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 $1,728 per year for $250,000 in dwelling coverage. In comparison, the average home insurance premium in the state of Illinois is $1,322 per year for the same level of coverage.
Although home insurance is not mandatory in the city, homeowners coverage provides valuable financial protection in case of a loss. 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 2021 rates from Quadrant Information Services, customer ratings and carrier offerings, Bankrate found four companies that deliver the some of the best home 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 customer satisfaction ratings and strong financial stability.
|Home insurance company||Average annual premium for $250K dwelling||J.D. Power score|
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 $994 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 $965 per year. State Farm also has discounts for having a home security system and an impact-resistant roof.
Learn more: State Farm Insurance review
Hastings Mutual is a regional insurance provider that offers basic home insurance coverage. However, Hastings Mutual’s home insurance policies also include coverage for small farms with up to 10 farm animals and/or three farm-type structures.
Despite the limited coverage options, Hastings Mutual has very affordable policies, with an average premium of $1,198 per year. If Chicago homeowners remain claim-free while insured with Hastings Mutual, they can earn a disappearing deductible, which lowers your deductible by $75 for each claims-free year, up to $750.
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 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 their spouses and children.
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
Chicago home insurance recommendations
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 very 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: In 2018, the Insurance Information Institute estimated 14.4 million Americans were identity theft victims. 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
What is the best home insurance company?
The best home insurance company is different for everyone. It depends on where you live, the type of coverage you need, your budget and more. Some of the highest rated home insurance companies are Allstate, Amica, The Hartford and USAA.
How much does home insurance in Chicago cost?
In Chicago, the average cost of home insurance is $1,728 per year for $250,000 in dwelling coverage. However, remember that insurance rates are personalized, so factors like your age, credit score, claims history, ZIP code and your home’s characteristics will impact your premium.
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.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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.