South Dakota's average home insurance premium costs $301 per month or $3,617 annually. This is $12 more monthly than the national average, making it 4% higher than typical rates nationwide. South Dakota ranks as the 13th most expensive state for home insurance coverage.
Average Home Insurance Cost in South Dakota
Updated: January 15, 2026
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Key Takeaways: South Dakota Home Insurance Rates
South Dakota homeowners pay an average of $301 monthly or $3,617 annually for coverage, ranking as the thirteenth most expensive state.
South Dakota home insurance ranges from $2,101 annually for basic $100K dwelling coverage to $10,177 for $1 million in protection.
Get instant cost estimates with MoneyGeek's free home insurance calculator below without sharing any personal information.
How Much Is Home Insurance in South Dakota?
| South Dakota | $3,617 | $3,467 | 4% |
*These rates are for a frame construction home built in 2000 with $250,000 dwelling, $125,000 personal property, $200,000 liability coverage and a $1,000 deductible.
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$220
High
$144
Average
$104
Low
Rates updated:
Feb 05, 2026
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What Affects Average South Dakota Home Insurance Costs?
Home insurance costs in South Dakota vary based on multiple factors. Your location, coverage limits, home construction materials, insurance company, credit score and claims history all impact your premium. Let's examine how each of these elements influences what you pay for coverage.
Average South Dakota Home Insurance Cost by City
Home insurance costs differ across South Dakota cities based on local factors.
| Gary | $261 | $3,127 |
| Glencross | $314 | $3,764 |
| Rapid City | $391 | $4,695 |
| Sioux Falls | $271 | $3,249 |
Average South Dakota Homeowners Insurance Pricing by Coverage Level
South Dakota homeowners insurance premiums vary based on coverage levels, ranging from $2,101 to $10,177 annually.
| $100K Dwelling / $50K Personal Property / $100K Liability | $175 | $2,101 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $301 | $3,617 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $503 | $6,034 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $685 | $8,214 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $848 | $10,177 |
Average Cost of South Dakota Home Insurance by Company
Your choice of insurer makes a huge difference in South Dakota home insurance costs. American Family charges an average of $5,602 per year, while Farmers costs just $2,511 annually. That means the most expensive option costs over two times more than the cheapest provider.
| Farmers | $209 | $2,511 |
| Allstate | $229 | $2,743 |
| State Farm | $242 | $2,900 |
| Auto-Owners Insurance | $273 | $3,280 |
| USAA | $311 | $3,734 |
| Nationwide | $316 | $3,795 |
| Farm Bureau | $364 | $4,372 |
| American Family | $467 | $5,602 |
South Dakota Homeowners Insurance Costs by House Age
Home age affects insurance costs in South Dakota. Homes built in 2020 average $2,197 annually, while homes from 1980 cost around $3,617 per year.
| Newer | $183 | $2,197 |
| Older | $286 | $3,431 |
| Middle Age | $301 | $3,617 |
Average South Dakota Home Insurance Cost by Credit Score
Your credit score directly impacts your South Dakota home insurance costs. Insurers view higher credit scores as lower risk, resulting in better rates. Annual premiums range from $2,591 to $5,622 based on your credit profile.
| Excellent | $216 | $2,591 |
| Good | $301 | $3,617 |
| Below Fair | $357 | $4,278 |
| Poor | $469 | $5,622 |
WHY IS HOME INSURANCE SO EXPENSIVE IN SOUTH DAKOTA?
South Dakota's severe weather brings damage, increasing claim rates and premiums. The cost of construction has also seen increases in recent years, with the average cost per square foot at $120 to $150 in South Dakota in 2024.
Tips to Save on Your South Dakota Home Insurance
South Dakota home insurance costs continue rising. It's important to find the cheapest home insurance in South Dakota.
Calculate Coverage Needs
Determine your home's replacement cost based on current construction prices, not market value. Create an inventory of belongings to establish personal property coverage requirements. Consider additional protection like scheduled coverage for valuable items or water backup coverage based on your home's specific risks.
Research Rates and Discounts
Use MoneyGeek's South Dakota home insurance calculator to estimate fair pricing for your location and home characteristics. Ask about discounts for security systems, newer homes, claim-free records and protective devices to reduce your premium costs.
Compare Three or More Insurers
Get quotes from at least three insurance companies to ensure competitive pricing. Evaluate customer satisfaction ratings, claims processing speed and financial strength ratings beyond just cost. A lower premium may cost more long-term if the insurer delays claim payments.
Bundle Your Policies
Combine home and auto insurance with the same provider to reduce rates on both policies. South Dakota bundling discounts range from 10% to 25% off your total premiums. Many major insurers offer competitive bundled savings for homeowners statewide.
Calculate South Dakota Homeowners Insurance Costs: FAQ
South Dakota homeowners insurance costs depend on multiple factors specific to your property and location. The FAQs below help you understand what affects your rates and estimate potential expenses for home insurance coverage.
How much will my premium increase after filing a claim in South Dakota?
Filing a claim in South Dakota increases your premium by $576 for one claim and $1,060 for two claims compared to claim-free customers. Homeowners without claims pay $3,617 annually on average. One claim raises your rate to $4,193 per year.Â
Two claims bump your annual cost to $4,677. Claims remain on your record for five years, meaning you'll have increased rates throughout that entire period.
Does home insurance in South Dakota cover tornado damage?
Yes, standard home insurance policies in South Dakota cover tornado damage. Home insurance covers wind damage from tornadoes, including damaged roofs, broken windows, and destroyed structures.Â
You will pay your deductible first before your insurance company pays for repairs or replacements.
Why does home insurance cost more for older homes in South Dakota?
Home insurance premiums are higher for older properties in South Dakota. Older homes cost 56% more to insure than newer ones. A newer home built around 2020 averages $2,197 annually in premiums. In contrast, an older home from the 1980s costs approximately $3,431 per year. This creates a $1,234 annual difference between the two. Middle-aged homes constructed around 2000 fall between these extremes at $3,617 yearly.
Insurance companies justify higher rates for older homes due to increased risk factors. Aging electrical systems, plumbing and roofing components are more likely to fail and trigger expensive claims.
How can I lower my home insurance costs in South Dakota?
Maintaining a claim-free history delivers savings of $576 to $1,060 annually compared to filing one or two claims over five years.
Raising your deductible from $500 to $1,000 reduces your annual premium by $263. While this means paying more upfront during a claim, the yearly savings compound over time. Many insurers offer discounts for bundling multiple policies, installing security systems, or owning newer homes.
How We Determined South Dakota Home Insurance Rates
Our analysis centers on a standard homeowner profile: $250,000 dwelling coverage, $125,000 personal property coverage, $200,000 liability coverage, and a $1,000 deductible. The model home was built in 2000 with no claims filed in the past five years. We isolated each factor's impact by changing one element while keeping everything else the same. For example, when testing how home age affects rates, we compared identical policies for homes built in 1980, 2000 and 2020. This method shows the true cost difference each factor creates.
Your actual premiums will vary depending on your home's construction, roof condition, location, coverage amounts, claims history, credit score and chosen insurance company. These rate differences show how much each factor influences your final cost.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.