How Bankrate chose the best home insurance companies in Illinois
Bankrate’s insurance editorial team chose the best homeowners insurance companies in Illinois by starting with a comparison of average premium data obtained from Quadrant Information Services. We evaluated several factors to determine which companies are the best that Illinois has to offer, including policy features, available coverage, discounts, financial strength ratings from AM Best and Standard & Poor’s (S&P), complaint records from the National Association of Insurance Commissioners (NAIC) and customer satisfaction scores from J.D. Power. We combined all these metrics into a Bankrate Score on a scale of 0.0 to 5.0. The higher a company’s overall score, the more highly that company scored in the underlying metrics. Our Bankrate Score model may help you easily choose which companies to further research.
- The average cost of home insurance in Illinois is $1,376 per year, which is about on par with the national average of $1,383 per year for $250,000 in dwelling coverage.
- USAA and Allstate offer the cheapest average rates in Illinois, with average premiums below $1,000 per year.
- Illinois homeowners may want to build a home insurance policy that can protect their finances against the state’s varied weather patterns.
Best homeowners insurance companies in Illinois
Bankrate’s analysis of the Illinois home insurance market found that USAA, State Farm and American Family are some of the best providers in the state, according to premium information from Quadrant Information Services and third-party scoring. These companies all offer lower-than-average premiums and above-average customer satisfaction scores. Whether you want the lowest insurance premiums, the most coverage or the best discounts, the following companies might be a good place to start if you want the best Illinois homeowners insurance:
| Home insurance company | Bankate Score | Average annual premium for $250k in dwelling coverage | J.D. Power score | AM Best rating |
|---|---|---|---|---|
| USAA* | 4.8 | $802 | 882/1,000 | A++ |
| State Farm | 4.7 | $1,138 | 835/1,000 | A++ |
| American Family | 4.0 | $1,090 | 831/1,000 | A |
| Allstate | 3.9 | $930 | 829/1,000 | A+ |
| Farmers | 3.8 | $1,503 | 813/1,000 | A- |
*Not officially ranked with J.D. Power due to eligibility restrictions
USAA
Best for military-focused coverage
Of the Illinois homeowners insurance companies on our list, USAA offers the cheapest coverage on average, but the company only sells policies to active military members, veterans and their qualifying family members. Because of this, USAA is not eligible for official ranking with J.D. Power, but the company consistently receives some of the highest scores. However, there are not as many ways to personalize a USAA homeowners policy, and most add-on options are specific to military life, like uniform coverage. But, if you home share a room or the entire house, you may be able to include home sharing coverage on your USAA home insurance.
Learn more: USAA Insurance review
State Farm
Best for bundling policies
State Farm might be a good choice if you like to consolidate your policies with one company. In addition to homeowners insurance, the provider offers many other insurance products, such as auto insurance, life insurance, disability insurance, small business insurance and umbrella insurance policies, creating ample opportunity to bundle and save. However, State Farm does not offer as many discount opportunities as some of its competitors. Although the company’s average premium is below the Illinois average, if you’re looking for extensive discounts, State Farm may not be the best choice.
Learn more: State Farm Insurance review
American Family
Best for personalized policies
American Family offers the ability to add several endorsements to your policy. Options include equipment breakdown, sump pump and water backup coverage, matching siding protection and credit theft protection and monitoring. If you would like help with determining exactly what you need, American Family has a personalized coverage assistant tool on its website that can help advise on standard and optional coverage for your Illinois home insurance policy. However, American Family’s digital tools are rated below average by the 2022 J.D. Power U.S. Insurance Digital Experience Study, so it might not be the best option for homeowners looking for online or mobile tools.
Learn more: American Family Insurance review
Allstate
Best for unique coverage options
Allstate may be a good choice if you’re looking for more unique coverage options, like electronic data recovery, yard and garden coverage, and coverage for musical instruments and sports equipment. And although the average premium is already lower than the state’s average, there are numerous discounts to help you save even more. However, just like with American Family, customers who value strong digital service may want to consider other providers, as J.D. Power ranked Allstate below average for digital shopping and service.
Learn more: Allstate Insurance review
Farmers
Best for a simplified shopping experience
Farmers makes shopping for home insurance easy by offering Illinois homeowners insurance in three packages: Standard, Enhanced and Premier. While these packages serve as starting points, each one can be personalized with optional coverage types, like scheduled personal property and cosmetic damage coverage. Farmers also offers claim forgiveness, claims-free discount (if you qualify) and declining deductibles at no extra cost. However, Farmers is the only company on our list with a below-average J.D. Power customer satisfaction score, and the company’s financial strength is the lowest of our list of carriers, too.
Learn more: Farmers Insurance review
How much is homeowners insurance in Illinois?
The average cost of homeowners insurance in Illinois is $1,376 per year for $250,000 in dwelling coverage. This is roughly in line with the national average of $1,383 per year. Homeowners in nearby Indiana and Wisconsin pay less, with average premiums of $1,180 and $928 per year, respectively. Illinois may be more likely to experience severe summer storms than these states, which could increase the risk of home damage, which would therefore contribute to the higher home insurance premiums.
Home insurance in Illinois
To help you find the best home insurance in Illinois for your property, there are a few factors to consider. Understanding the common causes of damage in Illinois might help you choose coverage types and limits to better protect your finances.
Common causes of loss in Illinois
In 2020, homeowners insurance companies in the state of Illinois incurred nearly $2.9 billion in losses. Although Illinois has a lower risk of strong summer storms than other states in the general line of “Tornado Alley,” weather events still make up the bulk of the common causes of damage in the state:
- Wind: Like many Midwestern states, strong summer storms are relatively common in Illinois. The state has one of the highest instances of severe storms, with nearly twice as many wind damage reports as hail. Wind can damage your home’s roof, siding and windows, which can then cause interior damage.
- Hail: Hail can vary in size, from tiny pieces smaller than a pebble to pieces larger than a softball. Hail storms can cause damage — sometimes extensive — to the exterior of your home, allowing rain inside.
- Flooding: Many counties in Illinois have a higher-than-average risk of flood damage. Flood damage can escalate quickly, with just one inch of water potentially causing $25,000 in damage.
- Burglary and theft: Especially in the Chicago area, due to the population density, break-ins may be more common. You can help protect your property with a home security system, which often nets you a discount on your homeowners insurance.
Now that you know what losses are common in Illinois, you may feel more confident choosing coverage types and limits to give you proper protection.
Home insurance coverage options in Illinois
Outside of standard home insurance coverage types like dwelling coverage, liability and personal property coverage, there are some additional protections that Illinois homeowners may want to consider:
- Flood insurance: Damage caused by floods is not covered by a standard home insurance policy. Typically, you will need to purchase a separate flood insurance policy, although a few companies offer flood insurance as an endorsement.
- Water backup coverage: It is relatively common in this area of the country for water to back up into sewer and drain lines during heavy rains. This can be of particular concern if your home has a basement or crawl space. Many companies offer a water backup endorsement to provide coverage for this type of damage.
- Earthquake insurance: The southern part of Illinois is near the New Madrid fault, putting it at a higher risk for earthquakes. Earthquake damage is not usually covered by your home insurance automatically, but you may be able to add it by endorsement. If you are in a particularly high-risk area, you may need an earthquake insurance policy.
- Identity theft coverage: As the world becomes increasingly reliant on digital technology, identity theft is becoming more common. This common endorsement covers costs associated with restoring your stolen identity.
Working with a licensed agent to help you choose coverage options can be helpful. Agents can help guide you through the insurance process and can help you choose coverage that is appropriate to your situation.
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