order to choose the right insurance companies to highlight in a state with dozens of provider options, we graded providers according to how well they performed in each of three separate categories:

  • Affordability: How much does it cost to get a typical amount of coverage?
  • Coverage options: What benefits and features are available? Are any included for free?
  • Customer service: What is the company's track record in meeting customer needs?

The way we evaluated providers for affordability, options and service is based on what kind of objective data we could find. For instance, we collected thousands of quotes across South Dakota to calculate the average annual cost of a home insurance policy. Below, we explain our process so you'll know how to find the best insurer for yourself.

Affordability

To find out which home insurance company offered the best deals in South Dakota, we collected a quote from 11 providers for every ZIP code in the state. This came out to a total of more than 5,700 home insurance quotes, with a statewide average of $1,326 for the profile we used.

Column graph of average homeowners insurance rates from South Dakota's 13 biggest insurers
Column graph of average homeowners insurance rates from South Dakota's 13 biggest insurers

Compare Home Insurance Quotes from Providers in South Dakota

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Cheapest home insurance rates in South Dakota

ProviderAverage annual costDifference vs. state average
Auto-Owners$730-45%
Farmers$843-36%
North Star$973-27%
State Auto$1,074-19%
Farmers Mutual$1,132-15%
Allstate$1,181-11%
USAA$1,3290%
Farm Bureau$1,496+13%
State Farm$1,765+33%
American Family$1,865+41%
Liberty Mutual$2,199+66%

To keep our numbers as close as possible to South Dakota's typical cost of home insurance, we used a profile based on the state's median statistics for owner-occupied houses. These included a home rebuild value of $200,000 for a 1,540-square-foot house built in 1977.

Our analysis used rate data obtained from Quadrant Information Services, which is based on publicly available insurer filings. Quadrant rates are only for comparative purposes, and rates you see in your own home insurance quotes may be different.

Coverage options

To put the prices we collected in context, we also examined the benefits and features at each home insurance provider in the state. For standard coverages, we gathered quotes based on the following levels of protection:

  • $200,000 dwelling coverage
  • $100,000 personal property coverage
  • $100,000 personal liability coverage
  • $5,000 medical expenses coverage
  • $38,000 loss of use coverage

To find out how insurance companies offer unique value, we looked at their websites as well as their online quote forms and any available sample policies. We also considered whether each insurer offered replacement cost coverage for dwellings and personal property.

In general, we found that as long as an insurer offers the basic coverages you need, you can focus on finding the most affordable price. Fortunately in South Dakota, there are few unusual risks (such as floods) which would require homeowners to look closely at what is and isn't included in your standard insurance policy.

Customer service

Finally, our analysis of home insurers included a look into the quality of customer service at each company. Even a quick search online shows that for almost any provider, you'll be able to find both glowing endorsements and horror stories depending on how things turned out for the individual leaving the review.

To try and capture an overall assessment of each provider, we turned to two different metrics: J.D. Power's survey-based scoring of home insurance and a Complaint Index maintained by a trade group called the National Association of Insurance Commissioners.

Market share rankInsurerJ.D. Power rankNAIC Complaint Index
1State Farm50.19
2American Family100.65
3Farmers110.39
4Farmers Mutual-0.36
5Auto-Owners60.21
6Liberty Mutual190.4
7USAA20.15
8Farm Bureau-0.34
9North Star-0.39
10State Auto150.26
11Allstate70.6
NAIC Complaint Index is for each provider's largest subsidiary in South Dakota. J.D. Power scores are for home insurance in 2019.

J.D. Power's consumer satisfaction survey is an annual survey that measures how well insurers meet customer needs in areas such as pricing, claims management and interaction with company representatives. This offered a way for us to estimate the relative quality of insurer service in specific categories.

Meanwhile, the NAIC Complaint Index is equal to the total complaints an insurer receives each year divided by its share of written premiums (essentially, its market share). The Complaint Index allowed us to compare how frequently a provider's customers ended up escalating their disputes to the NAIC, which is a nationwide organization.

What are the biggest home insurance perils in South Dakota?

If you own a home in South Dakota, no risk is as important to consider as hail. When we looked at the relative cost of different natural disasters in the state, neither tornadoes nor fires came close to inflicting the level of damage caused by hailstorms.

In 2018, the National Insurance Crime Bureau counted more than 20,000 insurance claims in South Dakota related to hail damage.

While the majority of these claims were likely related to auto insurance, homeowners should be wary of the fact that severe hailstorms can dent siding, break windows or start leaks in a roof.

Fortunately, standard home insurance policies almost always cover hail damage. This means you don't need to ask specifically for hail-related coverage when you're purchasing insurance — something that is necessary to consider for other risks such as flooding.

South Dakota insurance rates: City-by-city breakdown

Our rate comparison of home insurers across South Dakota gave us a chance to look at prices from city to city. This table lists the average cost for a year of homeowners insurance in each of South Dakota's 20 largest cities. We also measured how much more or less each city's average premium was in relation to the statewide average of $1,326.

CityAverage annual premiumDifference vs. state average
Sioux Falls$1,252-6%
Rapid City$1,398+5%
Aberdeen$1,213-9%
Brookings$1,231-7%
Watertown$1,225-8%
Mitchell$1,314-1%
Yankton$1,371+3%
Pierre$1,235-7%
Huron$1,221-8%
Spearfish$1,451+9%
Vermillion$1,3260%
Brandon$1,280-4%
Box Elder$1,400+6%
Madison$1,266-5%
Sturgis$1,437+8%
Harrisburg$1,300-2%
Tea$1,294-2%
Belle Fourche$1,449+9%
Dell Rapids$1,281-3%
Mobridge$1,230-7%
Chris Moon

Chris is a Product Manager for ValuePenguin with years of experience in addressing critical questions about mortgages and homeowners insurance. He spends his time evaluating insurance providers and policy features to understand where consumers might find the most cost-effective coverage. Chris has contributed insights to the New York Times and many other publications.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.