Home insurance in South Dakota costs about $273 monthly or $3,271 annually on average. Residents pay $53 more per month, or $636 more annually, than the national average, making it the 39th most expensive state for home insurance.
Average Home Insurance Cost in South Dakota
Updated: June 2, 2025
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Rates updated:
Jun 06, 2025
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Key Takeaways
Depending on your financial history, home details and other personal information, home insurance costs in South Dakota can range from $5,702 to $90,682.
South Dakota's home insurance premiums are the 39th most expensive in the country, at 24% above the national average.
To find the best home insurance in South Dakota, determine what coverage you need beforehand, research costs and discounts in your area, and shop around.
How Much Is Home Insurance in South Dakota?
| South Dakota Average | $273 | $3,271 | 24% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250,000 Dwelling, $125,000 Personal Property and $200,000 Liability coverage with a $1,000 deductible.
Why Is Home Insurance So Expensive in South Dakota?
Home insurance is expensive in South Dakota mainly because of the increasing number of claims, the high risk of severe weather and natural disasters, rising material and labor costs, and state insurance laws. Below, we explain each factor in detail:
Rising Claims
When homeowners file frequent claims, insurers see a pattern and worry more claims are coming. To protect themselves from these higher payouts, they raise your premiums.
High Weather Risks
Areas with increased risk of severe weather, such as tornado or hail, often face higher home insurance premiums. Insurers adjust rates to reflect the potential cost of more frequent or severe claims.
Rising Material and Labor Costs
When lumber prices spike or contractors become more expensive, insurance companies feel it too. They raise premiums to match these higher costs so they can still cover the full cost of repairs or rebuilding if disaster strikes.
State Insurance Laws
South Dakota insurance regulations can affect the cost of home insurance. Mandates on coverage types or minimum limits can lead to higher prices for policyholders to comply with these legal requirements.
What Affects South Dakota Home Insurance Costs?
Like with most home insurance providers, premiums are influenced by several factors:
- Coverage chosen
- Home build details
- Provider chosen
- Credit
- Claims history
We'll explore how each of these elements affects rates in South Dakota.
How Much Does Coverage Affect Home Insurance Costs?
Coverage choice is the most influential factor in South Dakota home insurance rates, with costs ranging from $1,711 to $10,633 per year. Higher coverage limits and lower deductibles increase premiums, while lower limits and higher deductibles reduce costs.
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | 2000 | $143 | $1,711 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | 500 | $886 | $10,633 |
How Much Do Home Details Affect Home Insurance Costs?
Home details like age, construction materials and roof type are the second most influential factor in South Dakota homeowners insurance rates, with prices ranging from $105 to $328 per month. These factors affect replacement costs and the risk of damage or theft, leading to rate differences.
| Lowest | New | Superior | Tile | $105 | $1,266 |
| Highest | Old | Frame | Shake-Treated | $328 | $3,931 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Choosing your insurer is the third most influential factor in home insurance costs here. Prices can vary significantly, ranging from 29% below to 42% above the state average. It's worth shopping around to find the best deal.
| Lowest | Allstate | $198 | $2,379 |
| Highest | American Family | $398 | $4,781 |
How Much Does Credit Affect Home Insurance Costs?
A higher credit score makes you appear more reliable, which can lower your home insurance costs. Premiums vary by up to 157%, with annual average rates ranging from $2,618 to $20,160.
| Lowest | Excellent | $218 | $2,618 |
| Highest | Poor | $1,680 | $20,160 |
How Much Does Claims History Affect Home Insurance Costs?
Filing more claims will increase your perceived risk for insurers, which can increase premiums. However, in South Dakota, claims history has a smaller impact on cost than other factors. Depending on your claims history, rates can be affected by up to 16% or $658 annually.
| Lowest | Claim free for 5+ years | $280 | $3,365 |
| Highest | 2 claims in past 5 years | $389 | $4,666 |
Tips to Save on South Dakota Home Insurance
With high home insurance costs in South Dakota, saving on premiums is crucial, whether you're buying a home or cutting current expenses. Below are tips to help you secure the best and cheapest home insurance in South Dakota tailored to your needs.
- 1
Find How Much Coverage You Need Beforehand
Determining how much home insurance you need before buying allows you to focus your search for coverage and avoid being oversold by agents. In addition to standard coverage options, consider if you need add-ons to protect any additional items you own.
- 2
Research Costs and Discounts Beforehand
To determine if you’re getting a good deal, understand the average costs for you and your home. Also, ask agents about all available home insurance discounts, as some insurers apply certain reductions only if requested.
- 3
Compare Multiple Providers Through Different Avenues
Compare multiple insurers apples to apples to find the best coverage for your needs. Use various methods, including online comparison sites, brokers, provider websites, and agents, as quotes vary significantly across these channels.
- 4
Consider Bundling Policies
Bundling policies can lead to significant savings. For example, combining home and auto insurance in South Dakota may save a considerable percentage on your home insurance.
- 5
Reduce Your Personal Risk Profile
To get cheaper premiums on your home, consider making improvements like adding storm shutters or home security systems. Also, improving your credit score can decrease premiums drastically; moving from a fair to a good credit score can save you 28% on average.
- 6
See if You Are Eligible for State Programs
Check if South Dakota offers programs to help get affordable coverage if you're denied traditional home insurance coverage. While these programs may not offer the same coverage amount as traditional policies, they meet mortgage requirements.
South Dakota Home Insurance Calculator: Bottom Line
Home insurance costs vary, mainly due to coverage and home details. Find affordable rates by identifying your needs and average costs, then try our estimate tool for the best deal.
Homeowners Calculator Insurance South Dakota: FAQ
Homeowners insurance costs in South Dakota depend on several factors. MoneyGeek helps you estimate expenses by answering common questions about home insurance in South Dakota.
How much does homeowners insurance cost in South Dakota?
South Dakota's average monthly home insurance cost is $273 for dwelling coverage of $250,000. However, your rate will depend on factors like your credit score, liability and property coverage limits, and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the cost to replace their home after damage, often with help from an appraiser. While this study uses a baseline coverage of $250,000, you can use the MoneyGeek homeowners insurance calculator to find the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your chosen coverage level and provider. Your credit score and home details also influence your rates.
How We Determined Our South Dakota Home Insurance Estimates
When determining the average cost of home insurance in South Dakota, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.