Best homeowners insurance in Illinois of 2021

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From rolling farmland to the fast-paced city of Chicago, Illinois is a diverse and interesting place to own a home. It is also relatively inexpensive — the average cost of homeowners insurance in Illinois is $1,322 annually, or about $110 per month, for $250,000 in dwelling coverage, according to Bankrate’s 2021 study of annual quoted premiums.

If you are shopping for the best homeowners insurance in Illinois, understanding how to compare companies is important. Bankrate’s insurance experts have reviewed the largest insurance companies in the state by market share and can help you understand what factors to consider when shopping for Illinois home insurance.

Best homeowners insurance companies in Illinois

Bankrate’s insurance editorial team compared Illinois homeowners insurance companies using average premiums obtained from Quadrant Information Services, along with policy features, available coverages, discounts, financial strength and customer satisfaction scores.

Whether you want the lowest premium, the most coverages or the best discounts, if you want the best Illinois homeowners insurance, the following companies might be a good place to start:

Home insurance company Average annual premium for $250k dwelling J.D. Power score
Allstate $1,168 829 / 1,000
American Family $1,042 821 / 1,000
Farmers $1,499 814 / 1,000
State Farm $1,105 829 / 1,000
USAA* $843 889 / 1,000

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

Allstate

If you want Illinois home insurance that you can tailor to your specific needs, Allstate may be a good choice. The company offers several unique optional coverages, like electronic data recovery, yard and garden coverage and coverage for musical instruments and sports equipment. And although the average premium is lower than the state’s average, there are numerous discounts to help you save even more.

Learn more: Allstate Insurance review

American Family

American Family offers all of the standard homeowners insurance protections. You may have the option to add extra coverages, too, such as equipment breakdown, sump pump and water backup coverage, matching siding protection and credit theft protection and monitoring. If you would like help figuring out exactly what you need, American Family has a Personalized Coverage Assistant that can help advise on standard and additional coverages for your Illinois home insurance policy.

Learn more: American Family Insurance review

Farmers

Farmers offers Illinois homeowners insurance in three packages: standard, enhanced and premier. While these packages serve as starting points, each one is also customizable with optional coverages, like claim forgiveness and cosmetic damage coverage. And although Farmers does not advertise many discounts on its website, you may be able to save by adding a home security system and not smoking.

Learn more: Farmers Insurance review

State Farm

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 other insurance lines such as auto insurance, life insurance, disability insurance, small business insurance and liability insurance policies, creating ample opportunity to bundle and save. The company has also partnered with Ting to provide policyholders with a device that monitors your electrical system and can alert you to potential problems before they cause a house fire.

Learn more: State Farm Insurance review

USAA

USAA offers the cheapest coverage on our list, but the company only sells policies to current and retired military members and their immediate families. Because of this, USAA is not eligible for official ranking with J.D. Power, but the company consistently receives some of the highest scores. USAA offers a solid home insurance product, complete with military-focused protections like uniform coverage.

Learn more: USAA Insurance review

How much is homeowners insurance in Illinois?

The average cost of homeowners insurance in Illinois is $1,322 per year for $250,000 in dwelling coverage. This makes it on par with the national average cost of home insurance which is just a little bit less at $1,312 per year. Illinois homeowners pay a bit more for coverage than some homeowners in neighboring states, with the average policy in Indiana costing $1,150 per year and Wisconsin homeowners paying just $986 per year. However, Missouri’s homeowners insurance is a bit more expensive, with an average premium of $1,558 per year.

Although it sees its fair share of both summer and winter storms, Illinois weather is generally relatively safe. In contrast, Missouri is one of the worst states for tornadoes, which may contribute to the higher premium there.

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 coverages to better protect your finances.

Common causes of loss in Illinois

In 2019, homeowners insurance companies in the state of Illinois incurred over $2.8 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. Wind can damage your home’s roof, siding and windows, which can then cause interior damage.
  • Hail: Hail can cause damage to the exterior of your home, allowing rain inside.
  • Flooding: Many counties in Illinois have a higher-than-average risk of flood damage.
  • Burglary and theft: Especially in the Chicago area, due to the population density, break-ins may be more common.

Now that you know what losses are common in Illinois, you may feel more confident choosing coverages.

Home insurance coverage options in Illinois

Outside of standard home insurance coverages 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 some 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. Most 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 high 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 coverages can be helpful. Agents can help guide you through the insurance process and can help you choose coverages that are appropriate to your situation.

Frequently asked questions

What is the best homeowners insurance in Illinois?

The best homeowners insurance in Illinois will depend on your specific rating factors and what you are looking for from a company. To find the best option for you, first decide what matters to you in a company. For example, are you looking for the lowest price, certain coverages or a mobile app? Once you know, you can get quotes from several companies to find the option that closest fits your needs.

How do I get homeowners insurance in Illinois?

To get an Illinois homeowners insurance policy, you can start by getting quotes. You can do this online, by phone or in an agency, depending on the company. You will typically need your address, date of birth, Social Security number and some information about your home, like its age, the age of the roof and information about any custom features. Once you have agreed to proceed with a quote, a company representative may send you an application to sign and you might need to make a payment.

Do I need homeowners insurance if I live in Illinois?

Home insurance is not required by law in Illinois. However, if you have a mortgage or other type of home loan, your lender will probably require you to have a policy. If your home is not financed, you may have the choice to go without home insurance, but most financial advisors do not recommend it. Home insurance can protect you from financial devastation if your home is damaged or destroyed.

What type of homeowners insurance should I get in Illinois?

Homeowners insurance is written on several different policy forms which cover different things. Most standard policies are HO-3 forms, but an HO-5 form may be recommended depending on your circumstances, as it broadens your coverage. When considering optional coverages, you may want to consider purchasing water backup coverage, identity theft and earthquake coverage, depending on where you live in the state, and you might want to buy a separate flood insurance policy.

Does homeowners insurance cover dogs?

Having coverage for dogs depends on what happens. Your policy may cover the liability exposure that arises from owning a dog, like the medical costs if your dog bites a guest or knocks someone down and hurts them. However, some breeds are more likely to be excluded from coverage so if you have a dog, consider talking to your agent to understand what your policy covers. When it comes to your dog’s health, home insurance is not designed to cover vet bills or medical costs for your pet. For that, you would need pet insurance.

Methodology

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.

Written by
Cate Deventer
Insurance Editor
Cate Deventer is a writer, editor and insurance professional. She is currently pursuing a Bachelor’s degree in English with a concentration in professional and technical writing from Indiana University East. She began writing for Bankrate in January 2021 and has nearly a decade of experience in the insurance industry as a licensed insurance agent. Cate has worked with over a dozen insurance companies and is experienced with auto, home, flood, umbrella and life insurance.
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