North Star Mutual offers the cheapest homeowners insurance in South Dakota, charging rates that average $128 a month.
Although a low price is important, your home insurer also needs to provide coverage that matches your needs and responsive customer service. Our guide to the best homeowners insurance companies in South Dakota helps you find the right coverage at the cheapest price.
In this article
How much is homeowners insurance in South Dakota?
The average cost of homeowners insurance in South Dakota is $2,829 a year, or $236 a month. This amount is 49% higher than the national average.
The actual price you pay for homeowners insurance depends on several factors, including:
- The age, location and construction features of your home
- Your policy’s coverage limits and deductible
- Your insurance history and credit
- Any discounts you may be eligible to receive
Since each company weighs these factors differently and offers different discounts, you may qualify for a significantly lower rate with one company than you do with others. This is why it’s best to compare home insurance quotes from multiple companies when you shop.
Find the cheapest home insurance in South Dakota
How your deductible impacts your home insurance rate
Choosing a high home insurance deductible is one way to reduce your home insurance rate.
Since your deductible is the amount of money that comes out of your pocket to cover property damage and theft claims, you don’t want it to be too high.
However, in South Dakota, just increasing your deductible from $1,000 to $2,000 can save you an average of 9% a year on premiums.
| Deductible | Annual rate |
|---|---|
| $500 | $3,001 |
| $1,000 | $2,829 |
| $1,500 | $2,685 |
| $2,000 | $2,563 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
How coverage limits impact your home insurance rate
The amount of dwelling coverage you need also impacts your home insurance rate.
For example, the average cost of a home insurance policy with a $425,000 dwelling limit costs 42% more than one with a $275,000 limit. The difference works out to $100 a month.
| Dwelling limit | Annual rate |
|---|---|
| $200,000 | $2,299 |
| $275,000 | $2,829 |
| $350,000 | $3,407 |
| $425,000 | $4,025 |
| $500,000 | $4,627 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Your dwelling limit is the maximum amount your insurance company pays to repair covered damage to your home.
For mortgages, lenders typically require you to insure your home at its replacement value. This is the estimated cost of rebuilding your house from the ground up.
If you don’t have a mortgage, it’s still best to insure your home at its replacement value. Doing so provides you with enough in insurance funds to cover the full cost of rebuilding your home in the event of a major or total loss.
Changing the limits for the other coverages on your policy, which include personal property and personal liability, usually only have minor impacts on your rate.
Cheapest home insurance company in South Dakota
North Star Mutual offers the cheapest home insurance in South Dakota. Its rates average $1,538 a year, or $128 a month, which is 46% less than the state average.
Farmers Mutual of Nebraska has the next-lowest rate, $2,058 a year, followed by Farm Bureau Financial Services, $2,454 a year.
| Company | Annual rate | Monthly rate |
|---|---|---|
| North Star Mutual | $1,538 | $128 |
| Farmers Mutual of Nebraska | $2,058 | $171 |
| Farm Bureau | $2,454 | $204 |
| USAA* | $2,633 | $219 |
| State Auto | $2,773 | $231 |
| State average | $2,829 | $236 |
| Farmers | $2,944 | $245 |
| Allstate | $2,981 | $248 |
| State Farm | $3,010 | $251 |
| Nationwide | $3,540 | $295 |
| American Family | $4,360 | $363 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Only available to current/former military and their families. | ||
Best homeowners insurance companies in South Dakota
Based on our analysis of price, customer service ratings, policy offerings and financial strength, the following homeowners insurance companies stand out as South Dakota’s best:
- Best policy offerings: Farmers Mutual of Nebraska
- Best for saving money: North Star
- Best for bundling: State Farm
Best policy features: Farmers Mutual of Nebraska
$2,058 a year
AM Best Financial Strength RatingA
Farmers Mutual of Nebraska offers competitive rates, and its base policies include coverages that most other companies make you pay extra for or don’t offer.
The company’s rates in South Dakota are 27% lower than the state average.
Base policies include coverage for hidden water damage, which many other companies don’t offer.
Base policies also include coverage for sewer and drain backups, which most other companies only cover if you buy an endorsement for it.
Online quoting is limited to quote requests only.
Best for saving money: North Star Mutual
$1,538 a year
AM Best Financial Strength RatingA+
North Star Mutual offers the cheapest homeowners insurance rates in South Dakota. Its policies include third-party coverage for cyber crimes and identity fraud.
North Star Mutual charges an average of 25% less for home insurance than the next-cheapest company, Farmers Mutual of Nebraska.
Homeowners insurance policies include identity fraud and family cyber coverage from CyberScout.
Discounts available for mature homeowners, homes with protective devices and homes in protected subdivisions.
Standard policies only cover the basics, requiring you to buy endorsements to cover sewer and drain backups and other common perils.
Online quoting is limited to quote requests only.
Best for bundling: State Farm
$3,010 a year
J.D. Power overall satisfaction score829 our of 1,000
AM Best Financial Strength RatingA++
The company’s generous multipolicy discounts and low car insurance rates make the combined costs of home and auto insurance more affordable when you bundle.
Access to a wealth of resources from the largest home insurer in the state and nation.
Beats the segment average for overall customer satisfaction from J.D. Power.
Cheapest car insurance rates in South Dakota offset high home insurance costs for bundlers.
State Farm’s standalone rate for homeowners insurance is 6% higher than the state average.
Best customer service ratings for South Dakota home insurers
USAA has the highest satisfaction score from J.D. Power. Farm Bureau Financial Services has the best complaint rating from the National Association of Insurance Commissioners (NAIC).
J.D. Power’s overall customer satisfaction index rankings are based on customer reviews rating insurance companies on factors like price, policy offerings and claims.
USAA’s score of 881, on a 1,000-point scale, is tops in the nation. However, USAA is only available to current and former members of the military and their families.
State Farm’s rating of 829 is second-best among the South Dakota companies in our analysis.
Regional companies such as Farm Bureau Financial Services, Farmers Mutual of Nebraska, State Auto and North Star are not included in J.D. Power’s rankings.
| Company | Customer satisfaction score |
|---|---|
| USAA* | 881 |
| State Farm | 829 |
| Segment average | 819 |
| American Family | 813 |
| Nationwide | 812 |
| Allstate | 809 |
| Farmers | 800 |
| Farm Bureau Financial Services | Not included |
| Farmers Mutual of Nebraska | Not included |
| State Auto | Not included |
| North Star Mutual | Not included |
| Source: J.D. Power 2023 U.S. Home Insurance Study. *Only available to current/former members of the military and their families. | |
The NAIC Complaint Index compares insurance companies by confirmed complaints, which are those that lead to a finding of fault.
A company with a 2.0 Complaint Index rating has twice as many confirmed complaints as expected for its size. One with a 0.5 rating has half as many as expected.
Farm Bureau Financial Services’ 0.02 Complaint Index rating is lowest, or best, among homeowners insurance providers in South Dakota. The next-best ratings belong to Farmers Mutual of Nebraska, 0.1, and American Family, 0.12.
| Company | Complaint Index rating |
|---|---|
| Farm Bureau Financial Services | 0.02 |
| Farmers Mutual of Nebraska | 0.1 |
| American Family | 0.12 |
| North Star Mutual | 0.3 |
| USAA* | 0.31 |
| State Farm | 0.35 |
| Farmers | 0.38 |
| State Auto | 0.57 |
| Allstate | 0.74 |
| Nationwide | 0.75 |
| Source: National Association of Insurance Commissioners (2022). *Only available to current/former military and their families. | |
South Dakota home insurance rates by city
Among South Dakota’s largest cities, home insurance rates range from $2,510 a year in Aberdeen to $3,040 in Yankton.
Homeowners in Sioux Falls pay an average of $2,858 a year for insurance, while those in Rapid City pay an average of $2,960 a year.
| City | Annual rate |
|---|---|
| Aberdeen | 2,510 |
| Brookings | 2,618 |
| Huron | 2,538 |
| Mitchell | 2,883 |
| Pierre | 2,569 |
| Rapid City | 2,960 |
| Sioux Falls | 2,858 |
| Spearfish | 2,974 |
| Watertown | 2,522 |
| Yankton | 3,040 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Get free home insurance quotes from top companies near you
Cheapest homeowners insurance in Sioux Falls
North Star Mutual has the cheapest average homeowners insurance rate in Sioux Falls, $1,710 a year. This is 40% less than the citywide average of $2,858 a year.
Farmers Mutual of Nebraska and USAA have the next-lowest rates, charging $1,829 a year and $2,157 a year, respectively, in the state’s largest city.
| Company | Annual rate |
|---|---|
| North Star Mutual | $1,710 |
| Farmers Mutual of Nebraska | $1,829 |
| USAA* | $2,157 |
| Farm Bureau Financial Services | $2,588 |
| Allstate | $2,771 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Only available to current/former military and their families. | |
Cheapest homeowners insurance in Rapid City
North Star Mutual offers the cheapest homeowners insurance in Rapid City, $1,999 a year, which is 32% less than the citywide average.
The next-cheapest rates are available from Allstate, $2,435 a year, and State Farm, $2,669 a year.
The average price of homeowners insurance in Rapid City is $2,960 a year, which is 5% higher than the state average.
| Company | Annual rate |
|---|---|
| North Star Mutual | $1,999 |
| Allstate | $2,435 |
| State Farm | $2,669 |
| Farm Bureau Financial Services | $2,694 |
| State Auto | $2,694 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest homeowners insurance in Pierre
North Star also offers the cheapest homeowners insurance in Pierre, $1,342 a year. The next-best rates are available from Farmers Mutual of Nebraska, $1,756, and State Auto, $2,094.
The average price of homeowners insurance in the state capital is $2,569 a year. This is 9% less than the state average.
| Company | Annual rate |
|---|---|
| North Star Mutual | $1,342 |
| Farmers Mutual of Nebraska | $1,756 |
| State Auto | $2,094 |
| Farm Bureau Financial Services | $2,277 |
| Nationwide | $2,738 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Methodology
The rates shown in this article are based on an analysis of insurance quotes obtained from Quadrant Information Services for a typical home in every ZIP code in South Dakota. Unless otherwise noted, prices are for standard HO-3 policies with the following coverages, limits and deductible:
- Dwelling: $275,000
- Other structures: $27,500
- Personal property: $137,500
- Loss of use: $55,000
- Liability: $100,000
- Medical payments: $5,000
- Deductible: $1,000
Auto insurance data cited in this article is based on separate QuoteWizard research analyzing full-coverage car insurance rates for a typical adult driver in South Dakota.
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