Landlord Insurance in South Dakota: Costs, Requirements & Best Providers
Landlord insurance in South Dakota costs well above the national average. The homeowners benchmark is $3,965 a year, and a landlord (DP-3) policy typically runs about $4,550 to $4,950. Hail and wind are the main reasons, with blizzards and spring flooding close behind. Your landlord insurance quote will hinge on your roof's age and material, so have that ready before you shop.
By LandlordTested editorial teamPrices checked
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What landlords pay in South Dakota
- Homeowners benchmark
- $3,965 a yearAbout $330 a month; 59% above the $2,490 national average.
- Estimated landlord policy
- $4,550-$4,950 a yearLandlord (DP-3) cover typically runs 15-25% above homeowners cover on the same building. Your quote will differ.
- Main hazards
- Hail, Blizzard, Tornado, Wind, Flood
- Not included
- Flood and earthquakeBoth need separate policies (NFIP or private flood; earthquake endorsement or policy).
Source: NerdWallet, 2026 homeowners (HO-3) median, $400,000 dwelling cover
Landlord insurance providers in South Dakota
Both write landlord policies in all 50 states and quote online. Neither publishes prices, so the only way to know your premium is to get a quote for your address.
- 1
Steadily
Our pickSingle-family and 2-4 unit rentals, including vacant and short-term.
8.5/10 provisionalPrice
Quote-based
Pros, cons and who should skip itHide details
Good
- Covers all 50 states.
- Fast online quotes.
- Writes vacant and renovation properties too.
Watch out
- Mixed claim experiences, including wear-and-tear denials.
- Underwritten through a carrier some lenders have queried.
- Flood needs a separate policy.
Skip it if
Anyone who wants a local agent sitting across the desk.
- 2
Obie
Investors with several properties; portfolio policies available.
8.1/10 provisionalPrice
Quote-based
Pros, cons and who should skip itHide details
Good
- All 50 states plus DC.
- Portfolio (blanket) policies for several rentals.
- Covers short-term rentals and renovations.
Watch out
- Claims run through third-party administrators.
- Some reports of non-renewal after claims.
- Support is mostly email.
Skip it if
Landlords who want claims handled by the company they bought from.
Prices checked Oct 18, 2026. Scores are provisional until our account tests are done.
Want to see how South Dakota compares? We keep a table of landlord insurance rates by state, with the method behind every figure.
On this page
Hail sets the price in South Dakota
South Dakota sits in one of the most active hail corridors in the country. Storms roll across Sioux Falls, Rapid City, Aberdeen, Watertown and Brookings from late spring through summer, and the resulting roof, siding and window claims are the main reason premiums run well above the national average. Straight-line winds and tornadoes add to the total.
Check three roof terms before you compare quotes
Two quotes with the same premium can pay very differently after a hail storm. Look for:
- The wind and hail deductible. Often a percentage of the dwelling limit. On a $250,000 limit, 2% is $5,000.
- Roof settlement. Replacement cost pays to replace the roof; actual cash value subtracts depreciation, which on an older roof can be most of the cost.
- Cosmetic damage exclusions. These skip dents in metal roofing, siding or gutters that don’t let water in.
Blizzards, cold and vacant units
Winter brings blizzards, ice and long stretches below zero. Frozen pipes are the common rental claim, especially in a unit sitting empty between tenants. Dwelling policies typically exclude freeze damage if heat wasn’t maintained, and coverage tightens once a unit has been vacant for a set period, often 60 days. Keep the furnace on and have someone walk through the unit weekly.
Flood: east river and west river
East of the Missouri, spring snowmelt and heavy rain flood the James and Big Sioux rivers. West River, the 1972 Rapid City flood remains one of the deadliest in the state’s history. Landlord policies cover neither. Flood coverage comes through the National Flood Insurance Program or a private flood insurer. In the Black Hills, add wildfire to the list of risks insurers will ask about.
What your lender will require
Lenders require a landlord (dwelling) policy, not homeowners, with the lender named as mortgagee and dwelling coverage at least equal to the loan or the rebuild cost. Flood insurance is required on federally backed loans in a mapped high-risk zone. Some lenders cap the deductible they’ll accept, which can rule out a high percentage wind and hail deductible.
Ways to bring the premium down
- Install Class 4 impact-resistant shingles when the roof is due and get the discount in writing.
- Keep dated roof records and photos to support claims and underwriting.
- Raise your all-perils deductible to $2,500 if your reserves allow.
- Add low-temperature and leak sensors in each unit.
- Insure multiple rentals together. Obie offers portfolio policies, and Steadily writes small multifamily.
South Dakota deposit rules
Under S.D. Codified Laws § 43-32-6.1 and § 43-32-24, the deposit is generally capped at one month’s rent, with more allowed under special conditions such as pets. You must return it within two weeks after the tenancy ends, and provide an itemized accounting within 45 days if the tenant asks. Tenant damage under your policy deductible has to come from that deposit or from you.
Questions landlords ask
The questions we get most, each answered in a paragraph.
How much is landlord insurance in South Dakota?
South Dakota's homeowners benchmark is $3,965 a year for $400,000 of dwelling coverage (NerdWallet 2026). Landlord policies typically cost 15% to 25% more, or about $4,550 to $4,950. Many South Dakota rentals are insured for less than $400,000, so a duplex in Sioux Falls or a house in Aberdeen may quote lower. A quote on the actual property is the real number.
Does landlord insurance cover hail damage in South Dakota?
Yes, hail is a covered peril on a landlord policy. What you get paid depends on your deductible and roof terms. Many policies carry a separate wind and hail deductible as a percentage of the dwelling limit, and older roofs may be paid at actual cash value, which subtracts depreciation. Some policies also exclude cosmetic damage that doesn't cause leaks.
Do I need flood insurance for a Sioux Falls rental?
It's worth pricing. The Big Sioux River flooded parts of southeastern South Dakota in June 2024, and spring snowmelt floods are a recurring risk across the eastern half of the state. Landlord policies exclude flood. NFIP coverage usually takes 30 days to start, so buy it well before spring.