Best South Dakota Homeowners Insurance for 2026
State Farm, North Star Mutual and Farmers Mutual are all good picks for SD home insurance
- State Farm is our top pick for the best homeowners insurance in South Dakota because the company is well-rated and offers a balance of coverage options and affordability.
- The average monthly homeowners insurance premium in South Dakota is $303.
- Western South Dakota faces a high risk of wildfires, and home insurance premiums in this area of the state are particularly expensive.
Best homeowners insurance in South Dakota
We collected rate data from several major South Dakota home insurance providers and analyzed the companies’ third-party ratings and home insurance offerings in The Mount Rushmore State.
We narrowed down our selection to the best home insurance companies in South Dakota based on average premiums, coverage options, customer satisfaction, discount opportunities and other factors. Here are our top picks.
Best overall: State Farm
Average annual rate: $2,301
Why we chose it: In addition to offering the lowest average premiums of the South Dakota home insurance companies we surveyed, State Farm is well-rated for overall customer satisfaction by J.D. Power. The company offers a wider range of coverage endorsements than many of its competitors and has local agents in cities across South Dakota.
Who it’s best for: State Farm is best for homeowners looking for a balance of reputation, value and coverage options.
PROS
- Superior financial strength rating from AM Best
- Generous bundling discount
- Highly rated mobile app
CONS
- Higher-than-average NAIC complaint rating
- Fewer discounts than competitors
- Poor Trustpilot rating
Best for coverage options: North Star Mutual
Average annual rate: $3,359
Why we chose it: North Star Mutual offers 13 coverage endorsements, more than many of the South Dakota home insurance companies we surveyed. The company offers options relevant to South Dakota residents, such as farm liability, watercraft liability and water backup coverage. North Star Mutual also offers a variety of discounts, including a mature owner discount and a new home discount.
Who it’s best for: North Star Mutual is best for homeowners who want a customizable policy with robust coverage.
PROS
- Low NAIC complaint rating (low is better)
- Superior financial strength rating from AM Best
CONS
- No online homeowners quotes
- Modest mobile app
Best for customer service: Farmers Mutual of Nebraska
Average annual rate: $2,997
Star rating: N/A
Why we chose it: Farmers Mutual of Nebraska had one of the lowest NAIC complaint ratings of any of the South Dakota homeowners insurance companies we surveyed. The regional insurer is a mutual organization owned by its policyholders and works with a network of local, independent agents. The company has district claims offices located throughout South Dakota.
Who it’s best for: Farmers Mutual of Nebraska is best for homeowners seeking personalized, local service.
PROS
- Excellent financial strength rating from AM Best
- Variety of home insurance discounts
CONS
- Poor mobile app ratings
- No online home insurance quotes
Compare home insurance rates and ratings in South Dakota
| Company | Average annual rate* | LendingTree rating | Complaint rating* | |
|---|---|---|---|---|
| State Farm | $2,301 | 4/5 | 1.35 |
 | Auto-Owners | $2,831 | 4/5 | 0.51 |
 | Farmers Mutual of Nebraska | $2,997 | NA | 0.18 |
 | American Family | $3,136 | 4/5 | 0.36 |
| North Star Mutual | $3,359 | 4.5/5 | 0.48 |
 | USAA** | $3,637 | 4/5 | 0.52 |
 | Nationwide | $5,098 |  3.5/5 | 1.21 |
 | Farm Bureau | $5,736 | 3.5/5 | 0.55 |
In South Dakota, rates can vary significantly between insurers. Comparing multiple options can help you find better pricing and coverage.
How much is homeowners insurance in South Dakota?
The average cost of home insurance in South Dakota is $3,637 per year, or $303 per month.
Home insurance in South Dakota is relatively expensive compared to the U.S. average premium of $2,628 annually, which is $219 per month. But neighboring Nebraska is even more expensive than South Dakota, with an average monthly rate of $460.
Average home insurance rates by dwelling coverage amount
Your home insurance premium depends in part on the cost to rebuild or replace your home, which you’ll select as your dwelling coverage limit when buying a policy. The table below shows the average premiums the best home insurance companies in South Dakota charge for a few common dwelling coverage amounts and how they compare to the state average.
| Company | $300,000 | $400,000 | $550,000 | $750,000 |
|---|---|---|---|---|
| State Farm | $1,968 | $2,301 | $2,714 | $3,165 |
| Farmers Mutual of Nebraska | $2,216 | $2,997 | $4,291 | $6,218 |
| North Star Mutual | $2,437 | $3,359 | $4,747 | $6,553 |
| State average | $2,900 | $3,637 | $4,735 | $6,139 |
Home insurance rates in South Dakota by city
Homeowners insurance premiums in South Dakota vary by city. Rates are most expensive in cities in the Black Hills region, where dry conditions increase the risk of wildfires.
For example, Buffalo Gap is the most expensive city for home insurance in South Dakota, with an average annual premium of $4,693, and Pringle comes in second at $4,683. Both cities have a severe risk of wildfire over the next 30 years, according to First Street, a climate risk financial modeling company.
Home insurance is cheapest in Aberdeen, with an average annual premium of $3,043, followed by Milbank and De Smet. In all three cities, median home prices are significantly lower than the state median, and properties are at a minor or moderate risk from climate threats.
| City | Average rate |
|---|---|
| Aberdeen | $3,043 |
| Agar | $3,480 |
| Agency Village | $3,142 |
| Akaska | $3,388 |
| Alcester | $3,565 |
| Alexandria | $3,529 |
| Allen | $4,245 |
| Alpena | $3,414 |
| Amherst | $3,215 |
| Andover | $3,148 |
| Antelope | $4,190 |
| Arlington | $3,276 |
| Armour | $3,629 |
| Artesian | $3,278 |
| Ashland Heights | $4,416 |
| Ashton | $3,205 |
| Astoria | $3,096 |
| Athol | $3,205 |
| Aurora | $3,254 |
| Avon | $3,805 |
| Badger | $3,315 |
| Baltic | $3,379 |
| Barnard | $3,119 |
| Batesland | $4,559 |
| Bath | $3,135 |
| Belle Fourche | $4,204 |
| Belvidere | $4,395 |
| Bemis | $3,109 |
| Beresford | $3,509 |
| Big Stone City | $3,125 |
| Bison | $3,943 |
| Blackhawk | $4,223 |
| Blunt | $3,519 |
| Bonesteel | $3,779 |
| Bowdle | $3,238 |
| Box Elder | $4,451 |
| Bradley | $3,160 |
| Brandon | $3,268 |
| Brandt | $3,126 |
| Brentford | $3,204 |
| Bridgewater | $3,500 |
| Bristol | $3,171 |
| Britton | $3,161 |
| Brookings | $3,136 |
| Bruce | $3,255 |
| Bryant | $3,117 |
| Buffalo | $4,069 |
| Buffalo Gap | $4,693 |
| Bullhead | $3,853 |
| Burbank | $3,567 |
| Burke | $3,784 |
| Butler | $3,171 |
| Camp Crook | $4,175 |
| Canistota | $3,436 |
| Canova | $3,268 |
| Canton | $3,509 |
| Caputa | $4,577 |
| Carpenter | $3,158 |
| Carthage | $3,197 |
| Cavour | $3,226 |
| Chamberlain | $3,610 |
| Chancellor | $3,451 |
| Chelsea | $3,180 |
| Cherry Creek | $3,889 |
| Claire City | $3,158 |
| Clark | $3,146 |
| Clear Lake | $3,076 |
| Colome | $3,774 |
| Colonial Pine Hills | $4,550 |
| Colton | $3,359 |
| Columbia | $3,095 |
| Conde | $3,169 |
| Corona | $3,112 |
| Corsica | $3,673 |
| Cottonwood | $4,522 |
| Cresbard | $3,334 |
| Crooks | $3,386 |
| Custer | $4,603 |
| Dakota Dunes | $3,849 |
| Dallas | $3,746 |
| Dante | $3,673 |
| Davis | $3,454 |
| De Smet | $3,075 |
| Deadwood | $4,350 |
| Dell Rapids | $3,357 |
| Delmont | $3,690 |
| Denby | $4,559 |
| Dimock | $3,656 |
| Dixon | $3,746 |
| Doland | $3,237 |
| Draper | $3,715 |
| Dupree | $3,868 |
| Eagle Butte | $3,827 |
| Eden | $3,206 |
| Edgemont | $4,537 |
| Egan | $3,304 |
| Elk Point | $3,679 |
| Elkton | $3,328 |
| Ellsworth AFB | $4,131 |
| Elm Springs | $4,510 |
| Emery | $3,542 |
| Enning | $4,197 |
| Erwin | $3,140 |
| Ethan | $3,521 |
| Eureka | $3,273 |
| Fairburn | $4,634 |
| Fairfax | $3,743 |
| Fairview | $3,473 |
| Faith | $4,068 |
| Faulkton | $3,280 |
| Fedora | $3,271 |
| Ferney | $3,283 |
| Firesteel | $3,862 |
| Flandreau | $3,298 |
| Florence | $3,145 |
| Fort Meade | $4,387 |
| Fort Pierre | $3,648 |
| Fort Thompson | $3,531 |
| Frankfort | $3,229 |
| Frederick | $3,097 |
| Freeman | $3,573 |
| Fulton | $3,504 |
| Gann Valley | $3,530 |
| Garden City | $3,178 |
| Garretson | $3,364 |
| Gary | $3,191 |
| Geddes | $3,638 |
| Gettysburg | $3,399 |
| Glad Valley | $3,945 |
| Glencross | $3,829 |
| Glenham | $3,361 |
| Goodwin | $3,109 |
| Green Valley | $4,306 |
| Gregory | $3,793 |
| Grenville | $3,207 |
| Groton | $3,123 |
| Hamill | $3,733 |
| Harrisburg | $3,447 |
| Harrison | $3,612 |
| Harrold | $3,550 |
| Hartford | $3,393 |
| Hayes | $3,928 |
| Hayti | $3,148 |
| Hazel | $3,148 |
| Hecla | $3,122 |
| Henry | $3,128 |
| Hermosa | $4,612 |
| Herreid | $3,275 |
| Herrick | $3,725 |
| Highmore | $3,402 |
| Hill City | $4,529 |
| Hitchcock | $3,244 |
| Holabird | $3,455 |
| Hosmer | $3,266 |
| Hot Springs | $4,628 |
| Houghton | $3,168 |
| Hoven | $3,348 |
| Howard | $3,259 |
| Howes | $4,090 |
| Hudson | $3,533 |
| Hurley | $3,519 |
| Huron | $3,190 |
| Ideal | $3,717 |
| Interior | $4,385 |
| Ipswich | $3,229 |
| Irene | $3,553 |
| Iroquois | $3,188 |
| Isabel | $3,862 |
| Java | $3,324 |
| Johnson Siding | $4,548 |
| Kadoka | $4,388 |
| Kaylor | $3,574 |
| Keldron | $3,858 |
| Kennebec | $3,732 |
| Keystone | $4,651 |
| Kimball | $3,566 |
| Kranzburg | $3,103 |
| Kyle | $4,494 |
| Labolt | $3,119 |
| Lake Andes | $3,697 |
| Lake City | $3,202 |
| Lake Norden | $3,132 |
| Lake Preston | $3,251 |
| Lane | $3,384 |
| Langford | $3,230 |
| Lantry | $3,885 |
| Lead | $4,344 |
| Lebanon | $3,381 |
| Lemmon | $3,857 |
| Lennox | $3,399 |
| Leola | $3,229 |
| Lesterville | $3,662 |
| Letcher | $3,422 |
| Little Eagle | $3,846 |
| Lodgepole | $3,930 |
| Long Lake | $3,272 |
| Long Valley | $4,140 |
| Ludlow | $4,141 |
| Lyons | $3,388 |
| Madison | $3,338 |
| Manderson | $4,436 |
| Mansfield | $3,149 |
| Marion | $3,498 |
| Martin | $4,232 |
| Marty | $3,654 |
| Marvin | $3,176 |
| McIntosh | $3,832 |
| McLaughlin | $3,759 |
| Meadow | $3,945 |
| Menno | $3,600 |
| Midland | $4,077 |
| Milbank | $3,056 |
| Milesville | $4,031 |
| Miller | $3,432 |
| Mission | $4,194 |
| Mission Hill | $3,678 |
| Mitchell | $3,556 |
| Mobridge | $3,345 |
| Monroe | $3,435 |
| Morristown | $3,807 |
| Mound City | $3,301 |
| Mud Butte | $4,106 |
| Murdo | $3,688 |
| Nemo | $4,301 |
| New Effington | $3,114 |
| New Holland | $3,610 |
| New Underwood | $4,461 |
| Newell | $4,253 |
| Nisland | $4,306 |
| Norris | $4,187 |
| North Eagle Butte | $3,829 |
| North Sioux City | $3,848 |
| North Spearfish | $4,309 |
| Northville | $3,180 |
| Nunda | $3,215 |
| Oelrichs | $4,618 |
| Oglala | $4,568 |
| Okaton | $3,683 |
| Okreek | $4,272 |
| Oldham | $3,243 |
| Olivet | $3,596 |
| Onaka | $3,264 |
| Onida | $3,458 |
| Opal | $4,106 |
| Oral | $4,530 |
| Orient | $3,340 |
| Ortley | $3,181 |
| Ottumwa | $4,077 |
| Parkston | $3,667 |
| Parmelee | $4,248 |
| Peever | $3,128 |
| Philip | $4,148 |
| Pickstown | $3,646 |
| Piedmont | $4,364 |
| Pierpont | $3,198 |
| Pierre | $3,464 |
| Pine Ridge | $4,544 |
| Plainview | $4,090 |
| Plankinton | $3,574 |
| Platte | $3,639 |
| Pollock | $3,317 |
| Porcupine | $4,491 |
| Prairie City | $3,959 |
| Presho | $3,774 |
| Pringle | $4,683 |
| Pukwana | $3,606 |
| Quinn | $4,522 |
| Ralph | $4,131 |
| Ramona | $3,241 |
| Rapid City | $4,442 |
| Rapid Valley | $4,297 |
| Raymond | $3,161 |
| Redfield | $3,208 |
| Redig | $4,101 |
| Ree Heights | $3,451 |
| Reliance | $3,682 |
| Renner | $3,386 |
| Reva | $4,135 |
| Revillo | $3,118 |
| Ridgeview | $3,830 |
| Rockham | $3,338 |
| Roscoe | $3,273 |
| Rosebud | $4,251 |
| Rosholt | $3,086 |
| Roslyn | $3,205 |
| Rutland | $3,245 |
| Salem | $3,394 |
| Scenic | $4,597 |
| Scotland | $3,718 |
| Selby | $3,321 |
| Seneca | $3,303 |
| Shindler | $3,448 |
| Sinai | $3,307 |
| Sioux Falls | $3,478 |
| Sisseton | $3,123 |
| Sky Ranch | $4,175 |
| Smithwick | $4,608 |
| South Shore | $3,127 |
| Spearfish | $4,281 |
| Spencer | $3,384 |
| Springfield | $3,844 |
| St. Charles | $3,745 |
| St. Francis | $4,249 |
| St. Lawrence | $3,405 |
| St. Onge | $4,390 |
| Stephan | $3,487 |
| Stickney | $3,612 |
| Strandburg | $3,134 |
| Stratford | $3,138 |
| Sturgis | $4,335 |
| Summerset | $4,223 |
| Tabor | $3,779 |
| Tea | $3,386 |
| Timber Lake | $3,801 |
| Tolstoy | $3,367 |
| Toronto | $3,103 |
| Trail City | $3,792 |
| Trent | $3,361 |
| Tripp | $3,671 |
| Turton | $3,188 |
| Tuthill | $4,283 |
| Twin Brooks | $3,153 |
| Tyndall | $3,799 |
| Union Center | $4,101 |
| Utica | $3,672 |
| Vale | $4,273 |
| Valley Springs | $3,381 |
| Veblen | $3,170 |
| Vermillion | $3,660 |
| Viborg | $3,534 |
| Vienna | $3,193 |
| Virgil | $3,311 |
| Vivian | $3,695 |
| Volga | $3,242 |
| Volin | $3,571 |
| Wagner | $3,668 |
| Wakonda | $3,605 |
| Wakpala | $3,736 |
| Walker | $3,824 |
| Wall | $4,493 |
| Wallace | $3,157 |
| Wanblee | $4,154 |
| Wasta | $4,510 |
| Watauga | $3,836 |
| Watertown | $3,085 |
| Webster | $3,230 |
| Wessington | $3,310 |
| Wessington Springs | $3,424 |
| Westport | $3,121 |
| Wetonka | $3,121 |
| White | $3,278 |
| White Owl | $4,084 |
| White River | $4,146 |
| Whitehorse | $3,888 |
| Whitewood | $4,281 |
| Willow Lake | $3,171 |
| Wilmot | $3,109 |
| Winfred | $3,304 |
| Winner | $3,742 |
| Witten | $3,713 |
| Wolsey | $3,289 |
| Wood | $4,154 |
| Woonsocket | $3,363 |
| Worthing | $3,420 |
| Wounded Knee | $4,506 |
| Yale | $3,151 |
| Yankton | $3,739 |
| Zeona | $4,106 |
Current state of homeowners insurance in South Dakota
Home insurance premiums in South Dakota are significantly more expensive than in neighboring North Dakota and Minnesota. But rates still lag behind Nebraska to the south, where a combination of severe weather, labor shortages and high repair costs has caused home insurance premiums to increase by 68% between 2021 and 2025, outpacing rate hikes in South Dakota.
Still, South Dakota faces its own climate threats, including an increasing risk of wildfires, extreme heat and heavy rainfall. The Black Hills region in western South Dakota is at a particularly high risk of wildfires during periods of drought. The state is also prone to severe weather, including tornadoes, hailstorms and winter storms.
In South Dakota, it’s legal for insurers to nonrenew a home insurance policy if a property has multiple claims or a high risk of future claims. This may be a risk for homeowners in older homes. South Dakota doesn’t have a FAIR plan, which is a state-managed insurance plan of last resort that provides limited coverage to homeowners in high-risk properties.
But some home insurance companies are more willing to work with high-risk homes than others, and comparing quotes is a good way to find coverage that meets your needs.
How to compare homeowners insurance in South Dakota
When comparing options, don’t just look at rates. Also consider:
- Coverage limits: Make sure your home is fully covered.
- Deductibles: Higher deductibles can lower premiums.
- Exclusions: Check what isn’t covered (like floods or earthquakes).
- Add-ons: Consider extra coverage for high-value items and a water backup endorsement.
And if you own one or more vehicles, consider bundling your home and auto insurance. Many insurance companies offer big discounts for this.
How LendingTree helps you find the right policy
Shopping for home insurance isn’t always straightforward — especially when availability and pricing can vary widely. LendingTree makes it easier by helping you explore options from multiple insurers, so you can find coverage that fits your home, location and budget.
How it works
Tell us about your home
Answer a few quick questions about your home, location and coverage needs.
Compare options from insurers
See quotes and typical rates from insurers that offer coverage in your area.
Choose the right policy
Review your options and pick the coverage that fits your needs and budget.
Frequently asked questions
South Dakota law doesn’t require homeowners insurance, but most mortgage lenders require proof of a home insurance policy to issue a mortgage loan. Even if you own your home outright, it’s a good idea to purchase home insurance to protect your finances. A single accident or natural disaster could destroy your home and wipe out your life’s savings.
The average cost of homeowners insurance in South Dakota for a policy with $400,000 in dwelling coverage is $3,637 per year or $303 per month. But some home insurance companies offer cheaper coverage. For example, State Farm charges an average premium of just $192 per month for the same coverage limit. Many insurance companies in South Dakota also offer discounts for bundling your home and auto policies.
For a typical policy with $400,000 in dwelling coverage, average homeowners insurance premiums are cheaper in South Dakota than in Texas. The average cost of home insurance in Texas is $372 per month, compared to only $303 per month in South Dakota.
The risk of flooding is increasing in some areas of South Dakota. Most homeowners insurance policies don’t cover damage from flooding, so you may want to purchase a separate flood insurance policy. If you live in a high-risk area, you may be legally required to get flood insurance. You can buy a policy from the National Flood Insurance Program (NFIP) if it’s available in your community, or you can opt to get a policy from a private insurer, which may offer higher coverage limits and more options.
Methodology
The rates shown in this article are based on an analysis of nonbinding quotes obtained in February 2026 from Quadrant Information Services for sample homes in every South Dakota ZIP code. Unless otherwise noted, policies include:
- Dwelling coverage: $400,000
- Other structures: $40,000
- Personal property: $200,000
- Loss of use: $80,000
- Personal liability: $100,000
- Guest medical payments: $5,000
- Deductible: $1,000
For third-party customer service ratings, we included NAIC’s complaint index scores and financial strength ratings from A.M. Best. NAIC complaint index scores are used to determine how satisfied customers are with their claims, while financial strength ratings from A.M. Best reflect the ability to pay out claims.
How we create LendingTree ratings
Our team of insurance experts evaluates insurance companies across several categories, including average rates, discounts, coverage options, third-party customer service ratings and app/website experience. We use this information to create LendingTree ratings, which help us identify and recommend the best insurance companies for consumers.
See our home insurance ratings methodology and full editorial guidelines for further details.
**USAA is only available to current and former members of the military and their families.