Best homeowners insurance in Chicago in 2022

Rising home values and Chicago’s vulnerability to extreme weather, such as heavy snow, strong winds and flash flooding, can mean higher homeowners insurance premiums. The average cost of home insurance in Chicago is $1,708 per year for $250,000 in dwelling coverage. In comparison, the average home insurance premium in Illinois is $1,376 per year for the same level of coverage.

Your home is likely one of the most significant investments you’ll make in your lifetime, and it’s generally essential to have the financial protection a homeowners insurance policy can offer. Bankrate’s mission is to help new and existing homeowners navigate coverage options to find the cheapest and best homeowners insurance in Chicago. Using criteria including 2022 rates from Quadrant Information Services, customer ratings and carrier offerings, Bankrate found four companies that deliver some of the best homeowners insurance in Chicago.

Best home insurance companies in Chicago

The table below includes the best homeowners insurance carriers in Chicago. These providers stand out for below-average rates, generous discounts, comprehensive coverage options, good J.D. Power customer satisfaction ratings and strong financial stability.

*USAA does not qualify for official ranking with J.D. Power due to eligibility restrictions

State Farm

State Farm is the largest home insurance company in the country, with 18% of the total market share. State Farm is a popular choice for home insurance in Chicago because of its cheap rates and availability. The average Chicago homeowner pays just $1,215 per year for a policy with $250K in dwelling coverage.

In addition, State Farm offers discounts that can help lower your premium, especially when it comes to policy bundling. Customers who insure their home and vehicle with State Farm save up to $1,127 per year. State Farm also has discounts for having a home security system and an impact-resistant roof. However, State Farm did score the lowest out of the rated companies on this list in J.D. Power’s U.S. Home Insurance Study.

Learn more: State Farm Insurance review

Hastings Mutual

Hastings Mutual is a regional insurance provider that offers basic home insurance coverage. Despite the limited coverage options, Hastings Mutual has very affordable policies, with an average premium of $1,244 per year for $250,000 in dwelling coverage. Aside from low rates, Hastings Mutual also offers additional savings opportunities, including discounts for new homes, homes with fire and burglar alarms, homeowners that are 50 years of age or older and a credit for carrying more than one type of policy with the company.

American Family

American Family’s home insurance premiums can be more expensive, but Chicago homeowners get access to good coverage options and discounts. American Family offers all the standard coverages, plus coverage options for matching siding protection, credit theft coverage, equipment breakdown coverage and flood insurance. You can also use the coverage calculator to determine how much coverage is right for you.

In terms of discounts, American Family offers savings for bundling your policies, enrolling in autopay, paying your premium in full, insuring a new home, insuring a recently renovated home and being a loyal customer. American Family also has a diminishing deductible program.

Learn more: American Family Insurance review

USAA

USAA is known for offering exceptional customer service, affordable rates and quality standard and optional coverages such as replacement cost and flood insurance. The catch is that USAA only sells homeowners insurance to active duty and retired military personnel, as well as eligible family members.

USAA’s homeowners insurance coverage is robust. Nearly every policy comes with identity theft coverage, contents replacement cost coverage and military uniform coverage. Earthquake insurance and home-sharing coverage are also available as endorsements. USAA also offers discounts for bundling policies, being claims-free and installing a security system in your home.

Learn more: USAA Insurance review

Home insurance coverage options in Chicago

Homeowners insurance in Illinois is not legally required, nor is it a requirement in Chicago. However, if you have a mortgage, there is a good chance your lender will ask you to buy coverage before your loan is approved.

Even without a home loan, getting homeowners insurance in Chicago is a smart investment. Here are some other coverage options Chicago homeowners should consider:

• Flood insurance: Because Chicago is located on Lake Michigan, many homes in the city are at risk of flooding. Flood insurance will help protect your home and personal belongings in the event of a flood. You should have enough flood insurance to cover your home’s rebuild value and the value of your personal items.
• Scheduled personal property coverage: Homeowners insurance covers valuable items, but the coverage limits tend to be low. If you keep expensive items in your home, like collections, fine art, jewelry or electronics, purchasing scheduled personal property coverage will raise your coverage limit for certain valuables. Select your scheduled personal property coverage limits based on the value of the items you need to protect.
• Identity theft coverage: The Insurance Information Institutes (Triple-I) reported that more than 1.4 million Americans were victims of identity theft in 2021. Many home insurance companies sell identity theft and fraud coverage, which will pay for identity restoration services, like credit monitoring. Most insurance companies offer a fixed amount of identity theft coverage. It is recommended to take the value of your personal assets into account if you are able to choose a specific coverage limit.

Home insurance discounts in Chicago

Many insurance companies in Chicago offer discounts, which can help you get a lower homeowners insurance quote. If you are looking for affordable home insurance in Chicago, look for providers that offer multiple discounts that you are eligible for and can apply to your policy. Here are some discounts that can help you get cheap house insurance in Chicago:

• Claims-free discount: Homeowners who have no prior insurance claims on their record within the last several years can usually qualify for a premium discount.
• Multi-policy discount: Multi-policy discounts, which usually involve purchasing a home and auto insurance policy from the same company, can be significant.
• Pay-in-full discount: If your annual premium is paid in one lump sum, many insurance companies will lower your rate.
• Security system discount: Homes with a security system usually have a lower risk of theft, which means you may get discounted homeowners insurance.

Frequently asked questions

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    What is the best home insurance company?

    Every shopper is looking for something different in their homeowners insurance company. Some people are willing to pay a little extra for top-notch customer service. Others may be on a tight budget, so affordability is their number one priority. As such, the best homeowners insurance company will be different for everyone. Before requesting quotes, you may want to make a list of your priorities to use as a guide while you shop.
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    How much does home insurance in Chicago cost?

    According to proprietary data sourced from Quadrant Information Services, the average cost of homeowners insurance in Chicago is $1,708 per year for $250,000 in dwelling coverage. However, you may pay more or less than average depending on your rating factors. Insurance is highly individualized, and your age, credit, claims history, location and home value are just some of the many data points an insurance company may use to calculate your premium.
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    How much home insurance do I need in Chicago?

    As a general rule, you should have enough dwelling insurance to cover your home’s rebuild value, and enough personal property insurance to cover the value of your personal items, like clothing, furniture and appliances. Your liability coverage limit should be based on your personal assets, such as your income, savings and retirement accounts. When in doubt, you may find it helpful to consult with a licensed agent to determine if you have sufficient coverage.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 current rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

• Coverage A, Dwelling: $250,000
• Coverage B, Other Structures: $25,000
• Coverage C, Personal Property: $125,000
• Coverage D, Loss of Use: $50,000
• Coverage E, Liability: $300,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.