Updated: January 26, 2026
Advertising & Editorial Disclosure
Our 2026 research found the top three home insurance companies in South Dakota are State Farm, USAA and Auto-Owners.
Farmers offers the highest-quality homeowners insurance in South Dakota with the lowest average annual premium at $2,511.
Tornado risks drive up home insurance costs statewide, as frequent tornadoes increase premiums. Shop around for quality, affordable protection.
State Farm is the best home insurance company for most South Dakota homeowners with affordable rates and strong customer experience. USAA earned the highest MoneyGeek score from our team but ranks No. 2 because coverage is available only to military members, veterans and their families. The top five companies earned high ratings in our affordability, customer experience and coverage categories:
| State Farm | 4.51 | 3 | 4 | 2 |
| USAA | 4.75 | 5 | 1 | 1 |
| Auto-Owners Insurance | 4.5 | 4 | 2 | 4 |
| Farmers | 4.45 | 1 | 5 | 6 |
| Allstate | 4.3 | 2 | 7 | 5 |
*Our ratings consider different combinations of coverage levels, home features and homeowner details to identify the best overall options. Rankings may differ based on your profile. The tables below follow the same methodology.
Average Annual Premium
Average Monthly Premium
J.D. Power Customer Satisfaction Score
Average Annual Premium
Average Monthly Premium
J.D. Power Customer Satisfaction Score
Average Annual Premium
Average Monthly Premium
J.D. Power Customer Satisfaction Score
Average Annual Premium
Average Monthly Premium
J.D. Power Customer Satisfaction Score
Average Annual Premium
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J.D. Power Customer Satisfaction Score
South Dakota's rural agricultural communities face different insurance challenges than urban centers like Sioux Falls and Rapid City. Our research identified the top-rated insurer for major cities across the state based on affordability, customer satisfaction and coverage options.
| Gary | USAA | $2,829 |
| Glencross | USAA | $4,219 |
| Rapid City | USAA | $5,896 |
| Sioux Falls | USAA | $2,864 |
South Dakota home insurance costs average $3,617 annually, but rates vary based on your home and personal profile. Credit score is the biggest cost factor: poor credit drives premiums up to $5,622 yearly, while homeowners with excellent credit pay around $2,591. Coverage levels create variations, too, with $500,000 in dwelling coverage running $6,034 versus $2,101 for $100,000 protection.
Overall average | $3,617 | $301 |
$100,000 dwelling coverage | $2,101 | $175 |
$500,000 dwelling coverage | $6,034 | $503 |
Older homes (1980) | $3,789 | $316 |
Newer homes (2020) | $2,829 | $236 |
Homeowner age 20–40 | $4,022 | $335 |
Seniors 61+ | $4,053 | $338 |
Recent Claim | $4,723 | $394 |
Excellent Credit | $2,591 | $216 |
Poor Credit | $5,622 | $469 |
Compare home insurance rates in South Dakota and prioritize coverage that protects against the state's severe hailstorms and flooding risks. Smart shopping means finding affordable policies that actually address local hazards threatening your property.
Assess your home's replacement cost and South Dakota's natural disaster risks. Wildfire exposure threatens foothills communities, hail damage strikes along the Front Range, and flash floods occur near mountain drainage areas. Your coverage should reflect your home's value, personal property and liability needs while accounting for South Dakota's high rebuilding costs.
South Dakota home insurance averages $3,617 annually. Bundling home and auto policies saves 15% to 25% on premiums. Get discounts for monitored security systems, fire-resistant roofing and hail-resistant shingles. Impact-resistant windows and roof updates qualify you for more savings while reducing hail damage.
Review customer satisfaction scores and claims handling reputation before choosing an insurer. Look for South Dakota-specific coverage like wildfire coverage, water back-up from snowmelt and service line coverage for freeze-thaw damage. Extended replacement cost coverage pays full rebuilding costs even when they exceed policy limits due to material shortages or labor increases.
Inland flood coverage covers flash flood damage without a separate National Flood Insurance Program policy. Equipment breakdown coverage covers HVAC system failures in South Dakota's temperature extremes. Mountain vacation homes and short-term rental properties need specialized policies for their unique risks.
Compare quotes from at least three insurers; rates vary between providers. Shop through direct insurers, independent agents and online platforms. Request quotes with identical coverage limits and deductibles for accurate comparisons. Ask about discounts for fire-resistant materials and protective devices common in South Dakota homes.
Reassess your dwelling coverage annually to match rising construction costs and your home's current replacement value. South Dakota's severe hail storms and housing market fluctuations mean your coverage needs shift over time. Review your policy each year and shop for new quotes, especially after home improvements.
State Farm, USAA and Auto-Owners lead South Dakota's home insurance market with strong financial ratings and comprehensive coverage options. Get quotes from these insurers and prioritize protection against hail damage and wildfires to ensure adequate rebuilding costs and liability coverage.
Common questions South Dakota homeowners ask when shopping for home insurance:
No, standard home insurance policies exclude flood damage coverage. Homeowners need separate flood insurance through the National Flood Insurance Program (NFIP) or private insurers to protect against water damage from natural flooding, storm surge, or overflowing waterways. This additional coverage must be purchased before flood events occur, as waiting periods apply.
Your dwelling coverage needs to match the full cost to rebuild your home, not its market value. Take inventory of your belongings to determine adequate personal property coverage amounts. Get a professional appraisal or use construction cost calculators to establish accurate rebuild estimates for your specific property.
Tornado activity drives up home insurance premiums in South Dakota, as insurers price policies higher to account for potential severe property damage from these powerful storms. Eastern regions like Sioux Falls and Brookings face particular risk during peak tornado season. Installing impact-resistant roofing materials and reinforced garage doors can qualify homeowners for discounts while providing better protection against wind damage.
Replacement cost coverage pays to replace damaged items with new ones at current market prices, while actual cash value coverage only compensates you for what your belongings were worth after depreciation. For instance, if your five-year-old television gets destroyed in a fire, replacement cost would buy you a brand-new TV, but actual cash value would only pay what your old television was worth at the time of loss.
Our analysis identifies which insurers balance affordability with coverage for South Dakota-specific risks. We evaluated home insurance providers across three weighted factors that determine value for South Dakota homeowners.
Affordability (55%): We analyzed rates for different home types, credit tiers and risk levels. Providers earned higher scores for competitive pricing and extensive discounts. Cost carries the heaviest weight because premiums determine whether you can maintain coverage long-term. South Dakota's high rebuilding costs and frequent hail claims make affordable coverage important.
Customer satisfaction (30%): We reviewed ratings from Trustpilot, app stores and J.D. Power surveys covering the buying process, policy management and claims handling. These ratings show which companies deliver consistent service throughout your relationship, not just competitive quotes. Claims experience matters most when wildfire or hail damage strikes and you need prompt payment and clear communication.
Coverage options (15%): We assessed add-on availability, unique features and state access. More flexibility lets you tailor policies to South Dakota needs like wildfire coverage, water backup from snowmelt and equipment breakdown coverage for HVAC systems in temperature extremes. Standard policies don't always address South Dakota's specific hazards without customization.
Our Sample Profile
Costs reflect a homeowner aged 41 to 60 with good credit and no prior claims insuring a 2,500-square-foot home built in 2000. Coverage includes $250,000 dwelling coverage, $125,000 personal property coverage, $200,000 personal liability coverage and a $1,000 deductible. This profile represents typical South Dakota homeowners balancing comprehensive coverage with manageable premiums.
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.
