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Kristine Lee

Insurance Analyst

Credentials
  • Licensed Insurance Agent — Property and Casualty
  • 4+ years of Experience in the Insurance Industry

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a…

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Renata Balasco

Senior Content Strategist

Credentials
  • Licensed Insurance Agent — Property and Casualty

Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist.…

Home insurance in Illinois: what you need to know

The average cost of home insurance in Illinois is $1760 annually or $147 per month — 16% more expensive than the national average of $1515.[1] For Illinois homeowners who are looking for the cheapest company, our data shows Auto-Owners has the lowest rates in 2024 at $1,004 per year.

If you're a homeowner who values reputation over price, State Farm is the most popular in Illinois and is rated above average in customer satisfaction by JD Power.[2][3]

We've highlighted the most important things all Illinois residents should know about their home insurance — like coverage options, average cost, state programs and how to protect your home from natural disasters. Read more below.
Cheapest home insurance in Illinois
Cheapest home insurance in Illinois
Best home insurance in Illinois
Best home insurance in Illinois
Best home and auto insurance in Illinois
Best home and auto insurance in Illinois

Natural disasters and Illinois home insurance

The National Flood Insurance Program (NFIP), run by FEMA, provides coverage for flood damage, but floods are not otherwise covered by your homeowners insurance. For Illinois homeowners who don't want to go through a federally-managed program, private flood insurance is also an option.

Tornadoes are also a risk in Illinois. Luckily, windstorm protection is part of a standard homeowners policy and covers damage from tornadoes, but this also may come with some caveats depending on your policy.

Learn more about protecting your home against natural disasters in Illinois ↓

What are the cheapest homeowners insurance companies in Illinois?

Since 2019, home insurance quotes in Illinois have gone up by 45%. This big increase is due to a variety of reasons — more claims from natural disasters and increasingly severe weather, plus economic factors like the rising costs of labor and materials — the price of "doing business."

How much you'll end up paying for homeowners coverage is specific to you and the many factors insurance companies use to calculate your premium. Our Dynamic Insurance Rating Tool lets us analyze annual rate filings to see which companies are the cheapest in Illinois.

According to our data, 27% of Illinois homeowners carry at least $300,000 in dwelling coverage.[4] For this amount of dwelling coverage, we found that Auto-Owners ($1,004 per year), AAA ($1,136 per year) and ASI (part of Progressive, costing $1,169 per year) are the cheapest home insurance companies in Illinois.

icon of Auto-owners, the Cheapest home insurance company in Illinois
Cheapest home insurance company in Illinois — Auto-Owners

Auto-Owners offers the cheapest home insurance premium for Illinois homeowners at $1,004 annually.

Pros
  • Rated above-average by JD Power and Superior in financial strength per AM Best

  • Numerous coverage options that can be added to your policy

Cons
  • Only available in 26 states

  • No online quotes — must contact an agent

Use the data above and below as a jumping-off point in your search for cheap homeowners insurance in Illinois. Then, see our list of top home insurance companies for customer satisfaction.

Company Avg. Annual Premium
Auto-Owners $1,004
Auto Club Group $1,136
ASI $1,169
Allstate $1,227
Foremost $1,232
Nationwide $1,242
USAA $1,269
Erie $1,278
State Farm $1,282
Hastings Mutual Insurance Co $1,327
Westfield $1,409
Farmers $1,602
Chubb $1,911
American Family $1,948
Encompass $2,107
Country $2,178
Spinnaker Insurance Co $2,251
MetLife $2,542
Travelers $5,212

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

Cheapest home insurance companies in Illinois for new homes

How old your home is can greatly impact the quotes you get for homeowners insurance. Things like outdated plumbing and electrical systems, old roofs and other features of an older house can make it more difficult to insure.

According to our data, the average cost in Illinois for a newer home built in 2021 is about $1,197 per year — much lower than the $1760 it would cost to insure an older home built in 2011.[1]

Our proprietary Dynamic Insurance Rating Tool tells us that American Strategic Insurance, or ASI (which is now part of Progressive) is the cheapest home insurance company in Illinois for new constructions.

icon for progressive, the cheapest for new construction homes
Cheapest for new construction homes — Progressive

If you go with Progressive for your new build, your policy will likely be underwritten by one of Progressive's partner companies. These include reputable insurers like Nationwide, Farmers, National General, Homesite, Plymouth Rock, PURE and more. On average, ASI/Progressive costs just over $600 a year.

Company Avg. Annual Premium
ASI $601
Erie $674
Auto Club Group $693
USAA $721
Nationwide $749
Auto-Owners $892
State Farm $911
Spinnaker Insurance Co $995
Foremost $1,017
Hastings Mutual Insurance Co $1,050
Westfield $1,139
American Family $1,171
Farmers $1,195
Allstate $1,220
Encompass $1,454
Chubb $1,491
Country $1,618
MetLife $1,673
Travelers $2,880

Compare quotes online for affordable home insurance in Illinois.

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What are the best home insurance companies in Illinois?

What you consider to be "best" may vary — some people prioritize customer service or coverage options over the cost of a policy. These are important considerations for any prospective customer, whether you're just looking to switch providers or just closed on a home.

In our analysis, we used 2021 data — the most recent we could find — from the Illinois Department of Insurance and national ratings from JD Power's latest home insurance study to determine the best home insurance company in Illinois. To find the best company for you and your budget, we recommend shopping around and reaching out to local agents for their reviews of these companies.

Best overall home insurance company — State Farm
Best overall home insurance company — State Farm

As of 2021, State Farm insures more than 33% of homeowners in Illinois, making it the most popular insurance company in the state for home insurance. JD Power also rated it highly in its 2023 analysis, giving it a score of 829/1000 for customer satisfaction.

Pros
  • Rated above-average by JD Power and Superior in financial strength by AM Best

  • Bundling home and auto insurance yields a bigger discount than other companies

Cons
  • Slightly pricier than other options in Illinois

  • Fewer discounts than competing companies

Company Avg. Annual Premium Avg. Monthly Premium
Allstate $1,227 $102
Country $2,178 $181
State Farm $1,282 $107

Best home insurance for home and auto bundles in Illinois

Bundling discounts are among the most popular cost-saving measures when it comes to insurance. Another perk is that you only have to deal with one company for your policy needs.

On average, we found that the average bundling savings for Illinois homeowners is about $285 or 16% per year.[1]

icon for state farm, the best home and auto insurance in Illinois
Best home and auto insurance in Illinois — State Farm

State Farm offers the cheapest home insurance quote after applying the bundling discount. Homeowners in Illinois can save over $440 per year by bundling home and car insurance through State Farm.

Company Bundled Home Insurance Quotes Non-Bundled Quotes Savings
State Farm $833 $1,282 $449
Auto-Owners $876 $1,004 $129
Nationwide $932 $1,242 $310
Allstate $946 $1,227 $281
Hastings Mutual Insurance Co $1,022 $1,327 $306
Auto Club Group $1,022 $1,136 $114
Erie $1,051 $1,278 $227
Foremost $1,119 $1,232 $113
ASI $1,169 $1,169 $0
USAA $1,211 $1,269 $58
Farmers $1,224 $1,602 $378
Westfield $1,295 $1,409 $114
American Family $1,510 $1,948 $438
Chubb $1,732 $1,911 $179
Country $1,739 $2,178 $439
MetLife $1,752 $2,542 $791
Encompass $1,813 $2,107 $294
Spinnaker Insurance Co $2,103 $2,251 $147
Travelers $4,749 $5,212 $463

Best home insurance for high-value homes in Illinois

If your home is valued at more than $750,000 and has extra structures like guest homes and pools, a typical homeowners insurance policy may not be enough coverage. You may need to seek out an insurance company that offers some extra bells and whistles to sufficiently protect your property.

With our Dynamic Insurance Rating Tool, we looked at average insurance costs for homes in Illinois with over $400,000 in dwelling coverage to find the best company for high-value homes.

Best for high-value homes — Auto-Owners
Best for high-value homes — Auto-Owners

Auto-Owners costs $1,703 on average for homes with over $400,000 in dwelling coverage.[1] This company also offers extra protections like increased cost endorsement, special personal property coverage, and protection for water backup, service lines, equipment breakdowns and appliance leakage.

Company Avg. Annual Premium
Auto-Owners $1,703
Westfield $1,842
Allstate $1,937
USAA $2,215
ASI $2,264
Auto Club Group $2,314
Nationwide $2,484
State Farm $2,513
Erie $2,631
Hastings Mutual Insurance Co $2,797
Foremost $2,993
American Family $3,290
Farmers $3,626
Encompass $3,681
Spinnaker Insurance Co $3,797
Chubb $3,923
Country $4,428
MetLife $5,291
Travelers $8,109

Find the best cheap homeowners insurance in Illinois by comparing quotes.

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Best home insurance in Illinois for natural disasters

With its location in the Midwest's "Tornado Alley," Illinois is prone to several natural disasters like floods, tornadoes and harsh winter storms. Read more below to find out how to best protect your home against these risks.

 

Does homeowners insurance cover tornadoes in Illinois? — Yes

Tornadoes can hit with little to no warning. There is little one can do to protect yourself and the results are usually devastating. Therefore, it's vital to insure your home against tornadoes in Illinois, which sees an average of 50 tornadoes each year.[5]

Tornado damage is usually the result of wind, so make sure your current homeowners policy has windstorm protection, a standard part of most policies. Your insurance company may require you to pay a separate wind/hail deductible, which is typically a percentage of your dwelling coverage limit.

Wind protection covers exterior and structural damage to buildings, but interior damage is typically covered only if it results from exterior damage, such as a broken window. Be aware that some damages, like storm-induced flooding, may not be covered unless specific flood coverage is obtained.

The home insurance quotes below show the average cost for certain wind/hail deductible levels:

Wind Hail Deductible Avg. Annual Premium
1,000 $1,726
2,000 $1,649

Our Dynamic Insurance Rating Tool also provides a breakdown of top companies in Illinois by wind/hail coverage:

Company Avg. Annual Premium
Auto-Owners $980
Auto Club Group $1,120
ASI $1,149
Allstate $1,200
Nationwide $1,205
USAA $1,227
Foremost $1,232
Erie $1,278
State Farm $1,282
Hastings Mutual Insurance Co $1,315
Westfield $1,379
Farmers $1,531
Chubb $1,875
American Family $1,902
Encompass $2,067
Country $2,107
Spinnaker Insurance Co $2,155
MetLife $2,542
Travelers $4,844

A percentage-based deductible in homeowners insurance means the deductible amount is based on a percentage of the home's insured value.

For example, if your home is insured for $200,000 and your policy has a 2% wind/hail deductible, you would be responsible for paying the first $4,000 (2% of $200,000) of any wind or hail damage before your insurance would cover the rest. This type of deductible typically applies to damage from windstorms or hail, which can include tornado damage.

Does homeowners insurance cover flooding in Illinois? — No

Flood damage — regardless of the cause — is not covered by homeowners insurance policies. To insure your home against flood damage, acquire insurance through FEMA's National Flood Insurance Program (NFIP) or via a private insurer.

Flood insurance coverage from private companies may vary, but NFIP flood insurance covers:

  • $250,000 for your home’s structure
  • $100,000 for your personal property

If the value of your personal property and home exceeds these limits, consider purchasing a flood insurance policy from our partners at Neptune for additional protection.


Illinois home insurance regulations and programs

Both home and car insurance are regulated at the state level, and each state has legislation and programs for insurance — including Illinois.

Illinois FAIR Plan Association

FAIR stands for Fair Access to Insurance Requirements; this program is designed to help homeowners in Illinois who can't acquire homeowners insurance through the usual consumer market.

Coverage through the FAIR marketplace is usually a "last resort" option for homeowners who struggle with acquiring coverage through traditional means due to higher-than-average risk factors and other underwriting conditions. Not everyone will qualify and coverage must be acquired by getting in touch with a licensed agent in Illinois.

Illinois's FAIR plan coverage includes coverage for fire, lightning, wind, hail, vandalism, burglary, theft, personal liability and more. By request, earthquake coverage can be added.[6]


Home insurance quotes in Illinois by city

In Illinois, quotes for homeowners insurance vary greatly from ZIP code to ZIP code. This is because of how insurance companies measure the likelihood of you making a claim, using historical data to assess risks like theft, burglary, weather factors and more. So, living in a more densely populated urban center like Chicago will be costlier than any of the city's suburbs like Naperville and Evanston.

See the below data to see average homeowners insurance rates in the most populated cities in Illinois.

City Avg. Annual Premium
Chicago $2,087
Waukegan $1,726
Springfield $1,632
Peoria $1,617
Joliet $1,614
Rockford $1,597
Elgin $1,577
Aurora $1,560
Champaign $1,514
Naperville $1,488

Frequently asked questions

In 2024, the average homeowners insurance in Illinois costs about $1,760 per year, which is 16% more expensive than the national average of $1,515. Since 2019, that's a 45% increase. This is due to factors like increases in the number of claims from natural disasters and severe weather in addition to the rising cost of doing business — like inflation and the cost of labor and construction materials going up.

Yes, Progressive offers home insurance in Illinois. However, keep in mind that your policy will be underwritten and provided by one of Progressive's partner companies, which include reputable insurers like Nationwide, Farmers, National General, Homesite, Plymouth Rock, PURE and more.

In The Zebra's expert analysis, we found that Auto-Owners is the cheapest home insurance company in Illinois. On average, this company costs $1,004 per year — 43% cheaper than Illinois's average home insurance rate of $1,760.

Property insurance is an umbrella term for types of insurance that protect your property and/or liability. Homeowners insurance falls under this category, in addition to renters, condo, mobile home, flood and earthquake.

Compare quotes to find the best home insurance company in Illinois.

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Sources
  1. Data Methodology. The Zebra’s Dynamic Insurance Rating Tool

  2. Illinois Department of Insurance. 2021 Market Share Report: Property and Casualty

  3. JD Power. 2023 US Home Insurance Study

  4. Anonymized User Survey. The Zebra

  5. National Weather Service. Tornado Safety Guidelines

  6. Illinois FAIR Plan. Consumer FAQs

Interested in learning more about homeowners insurance?

See solutions to real-life home insurance scenarios answered by The Zebra's licensed agents!

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In a state of emergency, does my insurance company have to help me if I have flood damage but no flood insurance?

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