Sioux Falls is the largest city in South Dakota and is best known for the Big Sioux River and waterfalls that run through the city. If you only spent your time exploring Sioux Falls’ park space and nature trails, you wouldn’t be disappointed. But the Queen City is still South Dakota’s largest, so there are plenty of bars, restaurants, and other attractions and festivals if nature isn’t calling your name. 

Winters in Sioux Falls are long and cold, but the beauty of South Dakota’s seasons far outweighs the colder months. Still, whether you’re new to the Mount Rushmore State or already call Sioux Falls home, it’s important to be prepared for any peril that life in the Midwest can bring.  

Home insurance is the perfect way to stay ahead of Sioux Falls’ storms, and Insurify is here to make sure you get the best coverage at the best cost. Insurify’s homeowners comparison tools help you see your home insurance options side by side to find the best Sioux Falls home insurance policy for you in just a few minutes.

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How to Find Cheap Home Insurance in Sioux Falls

You can easily find a three-bedroom house for around $200,000 in the city, so it makes sense that over 61 percent of Sioux Falls residents own their homes. But owning a home in the Midwest comes with risks, and Sioux Falls is no stranger to tornadoes, hail, and blizzards.

Luckily, home insurance covers the brunt of these storms. Plus, home insurance policies do more than just pay to repair property damage. South Dakota homeowners coverage also includes personal liability protection for your family in case someone is hurt on your property. If you ever have to leave your home while it’s repaired, home insurance covers your living expenses, too. 

The best part is that your policy is specific to your insurance needs, so you never have to overpay for unnecessary coverage.

Keep reading for a full guide on Sioux Falls home insurance

MORE ON SOUTH DAKOTA HOME INSURANCE
For general information on South Dakota home insurance, check our state guide to best South Dakota homeowners insurance.

Cheapest Home Insurance in Sioux Falls by Company

Homeowners insurance rates aren’t always designed with savings in mind. That’s where Insurify comes in.

As of 2021, the average home insurance premium in Sioux Falls costs $3,656 annually, and the median home value is $224,900. 

South Dakota is among the most expensive states to insure a home in, making shopping for home insurance quotes that much more important. Since home insurance costs vary with across top home insurance companies, you can save money simply based on the home insurance provider you choose. Once you know what insurance products, coverage options, and deductibles you need, get a quote with insurers from State Farm to McKinneyOlson to see which local agent offers the best policies and premiums. 

Average Home Cost in Sioux Falls Average Annual Insurance Premium in Sioux Falls
224,900 $3,656

Cheapest ZIP Codes in Sioux Falls for Home Insurance

Home insurance rates are based on ZIP code–specific variables, like your neighborhood’s home values and property crime rates. And since every Sioux Falls neighborhood faces different perils from flooding to home burglaries, they face different home insurance premiums, too. 

Homeowners insurance pricing in Sioux Falls is on par with the national average, but your specific premium will depend on your neighborhood and the location of your home.

Home Insurance Coverage Types in Sioux Falls

There are several types of home insurance. Specific terms of insurance policies may vary by city, but in general, the standard policy types are as follows:

HO-1

Basic

  • The simplest and least comprehensive type of homeowners insurance
  • Provides coverage for a handful of potential problems, including
    • Dwelling coverage for damages from some natural disasters (storms, fires, wind, lightning, volcanic eruption), 
    • explosions, 
    • theft, 
    • damage from vehicles, 
    • or civil commotion. 
HO-2

Broad Form

  • Broad form homeowners insurance policies include all basic form coverage, plus protection from:
    • falling objects, 
    • damage from the weight of ice, snow, or sleet, 
    • freezing of household systems including HVAC and pipes, 
    • sudden and accidental damage to pipes and other household systems from artificially generated electrical current, 
    • accidental discharge or overflow of water or steam,
    • sudden and accidental damage. 
  • HO-2 policies typically cover both dwelling protection and personal property.
  • In some cases, broad form coverage may also include liability coverage. However, it still only covers the specific damages listed in the policy.
HO-3

Special Form

  • The most common form of homeowners insurance is known as a “special form” policy.
  • While HO-1 and HO-2 policies are “named peril” policies (meaning they only cover dangers that are specifically listed in the policy), HO-3 policies are “open peril” policies meaning they’ll cover all dangers except those specifically excluded in the policy documents.
HO-4

Tenant’s Form

  • HO-4 policies, also known as renters insurance, are for people who lease rather than own their homes. 
  • Tenant’s form policies typically cover all the same dangers as HO-2 policies. 
  • These policies include personal property coverage and liability coverage but don’t cover the physical structure of the house. 
  • Some HO-4 policies may also include loss of use coverage for the tenants.
HO-5

Comprehensive

  • Comprehensive form policies are usually the broadest and provide the highest level of coverage; not surprisingly, they also tend to be the most expensive type of homeowners insurance policies.
  • The biggest difference between HO-3 and HO-5 policies is that most HO-3 policies are “actual cash value” policies, whereas typically HO-5 policies are “replacement cost value” policies.
  • An actual cash value policy will only reimburse you for the actual value of a damaged or destroyed item, while a replacement cost value policy will reimburse you for however much it would cost to completely replace or repair the damaged or destroyed item (up to the coverage limits on the policy). 
  • HO-5 policies also provide personal property coverage against a wider range of dangers than the typical HO-3 policy. Many HO-5 policies also have extra coverage for high-value personal property, such as jewelry and artwork.
HO-6

Condo Form

  • Not surprisingly, condo form insurance is for condominium owners. HO-6 policies generally protect against the same types of dangers as HO-3 policies. 
  • They provide dwelling protection coverage with a twist: HO-6 policies cover the walls, floors, and ceiling of the condo unit but not the rest of the building. 
  • These policies also include personal property and liability coverage and may include loss of use coverage.
HO-7

Mobile Home Form

  • If you own a mobile home or manufactured home, you likely have an HO-7 policy. 
  • Mobile home form policies are typically identical to HO-3 policies, except they’re designed specifically for mobile and manufactured homes.
  • Like HO-3 policies, they provide dwelling protection coverage, other structures coverage, personal property coverage, liability coverage, and possibly loss of use coverage as well. 
  • HO-7 policies generally only protect the home when it’s stationary; if you plan to move your mobile or manufactured home, you’ll need to get a special policy to cover it while it’s in transit.
HO-8

Older Home

  • Older homes have generally been built to less stringent code standards than recently built homes, and so insurers have designed a specialized type of homeowners insurance policy for them. 
  • HO-8 policies often only cover the basic perils listed in HO-1 policies and generally apply to homes that are registered landmarks or otherwise deemed historic homes. 
  • Owners of registered landmarks are typically forbidden from making the updates to HVAC, electrical, and other parts of the home that would enable them to qualify for a standard HO-3 policy, so an HO-8 policy is often the only option for them.

Preparing for Sioux Falls Flooding

The Big Sioux River puts many homes at risk of flooding each year. Levees help offset these potential floods, but melting snow and rainfall also cause flooding in the city. The Federal Emergency Management Agency recognizes most areas around the river as flood hazard zones. 

Home insurance policies list flood damage as an exclusion, so you’ll need additional coverage to completely protect your home. Sioux Falls participates in the National Flood Insurance Program (NFIP), which provides flood insurance to even the highest-risk homes, so you can purchase an NFIP policy through your private insurer. These policies come at higher premiums for higher-risk properties, but the coverage will still help you save on costly flood repairs. Most flood insurance policies have a 30-day waiting period, so make sure you purchase coverage well before the next storm.

Protecting Your Home in Tornado Alley

South Dakota is at the northernmost end of Tornado Alley, and the state has experienced an average of 26 tornadoes per year since 1950. Sioux Falls residents may never forget when the city experienced three tornadoes within a four-minute span in 2019. 

Most home insurance policies cover wind and hail damage, which includes tornadoes. But if your policy excludes wind damage or you’re looking to fill gaps in your coverage, talk to your insurance agent about your wind and hail options. Some insurers offer separate wind and hail deductibles so homeowners can have the coverage they need without purchasing a separate wind policy. Depending on your home’s risk, you might benefit from tornado insurance, but make sure to check with your provider before paying for coverage you don’t need.

Owning a home can be overwhelming. Insuring your home doesn’t need to be.

Frequently Asked Questions - Sioux Falls Home Insurance

Which Sioux Falls home insurance company has the best customer service?

Customer service is key when insuring a home in a high-risk state like South Dakota. After comparing companies and costs with Insurify, check out the insurance companies’ J.D. Power ratings to find which insurer has the best customer service.

Does home insurance in Sioux Falls cover snow and ice damage?

Yes, most basic home insurance policies cover property damage caused by snow and ice. Some policies cover winter weather differently depending on the damage. You might be covered if the weight of snow causes your roof to collapse, but your policy may not cover water damage from melted snow, for example. Check your policy or ask your agent to find out how your policy covers winter weather.

Is bundling your car insurance worth it?

Bundling your home and auto insurance simply means that you’re buying both policies through the same insurer for cheaper premiums. If you need car and home insurance and your insurer offers the coverage you need with a bundling discount, bundling your policies is definitely worth it.

Conclusion: How to Find the Cheapest Home Insurance in Sioux Falls

Life in Sioux Falls has its fair share of risks and cold weather, but if you can bear the brutal winters, you’ll love your life in the small, beautiful city. Use Insurify’s to compare home insurance quotes to find the perfect Sioux Falls home insurance policy for you. It’ll cost you a few minutes now but will help you save for years to come. 

Compare Sioux Falls Home Insurance Quotes in Two Minutes

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Browse, compare, and secure home insurance with Insurify today! 

Yep, it’s that easy.  

Updated February 1, 2021

Jacklyn Walters is a freelance writer for Insurify. Jacklyn has a background in journalism and is passionate about informing and serving others through writing. In her spare time, Jacklyn enjoys running, practicing yoga, and writing music.