The Best Cheap South Dakota Homeowners Insurance for 2024

Purchasing homeowners insurance may not be exciting, but it's an important part of being a homeowner. If you carry a mortgage, your lender will likely require you to carry homeowners insurance. But more importantly, a good homeowners policy can protect you from financial hardship if your home is damaged or destroyed. Here, we'll identify the best homeowners insurance in South Dakota and direct you to the cheapest policies in the state.

• Cheapest overall for South Dakota: North Star Mutual
• Cheapest for new home construction: Nationwide
• Cheapest for older homes: Auto Owners
• Cheapest for homeowners who have filed a claim: North Star Mutual

Cheapest overall for South Dakota

For cheap homeowners insurance in South Dakota, these four insurers offer the lowest overall rates:

• North Star Mutual, with an average annual rate of $1,412
• Iowa Farm Bureau, offering an average rate of $2,007
• Farmers Mutual, with an average annual rate of $2,095
• Farmers Insurance, also competitive, with an average rate of $2,403

Cheapest for new home construction

New homes are typically less expensive to insure than older structures. That's because insurers know that all the components in the house are also new and less likely to break down any time soon. That means fewer broken water pipes and leaky roofs. The savings get passed on to the homeowner through lower insurance premiums. Nationwide currently offers the lowest average annual rate of $654 for new home construction.

These South Dakota home insurance providers also offer reasonably low rates for newly built homes:

• Auto Owners, with an average annual rate of $853
• USAA, with an average annual rate of $854
• Iowa Farm Bureau, coming in with an average annual rate of $965

Cheapest for older homes

Older homes often feature architectural details not found in newer homes. However, older homes are also more prone to issues related to aging. For example, there are more likely to be problems with shifting foundations, mold, and dry rot. And that's why insurers tend to charge more to insure older homes. Auto Owners offers the cheapest homeowners insurance for older homes, at an average annual rate of $1,344.

In South Dakota, these three companies follow closely behind Auto Owners for offering the lowest homeowners insurance rates for older homes:

• North Star, offering an average annual rate of $1,358
• Iowa Farm Bureau, with an average annual rate of $1,796
• Farmers, offering a relatively competitive rate of $2,005

Cheapest when you've made a claim

Homeowners who make a claim can expect their premiums to increase, particularly if they make a major claim. For a South Dakota homeowner who has made a claim, these four insurers work to keep rates low -- even after a claim is submitted:

• North Star, offering a post-claim rate of $1,358
• Auto Owners, coming in with an average annual rate of $1,390
• Farmers Mutual, offering an average annual rate of $2,051
• Iowa Farm Bureau, with an average annual rate of $2,187

Average home insurance cost in South Dakota compared to the national average

With an average statewide policy cost of $2,805, South Dakotans pay 36% more than the average national rate of $1,787.

South Dakota homeowners insurance overview

You know you've landed on the best homeowners insurance in South Dakota when you receive a high level of coverage at a low price. While the concept seems simple, the tricky part is the way you'll be bombarded with unfamiliar terms as you shop for a policy. Here's a breakdown of what some of those terms mean.

Different types of homeowners coverage

Policy types range from basic coverage to enough bells and whistles to cover the high-end features of the home as well as a homeowner's belongings. The best homeowners insurance companies offer a full menu of coverage options. For any homeowner, choosing the right options comes down to deciding what needs protecting. For example, if a homeowner has a fully outfitted greenhouse on the property, they'll need to make sure their policy is comprehensive enough to cover its loss.

Level of coverage

The most basic policies are also the least expensive. There is a potential problem with barebones policies, though. A barebones policy may not fully cover losses. It's a good idea to consider the level of coverage needed before shopping for the best homeowners insurance in South Dakota.

Amount of deductible

When a homeowner makes a claim, they pay an insurance deductible. A deductible is an amount the homeowner must pay toward the repair or replacement of their home. Let's say there's a winter storm, and a huge branch falls on the roof. If the cost of replacing the roof comes to $20,000 and the homeowner has a $1,000 deductible, they're responsible for paying the first $1,000 toward repairs. The insurance company then picks up the remaining $19,000. The lower the deductible, the higher the policy premium. Choosing a higher deductible helps reduce the cost of the policy.

Potential discounts

One of the smartest ways to land cheap homeowners insurance in South Dakota is to ask about all available policy discounts. Nearly all insurers offer a list of home insurance discounts, covering everything from whether the home has a security system to whether the homeowner bundles home and auto coverage.

What are the most common homeowners insurance claims in South Dakota?

Recognizing the most common South Dakota home insurance claims can direct homeowners as they shop for the policy that best fits their needs.

Snow and ice

Winter weather may be beautiful, but it can wreak havoc. South Dakota homeowners must plan ahead, assuming that at some point, there may be roof damage caused by the weight of snow or a broken window caused by ice falls from nearby tree branches.

Wind and hail

Wind and hail are the most common causes of insurance claims across the U.S., and South Dakota gets more than its fair share of both.

Lightning strikes and fire

Nationwide, lightning strikes are among the most common homeowners insurance claims. South Dakota is no exception. Whether a fire is started by nature or a human accident, it's important to have coverage when this peril strikes.

Water damage

It typically rains more than the national average in South Dakota. Rain, of course, can lead to flooded basements, leaking roofs, and a resulting loss of personal property.

Homeowners insurance coverage options and discounts in South Dakota

As mentioned, the best homeowners insurance in South Dakota provides outstanding coverage at the lowest price possible. The best way to land a low price is to take advantage of all potential discounts. Here, we look at coverage options and illustrate how discounts help reduce premiums.

Coverage options

Here's a rundown of the eight types of homeowners insurance:

• One covers renters.
• One covers mobile homes only.
• The other six range from basic coverage to more extensive protection.

A comprehensive policy may also include coverage for things like expensive add-ons, a wine cellar, or even custom flooring.

Discount options

One way to find cheap insurance in South Dakota is to claim as many discounts as possible. Here are some of the most common:

• Installing a burglar alarm saves approximately 7%.
• Upgrading the electrical system can also save 7%.
• A roof upgrade saves a whopping 35%.
• Bundling home and auto coverage can save up to 21%.

Five cheapest cities in South Dakota for homeowners insurance

As insurance companies determine rates, they take into account factors such as:

• Area crime rate
• Value of surrounding property
• Cost to rebuild
• How far a property is located from a fire station

The five cheapest cities in South Dakota for homeowners insurance are:

Five most expensive cities in South Dakota for homeowners insurance

And here are the five most expensive cities:

Overall rates in South Dakota are considerably higher than the national average. This fact alone helps illustrate why it's so important to shop around until finding an insurance company that offers great coverage at a reasonable rate.