Illinois homeowners insurance: what you need to know
The average cost of home insurance in Illinois is $1,443 annually or $120 per month. This is more than what the average homeowner pays. 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.
Table of contents:
- Rates by company
- Rates by coverage amount
- Rates by deductible amount
- Rates by city
- Bundling savings
- Frequently asked questions
- 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 Company | Average 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 Level | Average 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 Tier | Average 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
| City | Average 12-Month Home Insurance Rate |
| Aurora | $1,116 |
| Orland Park | $1,121 |
| Naperville | $1,128 |
| Tinley Park | $1,142 |
| Mount Prospect | $1,164 |
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 | $169 | 16% |
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.
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.
