Best Cheap Homeowners Insurance in Illinois
- Best Cheap Homeowners Insurance in Illinois
Illinois is the sixth-most populous state in America and the most populous in the Midwest. Although typically defined by the commercial and cultural hub that is Chicago, over one-third of the state’s residents live outside of the Chicagoland metropolitan area.
No matter where you live in Illinois, you need homeowners insurance to protect your property, especially if you have a mortgage.
We created this overview to help you find the best home insurance in Illinois. We go over average homeowners insurance rates in Illinois, some of the top homeowners insurance companies in Illinois, and much more.
How Much is Homeowners Insurance in Illinois?
Home insurance in Illinois costs about $2,194 per year for $300,000 of dwelling coverage. Homeowner insurance costs vary from state to state, neighborhood to neighborhood, and even house to house.
It’s difficult to give one overall average homeowners insurance cost for Illinois. Instead, we gave averages based on your dwelling cost, which is roughly the replacement cost of your home. Below are the average homeowners insurance rates in Illinois for different levels of dwelling coverage.
Average Homeowners Insurance Cost in Illinois
Cost of House
What Does Homeowners Insurance in Illinois Cover?
No matter what company you get the plan from, homeowners insurance policies in Illinois will contain these six areas of coverage:
Coverage A: Dwelling
Dwelling coverage financially safeguards the physical structure of your house. This includes the structural components of your roof, walls, windows, balconies, pipes, air conditioner, wiring, and more. .
Coverage B: Other Structures
Other structures coverage covers features on your property that aren’t attached to your main dwelling. This includes fences, sheds, gazebos, decks, and detached garages, if applicable.
Coverage C: Personal Property
Personal property coverage protects your belongings in and around your property. This includes furniture, clothes, small appliances, electronics, art, and more. If your items get stolen or damaged from a covered peril, your insurer will reimburse you through personal property coverage.
Coverage D: Loss of Use
Loss of use coverage is a part of your policy that covers expenses if you’re forced to move out of your home if it suffers damage that makes it uninhabitable. While your insurance company works on repairing or rebuilding your house, they can cover your food, gas, lodging, and more through loss of use coverage.
Coverage E: Personal Liability
Personal liability coverage protects your finances in case someone suffers an injury you’re found liable for. For example, you could be liable if a visitor slips by your pool or your dog bites them. If an injured guest tries to sue you for damages, liability coverage can cover their medical expenses and your legal fees.
Coverage F: Medical Payments
Medical payments coverage is like liability coverage on a smaller scale. Liability coverage will come into play for major injuries, while medical payments coverage is designed for minor injuries only.
Best Homeowners Insurance in Illinois
The best homeowners insurance in Illinois will have all these coverages at a price that works for you. You need the right type of homeowners insurance for your dwelling, which is likely an HO-3 policy. Then, you need the right coverages and endorsements.
There are different types of home insurance plans. The most comprehensive is an open-peril policy. They cover the greatest number of potential sources of damage, called perils. The most common type of open-peril policy, which is also the most common type of homeowners insurance written, is known as the HO-3 form.
You can get a cheaper, less thorough plan for your property called an HO-1, HO-2, or DP policy, but these won’t be sufficient for mortgage lender requirements, and they exclude major areas of coverage that HO-3 policies have. Also, the average Illinois homeowners insurance rates we break down later are for HO-3 policies.
An HO-3 policy has the coverages you need and options for several optional endorsements and other add-ons you might want for your property.
Homeowners Insurance Calculator for Illinois
To see how these coverages make up your policy exactly, take a look at this sample Illinois homeowners insurance calculator for a $200,000 dwelling below.
Average Coverages in a $200,000 Illinois Homeowners Insurance Policy
- Other Structures
- Personal Property
- Loss of Use
- Personal Liability
- Medical Payments
Amount of Coverage
Homeowners insurance providers will calculate your dwelling coverage necessity on a house-by-house basis. They will use information you provide, public property records, third-party data, and more to determine the replacement cost of your house. You must insure your house for at least 80% of its replacement cost – a rule that all insurers have.
Many of your policy’s coverages are then derived from your dwelling coverage. For instance, your other structures limit is 10% of your dwelling coverage. So, in our example, the other structures limit of $20,000 is 10% of the dwelling limit of $200,000.
Carriers usually start off giving you a personal property limit of about 50% of your dwelling limit. This may be more or less than what you need depending on how much stuff you own, and you should be able to change your desired amount of personal property coverage easily.
Loss of use coverage is often about 20% of your dwelling coverage. This should be sufficient, but you can consult with your provider if you want to change this.
Liability and medical payments aren’t so closely tied to your dwelling coverage. Carriers typically have a minimum option of $100,000 of liability coverage, but they will recommend more, with a common option being $300,000. Medical payments coverage limits will vary anywhere between $2,000 to $5,000.
Increasing your liability limits increases your premiums much less than raising any property coverages in your policy. Since liability and medical payments coverage are so easily adjustable, insurers recommend higher limits just to be safe.
Best Home Insurance Companies in Illinois
The best home insurance companies in Illinois will be the carriers with the coverage you need at a price that works for you. Since prices will vary by insurer, you’ll need to compare several options before you can say you have found the best one.
The largest home insurance companies in Illinois are:
- State Farm
- Country Mutual
- American Family
State Farm is the largest home insurer by far in Illinois. The company was founded in the state over 100 years ago and has grown into the largest insurance company in America. They have over one-third of the market share in Illinois.
It’s hard to recommend one of these, or any insurer in the state, as one of the best home insurance companies in Illinois without knowing your personal situation. You’ll want to compare customer service, user experience, and financial rating in addition to rates to decide on the best home insurance company in Illinois for you.
Best Home and Auto Insurance Companies in Illinois
Your choice also might vary depending on what else you own that can be insured. For instance, if you have a car, you can bundle your home and auto insurance for additional savings. You should then be on the lookout for companies with the best bundling discount.
Who Has Cheap Homeowners Insurance in Illinois?
According to our analysis, Allstate, State Farm, and USAA are some options for cheap homeowners insurance in Illinois. We used an average premium of $300,00 for dwelling coverage, so you may pay slightly less or more depending on how much insurance you need.
Average Home Insurance Cost in Illinois for a $300,000 House
Factors That Affect the Average Homeowners Insurance Cost in Illinois
Insurers calculate your premium based on the risk level of your property. To determine your property’s risk, home insurance companies in Illinois will look at the following details of your home:
- Construction materials
Generally, providers view older homes as more significant risks. They tend to have more issues that can cause property damage and lead to a claim, such as a leaking roof or failing air conditioner. Their dated construction may also mean that they aren’t up to the latest building and safety codes, which means they might not survive severe weather as well. As a result, older homes tend to have higher premiums.
Additionally, brick homes are sturdier and more resistant to fire damage than wooden frame homes. Insurers consider this, too, which often results in brick homes having lower rates.
Your home’s location is also crucial in risk evaluation. Providers consider your distance from a fire hydrant when determining rates (closer is better). They will also look at your flood zone, nearby sinkhole activity, and more.
Certain features of your home can also influence your premiums. Having unique or ornate construction that is hard to replicate will raise your replacement cost and, thus, your premiums. Also, certain “attractive nuisances” like pools, trampolines, and playground equipment on your property can increase your risk and raise your rates.
Is Homeowners Insurance Required in Illinois?
No, homeowners insurance isn’t required by law in Illinois, but your mortgage lender will require you to get a policy before giving you a loan. If you don’t have a mortgage, you won’t have anyone stipulating your property insurance needs.
Since mortgage lenders put down large amounts of money on your property, they want you to carry a home insurance policy to protect their investment. If your home gets destroyed by an act of nature, your lender wouldn’t want to lose the money they put down. Instead of recouping their investment from you, they can be reimbursed through your home insurance policy.
The same goes for you. With the right Illinois home insurance, your carrier can foot the costs of rebuilding your home after damage from a covered peril, so you don’t have to worry about repair costs.
If you’re buying a house with a mortgage in Illinois, you need homeowners insurance at closing, and you may be paying your premiums through an escrow account. If you don’t maintain coverage for the life of your loan, your lender can force-place insurance on you. Force-placed coverage is expensive. Avoid it by paying your premiums on time.
How to Get Insurance on a Secondary Home in Illinois
Homeowners insurance will only cover your primary residence that you live in most of the year. Some homeowners in Illinois have multiple houses. These people need to get separate insurance on a secondary home in Illinois.
Insurance on a second home is slightly more expensive than your primary home since your second home will be unoccupied for part of the year, making it riskier. The chances of a break-in or damage going undetected for long periods are higher.
Illinois Homeowners Insurance Laws to Know
Every state government regulates its insurance companies to some extent. We’ve outlined some important Illinois homeowners insurance regulations below.
A unique requirement in Illinois is that home insurance companies must provide coverage for mine subsidence. Illinois produces great amounts of coal, and abandoned, underground coal mines can sometimes cause the ground to sag or collapse. This is called mine subsidence.
Mine subsidence coverage in Illinois home insurance is included by default in every policy in 34 counties, but you can choose to reject it if you don’t want it.
Illinois homeowners insurance laws also state that a company has 15 working days to communicate with you after you send them something, such as a claim. There are also timelines regarding when they need to investigate a claim and acknowledge liability, but there is no deadline for how long a claim can take due to its potential complexity.
How to Get Home Insurance Quotes in Illinois
You should always shop around when looking for Illinois home insurance to see who has the best option for you. Clovered was built to make shopping around easy. Using our online quoting tool, you can quickly compare home insurance quotes in Illinois from the top providers in the state.
Clovered is an independent insurance agency that’s helped over 30,000 policyholders find and maintain coverage. If you need help with our online platform, or if you’d rather get your Illinois home insurance quote with a person, one of our licensed agents would be happy to help.
We partner with the nation's top homeowners insurance companies so you can get a custom policy at an affordable price.
The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.