Best Cheap Home Insurance in South Dakota

Best cheap home insurance in South Dakota

To help South Dakota homeowners find the best deal on home insurance, our editors collected and analyzed thousands of quotes and customer satisfaction ratings from the largest insurance companies in the state.

Cheapest home insurance in South Dakota

North Star offers the cheapest average rate for home insurance in South Dakota, at $1,170 per year, or $98 per month. That's $571 cheaper than the annual state average.

Home insurance in South Dakota can be a little more expensive than in most other states because of its severe storms. The national average rate for home insurance is $1,516, which is $225 less per year than the annual average in South Dakota.

Cheap annual home insurance in South Dakota

Best South Dakota home insurance overall: Farmers

Farmers has the best home insurance for most South Dakota homeowners because of its cheap rates and wide array of discounts. The company offers standard home insurance policies at an average rate of $1,283 per year, or $107 per month. This is 26% cheaper than the state average.

Farmers offers valuable savings with unique discounts like the green certification discount, which lets you save if your home is green-certified by Energy Star, EPA or LEED. Farmers also offers the affinity discount, which gives you savings if you belong to an occupational group or association that has partnered with Farmers.

The company scored a 0.57 in the customer complaint index from the National Association of Insurance Commissioners (NAIC), meaning it receives 43% fewer complaints than a typical insurer of its size. This indicates customers are more satisfied with their service.

The most prominent drawback to Farmers is its limited online features. You can file a claim and make a payment online if you have a policy, but you can't get an instant quote, view coverage add-ons or buy a policy online. You'll have to call a local agent for that sort of support and information.

Cheapest home insurance in South Dakota: North Star

North Star is the best local company for home insurance in South Dakota because of its cheap rates and broad range of coverage add-ons. The company offers standard home insurance at an average rate of $1,170 per year, or $98 per month. This is 33% cheaper than the state annual average.

North Star scored a 0.59 in the customer complaint index from the NAIC, meaning the company receives 41% fewer complaints than other similar insurance companies.

The company offers uncommon coverage add-ons such as watercraft and boat liability, recreational vehicle liability and theft coverage if your property is under construction. North Star also offers the Inland Marine Endorsement, which covers special property items such as:

The most notable downside to North Star is its lack of online features. You can't get a quote, file a claim or purchase a policy online, so you'll have to call a local agent for support. If you enjoy managing your policy online, it may be best to go with a different company.

Best insurance company for discounts: Farm Bureau

Farm Bureau is the best insurance company for discounts on your home insurance policy. The company also offers standard home insurance policies at an affordable rate of $1,353 per year. This is $388 per year cheaper than the state average.

The company scored a 0.61 in the customer complaint index from the NAIC, meaning it receives 39% fewer complaints than other typical insurers relative to its size.

Discounts on your home insurance policy include savings for bundling your home and auto policies, installing a burglar or fire alarm and having an impact-resistant roof. You have to become a Farm Bureau member to enjoy these savings, but as a member, you can also expect discounts on noninsurance items such as:

The most notable downside for Farm Bureau is that you must enroll in a paid membership to purchase a home insurance policy, though membership is open to anyone. As a member, you must pay an annual membership fee, which can be anywhere between $20 and $120 per year depending on where you live. You'll have to call a local Farm Bureau agent to sign up.

South Dakota insurance rates by city

Ipswich is the cheapest city for home insurance in South Dakota, with an average rate of $1,518 per year. This small town lies just south of the North Dakota border.

Buffalo Gap is the most expensive city for home insurance in South Dakota, with an average rate of $2,119 per year. Buffalo Gap is a town of fewer than 150 people that lies just north of the Nebraska National Forest.

Best home insurance companies in South Dakota

Farm Bureau and USAA are the best-rated home insurance companies in South Dakota. Farm Bureau combines great customer satisfaction ratings with a long list of discounts that give South Dakota homeowners the opportunity to save money on their home insurance policy and get discounts for travel, car repair and more.

USAA boasts outstanding customer service and military-specific benefits that are hard to find anywhere else, but policies with USAA are only available to military members and their families.

Most common home insurance risks in South Dakota

Due to South Dakota's geographical location and climate, much of the state is prone to large hail storms in the spring and summer. In 2021, South Dakota saw 327 hail storms that affected millions of homes and properties across the state, according to the National Oceanic and Atmospheric Administration (NOAA) storm database. The state even holds the record for the largest recorded hailstone in the U.S., which weighed almost 2 pounds. Hail this large and frequent could dent siding on your home, break windows or start leaks in your roof.

Fortunately, almost all home insurance companies cover hail damage under their standard homeowners policy, so you don't need to request a specific hail insurance policy like you would for flooding.

Frequently asked questions

Methodology

For our study, we gathered quotes from every ZIP code across South Dakota. We used a sample property that was built in 1977 and insured at $167,100 of dwelling coverage, based on the U.S. Census Bureau's data on the median South Dakota home.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

We ranked each company's customer service scores by comparing the National Association of Insurance Commissioners (NAIC) complaint index, J.D. Power's home insurance customer satisfaction rankings and our ValuePenguin editor's ratings.