Homeowners Insurance in Madison, SD

Experts break down homeowners insurance costs, coverage, companies, and more in Madison, SD.

Ann Herro, Insurance Expert Written by Ann Herro
Ann Herro, Insurance Expert
Written by Ann Herro

Ann Herro has been writing about insurance and employee benefits for over 15 years. She has covered topics as easy as insuring a car, and as difficult as transparency in healthcare costs.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Large circular asphalt driveway in front of home. Madison, South Dakota Homeowners Insurance.

Madison is a city in Lake County, SD, 50 miles southwest of Sioux Falls between Lake Herman and Lake Madison. In addition to abundant recreation and scenery, Madison, SD is home to Dakota State University. 

Madison, SD has over 6,000 residents. Any home in Madison can sustain damage after a fire, a severe weather event, or even a break-in or vandalism. 

If you are a homeowner in Madison, SD, the best way to protect yourself from the financial consequences of major disasters and even everyday events is to purchase a reliable homeowners insurance policy.

A local independent insurance agent can help you shop for the best homeowners insurance in Madison, SD.

What Is Homeowners Insurance?

Homeowners insurance is a type of personal insurance that protects you from property damage costs. Suppose your home is damaged or destroyed by a fire, storm, tornado, burglary, or another catastrophic event. In that case, your Madison, SD homeowners insurance should cover repairing or rebuilding your home and replacing damaged possessions.

Homeowners insurance also provides liability insurance, which protects you if you or a family member causes property damage or injuries to a third party.

What Does Homeowners Insurance Cover in Madison, SD?

Home insurance in Madison, SD, includes the following types of property coverage:

  • Dwelling coverage: Pays to repair and rebuild your damaged or destroyed home.
  • Contents coverage: Pays for damage to your insured personal property, such as furniture, clothing, artwork, and so on.
  • Other structures coverage: Covers any detached structures on your property (e.g., sheds, fences, detached garages).
  • Loss of use coverage: Pays for additional living expenses (hotel bills, food, etc.) if you are forced to live somewhere else while your home is being repaired.

It’s important to have sufficient dwelling coverage to repair or rebuild your house and enough contents coverage to repair or replace all of your personal property fully. 

Homeowners insurance in Madison, SD also includes homeowners liability coverage. It protects you when someone claims you have caused an injury or property damage. It covers an injured party’s medical expenses, property damage costs, and even court costs, legal fees, and other related expenses if you are sued.

What Isn't Covered by Homeowners Insurance in Madison, SD?

Homeowners insurance in Madison, SD covers many problems that homeowners can encounter. But one major concern for many homeowners that it does not cover is flood damage.

Flooding can be a problem in some areas of South Dakota. In fact, it is one of the top five risks for homeowners in the state. Madison has only a minor risk of flooding over the next 30 years, which means flooding is not likely to impact day-to-day life within the community. But there are 350 properties in Madison that have a greater than 26% chance of being severely affected by flooding over the next 30 years.  

You can discuss if you need to purchase flood insurance to supplement your home insurance policy with your insurance agent. 

When you buy a flood insurance policy through the National Flood Insurance Program (NFIP), you can affordably get up to $250,000 in structural coverage and $100,000 in contents coverage for your home.

The liability coverage in your homeowners insurance policy also has certain limitations. If you hurt someone because of an intentional act, your liability coverage will not cover you. You can find all the exclusions to your liability coverage in your policy documents.

And remember, almost all homeowners insurance policies in Madison, SD will exclude coverage for property damage caused by the following:

  • Ordinance or law (e.g., demolition or construction required to bring your house up to code)
  • Earth movement (e.g., earthquakes, sinkholes, landslides)
  • Water damage due to floods, sewer back-ups, and water that seeps through the foundation
  • Power failure
  • Neglect
  • War
  • Nuclear hazard
  • Intentional acts
  • Governmental action (e.g., destruction, confiscation, or seizure of covered property by any governmental or public authority)
  • Loss to property resulting from faulty zoning, bad repair or workmanship, faulty construction materials, or defective maintenance.

It's essential to understand your policy's exclusions when purchasing your homeowners insurance.

How Much Does Homeowners Insurance Cost in Madison, SD?

South Dakota is the 21st most expensive state for homeowners insurance in the US, with average premiums slightly lower than the national average. 

  • National average annual homeowners insurance premium: $1,211
  • South Dakota average annual homeowners insurance premium: $1,202

Everyone’s homeowners insurance costs are a little different because insurance costs are based on your individual home's characteristics and the amount of coverage you need. That means your home insurance premiums will be more or less than the average for your city. 

Some of the individual risk factors used to calculate homeowners insurance rates include the type of home you are insuring; the age, size, and value of your home; and the materials used to construct your home. 

Insurance companies also evaluate other risk factors, such as: 

  • Your claims history and credit score
  • The crime rate and weather risks in your city or ZIP code

The amount of coverage you need and the deductibles you choose also impact your rates. Most insurance companies offer various home insurance discounts to help you save. 

The best way to ensure that you get the best price is to shop around. An independent insurance agent can get quotes from multiple insurance companies, so you can compare costs and coverage and make the best choice for your needs and budget. 


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What Common Disasters and Claims Are Covered by Homeowners Insurance in Madison, SD?

Homeowners in Madison, SD can experience a variety of disasters and other reasons to file an insurance claim. South Dakota has experienced 83 federally declared disasters since 1953. The top five risks for homeowners in South Dakota are:

  • Severe storms and lightning damage
  • Flooding and water damage
  • Fires
  • Heavy snow
  • Burglary and other property crimes

Most of these are generally covered by homeowners insurance in Madison, SD, except for flood damage.

If you experience a break-in, burglary, or another property crime, it's good to know that your home insurance can help you recover from your loss. While burglaries and property crimes occur in South Dakota, the statewide burglary rate is lower than the national average.

  • Number of burglaries per 1,000 people in the US: 3.76
  • Number of burglaries per 1,000 people in South Dakota: 2.91

If you experience a break-in, a reliable homeowners insurance policy can quickly help you get back on your feet. It helps you pay for damage to your home, as well as repairing or replacing stolen or damaged possessions. 

Cheap Homeowners Insurance near Me

Finding the best rate on home insurance in Madison, SD is essential to staying within your budget. But simply buying the cheapest homeowners insurance near you can also lead to problems down the road.

The best way to approach your search for homeowners insurance is to shop around, not just for the cheapest policy, but also for the policy that offers the best coverage to protect your home and fits your budget.

If you don't have enough homeowners insurance when something goes wrong, the financial consequences could be far more devastating than spending a few extra dollars a year to ensure adequate coverage.

Many factors influence the cost of your homeowners insurance, from how claims reimbursements are calculated to whether certain types of losses are covered. You can usually offset better coverage by choosing higher deductibles. 

The best strategy is to discuss these issues with your independent insurance agent before deciding which policy offers the best value for your needs and budget.

What Are the Best Homeowners Insurance Companies in Madison, SD?

Finding the best homeowners insurance companies in South Dakota can be simple. A local independent insurance agent can help you get home insurance quotes from multiple insurance companies so that you can select the best policy for your needs and budget.

How Can an Independent Insurance Agent Help Me Find the Best Homeowners Insurance in Madison, SD?

Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs. Your agent will work with you free of charge, offering you a variety of options so you can make the best choice. 

What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.

Contact an agent today for a free, no-obligation consultation.

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