Whether you currently own your home or are in the market to make a purchase, homeowners insurance is likely a topic that weighs heavily on your mind. Although picking a policy that’s right for your home is highly subjective, there are a few universal truths — you want an insurance company that’s honest, fiscally sound, reliable, and affordable. We’ve done some of the legwork for you by researching and reviewing policy specifics to determine the best homeowners insurance in South Dakota.

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The Best Homeowners Insurance in South Dakota

Freshome’s Recommended Homeowners Insurance Companies in South Dakota: State FarmAmicaEsuranceNationwideGEICOMetLife

We gathered home insurance quotes from Amica, State Farm, and Esurance, our top three recommended companies in the area. To keep our findings as consistent and accurate as possible, we set Rapid City, South Dakota as the home location. We used a 1,772-square-foot, two-story home with vinyl siding and an attached garage. The home was valued at roughly $160,000, an amount close to the city’s average home value. When looking at insurance policies, we sought $200,000 of dwelling insurance coverage.

In setting the specifications of coverage desired, we tried to stay in line with an HO3 policy — the most common coverage option when it comes to insurance policies. It covers damages from events such as fire, hail, lightning, theft, weight of snow or ice, falling objects, and freezing pipes. Even if a vehicle were to plow into your home and cause damage, you would be covered. Most insurance policies also cover some of your belongings located within the home (furniture, electronics, etc.). Many industry experts recommend doing a home inventory to determine just how much coverage it would take to insure your entire home and its contents. It’s also a good idea to document the big items in your home so that you have a record in the event of an emergency. As you can see from the chart below, Amica was the cheapest, followed by Esurance. State Farm was the most expensive. However, it’s important to keep in mind that insurance policies can vary greatly depending on the unique specifications of your home. We highly encourage you to seek many quotes rather than assuming the price comparison would be similar for your home.

Our Quotes
Amica$1,495 Per Year
Esurance$1,796 Per Year
State Farm$1,919 Per Year

When researching insurance companies and requesting quotes, we also made sure to investigate each company’s satisfaction rating and financial strength using their J.D. Power and A.M. Best Rating. Each of the five companies we’ve recommended has at least an A in financial strength from A.M. Best and a three-star or better Overall Satisfaction rating from J.D. Power. We asked local real estate agent Seth Malott to weigh in on his experience with these five insurance companies. He said, “In my experience, of the five options, State Farm is the easiest to work with.” Still, it’s important to look at all of your options when purchasing homeowners insurance.

What You Should Know Before Getting a Quote

While home insurance is not required in South Dakota, it is highly recommended. After all, the state has a fair amount of risks associated with weather, including hail, flooding, and wildfires. Due to the threat of a natural disaster, it’s also important to note that the materials your home is built with can impact your premium. For example, a home made of wood will likely cost more to insure than a home made of brick, due to its higher flammability. While fire and hail damage is covered by most insurance policies, HomeInsurance.org recommends looking into flood insurance options if you live near the state’s major waterways, such as the Missouri or James Rivers.

If you’re purchasing your first home, it may be more difficult to determine what kind of coverage you can afford. When we asked Rapid City realtor Seth Malott, he suggested “trying to keep the premium around $7.50/$1,000 of the sales price. That normally gives some idea of an affordability range.” He also advised “keeping the hail damage deductible as low as possible. Hail is pretty prevalent here and will likely be the main reason for needing insurance.” We suggest that you talk to several home insurance agents in your area to determine your home’s specific needs based on location.

Why are South Dakota’s rates so Average?

A study from ValuePenguin.com examined home insurance quotes from five major companies across 32 different cities in South Dakota. They determined that the average home insurance policy for a 2,000-square-foot, veneer brick home was around $1,496, annually. The study also illustrated that there were higher premiums in the western part of the state. They attributed this to the fact that the fire departments in those areas were run by volunteers. Insurance companies tend to assume that those fire departments are less equipped to deal with fires, especially in a state where wildfires are fairly common. Hence, the higher insurance premiums.

The findings showed that rates varied by as much as 26 percent from city to city. That statistic reiterates the importance of performing your own investigation based on the information we have provided you, as results rely heavily on your personal details.

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FAQs

What does liability coverage cover?

Liability coverage protects you and your family from any lawsuits associated with bodily harm on your property. For example, if your dog bites someone on your property, liability coverage will cover the medical bills. However, if your dog bites you, it will not be covered.

What about flood insurance?

Whether or not you need flood insurance depends on the location of your home. If you live very close to a major waterway, it is probably something that you want to consider.

What does home insurance NOT cover?

This can vary from policy to policy. Some of the most common and obvious incidents that homeowners insurance doesn’t cover are damages from floods, earthquakes, and those acquired from failure to make necessary home repairs.

Take Action

To sum it up, a homeowners insurance policy can vary greatly; in South Dakota, it can change depending on what part of the state you live in. As you begin your search, we recommend you start with these companies.

Freshome’s Recommended Homeowners Insurance Companies in South Dakota: State FarmAmicaEsuranceNationwideGEICOMetLife

Compare Homeowners Insurance Rates

To quickly find and compare rates in your area, enter your ZIP code below.

Enter Your ZIP Code: