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How to find affordable homeowners insurance in Chicago

 

A critical consideration for every homeowner should be home insurance. Along with your home furnishings and other belongings, homeowners insurance covers your dwelling in the event of many perils, including theft, fire, wind damage, and vandalism. Given the relatively frequent occurrence of these incidents and the significant cost of replacing a home, a homeowners insurance policy is a solid investment. The average homeowners policy costs $135 per month in Chicago, Illinois.

The price of a homeowners insurance policy is dependent on a number of factors. These include your dwelling's value, the value of your personal belongings, and the cost of the materials used to build your home. Your home's location can also impact how much you pay, as some locations are more prone to destructive hazards. If your area is at risk of being affected by hail, strong winds, fire, frozen pipes, or volcanic activity, then your premiums could be substantially higher than average. Find out more information about what is covered by a homeowners insurance policy.

If you want to find cheap home insurance in Chicago, start with looking around and comparing a variety of different policies. Check out the below summary of average Chicago home insurance costs to ensure you start your search with as much background info as possible. It's important to remember that the cost of your homeowners insurance is often based on the coverage limits you choose and a variety of other factors.

 
Table of contents:
  1. Rates by insurer
  2. Rates by coverage amount
  3. Rates by ZIP code
  4. Rates by deductible amount
  5. Policy bundling savings

 

Chicago home insurance by company

What you pay for homeowners insurance in Chicago will depend on the insurance company you get your policy through. Allstate offers the most affordable home insurance in Chicago, at just $1,243 per year. This compares favorably to the city’s average homeowners premium of $1,620.

Have a look at the lowest cost insurance companies in Chicago, Illinois to find the best home policy for your needs.

 
AFFORDABLE HOME INSURERS IN CHICAGO
Company Average Annual Rate
Allstate $1,243
State Farm $1,324
Erie $1,388
USAA $1,511
American Family $1,555

 

Chicago homeowners insurance prices by coverage level

Your chosen level of homeowners coverage determines the insurance premiums you pay. Homeowners in Chicago who carry $200K in dwelling coverage pay an average of $901 per year, while those with coverage up to $400K pay around $2,144 per year.

 
POPULAR COVERAGE LIMITS IN CHICAGO
Coverage Level Average Annual Rate
$100,000 Dwelling $821
$200,000 Dwelling $901
$250,000 Dwelling $1,471
$400,000 Dwelling $2,144

 

Chicago home insurance rates by ZIP code

Not every area of Chicago has equal home insurance costs. Policies are often priced on local variables such as the number of claims filed in the immediate area, meaning the neighborhood in which you live could have a major impact on how much you pay to insure your home.

If you're looking for the most affordable home insurance rates in Chicago, take a look at the 60018 ZIP code. In the 60018 ZIP code, homeowners policies typically cost just $1,212 per year on average — a full $409 less than the citywide average. If you’re looking for the areas with the most affordable homeowners insurance in Chicago, have a look at the table below.

 
AFFORDABLE HOME INSURANCE AREAS IN CHICAGO
ZIP Code Average Annual Home Insurance Rate
60018 $1,212
60707 $1,234
60638 $1,245

Some areas of Chicago face higher homeowners insurance costs, on average. Crime rates, fire risk, and even your how close you are to emergency services such as fire and police stations could impact rates the risk level of certain parts of the city, which has the potential to drive up premiums in the area. With an annual average premium of $2,275, 60621 comes in as the costliest ZIP code in Chicago for homeowners coverage.

 
EXPENSIVE HOME INSURANCE AREAS IN CHICAGO
ZIP Code Average Annual Home Insurance Rate
60621 $2,275
60644 $2,258
60636 $2,238

 

Chicago homeowners insurance deductibles

Among the options homeowners face when shopping for an insurance policy is the level at which to set the deductible. The deductible is the total dollar amount that the insured must contribute toward a covered loss. Where you set your deductible can play a large part in how much you pay for insurance.

Put simply, a higher deductible means cheaper insurance costs. This means that those seeking lower insurance premiums will want to think about getting a higher deductible. Be mindful of the fact that your deductible should only be set as high as you can reasonably afford if you suffer a loss.

Have a look at may of the typical deductibles offered by insurers and an estimate of average insurance costs.

 
HOME INSURANCE PREMIUMS BY DEDUCTIBLE LEVEL IN CHICAGO
Deductible Level Average Annual Homeowners Insurance Rate
$500 $1,623
$1,000 $1,471
$1,500 $1,411
$2,000 $1,304
$5,000 $1,110

 

Money-saving tip for home and auto insurance in Chicago: bundling

If you’re looking for savings on your overall insurance costs, consider purchasing your home and auto policies from the same insurance company. Bundling homeowners and auto insurance is one way to save substantially on your monthly car insurance premiums. By bundling your policies, Chicago homeowners could see annual savings of 18% on average.

 
CHEAPEST CAR INSURANCE RATES WITH HOME BUNDLE IN CHICAGO
Company Avg. Annual Auto Insurance Rate (With Bundle)
GEICO $869
American Family $1,208
Country $1,275
State Farm $1,336
Progressive $1,538

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Kristine Lee photo
Kristine LeeManager, Content and Data

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer.

She is an authority on all things insurance and covers the ins and outs of auto, home, life and renters insurance. Her specialty is in providing data-backed insights and information to help insurance shoppers make informed decisions.

Kristine's insurance expertise and research have been cited by publications such as CNBC, Car and Driver, Business Insider, Yahoo!, The Balance, Nationwide and Elephant.

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.