Homeowners Insurance in South Dakota

If you’re deciding on homeowners insurance in South Dakota, make sure you invest in a policy that covers tornadoes, hailstorms, and lightning damage.
Written by Sadie Lovemore
Reviewed by Melanie Reiff
Updated on May 02, 2022
If you’re deciding on homeowners insurance in
South Dakota
, make sure you invest in a policy that covers tornadoes, hailstorms, and lightning damage. The severe weather in the area is an expensive threat to local homeowners, but a comprehensive policy can give you the peace of mind you deserve.
With a high percentage of homeowners in South Dakota, the average cost of homeowners insurance is on the higher end at $1,958 per year. Still, this is nowhere near the cost of a new roof, or worse, the cost of rebuilding your house altogether. That’s why homeowners insurance is so essential, potentially saving you from financial ruin when disaster strikes.
So how do you go about finding the best
home insurance
coverage without breaking the bank? Licensed
home and car insurance broker
and comparison app
is here to help, so you can get affordable coverage in South Dakota without the headache. 
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What is homeowners insurance? 

Homeowners insurance protects your house, personal property, and provides coverage against potential liabilities when the unexpected happens. When certain perils wreak havoc on your property, home insurance is there to help pay for the cost of repair or replacement. 
To decide how much coverage you need, consider the cost of your home and your belongings. If your home and belongings are damaged, how much would it cost to rebuild and replace those items? Your insurance company will provide recommended coverage limits based on these factors, but it’s always a good idea to have a number in mind.

Basic components of homeowners insurance

Home insurance policies differ considerably, but you can usually count on coverage for these 5 components:
  • Coverage A (Structure): Also known as dwelling coverage, this covers the structure of your home if repairs or rebuilding is needed.
  • Coverage B (Additional structures): This covers common structures detached from your home, commonly including fences, garages, sheds, and gazebos.
  • Coverage C
    (Personal property): This helps pay for personal items like furniture, jewelry, or electronics in case of theft or other covered perils, even if it’s stored on another property. There are coverage limits, so if you have expensive items, you might need add-on policies for extra protection.
  • Coverage D (Additional expenses): This covers your living expenses in case you’ve made a claim and can’t stay on your property during repairs. 
  • Coverage E
    (Personal liability): This covers the cost of litigation and medical fees if someone is accidentally harmed on your property.
When you choose a homeowners insurance policy, you’ll also have to decide if you want actual cash value coverage or replacement cost coverage. Actual cash value reimburses you for the depreciated value of your damaged property. Although it comes at a higher premium, replacement cost coverage reimburses you for the cost of buying a new replacement. 

Named perils

When shopping for home insurance, it’s a good idea to familiarize yourself with the
16 named perils
—the common disasters that home insurance covers. This typically includes severe storms, fires, explosions, and theft. 
Certain perils like floods or earthquakes are almost always excluded from home insurance policies, requiring add-on policies for that coverage. Normal wear and tear or negligence are also excluded from home insurance plans.
If you are concerned about a specific type of coverage or other limitations and exclusions, always check with your home insurance provider.

Is homeowners insurance required in South Dakota? 

While homeowners insurance is not a requirement in South Dakota, it’s usually required by mortgage lenders to protect their investment. Home repairs can be costly, so home insurance gives the lender confidence you’ll be able to afford repairs for sudden or accidental damage.
Mortgage lenders typically require home insurance that covers the structure of the house, also known as
hazard insurance
. It’s up to you to select a home insurance policy with enough coverage for your personal property and other liabilities. 

How to get homeowners insurance

Before you commit to a homeowners insurance policy, it’s a good idea to shop around for quotes so that you know you’re getting a deal (the
app does this in seconds!). Insurance companies take your personal information into account when they provide a quote, so it might not be in your best interest to accept an insurance referral from a friend.
If you own a car, start by asking your
car insurance
company for a quote. Many insurance companies give you a deal for
bundling your home and car insurance policies
. Just remember that you don’t have to settle for the first quote you come by. 
If you own a home in South Dakota, it’s important to make sure you’re insured for these perils:
  • Hailstorms. The most common claims in South Dakota result from hailstorms, which can cause damage to the siding of your home, windows, or even cause leaks in your roof. Luckily, most home insurance policies cover hail damage. 
  • Flooding. Extreme rainfall is common in South Dakota, but flood damage is usually excluded from home insurance policies. Start with FEMA’s
    National Flood Insurance Program
    to look for a policy that fits your needs.
  • Tornadoes. Part of Tornado Alley, South Dakota is often hit by violent tornadoes, which can cause severe damage to your home. Tornado damage is typically included in standard coverage packages, but in some cases, you need an add-on policy.
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Why is homeowners insurance in South Dakota so expensive? 

Nearly 68% of South Dakota residents own a home, leading to a highly competitive homeowners insurance market. You could find yourself paying around $1,958 for $250k in dwelling coverage, which is $646 higher than the national average.
On the bright side, South Dakota home insurance costs significantly less than neighboring Nebraska, where the average cost of home insurance is a whopping $2,787 due to severe weather trends.
Like most insurance policies, your credit history, zip code, and even marital status could affect the cost of your home insurance. 

Homeowners insurance discounts in South Dakota

There are always ways to save more money on your home insurance policy. Start by asking your insurance company about these potential discounts:
How to get it
Insuring your home and vehicle
with the same company could save you money.
Home security discount
If you’ve lowered the risk for theft by installing a monitored security alarm, you could get a lower rate.
Fire alarm system
Fire alarm systems quickly alert the fire department to prevent substantial damage. This is beneficial to home insurance companies and could get you a discount.
Claims-free discount
If you’re an existing customer and you haven’t made a claim in years, you can get a discounted rate on your policy
Annual payments
If you can afford to pay your home insurance annually, you’ll often get a discount just for paying a lump sum.

How to save on home insurance

Shopping for
home insurance
can be a stressful process. With so many companies to choose from, it’s hard to know which is right for you. With
, you’ll get quotes from all of the top home insurance providers in seconds.
Jerry gathers your information from your past insurer, so you're not responsible for any long forms or phone calls. Basically, you get all of the savings and coverage with none of the hassles.
When you’re ready to protect your home in South Dakota for the right price, download Jerry and they’ll take care of the rest. 
“It never occurred to me to look for more insurance quotes, but I’m so happy I saw
. After using the app, I am saving $2000+ a year through my new Progressive plan. It blew my mind!” —Jarod M.  


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