Illinois has one of the higher homeownership rates in the country at 66%. Clearly, property ownership is still within reach for state residents. Although buying a house can be a financial stretch (especially in more expensive areas such as Hinsdale, Wilmette or Highland Park) it’s important to budget for home insurance. Coverage isn’t required unless you have a mortgage, but think about how much it would cost to rebuild your house after a fire or extensive water damage. The average annual premium of $2,526 per year for homeowners insurance in Illinois may be a bargain.
This guide explores your options for home insurance in Illinois so you can compare how much you can expect to pay for coverage and the factors that affect your premiums to help you save.
- Chicago has the highest homeowners insurance rates in Illinois — as high as $3,460 per year.
- The cheapest homeowners insurance Illinois company is Allstate, with an average annual rate of $1,757.
- Bundling auto and homeowners insurance in Illinois can lower your rates by 21%, saving you an average of $454.
- The average cost of homeowners insurance in Illinois is $2,526 per year; $618 less than the nationwide average.
- 5 Best homeowners insurance companies in Illinois
- Average cost of homeowners insurance in Illinois
- Cheapest homeowners insurance companies in Illinois
- Illinois homeowners insurance rates by ZIP code and city
- Homeowners insurance rates in Illinois by company
- Homeowners insurance discounts in Illinois
- Frequently asked questions about Illinois homeowners insurance
5 Best homeowners insurance companies in Illinois
To find the best homeowners insurance in Illinois, Insurance.com compared dozens of providers to find the best. To narrow down the field of best home insurance companies in Illinois, a maximum score of five was awarded based on:
- Credit ratings from A.M. Best based on a provider’s financial stability
- Customer satisfaction scores from J.D. Powers
- Market share of written policies
- Illinois home insurance rates
- An insurance company’s coverage options and discounts
The five best home insurance companies in Illinois are:
- Allstate: Best overall
- USAA: Best for military
- State Farm: Best for bundling
- Liberty Mutual: Best for digital presence
- AIG (American International Group): Best for custom homes
| Company | Rank | Insurance.com score | Best for | A.M. Best rating | J.D. Power score |
|---|---|---|---|---|---|
| Allstate | 1 | 4.52 | Overall | A+ | 829/1,000 |
| USAA | 2 | 4.5 | Military | A++ | 882/1,000 |
| State Farm | 3 | 4.23 | Bundling | A++ | 835/1,000 |
| Liberty Mutual | 4 | 4.13 | Digital presence | A | 806/1,000 |
| AIG (American International Group) | 5 | 3.83 | Custom homes | A | 830/1,000 |
Allstate: Best overall
Allstate pulls off excellent customer service, affordable premiums and plenty of coverage options to earn the top place as the best homeowners insurance Illinois. The discount options are part of the reason the carrier has the lowest home insurance cost in Illinois at an average rate of $1,757 per year. In addition, the nationwide insurance provider has offices throughout Illinois, with 82 agents in the Chicago area alone.
Home insurance add-ons:
- Business property
- Identity theft restoration
- Water backup
- Scheduled personal property
- Sports equipment
- Green improvement reimbursement
- Yard and garden
- Electronic data recovery
- Musical instruments
Homeowners insurance discounts available:
- Bundling
- Claims-free
- Protective devices
- Responsible payment
- Welcome & loyalty discount
- New home buyer discount
- Autopay
- Early signing
USAA: Best for military
USAA provides financial and insurance products to members. If you’re active-duty, affiliated with one of the three Illinois military bases, retired, a veteran or related to someone in the Armed Forces, you may qualify. Members will have access to USAA home insurance with competitive pricing and a track record of stellar customer service, according to respondents of J.D. Power’s home insurance study.
Home insurance add-ons:
- Earthquake
- Flood
- Home-sharing
Illinois homeowners insurance discounts available:
- Bundling
- Claims-free
- Protective devices
State Farm: Best for bundling
As mentioned, Illinois has a high homeownership rate of 66%. Additionally, each household owns an average of two vehicles. Bundling Illinois homeowners insurance with auto coverage can make sense. Of the best home and auto insurance companies in Illinois, State Farm may provide the largest discount. The average national savings for bundling, based on a 2020 State Farm national survey of new policyholders, is $965.
Home insurance add-ons:
- Replacement cost
- Flood
- Earthquakes
- Pet coverage
Homeowners insurance discounts available:
- Multi-policy
- Protective devices
- Roofing
Liberty Mutual: Best for digital presence
Many homeowners these days choose to handle their insurance needs online. It’s a great way to save time and money, as long as the carrier’s digital tools are user-friendly. Liberty Mutual’s digital experience is one of the best. You’ll find advice about homeownership on the insurer’s website. In addition, 150,000 iOS users awarded the mobile app a near-perfect score of 4.8 out of 5 stars for the ability to manage your policy, file claims and more through the app.
Home insurance add-ons:
- Hurricane damage
- Inflation protection
- Personal property
- Replacement cost
- Water damage
Illinois home insurance discounts available:
- Claims-free
- Safe homeowner
- Early policy buyer
- Newly purchased home
- New/renovated home
- New roof
- Multi-policy
- Insured to value
- Autopay
- Paperless
AIG (American International Group): Best for custom homes
AIG Insurance offers customized home insurance in Illinois. Residents in neighborhoods such as the National Historic District of Galena, with its 1800-era custom homes, or Chicago’s Beverly-Morgan Park neighborhoods filled with original Craftsman homes have special coverage requirements that a standard home insurance policy may not cover. AIG is a good option when other insurers are unwilling to insure an older, historical or higher-value property.
Home insurance add-ons:
- Replacement cost
- Jewelry rider
- Additional living expenses
- Coverage limit inflation protection
Illinois home insurance discounts available: N/A
Average cost of homeowners insurance in Illinois
Despite the high cost of home insurance in some areas, the average home insurance cost in Illinois is $2,526 — $618 less than the national average of $3,144 per year. The good news is, you may be able to beat the average. Factors such as the policy limits you set, the age and location of the home and the carrier you choose can all affect home insurance Illinois premiums.
Cheapest homeowners insurance companies in Illinois
New homeowners and individuals on a tight budget may need to prioritize the cost of home insurance Illinois above everything else. The following Illinois home insurance carriers are the cheapest, based on annual rates for a $300,000 dwelling / $1,000 deductible / $300,000 liability policy.
| Company | Avg. annual premium | Avg. monthly premium |
|---|---|---|
| Allstate | $1,757 | $146.42 |
| Travelers | $1,926 | $160.50 |
| Country Mutual Insurance Company | $2,039 | $169.92 |
| Nationwide | $2,050 | $170.83 |
| Foremost Insurance Company | $2,227 | $185.58 |
If even the cheapest homeowners insurance companies in Illinois are too expensive for your needs or you can’t find coverage, the Illinois FAIR Plan Association may be able to provide you with coverage.
Illinois homeowners insurance rates by ZIP code and city
Illinois home insurance rates could be different from one neighborhood to another. Home values, crime rates or living in an area prone to natural disasters such as flooding or fires could affect your premiums.
| City | ZIP code | Avg. annual premium | |
|---|---|---|---|
| Highest rate | Chicago | 60644 | $3,460 |
| Lowest rate | Hinsdale | 60522 | $1,944 |
To find what the best homeowners insurance Illinois rates for your particular area are, try our homeowner’s insurance calculator for your ZIP code.
HOME INSURANCE CALCULATOR
Average home insurance rates in CALIFORNIA
AVERAGE RATE: $797
Most & least expensive zip codes for homeowners insurance in California
Most Expensive
| Zip Code | City | Highest Rate |
|---|---|---|
| 92325 | Crestline | $1,450 |
| 92391 | Twin Peaks | $1,426 |
| 92321 | Cedar Glen | $1,425 |
| 92352 | Lake Arrowhead | $1,423 |
Least Expensive
| Zip Code | City | Lowest Rate |
|---|---|---|
| 94086 | Sunnyvale | $742 |
| 94085 | Sunnyvale | $743 |
| 94087 | Sunnyvale | $743 |
| 95051 | Santa Clara | $743 |
You can compare how certain factors such as deductible and coverage limits change your premiums by changing the figures in the calculator.
Homeowners insurance rates in Illinois by company
Insurance.com gathered home insurance Illinois quotes from the top carriers based on single-family homes with $300,000/$1,000/$300,000 in coverage. You may find that the same level of home insurance can cost considerably more from one carrier to another. It’s why you want to shop around for coverage by getting multiple quotes first.
| Insurance company | Average annual premium |
|---|---|
| Farmers | $3,142 |
| State Farm | $2,511 |
| Nationwide | $2,050 |
| Allstate | $1,757 |
| Travelers | $1,926 |
| Country Mutual Insurance Co | $2,039 |
| Foremost Insurance | $2,227 |
Homeowners insurance rates in Illinois by coverage level
Most homeowners buy a minimum amount of home insurance thinking they’re saving big. In many cases, the assumption is incorrect. You could bump up dwelling or liability coverage by $100,000 for just a couple of extra dollars per month. Take a closer look at our findings:
| Coverage Set | Avg. Annual Premium |
|---|---|
| $200,000 with $1,000 deductible and $100,000 liability | $1,885 |
| $200,000 with $1,000 deductible and $300,000 liability | $1,903 |
| $300,000 with $1,000 deductible and $100,000 liability | $2,507 |
| $300,000 with $1,000 deductible and $300,000 liability | $2,526 |
| $400,000 with $1,000 deductible and $100,000 liability | $3,158 |
Homeowners insurance discounts in Illinois
Bundling home and auto insurance may be the best way to lower your premiums up to 21%. However, you can also bundle other types of coverages with one insurance company. Besides the discounts, it could save you from the hassle of managing separate policies with different insurance companies.
| Bundle | Avg. annual base premium | Avg. annual premium | Avg. dollar difference | Avg. percent difference |
|---|---|---|---|---|
| Home and auto | $2,287 | $1,832 | -$454 | -21% |
| Home and life | $1,999 | $1,861 | -$138 | -6% |
| Home and umbrella | $2,546 | $2,461 | -$85 | -4% |
Frequently asked questions about Illinois homeowners insurance
How much is home insurance in Illinois?
The average cost of Illinois homeowners insurance is $2,526 per year, which is $618 less than the national average. However, Insurance.com has identified several ways you can find even lower premiums, such as comparing quotes from the best home insurance companies in Illinois and taking advantage of special discounts.
What is the best homeowners insurance Illinois company?
There are several best home insurance companies in Illinois. It all depends on what you’re after. If you’re in search of the cheapest home insurance, Allstate’s rates are the lowest for the state. Military members should consider USAA. Our guide on best Illinois homeowners insurance breaks down the top carriers and who they’re best for.
