South Dakota Homeowners Pay Mid-Range Insurance Costs In The Country

South Dakota homeowners face mid-range insurance premiums compared with the rest of the U.S.

While not as expensive as neighboring Nebraska or Tornado Alley states, South Dakota’s costs are higher than those of many Midwestern neighbors.

New data from the U.S. Census Bureau and the 2025 Climate Risk Report help explain where South Dakota stands in the national picture.

South Dakota’s Insurance Costs in Context

According to the American Community Survey (ACS) data from the U.S. Census Bureau, South Dakota homeowners with a mortgage typically pay $1,500–$1,999 annually for homeowners insurance, while those without a mortgage average $1,000–$1,499. Overall statewide costs fall into the $1,500–$1,999 range.

South Dakota has 261,078 insured homeowner households in total—142,522 with a mortgage and 118,556 without. Among mortgaged owners, 16,322 pay less than $100 annually and 12,336 pay $4,000 or more. Among those without a mortgage, 29,579 pay less than $100 and 6,500 pay $4,000 or more.

Compared with nearby states, South Dakota sits in the middle. North Dakota homeowners with a mortgage also average $1,500–$1,999, while Montana falls into the same range. Nebraska, by contrast, is much more expensive, averaging $2,000–$2,499. Iowa and Minnesota are slightly cheaper, at $1,000–$1,499 and $1,500–$1,999, respectively. This makes South Dakota a mid-range state within the Upper Plains, more affordable than some high-risk neighbors but not as cheap as others.

Climate Risks Across the Region

The Climate Risk Report underscores how climate exposure drives up premiums in certain states. Miami leads the U.S., with average annual premiums of $22,718, or 3.7% of median home value. Florida metros like Cape Coral, Sarasota, and Tampa also dominate the list of the most expensive markets.

South Dakota does not appear in the report’s list of metros with the steepest insurance burdens, nor does it rank highly for flood, hurricane, or wildfire exposure.

However, the state faces frequent hailstorms, tornadoes, and severe winter weather, which is likely why the state land on the Insurify list of Home insurance rates are expected to rise across the country by the end of the year, with the projected increase slate for 13% overall in 2025.

A National Affordability Challenge

Even though South Dakota’s insurance costs are mid-range, affordability pressures are a national issue. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already experienced difficulties renewing or obtaining coverage.

These challenges are already shaping homebuying decisions. Nearly 30% of buyers said they had completely changed the areas where they were searching because of insurance concerns, while another quarter reported overhauling their strategies altogether. A recent analysis of migration patterns shows that some households are relocating to areas with the lowest home insurance premiums, shifting demand across state lines.

Even more alarming, 58% of homeowners nationwide said they would consider dropping coverage if costs rose too high, with younger buyers especially likely to take that risk.

South Dakota’s Outlook

For South Dakota households, premiums fall in the middle of the national range, but affordability remains an ongoing concern. With severe weather continuing to affect the Plains, residents may want to use a home insurance comparison tool to evaluate coverage options. Costs may rise further in the years ahead, narrowing the gap between South Dakota and its higher-cost neighbors.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.