Best Cheap Home Insurance in South Dakota (2026)
State Farm sells the cheapest home insurance in SD for most people, at an average of $2,133 per year for $350,000 in dwelling coverage. | ||
South Dakota home insurance costs $3,258/yr, on average. South Dakota has the eighth-highest average rate in the country. | ||
In Sioux Falls, homeowners pay an average of $3,111/yr for $350,000 in dwelling coverage. And homeowners in the southwest portion of the state tend to pay the highest rates. |
State Farm sells the cheapest home insurance in SD for most people, at an average of $2,133 per year for $350,000 in dwelling coverage. | ||
Home insurance in SD costs $3,258/yr, on average. Homeowners in Sioux Falls pay an average of $3,111/yr. |
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Who sells the best cheap home insurance in South Dakota?
What company has the cheapest home insurance in South Dakota?
State Farm has the cheapest home insurance in South Dakota for most people, with an average rate of $2,133 per year for $350,000 in dwelling coverage.
Find Cheap Home Insurance Quotes in South Dakota
- State Farm also has cheap rates for homes of different values, including lower- and higher-value houses.
- State Farm also does a good job at keeping your rates steady. Since 2021, the company has raised rates in South Dakota by about 30%. That might seem like a lot, but it's much lower than rate increases from other companies.
- In most cities, State Farm has the cheapest average rate. But in Sioux Falls, American Family is a cheaper option. AmFam charges an average rate of $2,242 for $350,000 in dwelling coverage in Sioux Falls. That's 28% cheaper than the city average of $3,111 per year.
Best cheap home insurance in South Dakota by dwelling amount
$200,000
$350,000
$500,000
$1 million
Company | Annual rate | ||
|---|---|---|---|
| State Farm | 3.5 out of 5 | $1,568 | |
| Farmers Mutual of Nebraska | 4.0 out of 5 | $1,589 |
| North Star Mutual | 3.8 out of 5 | $1,704 |
| Auto-Owners | 4.5 out of 5 | $1,950 | |
| American Family | 4.0 out of 5 | $2,077 | |
| Nationwide | 2.5 out of 5 | $2,801 | |
| Farm Bureau | 2.3 out of 5 | $3,133 | |
| USAA | 3.8 out of 5 | $2,531 | |
Stars in this table represent ratings specific to home insurance. USAA is only available to military members, veterans and some of their family members.
Key takeaways
- Home insurance rates in South Dakota have gone up by 57% over the last five years. That's the 10-highest increase in the nation.
- Chubb had the biggest rate hike over that time, increasing prices by almost 130%.
- USAA and State Farm had the lowest rate jumps in South Dakota between 2021 and 2025. Both companies raised rates by less than 30% each.
- Wind and hail commonly damage homes in South Dakota. Standard home insurance usually covers these types of damage.
Best South Dakota home insurance for most people: State Farm
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Annual cost$2,133Average rate for a $350,000 home
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Monthly cost$178Average rate for a $350,000 home
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Customer complaints Average
State Farm has cheap rates, a good bundling discount and local agents to help you pick the best insurance options.
How much is State Farm insurance in South Dakota?
Dwelling coverage limit | Annual rate | % from state avg. |
|---|---|---|
| $200,000 | $1,568 | 28% cheaper |
| $350,000 | $2,133 | 35% cheaper |
| $500,000 | $2,575 | 41% cheaper |
| $1 million | $3,618 | 52% cheaper |
State Farm is also a great choice if you want to bundle your car and home insurance. Along with its cheap home rates, State Farm has cheap car insurance in South Dakota.
Plus, you can get a discount when you bundle your policies. On average, you'll save about 27% on your home insurance and 18% on your car insurance when you buy both the policies from State Farm.
State Farm also has agents in 34 cities across South Dakota. Working with a local agent can help you feel confident that you have the proper coverage on your home.
Best home insurance customer service in South Dakota: Auto-Owners
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Annual cost$2,605Average rate for a $350,000 home
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Monthly cost$217Average rate for a $350,000 home
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Customer complaints Low
Auto-Owners has some of the best home insurance customer service in South Dakota.
Auto-Owners gets 61% fewer complaints about its home insurance in South Dakota, according to the National Association of Insurance Commissioners (NAIC). Plus, the company gets good reviews for its claims process, according to J.D. Power.
Picking a company with good customer service can help you avoid issues if your home is ever damaged. Companies with poor service might have frustrating claims processes and could take weeks or months to pay for the damage to your house.
Plus, Auto-Owners has cheap rates, good coverage options and good discounts. For example, you can add coverage for identity theft, inland flood damage and water backup coverage. And you might be able to save by being mortgage free, having an automatic backup generator and having features on your house such as wind-resistant shingles.
You can't get a quote online with Auto-Owners. You have to work directly with one of the company's independent agents to get a quote.
Auto-Owners also isn't a good option if you own a new home. The company's average rate for new homes is 27% higher than the state average.
How much does new home insurance cost in South Dakota?
Company | Annual rate | ||
|---|---|---|---|
| State Farm | 3.5 out of 5 | $1,254 | |
| Nationwide | 2.5 out of 5 | $1,279 | |
| American Family | 4.0 out of 5 | $1,495 | |
|
| Farmers Mutual of Nebraska | 4.0 out of 5 | $1,503 |
|
| North Star Mutual | 3.8 out of 5 | $2,141 |
| Auto-Owners | 4.5 out of 5 | $2,266 | |
| Farm Bureau | 2.3 out of 5 | $3,158 | |
| USAA | 3.8 out of 5 | $1,194 | |
Stars in this table represent ratings specific to home insurance.
Best home insurance in South Dakota for extra coverage: American Family
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Annual cost$2,885Average rate for a $350,000 home
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Monthly cost$240Average rate for a $350,000 home
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Customer complaints Average
American Family has a long list of extra coverage options to help you build a policy that is suited to your needs.
For example, you can add coverage for flash floods, hidden water damage, a home business or a home renovation project.
You can even add coverage to replace the undamaged siding on your house after a storm. That way, if you have to replace a patch because of damage and it doesn't match the rest of your house, you can get all new siding so everything matches.
American Family also has cheap rates and good discounts to help you save even more. You might save by bundling, having smart home features or paying in full each year. You could even get a discount if your parents have an AmFam policy.
What are the best home insurance companies in South Dakota?
Auto-Owners is the best-rated home insurance company in South Dakota.
The company gets fewer complaints than expected about its home insurance, according to the National Association of Insurance Commissioners (NAIC) and scores well for its claims service according to J.D. Power. Plus, it has cheap rates, excellent coverage options and good discounts.
Company |
Rating
|
Complaints
|
|---|---|---|
| Auto-Owners | 4.5 out of 5 | Low |
| American Family | 4.0 out of 5 | Average |
| Farmers Mutual of Nebraska | 4.0 out of 5 | Low |
| North Star Mutual | 3.8 out of 5 | Average |
| USAA | 3.8 out of 5 | Low |
| State Farm | 3.5 out of 5 | Average |
| Nationwide | 2.5 out of 5 | High |
| Farm Bureau | 2.3 out of 5 | Low |
Stars in this table represent ratings specific to home insurance.
What's the average cost of home insurance in South Dakota?
Home insurance in South Dakota costs an average of $3,258 per year for a policy with $350,000 in dwelling coverage.
That's 36% higher than the national average rate for home insurance, which is $2,395 per year. South Dakota's average rate is the eighth-highest in the country, likely because of the increased risk for severe storm damage.
Average cost of home insurance in SD
Dwelling coverage | Average rate |
|---|---|
| $200,000 | $2,169 |
| $350,000 | $3,258 |
| $500,000 | $4,358 |
| $1,000,000 | $7,519 |
Home insurance in South Dakota is more expensive than home insurance in most of the surrounding states. In Wyoming, for example, home insurance costs $2,101 per year, on average. And in North Dakota, the average rate is $2,460 per year. Even in Iowa, a state known for its severe weather, home insurance is $3,136 per year, on average.
The only exception is Nebraska, where home insurance costs $4,956 per year, on average. Nebraska has a higher risk for hail storms and tornadoes, which might contribute to the high rate.
South Dakota home insurance rates by city
Home insurance in Sioux Falls costs an average of $3,111 per year.
That's about 5% cheaper than the state average. The eastern side of South Dakota tends to have cheaper home insurance rates than the western and southern parts of the state.
Aberdeen, a city in the northeastern part of South Dakota, has the cheapest average rates in the state at $2,732 per year. Buffalo Gap, in the southwest portion of the state, near Wind Cave National Park, has the highest average rates, at $4,196 per year.
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Cost of South Dakota home insurance by city
City | Average rate | Cheapest company | Cheapest rate |
|---|---|---|---|
| Aberdeen | $2,732 | State Farm | $1,888 |
| Agar | $3,130 | State Farm | $2,125 |
| Agency Village | $2,818 | State Farm | $2,015 |
| Akaska | $3,047 | State Farm | $2,125 |
| Alcester | $3,194 | Farmers | $2,244 |
| Alexandria | $3,165 | Farmers | $2,244 |
| Allen | $3,788 | State Farm | $2,132 |
| Alpena | $3,064 | State Farm | $2,125 |
| Amherst | $2,884 | State Farm | $2,125 |
| Andover | $2,825 | State Farm | $2,041 |
| Antelope | $3,738 | State Farm | $2,249 |
| Arlington | $2,937 | American Family | $2,152 |
| Armour | $3,258 | Farmers | $2,244 |
| Artesian | $2,940 | State Farm | $2,242 |
| Ashland Heights | $3,948 | State Farm | $1,734 |
| Ashton | $2,876 | State Farm | $2,125 |
| Astoria | $2,775 | American Family | $2,112 |
| Athol | $2,876 | State Farm | $2,125 |
| Aurora | $2,916 | American Family | $2,021 |
| Avon | $3,413 | Farmers | $2,244 |
| Badger | $2,971 | State Farm | $2,125 |
| Baltic | $3,027 | American Family | $2,225 |
| Barnard | $2,800 | State Farm | $2,125 |
| Batesland | $4,077 | State Farm | $2,125 |
| Bath | $2,814 | State Farm | $2,125 |
| Belle Fourche | $3,760 | State Farm | $1,627 |
| Belvidere | $3,921 | State Farm | $2,125 |
| Bemis | $2,787 | State Farm | $2,125 |
| Beresford | $3,144 | Farmers | $2,244 |
| Big Stone City | $2,801 | State Farm | $1,991 |
| Bison | $3,515 | State Farm | $1,802 |
| Blackhawk | $3,779 | State Farm | $1,715 |
| Blunt | $3,165 | State Farm | $2,125 |
| Bonesteel | $3,398 | Farmers | $2,244 |
| Bowdle | $2,913 | State Farm | $1,905 |
| Box Elder | $3,981 | State Farm | $1,704 |
| Bradley | $2,835 | State Farm | $2,095 |
| Brandon | $2,928 | American Family | $2,192 |
| Brandt | $2,803 | American Family | $2,112 |
| Brentford | $2,875 | State Farm | $2,125 |
| Bridgewater | $3,138 | Farmers | $2,244 |
| Bristol | $2,846 | State Farm | $2,125 |
| Britton | $2,837 | State Farm | $1,931 |
| Brookings | $2,811 | American Family | $2,014 |
| Bruce | $2,917 | American Family | $2,072 |
| Bryant | $2,795 | American Family | $2,124 |
| Buffalo | $3,639 | State Farm | $1,670 |
| Buffalo Gap | $4,196 | State Farm | $2,063 |
| Bullhead | $3,436 | State Farm | $2,125 |
| Burbank | $3,194 | State Farm | $2,125 |
| Burke | $3,402 | Farmers | $2,244 |
| Butler | $2,846 | State Farm | $2,125 |
Rates are for a policy with $350,000 of dwelling coverage.
What homeowners insurance coverage do I need in South Dakota?
The biggest risks to your home in South Dakota include hail and wind damage. Summer storms in the state can be very strong. Usually, standard home insurance covers these kinds of damage automatically, although your coverage might be different if your home isn't in good shape.
Does South Dakota homeowners insurance cover hail damage?
Home insurance typically covers hail damage without adding extra coverage to your policy. However, you may have to pay a separate deductible, called a wind/hail deductible, to have the damage fixed. Wind/hail deductibles are usually higher than your regular deductible and are often a percentage of your dwelling coverage.
South Dakota reported 232 hail storms in 2025, according to the NOAA/National Weather Service Storm Prediction Center. Only six states had more hail storms than South Dakota in 2025.
Does home insurance in South Dakota cover wind damage?
Standard home insurance usually covers wind damage. Just like with hail damage, you may have a separate, higher wind/hail deductible that you have to pay. And if your home isn't in good condition, you may have less coverage.
In 2025, South Dakota reported 613 windstorms, according to the NOAA/National Weather Service Storm Prediction Center. There were only 8 states that had more wind storms than South Dakota.
Does South Dakota homeowners insurance cover flood damage?
Home insurance almost never covers damage from floods. Some companies offer inland flood add-ons, but you usually need to buy a separate flood insurance policy to get coverage. You can get a policy from the National Flood Insurance Program (NFIP) or from some private insurance companies.
Flooding can happen anywhere, but it's more common in the eastern part of South Dakota. According to the Federal Emergency Management Agency (FEMA), the NFIP has handled over 1,800 flood insurance claims that caused over $50 million in damage in South Dakota since 2000.
How to save on home insurance in South Dakota
To find the cheapest home insurance for your needs, you should decide how much coverage you need and shop around for multiple quotes. But price isn't the only factor you should consider. It's also a good idea to look at customer satisfaction scores before you pick a company.
Most basic homeowners insurance policies come with the same types of coverage, such as protection for the structure of your home and your belongings. However, some homeowners may want or need to add more protection to their policy. For example, if you have a basement, you may want to look into water backup coverage. If you have expensive jewelry, fine art or collectibles, look into what's called a "scheduled articles" floater. | |
Every company calculates their rates differently, which means prices vary even for the same coverage. Shop around and get quotes from at least three different companies to find the cheapest option for the coverage you need. | |
Customer service matters just as much as price. If you choose a company with poor service, you might have problems getting your house fixed after it's damaged. Start your research by using ValuePenguin's editor ratings. You can also look at complaint info from the National Association of Insurance Commissioners (NAIC) and J.D. Power's annual surveys. |
Are home insurance rates in South Dakota going up?
Home insurance prices are up 57.2% in South Dakota over the last five years.
That's the 10-highest increase in the country. The biggest rate hike was in 2024, when prices surged by 18.48%.
South Dakota home insurance rate changes, 2021 to 2025
Year | Avg. rate increase |
|---|---|
| 2021 | 4.74% |
| 2022 | 6.37% |
| 2023 | 11.75% |
| 2024 | 18.48% |
| 2025 | 6.46% |
Home insurance rate change data was compiled using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
Chubb has raised prices the most in the last five years. A Chubb policy costs nearly 130% more now than it did in 2021.
USAA and State Farm raised rates the least between 2021 and 2025. USAA's prices went up by 26.4% and State Farm's went up by 29.8%.
Frequently asked questions
What is the average cost of homeowners insurance in South Dakota?
The average cost of homeowners insurance in South Dakota is $3,258 per year, or about $272 per month. That's the eighth-most expensive average rate in the nation and is 36% higher than the national average.
How much is home insurance in Sioux Falls, SD?
Homeowners insurance in Sioux Falls costs an average of $3,111 per year. That's about 5% per year less than the South Dakota average.
How much is homeowners insurance in Rapid City, SD?
Rapid City home insurance costs an average of $3,972 per year, which is $714 more per year than the state average.
Who has the cheapest homeowners insurance in South Dakota?
State Farm has the cheapest home insurance in South Dakota for most people. However, rates depend on the coverage you need, where you live, your insurance history, your age and the specific details of your house. It's a good idea to get quotes from several companies to compare prices.
Methodology
To find the best homeowners insurance in South Dakota, ValuePenguin collected quotes from eight of the top companies in 374 residential ZIP codes in the state. All quotes are for a 45-year-old married man with no home insurance claims. The home used in the quotes is 44 years old and has 1,915 square feet, which is representative of the average home in South Dakota.
The quotes are for policies with the following coverage limits:
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $1,000
- Deductible: $1,000
All rates come from Quadrant Information Services, which in turn gets its rates from publicly sourced insurance rate filings. The prices shown in this article are for comparison only. Your home insurance quotes will be different.
ValuePenguin's star ratings are created using an analysis of each company's rates, coverage options, discounts, unique features and customer service. Service info includes complaint data from the National Association of Insurance Commissioners (NAIC) and scores from J.D. Power's home insurance customer satisfaction and claims satisfaction surveys.
Sources:
About the Author
Senior Writer
Cate Deventer is a Senior Writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
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.
