Farmers is the cheapest home insurance company in South Dakota at $2,511 per year. Allstate ranks second at $2,743 annually and covers all South Dakota residents. The five most affordable insurers save homeowners between $117 and $1,106 compared to the state average.
Cheapest Home Insurance Companies in South Dakota (2026 Rates)
Updated: February 1, 2026
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Key Takeaways: Find Cheap South Dakota Coverage
Farmers offers South Dakota's cheapest homeowners insurance rates at $2,511 annually,
Farmers, Allstate, State Farm, Auto-Owners and USAA offer rates 3% to 31% below the $3,617 state average.
Bundle your home and auto insurance policies to save 10% to 25% on premiums — one of the biggest discounts South Dakota insurers offer.
Who Are the Cheapest Home Insurance Companies in South Dakota?
| Farmers | $209 | $2,511 | -31% |
| Allstate | $229 | $2,743 | -24% |
| State Farm | $242 | $2,900 | -20% |
| Auto-Owners Insurance | $273 | $3,280 | -9% |
| USAA | $311 | $3,734 | 3% |
*The rates above are for homeowners ages 41 to 60 with good credit and no claims history. Quotes are for a home built in 2000 insured for $250,000 in dwelling coverage, $125,000 in personal property coverage and $200,000 in liability coverage with a $1,000 deductible.
Cheapest South Dakota Home Insurance Rates by Category
According to our cost research, Farmers offers the most affordable coverage across six categories: older homes, young homeowners, seniors, high-risk fire zones, smaller homes and larger homes. Nationwide provides the best rate for newer homes at $1,490 annually.
| Older Homes | Farmers | $2,182 |
| Newer Homes | Nationwide | $1,490 |
| Young Homeowners | Farmers | $2,321 |
| Senior Homeowners | Farmers | $2,451 |
| High-Risk Fire Homes | Farmers | $2,813 |
| Smaller Homes | Farmers | $2,184 |
| Larger Homes | Farmers | $2,611 |
COMPARE COVERAGE OPTIONS AND SERVICE QUALITY
The cheapest company may not be your best fit. Customer service quality, coverage options and claims handling matter beyond price. Our guide to the best home insurance companies in South Dakota compares insurers across these factors.
Cheapest Homeowners Insurance by South Dakota City
Risk factors differ by location, so insurers price policies differently across South Dakota. Farmers offers the lowest rates in Glencross and Rapid City, while Allstate provides better pricing in Gary.
| Gary | Allstate | $2,363 |
| Glencross | Farmers | $2,260 |
| Rapid City | Farmers | $2,394 |
| Sioux Falls | Farmers | $2,555 |
Most Affordable South Dakota Home Insurance by Coverage Level
Your coverage needs determine which insurer offers the best rate. Allstate provides the cheapest premiums for basic coverage at $1,501 annually, while State Farm delivers the most affordable rates for mid-range and high-value homes. Farmers beats both at the premium $1 million dwelling coverage level.
Data filtered by:
$100K Dwelling / $50K Personal Property / $100K Liability
| Allstate | $125 | $1,501 |
| Farmers | $130 | $1,565 |
| State Farm | $131 | $1,574 |
| Nationwide | $153 | $1,833 |
| Auto-Owners Insurance | $178 | $2,135 |
How to Save on South Dakota Home Insurance
South Dakota homeowners can cut their insurance costs by hundreds of dollars annually through discounts, higher deductibles and smart home improvements.
Bundle Home and Auto Policies
Combine your home and auto insurance with the same company to save 10% to 25% on both policies. State Farm, Allstate and Progressive offer bundle discounts to South Dakota homeowners.
Increase Your Deductible
Raise your deductible to lower your annual premium, though you'll pay more out of pocket when filing a claim. Choose a deductible amount you can afford if you need to file a claim.
Improve Your Credit Score
South Dakota allows insurers to use credit-based insurance scores when setting rates. Improving your credit score can save you hundreds of dollars annually on your home insurance premium.
Maintain a Claims-Free History
Filing multiple claims within three years triggers rate increases. Use homeowners insurance for major losses rather than small repairs you can afford.
Ask About Available Discounts
Contact your insurer to find all discounts you qualify for beyond bundling. Review your policy annually to add new discounts as your situation changes.
Affordable South Dakota Home Insurance: FAQ
Frequently asked questions about the cheapest home insurance in South Dakota:
Does home insurance in South Dakota cover tornado damage?
Standard homeowners insurance in South Dakota covers tornado damage to your home and belongings. Flooding caused by tornadoes isn't covered, so you'd need separate flood insurance for that protection.
Is flood insurance required in South Dakota?
Flood insurance isn't required across South Dakota, but your mortgage lender will require it if you're in a FEMA high-risk flood zone. Even if it's not required, it's worth considering since regular homeowners insurance doesn't cover flood damage.
What's the difference between replacement cost and actual cash value coverage?
Replacement cost coverage pays the full amount to rebuild or replace your home at today's prices, while actual cash value coverage subtracts depreciation from your payout. Most South Dakota lenders require replacement cost coverage since it provides better protection for their investment.
Can I cancel my South Dakota home insurance anytime?
You can cancel your South Dakota home insurance anytime, though some insurers charge cancellation fees. You'll usually get a refund for unused premiums, but your mortgage lender requires continuous coverage to avoid complications.
How We Found the Cheapest Home Insurance Companies in South Dakota
Our rate analysis reflects what most South Dakota homeowners need: standard coverage for a typical single-family home built within the past 25 years.
We collected quotes from major insurers using a consistent homeowner profile across South Dakota. This approach shows how each company prices the same coverage by removing variables that make direct comparisons difficult. The base profile represents the most common home insurance scenario in South Dakota.
Standard Coverage Profile:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- $1,000 all-perils deductible
- Home built in 2000
- 3-class fire protection rating
- Good credit
- No claims filed in the past 5+ years
For specialty scenarios like older homes, high-value properties and rural locations, we adjusted variables from this base profile while keeping other factors constant. This shows how specific characteristics affect your rate compared to the standard homeowner.
These figures are estimates based on statewide averages. Your actual premium depends on your home's location, age, construction type and your claims history. Compare quotes from at least three insurers to find your lowest rate.
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.