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Illinois homeowners insurance: what you need to know

The average cost of home insurance in Illinois is $1,443 annually or $120 per month. Unlike car insurance, homeowners insurance isn't controlled by state legislation. Even so, major gaps exist in home insurance rates on a state-by-state basis. Home insurance prices in states vary based on the value of — and frequency of — homeowners claims lodged in that state, and also on the price of the belongings and home you're insuring.

The best way to find an affordable homeowners insurance policy in Illinois is to shop around and compare rates from as many insurers as possible. Remember: your rates will vary, depending on your coverage limits.

Learn more about how much home insurance costs in Illinois by referencing the below tables.
 
 
Table of contents:
  1. Rates by company
  2. Rates by coverage amount
  3. Rates by deductible amount
  4. Rates by city
  5. Bundling savings
  6. Frequently asked questions
  7. Natural disaster coverage

 

The cheapest home insurance companies in Illinois

Liberty Mutual offers the cheapest homeowners policies in Illinois — just $795 per year. This is less than the state average cost of $1,443, offering a $648 price cut on average statewide homeowners insurance costs.

Homeowners insurance rates in Illinois vary based on the insurance company you choose. Begin your search for a home insurance policy by reviewing the most affordable Illinois carriers, listed below.

 
AFFORDABLE HOME INSURERS IN ILLINOIS
Insurance CompanyAverage Yearly Rate in Illinois
Liberty Mutual$816
Allstate$1,047
Erie$1,143
AAA$1,171
 

Illinois home insurance prices by coverage levels

Your chosen level of homeowners coverage impacts the insurance premiums you pay. Homeowners in Illinois who carry $100,000 of dwelling coverage pay an average of $706 per year, while those with dwelling coverage of $400,000 pay around $1,770 per year.

 
POPULAR COVERAGE LIMITS IN ILLINOIS
Coverage LevelAverage Annual Cost
$100,000 Dwelling$706
$200,000 Dwelling$1,054
$250,000 Dwelling$1,231
$400,000 Dwelling$1,770
 

Homeowners insurance deductibles in Illinois

Homeowners have a lot of choices to make when purchasing a homeowners policy, including the amount of their deductible. A homeowners deductible is the amount you are responsible for paying toward a covered loss. The deductible level you choose can have a big impact on home insurance rates.

Generally, the lower your deductible, the higher your premium. If you want lower insurance rates, aim for a higher deductible. Remember that your homeowners deductible should not be set at an amount that you would have difficulty paying in the event of a loss.

Have a look at typical deductibles offered by home insurance companies and an approximation of average premiums.

 
HOME INSURANCE RATES BY DEDUCTIBLE TIER IN ILLINOIS
Deductible TierAverage Annual Homeowners Insurance Rate
$500$1,363
$1,000$1,231
$1,500$1,181
$2,000$1,093
$5,000$928
 

Illinois homeowners insurance costs by city

Not all Illinois cities have equal homeowners insurance rates. Insurance companies rely on city-specific variables, including the number of claims filed nearby, to price their policies. This means your ZIP code has some weight in deciding how much you pay.

The best homeowners insurance in Illinois is found in Aurora. A typical homeowners insurance term in Aurora totals just $1,116 each year — $327 less than the average homeowners policy in other Illinois cities. The below cities have the most affordable home insurance in Illinois.

 
CHEAPEST CITIES FOR HOMEOWNERS INSURANCE IN ILLINOIS
CityAverage 12-Month Home Insurance Rate
Aurora$1,116
Orland Park$1,121
Naperville$1,128
Tinley Park$1,142
Mount Prospect$1,164
 
Learn more about homeowners insurance rates in Chicago.
 
 

Home and auto insurance bundling in Illinois

If you want to save, consider purchasing your home and auto policies from the same insurance company. Bundling auto and home insurance in Illinois can save you a substantial sum each month on car insurance. Purchasing bundled policies in Illinois leads to average annual savings of $169.

 
HOME AND AUTO BUNDLING DISCOUNTS IN ILLINOIS

Avg. Annual Rate (No Bundle)

Avg. Annual Rate (w/ Bundle)

Annual Savings ($)

Annual Savings (%)

$1,202$1,033$16916%
 

 

Illinois homeowners insurance FAQs

 

Is homeowners insurance mandatory in Illinois?

Your mortgage company will require you to insure your home.

Is redlining allowed for homeowners insurance in Illinois?

No. Redlining, or excluding certain neighborhoods from mortgage insurance eligibility, is no longer permitted in Illinois.

 

 

Natural disaster coverage in Illinois

 

Does homeowners insurance cover tornadoes in Illinois?

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 suffers an average of 54 tornadoes each year.*

Tornado damage is usually the result of wind, so make sure your current homeowners policy has windstorm protection, a standard part of most policies.

Wind protection provides coverage to a building's exterior and overall structure. However, depending on the type of policy you have, damage to the building's interior may only be covered when it is caused by exterior damage, like a broken window. Detached structures are also covered, generally up to 10% of the home’s insured amount. It's important to remember that some damages the storm causes may not be covered. For example, if the storm that produced the tornado also causes flooding that damages your home, it won’t be covered unless you've sought out flood coverage. 

*Source: NOAA'S National Weather Service

 

Does homeowners insurance cover flooding in Illinois?

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.

Find an affordable homeowners policy in Illinois today!

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Kristine Lee
Kristine LeeManager, Content and Data

Kristine is a licensed insurance agent and one of The Zebra’s in-house content researchers and writers.

With a background in copywriting, she covers the ins and outs of auto, home, life and renters insurance, providing data-backed insights and information to help insurance shoppers make informed decisions. Kristine has contributed her insurance expertise to publications such as Automoblog, USInsuranceAgents.com and BestCompany.com. Her research has been cited by Car and Driver.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.

  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.

  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.

  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.