Best homeowners insurance in Illinois for 2023

Compare the best homeowners insurance companies in Illinois

The average cost of homeowners insurance in Illinois is $1,410 per year for $250,000 in dwelling coverage, or roughly $117 a month. This is in line with the national average of $1,428 per year. Bankrate’s analysis found that USAA, Allstate, State Farm, American Family and Farmers offer some of the best homeowners insurance in Illinois, according to premium data from Quadrant Information Services and third-party scoring, such as the 2023 J.D. Power U.S. Home Insurance Study.

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 not officially ranked by J.D. Power due to eligibility restrictions
**Premiums are for $250K in dwelling coverage

The top 5 home insurance companies in Illinois

Additional Illinois home insurance companies to consider

Chubb

Country Financial

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 premium data obtained from Quadrant Information Services. We evaluated factors 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 these metrics into a Bankrate Score between 0.0 to 5.0. The higher the score, the more likely it is that the company excels in all areas of comparison.

Cheapest home insurance companies in Illinois

Below, we’ve rounded up the cheapest home insurance companies in Illinois and compared savings against the state average. Don’t be surprised if the names on this list look familiar: many of our picks for the best home insurance companies in Illinois were also some of the cheapest.

How Bankrate chose the cheapest home insurance companies in Illinois

To find the best cheap home insurance in Illinois, Bankrate looked at the most up-to-date rate information available from Quadrant Information Services. We looked at the largest insurers in Illinois by market share, then narrowed down our list to only include companies with the most competitive rates.

How to get cheap Illinois home insurance

No one wants to pay more for their homeowners insurance than they need, but that doesn't mean you don't want robust, comprehensive coverage. Fortunately, there are strategies you can use to save money on your Illinois homeowners insurance without sacrificing coverage.

Consider the following tactics:

1. Bundle your policies: You may be able to instantly earn a lower rate if you purchase more than one policy from a single insurer. The most common bundles are home and auto, but you may earn a discount if you bundle your home with some other type of insurance, too.
2. Maintain your roof: When you ask for a quote, your potential insurer is likely to ask about the age of your roof. That's because an older or poorly maintained roof is more likely to result in costly claims, especially considering Illinois's weather patterns. A newer roof — and one made of storm-resistant materials — may earn you a more favorable rate.
3. Increase your deductible: Your deductible is the amount you pay before your insurance kicks in after a claim. Raising it from $500 to $1,000 is likely to save you money on your premium. Be sure, however, that you don't raise it so high that you'd have difficulty paying it after a claim.
4. Shop around: It's a good idea to compare rates from multiple insurers when you are shopping for insurance. Each company uses its own proprietary method for determining premiums, so the exact same coverage levels will be priced differently from insurer to insurer. Once you've gathered three or four quotes, you can make a decision based on which one offers you the lowest rate.

Best home insurance discounts in Illinois

Discounts can help lower homeowners insurance rates in Illinois. As mentioned, bundling policies is one way to earn a discount.

Here are some other discounts that are commonly offered by Illinois insurance companies:

How to save on home insurance policy renewals in Illinois

Home insurance policy terms are typically one year long. In that time, you can take a few steps that can help lower your home insurance rate when your policy comes up for renewal. Consider the following strategies:

• Improve your credit: Boosting your credit score is a marathon, not a sprint. It takes time to raise your credit score even a few points, but doing so is worthwhile when it comes to saving on insurance. Insurers generally give better rates to customers with better credit histories, so taking the steps in the short term to improve your score can help you save in the long run.
• Fortify your roof: Illinois is no stranger to tornadoes, and your roof can take the brunt of the damage when a storm blows into town. Installing hurricane clips on your roof can help it better weather the storm, and may earn you a discount from your insurer.
• Be deliberate with your claims: Some occasions absolutely necessitate filing an insurance claim, but in some cases, it may be cheaper to pay out of pocket. Filing a home insurance claim usually increases the cost of your policy, so to avoid this surcharge, it may be best to get an estimate of the damage before filing a claim. If the repair costs are close to your deductible — what you’re responsible for paying if you filed a claim — you might avoid a rate raise by paying for repairs out of pocket.

How much is home insurance in Illinois?

The average cost of homeowners insurance in Illinois is $1,410  per year for $250,000 in dwelling coverage. This is just slightly under the national average of $1,428 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.

Illinois homeowners insurance rates by city

Illinois may face unique insurance challenges, but like all other states, home insurance rates change on a city by city basis. The interactive map below shows home insurance premiums for different ZIP codes across the state.

*Rates are for $250,000 in dwelling coverage.

What does home insurance cover in Illinois?

Before you commit to a home insurance policy, you need to make sure you understand exactly which disasters you’re covered for. Most Illinois insurance policies will include some amount of coverage for the following disasters, but it can be helpful to go over your policy with a licensed agent to make sure you’ve got your bases covered:

• Tornadoes: A typical Illinois home insurance policy will include some amount of coverage for wind damage. However, depending on where you live, you may need to pay a separate wind deductible for your courage to kick in. Typically, the deductible is between 1 and 5 percent of your dwelling coverage limit.
• Fires: Only intentionally set fires and, in some states, wildfires, are not covered or face lower coverage limits. In Illinois, if your home catches fire, your insurance should cover the damage up to your policy limits.
• Lightning: Lightning strikes can fry your home’s power system or spark a fire.
• Extreme cold: This is especially helpful for those brutally cold Illinois winters. If a pipe bursts in your home, the resulting damage is usually covered by your insurance policy.

Additional home insurance coverage types in Illinois

Outside of standard home insurance coverage types like dwelling, liability and personal property, there are some additional protections that Illinois homeowners may want to consider:

• Flood insurance: Many Illinois counties have a higher-than-average number of flooding events. Damage caused by floods is not covered by a standard home insurance policy. Typically, you will need to purchase a separate flood insurance policy from the National Flood Insurance Program (NFIP) or a private insurer, although a few companies do 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, since it may not be covered in a basic policy.
• 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 an 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 helps cover costs associated with restoring your stolen identity.
• Mine subsidence coverage: Per Illinois law, mine subsidence insurance must be offered by all home insurers in certain “mandatory counties,” but coverage can be declined in writing. Mine subsidence refers to the collapsing of underground mine shafts that causes the home above the surface to collapse.

Working with a licensed agent when choosing coverage options can be helpful. Agents can guide you through the insurance process and help you select coverage that is appropriate for your situation.

Common Illinois home insurance problems

Shopping for home insurance in Illinois is not without its pain points. Although average home insurance rates sit close to the national benchmark, that does not mean that finding the right policy is always a breeze. Here are some unique considerations Illinois homeowners should keep in mind:

• Mines: The Illinois Mine Subsidence Insurance Funds estimates that nearly 330,000 homes are exposed to mine subsidence across the state. Mine subsidence damage is different from flood or fire damage, where the damage can occur in a matter of hours (or even minutes). Rather, mine subsidence damage can be slow-growing and hard to spot. While it may feel like an invisible threat, mine subsidence can render your home a total loss.
• Floods: The National Severe Storms Laboratory reports that floods are the most “common and widespread of all the weather-related disasters.” In fact, the Illinois Department of Natural Resources states that floods account for more than 90 percent of the state’s declared disasters. However, floods are almost never included in a standard HO-3 or HO-5 home insurance policy. Floods are among the most damaging disasters, so it’s extra important to ensure that you are fully protected.
• Tornadoes: In 2021, nearly 40 percent of all home insurance claims pertained to wind and hail damage, with claims averaging around $12,900. The western border of Illinois brushes up against what’s historically been known as Tornado Alley, so it’s vital that Illinois homeowners read their policies carefully and understand what they’re covered for. Depending on your policy, you may have a separate wind deductible.

Frequently asked questions