Best South Dakota Home Insurance (August 23)

Are you trying to buy the best home insurance in SD? We have analyzed all the major insurers to guide you in finding the best South Dakota home insurance.

South Dakota homeowners insurance: What you need to know

On average, homeowners insurance in South Dakota costs around $2,157 yearly, which is higher than the national average rate. But a lot of factors can impact South Dakota home insurance rates.

The cost of labor and building materials in the area and local weather hazards may impact the premiums. The state is in Tornado Alley and is prone to severe thunder and lightning storms, which can result in more expensive claims, increasing the premiums. Don’t worry. We will help you find the cheapest homeowners insurance in SD!

What does a homeowners insurance policy cover?

Normally, a home insurance policy offers coverages like Dwelling, Liability, Personal Property, Medical Payments to Others, Other Structures, and Additional Living Expenses. But additionally, you can buy these coverages in SD.

Food spoilage: Most standard homeowners insurance covers food spoilage up to $500 if a covered claim causes a power outage. If you increase this coverage, you can store food in your fridge and freezer without worrying about paying out of pocket, even if the power dies out for a long period.

Guaranteed replacement cost: Not many insurers in the state provide guaranteed replacement cost coverage. Extended coverage typically offers a percentage increase over your standard coverage, typically around 25%. However, the guaranteed replacement cost will fully cover the cost of restoring your entire if a storm or tornado damages your home.

Equipment breakdown coverage: Your appliances can get damaged when a power surge occurs due to a covered peril, such as lightning. Your coverage varies based on your chosen insurer and will have property coverage limits. Increasing the coverage with equipment breakdown coverage is viable, ensuring you can repair or replace after a covered loss.

What isn’t covered by a typical homeowners insurance policy?

Home insurance policies don’t cover flooding, nuclear threats, earthquakes, insect and vermin infestations, power outages, war, wear and tear, sinkholes, or intentional loss. To ensure the coverages you get, you must carefully check your policy before purchasing one.

The cheapest home insurance companies in South Dakota

The rate of homeowners insurance in South Dakota varies based on the insurer you select. With an average annual rate of $1,017, AAA offers the state’s most affordable home insurance policy. If you want an even cheaper rate, it is best to compare the rates of all insurers in the state.

The best homeowners insurance in South Dakota for pool owners

Insurers consider pools as an injury and liability risk. So if you have one, your home insurance rates will likely be higher. Farmers have the cheapest home insurance rates for South Dakota homes with swimming pools, with an average rate of $1,773 annually.

The best homeowners insurance in South Dakota for dog owners

Pet owners in the state who own certain dog breeds that insurers consider ‘dangerous’ or ‘aggressive’ pay more for home insurance. Farmers have the cheapest South Dakota home insurance rates for a home with a dangerous dog breed, with an average yearly rate of $1,773. However, not all insurers weigh this factor as heavily. So always, it’s worth shopping around and comparing quotes to find the most reasonable rates.

The best homeowners insurance in South Dakota for those with a claims history

Insurers consider low credit scores to indicate risky behavior and an increased risk of filing an insurance claim. So many charge higher rates to customers with poor credit. Farmers have the lowest home insurance rates in South Dakota for a homeowner with bad credit, with an average rate of $3,314 yearly.

Homeowners insurance deductibles in South Dakota

How much you set as your deductible is vital when buying a home insurance policy. A deductible is a sum you must pay out of pocket during a covered loss. So where you set your deductible heavily impacts the amount you pay as premiums. So be aware that the lower your deductible, the higher your premiums will be. The following are the average rates associated with the deductibles offered by most home insurance companies.

South Dakota home insurance prices by coverage levels

The coverage level you select substantially impacts your home insurance rates. Carrying $100,000 in dwelling coverage costs an average of $1,109 per year while carrying coverage up to $400K costs $2,834 yearly.

South Dakota homeowners insurance costs by city

The area where you live also impacts the cost of homeowners insurance in SD. Factors like ZIP Code, the volume of claims in the nearby area, and even the crime rate in your area can affect your premiums. The following are the rates in various cities.

Home and auto insurance bundling in South Dakota

How can you lower the rate of South Dakota home insurance? One way is by bundling your auto insurance and home insurance policies.

Home insurance discounts in South Dakota

Using the discounts offered by your insurer is another way by which you can get cheap home insurance in South Dakota. But ensure to check which discounts you qualify for.

Comparing common features across top companies

Are you trying to buy the best homeowners insurance in South Dakota? Then check whether your insurer offers these features.

Common causes of home insurance claims in South Dakota

These are a few reasons that lead to home insurance claims in the state.

Lighting: It is one of the major causes of loss for South Dakota homeowners. It causes trees to fall, leading to fires or causing severe damage to your home. It can lead to power surges inside your home, causing valuable items to get damaged and replaced.

Tornadoes: A major tornado In 2019 caused severe property damage and power outages throughout Sioux Falls. Another tornado struck in May 2020, destroying an entire town and killing almost 50 people. Power outages lead to food spoilage and make it risky to stay in your home during winter. So you may need to relocate to another place until repairing the damage or power gets restored.

Winter storms: The residents face cold, severe winters every year. Every year, the state spends millions to repair property damage due to winter storms. Snow and ice create ice dams that damage the home’s exterior and interior. There can even be damage to the roof and foundation of your home. To get sufficient financial protection, always ensure proper coverage.

Does homeowners insurance cover flooding in South Dakota?

Flood damage doesn’t get covered by homeowners insurance. So you must buy flood insurance through FEMA’s National Flood Insurance Program (NFIP) or a private insurer to protect your home from flood damage. The coverage of private insurers may vary. But the following are the typical coverages offered by NFIP.

• Your home's structure - $250,000
• Personal property - $100,000

Does homeowners insurance cover hail damage in South Dakota?

Homeowners insurance in South Dakota typically includes hail coverage, which protects your home’s structure when it gets damaged by hail. But since SD is a hail-prone area, you must always review the home insurance policy before buying one. It is to ensure that you get ample coverage for hail damage. Some insurers charge higher deductibles for hail-prone areas and make cosmetic damage exclusions. So if your home gets damaged but is still functional, even if it has aesthetic damages after a hailstorm, your insurer will cover the repair costs.

Factors that affect home insurance rates in South Dakota

Do you want to buy cheap homeowners insurance in SD? Then check for these factors before buying one.

• Your location: Factors like your ZIP Code, the area's theft rate, and the volume of nearby claims can impact the cost of homeowners insurance in South Dakota.
• Replacement cost: The rate of home insurance in SD varies depending on local labor and construction material costs.
• Age/condition: Newer properties are cheaper to insure when compared to older properties.
• Claims history: If you frequently file claims, your insurer will view you as a risk. Expect your insurance premiums to surge then.
• Credit history: Most insurance companies check your credit score before offering a home insurance policy. So if your credit score is low, your home insurance premiums will increase.
• Dog breed: Many insurers label certain dog breeds 'dangerous.' If your insurer considers your dog so, the price of South Dakota home insurance will increase.

Tips for buying homeowners insurance

Are you looking to find the best homeowners insurance in South Dakota? Then follow these tips!

• Assess your rebuilding costs: Talk with your insurance agent or a reputed builder to check how much it would cost to reconstruct your house with inexpensive building materials and local labor.
• Review the advantage of replacement cost over actual cash value: You may need replacement cost insurance for your house and other belongings.
• Consider add-on coverage for your expensive items: Opt for personal property coverage if you own costly items like high-end electronics, athletic gear, musical instruments, or antiques.
• Evaluate your liability coverage needs: Calculate your minimum liability insurance limit.
• Assess coverage gaps: Many insurers provide high coverage limits for landscaping elements like trees and bushes.
• Check financial ratings: Most home insurance companies will receive ratings from AM Best and Standard & Poor's. For instance, some firms won't let you apply for a mortgage if your insurance company doesn't have a minimum 'A' financial strength rating.
• Check for discounts: Use all the discounts the insurer provides that you qualify for.
• Compare quotes from various insurance companies: South Dakota homeowners insurance premiums may differ depending on the insurer. To find an ideal home insurance policy in South Dakota, you must compare quotes from several insurers.

How to get South Dakota home insurance with Way.com

On average, homeowners insurance in SD costs around $2,157 yearly. The rate is higher than the national average rate. But getting reasonably priced home insurance in South Dakota is still possible. But how is that possible? That’s where Way.com can help you!

You must use our app or website to obtain quotes from all insurance companies in the state. Then you must compare them and buy a policy with the lowest rate. Do you need additional help? Then our home insurance agents can guide you. They will help you understand South Dakota home insurance laws, the most complex insurance terms, coverages, and discounts.

So, contact our insurance agents in your state if you want to buy the best homeowners insurance in South Dakota.