Best homeowners insurance in Illinois in 2021

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For homeowners in Illinois, the average annual cost of home insurance for $250,000 in dwelling coverage is $1,322, according to Bankrate’s 2021 study of annual quoted premiums. Based on our research, the best homeowners insurance companies in Illinois are Allstate, American Family, Farmers, State Farm and USAA. Though home insurance is not required at the state level in Illinois, homeowners who purchase insurance can protect their home and finances from potentially devastating events like natural disasters, fires and theft.

Best homeowners insurance companies in Illinois

Bankrate’s insurance editorial team compared Illinois homeowners insurance companies using 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 and customer satisfaction scores. J.D. Power surveys collect feedback from real customers across the country to determine their overall satisfaction with insurance products and companies, and rank companies on their customers’ experience. The table below showcases scores from the most recent J.D. Power 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:

Home insurance company Average annual premium for $250k dwelling J.D. Power score
Allstate $1,168 829/1,000
American Family $1,042 831/1,000
Farmers $1,499 813/1,000
State Farm $1,105 835/1,000
USAA* $843 882/1,000

*Not officially ranked 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 already lower than the state’s average, there are numerous discounts to help you save even more. However, customers who value strong digital service may want to consider other providers, as Allstate scored below industry average in the 2021 J.D. Power Insurance Digital Experience Study for the service category.

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 coverage, 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 tool on its website that can help advise on standard and optional coverage for your Illinois home insurance policy. With American Family, you can save up to 20% when you bundle home and auto, which is one of the highest bundle discounts in our list. Still, its customer satisfaction for digital service scores below industry average, which may deter some customers.

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 can be personalized with optional coverages, 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, which is not always available with other carriers. 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.

One drawback with State Farm is that there are few discount opportunities on its home insurance policies. But its large number of available insurance agents may be able to walk you through finding the best policy at the best price.

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. There are not as many ways to personalize a USAA homeowners policy, and most options are specific to military life, like uniform coverage. But, if you home share a room or the entire house, you could include home sharing coverage on your USAA home insurance.

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. The state has one of the highest instances of severe storms, with nearly twice as many wind damage reports as hail. The state has always had at least one severe storm per year. 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. In 2020, Illinois had the second-highest amount of properties affected by damaging hail, with 12% of homes damaged in the state.
  • Flooding: Many counties in Illinois have a higher-than-average risk of flood damage. Flood is not covered by homeowners insurance in Illinois or any other state. If you are concerned about your risk of flood, you should speak with an agent to inquire about purchasing a separate flood insurance policy.
  • Burglary and theft: Especially in the Chicago area, due to the population density, break-ins may be more common. Though property crime is lower-than-average in Illinois, 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 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 coverage 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.

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 coverage, 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.