If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
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.
For cheap homeowners insurance in South Dakota, these four insurers offer the lowest overall rates:
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:
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:
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:
With an average statewide policy cost of $2,805, South Dakotans pay 36% more than the average national rate of $1,787.
Average Rate Category | South Dakota | National Average |
---|---|---|
Overall | $2,805 | $1,787 |
New home construction | $1,242 | $984 |
Older homes | $2,545 | $1,755 |
After making a claim | $3,029 | $1,971 |
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.
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.
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.
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.
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.
Recognizing the most common South Dakota home insurance claims can direct homeowners as they shop for the policy that best fits their needs.
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 are the most common causes of insurance claims across the U.S., and South Dakota gets more than its fair share of both.
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.
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.
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.
Here's a rundown of the eight types of homeowners insurance:
A comprehensive policy may also include coverage for things like expensive add-ons, a wine cellar, or even custom flooring.
One way to find cheap insurance in South Dakota is to claim as many discounts as possible. Here are some of the most common:
As insurance companies determine rates, they take into account factors such as:
The five cheapest cities in South Dakota for homeowners insurance are:
City Name | Average Home Insurance Rate |
---|---|
Milbank | $2,383 |
Rosholt | $2,385 |
New Effington | $2,390 |
Sisseton | $2,403 |
Frederick | $2,405 |
And here are the five most expensive cities:
City Name | Average Home Insurance Rate |
---|---|
Buffalo Gap | $3,509 |
Porcupine | $3,503 |
Hot Springs | $3,495 |
Batesland | $3,495 |
Wounded Knee | $3,485 |
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.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.