South Dakota Homeowners Insurance

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Homeowners Insurance in South Dakota: Complete Consumer Guide

If you’re a homeowner or are thinking of becoming one in South Dakota, we have some interesting trivia about the state that may interest you. For instance did you know that Tom Brokaw, President Hubert Humphrey and Laura Ingalls Wilder are from South Dakota? This state also produces the most hay, sunflowers, honey, soybeans, corn, wheat and cattle than any other. South Dakota is also nicknamed the Mount Rushmore State because the Black Hills National Forest is home to the famous carvings of American presidents. These hills also house the world’s largest sculpture, of Crazy Horse, a Sioux Indian chief. The sculpture is 563 feet high and 641 feet long! Tourism is big in this state, and not just because of Mount Rushmore. Visitors from all over the world flock here to see Native American culture, the Old West, prairies and caves. “Dakota” is the Sioux word for “friends.” The world’s only corn palace is located in Mitchell, South Dakota and it’s made of 2500 bushels of corn. You can visit Clark, South Dakota if you want to see a mashed potato wrestling contest.

Types of policy for Homeowners Insurance in South Dakota

There are several types of Homeowners Insurance policies, as well as Renters and Condo Insurance. For our purposes, we’ll list only Homeowners and Condominium Insurance.

HO-1- The Basic Form is not very commonly sold. It is the most limited in terms of coverage but it’s also the most inexpensive type of protection. Belongings are covered at actual cash value and a policy protects you against 10 common perils: fire/lightning, windstorm/hail, explosion, riot/civil commotion, aircraft, vehicles, smoke, vandalism, theft and falling objects. Not that by vehicles, we mean damage done to the home with a vehicle.

HO-2- The Broad Form is more common than the Basic Form but still not sold as commonly as an HO-3. With this type of protection, you are covered at replacement cost. You’re also covered for all the perils listed in HO-1 plus the following: weight of ice, snow or sleet; accidental discharge of water or steam; sudden and accidental malfunction of built-in appliances or systems; freezing; sudden and accidental damage from an artificially generated electrical current; and volcanic eruption.

HO-3- Special Form is the most common type of homeowners insurance sold in South Dakota. It is an all-risks coverage for dwelling and personal property. This means that your home is protected against all risks except those explicitly stated in the policy. Commonly excluded perils include earthquake, flood, ordinance or law, war, power failure, intentional loss and more.

HO-4 Contents Broad Form is for Renters

HO-5- Comprehensive Form is a more inclusive policy than an HO-3 to protect your home and personal belongings with higher coverage limits for more expensive homes or homes with fine jewelry, furs or expensive electronics and equipment.

HO-6 Unit Owners Form is for condo owners and co-op owners. This is separate from HOA insurance. You’ll need dwelling coverage in condo policy to cover upgrades, personal property, loss of use, personal liability and other coverages associated with losses in a condo.

HO-8 is the Modified Coverage Form for homes that don’t meet insurer standards required for most homeowners insurance. Older homes are often covered with this type of home insurance.

What factors affect rates on homeowners insurance in South Dakota?

Severe storms are a concern in South Dakota so having a home that’s made with sturdy materials is a plus. Construction type is the most heavily weighed factor in determining home insurance rates. Is your home flame resistant? Will it withstand storms? Other factors that will affect your rate include: the location and claims history in the area; the age of the home and the upgrades that went into it; the replacement cost of rebuilding that house; swimming pools and trampolines; and home businesses that have expensive equipment and inventory.

Top 5 disasters in the State of South Dakota

South Dakota federally declared Severe Storms as the most common disaster with 29 counts since 1953, followed by Fire, Flood, Biological, and Snow disasters. Here are the top 5 disasters in the State of South Dakota:

Rank Declaration Title Disaster Number


Severe Storms














Source: Federal Emergency Management Agency (FEMA)


How much is homeowners insurance in South Dakota?

The average homeowners insurance policy costs $898 a year.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is South Dakota a safe state?

2019 Crime in South Dakota Crime Number Crime Rate*

Property Crime









*Rate per 100,000 inhabitants

Safest Cities in South Dakota by Property Crime*

  • Brandon, SD has a population of 10,244 with a Property Crime rate of 2.6 per 1k. The city average home value is approximately $268,722.
  • Brookings, SD has a population of 24,823 with a Property Crime rate of 12.7 per 1k. The average home value there is about $208,414.
  • Watertown, SD came in third as the safest city in the state of South Dakota and has a population of 22,233 with a Property Crime rate of 16.5 per 1k. Its home value averaged at about $164,942.
  • Vermillion, SD has a population of 10,833 with a Property Crime rate of 19.3 per 1k. Its average home value is $178,239.
  • Box Elder, SD has a population of 10,077 with a Property Crime rate of 21.4 per 1k. The city home value averaged $233,555.

*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

Compare Home Insurance Rates in South Dakota

Top homeowners insurance companies in South Dakota

Auto-Owners Insurance offers some of the lowest rates in homeowners insurance in South Dakota and a 6 out of 24 J.D. Power ranking. They are rated A++ (superior) by A.M. Best for financial strength.

State Farm offers homeowners policies with an average cost under $1,800 in South Dakota, and it’s been rated A++ (superior) by A.M. Best. They rank 5 out of 24 by J.D. Power.

USAA is always a cost-saving option for military families, with home insurance rates at around $1300 on average. J.D. Power ranked them 1 out of 24 and A.M. Best rated them A++ for financial strength.

South Dakota Home Insurance FAQs

Does South Dakota home insurance cover pipe replacement?

For broken pipes that collapse very suddenly, you may be covered. However, if there is water damage from a leaky or rusty pipe, it will be considered poor maintenance and may not be covered. For other plumbing issues, you may also want to consider buying what’s called Sewer Backup Coverage. It isn’t included in most standard policies unfortunately.

How to reduce homeowner insurance premiums?

If you improve your credit your homeowners insurance rate will go down. You can also save on premiums by increasing the deductible, which you will have to pay if you file a claim. The higher the deductible, the lower your monthly premium. But choose wisely, because there’s nothing worse than going broke filing an insurance claim.

Is a shed covered by homeowners insurance in South Dakota?

In most instances, a shed will be covered by your homeowners insurance. However, it’s important to speak with your agent to make sure that other structures, like sheds and garages, are covered by your specific policy type.

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