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Best homeowners insurance in Illinois for 2022

Updated Dec 05, 2022
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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.

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, such as the J.D. Power 2022 U.S. Home Insurance Study. 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:

USAA
Rating: 4.8 stars out of 5
4.8
Bankrate Score
Info Hover for more
Average annual premium
$802
J.D. Power
884
/1,000
AM Best
A++
Monthly premium for $250k coverage
$67
Get a quote
State Farm
Rating: 4.7 stars out of 5
4.7
Bankrate Score
Info Hover for more
Average annual premium
$1,138
J.D. Power
829
/1,000
AM Best
A++
Monthly premium for $250k coverage
$95
Read review
American Family
Rating: 4.1 stars out of 5
4.1
Bankrate Score
Info Hover for more
Average annual premium
$1,090
J.D. Power
842
/1,000
AM Best
A
Monthly premium for $250k coverage
$91
Get a quote
Allstate
Rating: 3.9 stars out of 5
3.9
Bankrate Score
Info Hover for more
Average annual premium
$930
J.D. Power
815
/1,000
AM Best
A+
Monthly premium for $250k coverage
$78
Get a quote
Farmers
Rating: 3.8 stars out of 5
3.8
Bankrate Score
Info Hover for more
Average annual premium
$1,503
J.D. Power
792
/1,000
AM Best
A-
Monthly premium for $250k coverage
$125
Get a quote
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

*Average rates are for annual policies with $250,000 in dwelling coverage
**Not officially ranked with J.D. Power due to eligibility restrictions

Best for military-focused coverage

J.D. Power:
884 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 802
USAA Insurance review

Explore Bankrate's review

Best for bundling policies

J.D. Power:
829 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 1,138
State Farm Insurance review

Explore Bankrate's review

Best for military-focused coverage

J.D. Power:
842 /1,000
AM Best:
A
Avg. annual premium for 250k dwelling
$ 1,090
American Family Insurance review

Explore Bankrate's review

Best for unique coverage options

J.D. Power:
815 /1,000
AM Best:
A +
Avg. annual premium for 250k dwelling
$ 930
Allstate Insurance review

Explore Bankrate's review

Best for a simplified shopping experience

J.D. Power:
792 /1,000
AM Best:
A -
Avg. annual premium for 250k dwelling
$ 1,503
Farmers Insurance review

Explore Bankrate's 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. Illinois experiences a wide range of extreme weather, from intense summer storms to gale-force winds to golf ball-sized hail. Additionally, homeowners insurance premiums in Chicago are much higher than in the rest of the state, which could be a driving force behind Illinois’ overall homeowners insurance average.

Home insurance in Illinois

When you’re shopping for the best home insurance in Illinois, you may want to think about the common types of damage in the state. Understanding how your home is likely to be damaged may help you choose coverage options to suit your needs.

Common causes of loss in Illinois

In 2019, homeowners insurance companies in Illinois incurred nearly $2.9 billion in losses. Like many Midwestern states, weather events make up the bulk of the common causes of damage in the state, including:

  • Wind: 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.

Frequently asked questions

Written by
Mandy Sleight
Insurance Contributor

Mandy Sleight has been a licensed insurance agent since 2005. She has three years of experience writing for insurance websites such as Bankrate, MoneyGeek and The Simple Dollar. Mandy writes about auto, homeowners, renters, life insurance, disability and supplemental insurance products.

Edited by Insurance Editor
Reviewed by Director of corporate communications, Insurance Information Institute