Homeowners Insurance in South Dakota
Checked against official sources · Last reviewed October 13, 2026
South Dakota has no FAIR plan, and its insurance code has no chapter creating one. If no licensed insurer will cover your home, a surplus lines insurer may, through a licensed surplus lines broker. An insurer must mail or deliver a nonrenewal notice at least 30 days before your homeowners policy renews and a cancellation notice at least 20 days ahead, with the specific reasons. After the first 60 days, it can cancel only for reasons listed in state law. The Division of Insurance notes that insurers are otherwise "free to non-renew" in most cases. [1][2][3][4][5][6][7][8]
At a glance
- Notice before nonrenewal
- At least 30 days before the renewal date (SDCL 58-1-15) [5]
- Notice before cancellation
- At least 20 days, with a written explanation of the specific reasons (SDCL 58-33-60) [6]
- Complaint deadline for an improper cancellation
- File with the Division within 60 days after the cancellation date (SDCL 58-33-62) [11]
What homeowners insurance costs in South Dakota: average premium, 2023 $1,614 a year in South Dakota vs. $1,737 countrywide · 23rd highest of 51 · All states (HO-3 policies; NAIC)
On this page
South Dakota's market right now
The Division of Insurance's homeowners page says this about nonrenewals: "Under most circumstances, companies are free to non-renew insurance policies. If someone has had multiple claims or the potential for additional claims, the company will often non-renew a policy."
The homeowner notice laws were last amended in 2001 (the 30-day nonrenewal rule, SDCL 58-1-15) and 1999 (the 20-day cancellation notice, SDCL 58-33-60).
Rate and form filings that have received final disposition are public. The Division points to the SERFF Filing Access site from its rate filing access page, and its consumer page invites comments on proposed rate increases at sdrateincreases@state.sd.us. [5][6][8][10][12]
Can't find insurance? No FAIR plan in South Dakota
A FAIR plan is a state-created pool that sells basic property insurance when regular insurers won't. The member list of the Property Insurance Plans Service Office (PIPSO), the national group of these plans, includes none for South Dakota (checked Oct. 13, 2026), and South Dakota's insurance code (Title 58) has no chapter creating one.
What the Division offers instead:
- It can "provide resources to access companies or producers licensed to sell insurance in South Dakota." Its consumer information page links to a license lookup to verify that a producer or company is licensed in South Dakota. - On lowering premiums, it suggests raising your deductible if you can afford it, dropping coverage extras you don't need, keeping your credit in good standing, and discussing other changes with your insurance producer (agent). - Call the Division at (605) 773-3563.
Surplus lines. If coverage "cannot be procured from authorized insurers," state law lets a licensed surplus lines broker place it with an insurer not licensed in South Dakota. The full amount must not be available "after diligent effort has been made" from licensed insurers writing that kind of insurance in the state. The Division says surplus lines brokers "must obtain at least 3 declinations before placing business in the surplus lines market." State law also sets financial tests for the insurer, generally capital and surplus of at least $15 million. See our surplus lines guide. [1][2][3][4][8][9][10][13][14]
South Dakota's FEMA disaster record since 2000
Federal disaster declarations for South Dakota, counted from FEMA's official declarations data. A "major disaster" declaration brings federal recovery aid; a "fire management" declaration helps pay to fight a wildfire that threatens homes.
Most recent
- Severe Storms, Straight-Line Winds, And Flooding Severe Storm · Major disaster · declared 2026-09-01
- Severe Storms, Straight-Line Winds, Tornadoes, And Flooding Severe Storm · Major disaster · declared 2026-09-01
- Straight-Line Winds Straight-Line Winds · Major disaster · declared 2026-04-07
- Qury Fire Fire · Fire management · declared 2026-03-13
- Severe Storm And Flooding Flood · Major disaster · declared 2025-09-11
- Severe Storm, Straight-Line Winds, And Flooding Severe Storm · Major disaster · declared 2024-11-01
Source: FEMA OpenFEMA Disaster Declarations Summaries, downloaded 2026-10-14. Each declaration counted once, however many counties it covers. Flood history and flood insurance: FloodHawk.
Hail, wind and wildfire in South Dakota
Hail, thunderstorm wind and tornado reports
Severe weather reports logged by the National Weather Service in NOAA's Storm Events Database, July 2025 to June 2026 (the latest 12 months NOAA has published), next to the yearly average for 2016 to 2025.
Largest hail in those 12 months: 4.5 inches, Todd County, July 20, 2025.
Most reports of 1-inch-plus hail, 2016–2025: Pennington (515), Meade (243), Custer (206), Lawrence (149), Harding (106).
Source: NOAA NCEI Storm Events Database, downloaded October 14, 2026. NOAA adds each month about 75 to 90 days after it ends. Tornadoes are counted in NOAA's segments: one that crosses a county line counts once per county, and one that briefly lifts and touches down again can count twice. Reports depend on people seeing and reporting storms, so busier areas log more of them: these counts show how often storms are reported, not the risk to any one home.
Wildfire
Homes in South Dakota have, on average, greater wildfire risk than 64% of states, and greater wildfire likelihood (the chance of a wildfire burning in any given year) than 66% of states, according to the USDA Forest Service.
Of South Dakota's 707,870 buildings, 54% are in the Forest Service's direct exposure zone (they may be ignited by flammable vegetation next to them, as well as by embers), 15% in the indirect exposure zone (embers or a neighboring burning building), and 32% have minimal exposure.
Source: USDA Forest Service, Wildfire Risk to Communities (state data table updated April 15, 2026). The Forest Service says its ratings describe communities, not individual homes; they don't reflect work owners have done to lower their risk, and the tool isn't designed for insurance companies, which do their own wildfire assessments.
| Year | Fires | Acres |
|---|---|---|
| 2021 | 868 | 43,620 |
| 2022 | 527 | 42,148 |
| 2023 | 177 | 945 |
| 2024 | 675 | 35,809 |
| 2025 | 458 | 52,775 |
Source: National Interagency Coordination Center annual reports (table "Wildland Fires and Acres Burned by State and Agency", from the SIT/209 reporting system). Each year counts only the agencies listed for South Dakota in that year's table, so a big change between years can come from which agencies reported.
2026 so far: 59,423 acres burned in wildfires reported to the national interagency fire-incident system (IRWIN) for South Dakota, as of October 14, 2026. Preliminary: from NIFC's year-to-date wildfire locations (WFIGS), which doesn't include every state and local fire and isn't comparable to the annual totals above.
If your insurer won't renew
Under SDCL 58-1-15, a notice that your insurer won't renew a homeowners policy (including a standard homeowner's package, renter's package or homeowner's multiple peril policy) "is not effective unless mailed or delivered by the insurer to the named insured at least thirty days before the effective renewal date."
- No notice is required if you are moved to another insurer in the same insurance group and get notice of the transfer on the Division's form. - The law doesn't list allowed reasons for a nonrenewal. The Division says companies often nonrenew after multiple claims or the potential for more. - Many other policies get more notice: SDCL 58-1-14 requires 60 days, but it specifically excludes homeowners policies and other personal lines policies.
See our nonrenewal guide. [5][8][15]
If your insurer cancels mid-term
South Dakota's cancellation law (SDCL 58-33-59 to 58-33-65) covers property insurance, including homeowners policies. It does not cover auto policies.
- Notice: at least 20 days before the cancellation date, with "a written explanation of the specific reasons for the cancellation." - Reasons: once the policy has been in effect 60 days, an insurer may cancel only for: nonpayment of premium; fraud or material misrepresentation in getting or keeping the policy or in a claim; acts or omissions by you that increase a hazard insured against; a change in the risk that substantially increases a hazard; a fire, health, safety, building or construction code violation that substantially increases a hazard; a finding by the Division director that continuing the policy would jeopardize the company's solvency or violate state insurance law; violation or breach of the policy's terms or conditions; or "such other reasons as are approved by the director."
If you think the cancellation broke these rules, file a complaint with the Division within 60 days after the cancellation date. The director decides whether the complaint is reasonably founded and, if so, sets a hearing. If a final order finds a violation, the director "shall require the insurer to reinstate insurance coverage to the end of the policy period" and may also fine the insurer. [6][7][11][16][17][18][19]
Hail damage and total losses
The Division's homeowners page says:
- If hail damages your roof, "the insurance company is obligated under a replacement cost policy to return you to the condition you were prior to the loss," meaning it has to pay for replacing the damaged roof. - If the company already paid an earlier claim for the same damage, it doesn't have to pay again and may deduct what you received before, even if you never made those repairs. - Some policies let the insurer pay only part of the estimate until repairs are done; after that you submit a final bill for the rest. Most policies also ask that repairs be finished within the time the policy allows.
If a tornado, fire or lightning destroys your home. Under SDCL 58-10-10, when insured real property is "wholly destroyed" by fire, tornado or lightning, without criminal fault by the insured, the amount of insurance written in the policy is taken as the true value and amount of the loss. The Division puts it this way: such property "must be paid at the limits of the policy, regardless of the market value." There are conditions. For example, for a total fire loss the rule applies only if the loss happens 90 days or more after the policy was written, or 90 days or more after you raised the limits by 25% or more, and a claim for an outbuilding or other appurtenant structure is settled under the policy's own terms. Confirm how it applies to your policy with your insurer or the Division. [8][20]
Discounts and grants
The Division does not list any state grant for roofs or other storm upgrades, or a law requiring mitigation discounts, on its homeowners pages (checked Oct. 13, 2026). Its loss-prevention tips say to consider an approved fire and burglar alarm system: "Many insurance companies now offer a premium discount for such devices." For roof standards that some insurers reward in other states, see our FORTIFIED roof guide. [8][21]
Flood is separate
The Division says flood insurance through the National Flood Insurance Program "is different than most homeowner or dwelling policies, which in most cases do not cover flood damage." Our sister site FloodHawk covers flood zones and flood insurance. [22]
Where to get help
South Dakota Division of Insurance, 124 South Euclid Avenue, 2nd Floor, Pierre, SD 57501:
- Phone: (605) 773-3563; for TTY, call 711 - Email: sdinsurance@state.sd.us - Complaints: use "File a Complaint" on the Division's consumer information page.
The Division can help with questions or complaints about your insurance company or producer. It says it cannot act as your lawyer, recommend insurance companies or products, resolve a dispute that is only your word against the company's, or force a company to give you the solution you want "if no laws have been broken." [8][9][10]
Questions people ask
Does South Dakota have a FAIR plan?
No. PIPSO's member list includes no South Dakota plan, and the state's insurance code has no chapter creating one. If licensed insurers won't cover your home, a licensed surplus lines broker may place coverage with a surplus lines insurer after a diligent search of the licensed market. [1][2][3][4]
How much notice must a South Dakota insurer give before not renewing my homeowners policy?
At least 30 days before the renewal date, under SDCL 58-1-15. No notice is required if you are moved to another insurer in the same group with notice of the transfer on the Division's form. [5]
Can a South Dakota insurer cancel my homeowners policy in the middle of the term?
Only with at least 20 days' notice and a written explanation of the specific reasons. After the policy has been in effect 60 days, the reason must be one listed in SDCL 58-33-61, such as nonpayment, fraud, a substantial increase in the hazard, or breach of policy terms. If you believe a cancellation broke the rules, complain to the Division within 60 days after the cancellation date. [6][7][11]
Sources (22)
- Current PIPSO Members and Links of Interest, Property Insurance Plans Service Office (PIPSO). Accessed October 13, 2026.
- South Dakota Codified Laws Title 58, Insurance (chapter list), South Dakota Legislature. Accessed October 13, 2026.
- SDCL 58-32-16 Impossibility of procuring coverage from authorized insurers--Procurement from unauthorized insurers, South Dakota Legislature. Accessed October 13, 2026.
- SDCL 58-32-17 Conditions for export--Amount not procurable from authorized insurers, South Dakota Legislature. Accessed October 13, 2026.
- SDCL 58-1-15 Homeowner's insurance policy defined--Notice of nonrenewal to policyholder required--Timing of notice--Exception, South Dakota Legislature. Accessed October 13, 2026.
- SDCL 58-33-60 Notice of cancellation required--Time--Contents, South Dakota Legislature. Accessed October 13, 2026.
- SDCL 58-33-61 Grounds for cancellation, South Dakota Legislature. Accessed October 13, 2026.
- Division of Insurance: Homeowner's Insurance, South Dakota Department of Labor & Regulation, Division of Insurance. Accessed October 13, 2026.
- Division of Insurance: About Us, South Dakota Department of Labor & Regulation, Division of Insurance. Accessed October 13, 2026.
- Division of Insurance: Consumer Information, South Dakota Department of Labor & Regulation, Division of Insurance. Accessed October 13, 2026.
- SDCL 58-33-62 Complaint of violation to division--Determination of reasonableness--Hearing, South Dakota Legislature. Accessed October 13, 2026.
- Division of Insurance: Rate Filing Access, South Dakota Department of Labor & Regulation, Division of Insurance. Accessed October 13, 2026.
- Division of Insurance: Surplus Lines Insurance Forms and Information, South Dakota Department of Labor & Regulation, Division of Insurance. Accessed October 13, 2026.
- SDCL 58-32-22 Requirements for placing surplus lines insurance, South Dakota Legislature. Accessed October 13, 2026.
- SDCL 58-1-14 Notice of nonrenewal of policy must be mailed sixty days prior to renewal date--Exceptions, South Dakota Legislature. Accessed October 13, 2026.
- SDCL 58-33-59 Cancellation of insurance--Definitions, South Dakota Legislature. Accessed October 13, 2026.
- SDCL 58-9-5 Property insurance defined, South Dakota Legislature. Accessed October 13, 2026.
- SDCL 58-33-63 Reinstatement and money penalty for violation, South Dakota Legislature. Accessed October 13, 2026.
- SDCL 58-33-65 Automobile policies exempt, South Dakota Legislature. Accessed October 13, 2026.
- SDCL 58-10-10 Insurance against fire, tornado, or lightning--Measure of damages where property wholly destroyed, South Dakota Legislature. Accessed October 13, 2026.
- Homeowners Insurance: Tips on Loss Prevention, South Dakota Department of Labor & Regulation, Division of Insurance. Accessed October 13, 2026.
- Division of Insurance: Flood Insurance, South Dakota Department of Labor & Regulation, Division of Insurance. Accessed October 13, 2026.