The midwestern state of Illinois, nicknamed the Prairie State, is characterized by a landscape of farmland and forests, but is perhaps best known for the Windy City of Chicago. However, Illinois is also known for extreme weather conditions, like snowstorms and tornadoes, which means it's important to get the right homeowners insurance if you’re a resident. Fortunately, homeowners in Illinois can still find relatively affordable rates despite the extreme weather risks.
The average cost of homeowners insurance in Illinois is $1,720 per year, but there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Illinois.
Compare the best homeowners insurance companies in Illinois
Of the companies we evaluated, Allstate has the lowest rate in Illinois, with an average policy cost of $1,059 per year — more than $700 less than the state average. Average annual rates for State Farm, Erie, and Farmers are also less than the state average.
When it comes to homeowners insurance, price is an important factor to consider, but it shouldn’t be the only one. Quality of coverage, customer service and claims reputation should all bear weight when it comes to making a decision about which homeowners insurance company to get your policy from.
Looking at the largest companies in Illinois by market share, Policygenius analyzed the latest premium data from Quadrant Information Services to find the cheapest companies in 2023. We then looked at 2022 J.D. Power customer satisfaction scores and compared that with the coverage needs of Illinois residents to find the best homeowners insurance in Illinois.
Company | Best for... | Average monthly cost | Policygenius rating |
|---|---|---|---|
Policy add-ons | $130 | 4.8 out of 5 | |
Lots of discounts | $133 | 4.5 out of 5 | |
Coverage options | $169 | 4.5 out of 5 | |
Flood insurance | $116 | 4.5 out of 5 | |
Low rates | $88 | 4.4 out of 5 |
Methodology & why you can trust our rates
Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
Best for low rates: Allstate
Allstate
4.4
Bundle home & auto
Smart home discounts
Why we chose it
Airbnb hosts in Illinois may like Allstate thanks to HostAdvantage — its affordable short-term rental coverage that can be easily added to any policy. Whether you’re looking for basic or comprehensive home insurance coverage, Allstate is a standout option.
Pros and cons
Pros
High-quality and flexible policy options
Numerous discounts and features that help you save
Below-average customer complaints
Cons
Below-average digital experience rating with J.D. Power
More details
Why we chose Allstate
If you're looking to cover your short-term rental, Allstate's HostAdvantage makes it our top pick for homeowners insurance in Illinois. HostAdvantage comes with theft protection, coverage for your damaged property ($10,000 per host period), and a $25 discount on cleaning services from Merry Maids.
Allstate also offers a few coverages that you can add to your home insurance policy for more protection. This includes water backup protection, scheduled personal property coverage, and identity theft restoration coverage.
How do Allstate home insurance rates compare to the Illinois average?
The annual average cost of Allstate home insurance in Illinois is $88 per month, significantly less expensive than the statewide average.
How to get a quote
Online through Policygenius or Allstate, or by contacting a local Allstate agent.
Best for policy add-ons: State Farm
State Farm
4.8
Bundle home & auto
Offers extended replacement cost
Offers flood insurance
Offers earthquake insurance
Wind/hail deductible
Offers wildfire insurance
Why we chose it
State Farm is one of the best home insurance companies in Illinois thanks to its large selection of policy options, high customer service marks, and industry-best financial stability ratings.
Pros and cons
Pros
Save up to $1,127 per year when you bundle your home and auto insurance
Excellent line-up of policy add-ons, including extended replacement cost coverage
Cons
20% more complaints filed with the NAIC than other companies of its size
More details
Why we chose State Farm
State Farm is one of the best home insurance companies in Illinois. One of the reasons why we picked State Farm is because of its coverage options. State Farm lets homeowners get extended replacement cost coverage for their homes, replacement cost coverage for their personal property, water backup protection, and much more.
State Farm's customer service is top-rated, too. The company has received high ratings from policyholders according to J.D. Power’s 2022 customer satisfaction, claims, and digital experience surveys. It has also received the highest rating possible from A.M. Best for financial strength and stability.
The company doesn't offer as many discounts as other insurers in the state, but if you're planning to bundle home and auto insurance with State Farm, you may receive a large discount.
How do State Farm home insurance rates compare to the Illinois average?
The average cost of home insurance from State Farm in Illinois is $130 per month, which is less expensive than the statewide average.
How to get a quote
Online through State Farm or by contacting your local State Farm agent.
Best for discounts: Farmers
Farmers
4.5
Offers extended replacement cost
Bundle home & auto
Smart home discounts
Why we chose it
Farmers is one of the best home insurance companies in Illinois for homeowners who want lots of discounts. Farmers also has high claims satisfaction scores.
Pros and cons
Pros
12+ discounts to save on rates
Extended and guaranteed replacement cost for your home
Shave $50 off your deductible each year you’re with Farmers
Cons
Below-average scores on J.D. Power’s overall customer satisfaction and digital experience surveys
More details
Why we chose Farmers
Farmers is one of the best homeowners insurance companies in Illinois for people looking for a lot of discounts. Farmers also earned a high score in J.D. Power’s 2022 claims satisfaction study (though it was below-average on J.D. Power’s overall customer satisfaction and digital experience surveys). Plus, Farmers receives fewer complaints than average, according to the National Association of Insurance Commissioners.
There are a few ways that homeowners can lower their rates with discounts. Farmers is one of the best companies for bundling home and auto coverage (you could save up to 18% on your premiums by bundling). The company also offers more than a dozen other discounts, many of which are easy for most homeowners to qualify for.
How do Farmers home insurance rates compare to the average in Illinois?
The average cost of Farmers home insurance in Illinois is $133 per month, which is slightly cheaper than the state's average annual premium of $143 per month.
How to get a quote
Online through Farmers
Best for coverage options: American Family
American Family
4.5
Offers extended replacement cost
Offers flood insurance
Bundle home & auto
Why we chose it
American Family is one of the best home insurance companies in Illinois. It also has industry-best coverage options and high customer service ratings.
Pros and cons
Pros
Affordable rates and 11 available discounts
Ranked #2 in J.D. Power’s 2022 U.S. Home Insurance Study
Diminishing deductible feature to lower out-of-pocket claim costs
Cons
Offers online quotes, but requires talking to an agent to complete the process
More details
Why we chose American Family
AmFam's wide range of coverage options provides discounts (many of which may be easy to qualify for) can make your premiums even cheaper.
American Family offers lots of additional coverage options that you can choose to add to your home insurance policy, too. You can customize your policy with up to 15 additional coverage options — including inland flood, equipment breakdown, and service line coverage.
How do American Family home insurance rates compare to the Illinois average?
The average annual cost of American Family home insurance in Illinois is $169 per month, which is a little more expensive than the statewide average.
How to get a quote
Online with American Family or by contacting a local agent
Best for flood insurance: Erie
2023 Policygenius award winner
Erie
4.5
Mobile app
Bundle home & auto
Why we chose it
Erie's wide range of coverage options, industry-best customer service ratings, and affordable rates make it one of the best home insurance options in the country.
Pros and cons
Pros
Cheap rates
Guaranteed replacement cost comes standard on Erie policies
Excellent customer service and claims satisfaction ratings
Cons
Only available in 12 states
Just three available discounts
Can’t get quotes or file claims online
More details
Why we chose Erie
Home insurance policies from Erie come standard with guaranteed replacement cost coverage — which you often have to pay extra for at other companies. A basic policy also covers lost and misplaced items, jewelry, and gift cards to closed businesses.
Erie also offers a range of add-ons that you can purchase, like short-term rental coverage, equipment breakdown coverage, water backup protection, underground service line coverage, and more.
How do Erie home insurance rates compare to the average in Illinois?
The average cost of Erie home insurance in Illinois is $116 per month, which is cheaper than the average monthly premium in Illinois of $149 per month.
How to get a quote
Online through Erie
How much is homeowners insurance in Illinois?
The average cost of homeowners insurance in Illinois is $1,720 per year, or roughly $143 a month, for an insurance policy with $300,000 in dwelling coverage. This is a little less than the national average of $1,754 per year.
Illinois homeowners insurance rates by city
The cheapest homeowners insurance companies in Illinois are Allstate and Erie. These insurers have the cheapest average home insurance rates in all but seven Illinois cities.
Allstate’s low annual premiums in Altamount, Effingham, Mason, and neighboring southern Illinois cities make it the cheapest average rate in Illinois. Homeowners in Chicago can pay as little as $1,059 by choosing Allstate.
Variations in cost from city to city in Illinois are dependent on several factors such as population density, proximity to tornado-prone areas, the size and age of a home and much more. While your rates will often be higher if you live in an expensive or high-risk area, there are often many affordable options to choose from.
Here’s a look at the average cost of home insurance in the 20 largest cities in Illinois.
City | Average monthly cost | Average annual cost | Difference from state average (%) |
|---|---|---|---|
Chicago | $178 | $2,130 | 24% |
Aurora | $133 | $1,593 | -7% |
Joliet | $130 | $1,555 | -10% |
Naperville | $134 | $1,606 | -7% |
Rockford | $128 | $1,536 | -11% |
Springfield | $132 | $1,585 | -8% |
Elgin | $122 | $1,468 | -15% |
Peoria | $131 | $1,570 | -9% |
Champaign | $121 | $1,457 | -15% |
Waukegan | $135 | $1,624 | -6% |
Cicero | $138 | $1,651 | -4% |
Bloomington | $123 | $1,474 | -14% |
Schaumburg | $142 | $1,702 | -1% |
Evanston | $143 | $1,710 | -1% |
Arlington Heights | $143 | $1,711 | -1% |
Bolingbrook | $124 | $1,492 | -13% |
Decatur | $132 | $1,583 | -8% |
Skokie | $148 | $1,777 | 3% |
Palatine | $136 | $1,631 | -5% |
Des Plaines | $130 | $1,561 | -9% |
Illinois homeowners insurance rates by coverage amount
The table below highlights the average annual premium in Illinois for five different levels of dwelling coverage, which is the part of your policy that covers structural damage to your home.
Generally speaking, more dwelling coverage means higher homeowners insurance rates, as shown in the table below.
Dwelling coverage limit | Average annual cost |
|---|---|
$100,000 | $909 |
$200,000 | $1,317 |
$300,000 | $1,720 |
$400,000 | $2,111 |
$500,000 | $2,572 |
Cheapest homeowners insurance companies in Illinois
The amount you pay for homeowners insurance primarily depends on your home's replacement cost and how much dwelling coverage it requires. You may also find that companies set rates differently depending on how much coverage is in your policy.
For example, a company that offers cheapest home insurance rates for a home with a low dwelling coverage limit may charge relatively high premiums for a home with high dwelling coverage limits. That's why it's so important to compare quotes from multiple companies. Here's the average annual premium from 15 insurance companies in Illinois.
Company | Average annual cost |
|---|---|
$1,059 | |
$1,103 | |
$1,189 | |
$1,391 | |
$1,395 | |
$1,561 | |
$1,565 | |
$1,590 | |
$1,825 | |
$2,025 | |
$2,131 | |
$2,134 | |
$2,369 | |
$2,558 | |
$4,897 |
Cheapest Illinois homeowners insurance if you have poor credit
Illinois allows insurance companies to use your credit rating to help set your rates. Homeowners with lower credit scores should expect to pay higher rates for their homeowners insurance.
Below are the homeowners insurance rates for Illinois residents with poor credit.
Company | Average annual cost |
|---|---|
Hippo | $1,559 |
Allstate | $1,666 |
USAA | $1,752 |
Nationwide | $2,316 |
State Farm | $2,672 |
State Farm | $2,672 |
Progressive | $2,738 |
American Family | $2,826 |
AAA | $3,101 |
Foremost | $3,262 |
Country Financial | $3,524 |
Farmers | $3,528 |
Erie | $4,275 |
Chubb | $4,903 |
Auto-Owners Insurance | $10,160 |
Cheapest Illinois homeowners insurance if you have an older home
The age of your home is one of the factors that impacts your insurance rates. Here are the rates for older homes in Illinois by company.
Company | Average annual cost |
|---|---|
Allstate | $1,048 |
Auto-Owners Insurance | $1,183 |
USAA | $1,300 |
Farmers | $1,552 |
Erie | $1,559 |
State Farm | $1,562 |
Nationwide | $1,652 |
Chubb | $1,925 |
Hippo | $2,084 |
Foremost | $2,106 |
American Family | $2,115 |
AAA | $2,133 |
Progressive | $2,221 |
Country Financial | $2,685 |
Travelers | $6,673 |
Cheapest Illinois homeowners insurance if you have a history of claims
Filing multiple claims can impact your homeowners insurance rates. Here are the average rates for homeowners who have filed multiple claims.
Company | Average annual cost |
|---|---|
Auto-Owners Insurance | $1,174 |
USAA | $1,653 |
State Farm | $1,781 |
Allstate | $1,800 |
Farmers | $2,029 |
Erie | $2,329 |
Progressive | $2,761 |
American Family | $3,265 |
Chubb | $3,725 |
Hippo | $3,777 |
Country Financial | $4,803 |
Nationwide | $4,828 |
AAA | $5,464 |
Foremost | $6,228 |
Travelers | $7,137 |
How to buy homeowners insurance in Illinois
With so many insurance options for homeowners in Illinois, it can be overwhelming trying to find the right company and policy that best suits your needs. Because of the potential for extreme weather events in Illinois, like snow, wind, and even tornadoes, it’s important to buy homeowners insurance that will work when you need it most.
We recommend following these steps when shopping for homeowners insurance in Illinois:
Reach out to a licensed Policygenius agent. Our team of licensed insurance experts can help you figure out how much coverage you need and what company offers it at the best price — all for free with no impact to your credit score.
Ask about an Illinois FAIR Plan option. If you live in a Midwestern city at high risk for storms and tornadoes and you’re struggling to find coverage through a traditional company, ask your Policygenius agent if a policy through the Illinois’ FAIR Plan makes sense for you.
Consider purchasing flood insurance. Standard home insurance policies don’t cover flooding, so you might want to add flood coverage or purchase a separate flood insurance policy to make sure you’re fully protected. A Policygenius agent can help you do this, too.
Figure out how low of a deductible you can afford. Since homeowners in Illinois have different deductible amounts that you can choose from, you’ll want to consider how often you’ll need to file a claim and how much you’d be able to afford to pay out of pocket in the event of a loss.
Compare quotes from a Policygenius agent. Once you’ve nailed down your coverage needs, limits, and deductibles, a Policygenius agent will walk you through quotes from a few different companies to help you find the best policy for your needs.
Sign the policy and pay your first premium. After you’ve chosen the policy you want, your Policygenius agent will complete all of the paperwork for you. The only thing left to do is sign the policy and pay your first premium. They’ll even cancel your old policy for you if it’s not up yet.
Frequently asked questions
Illinois gets a lot of snow — how does extreme weather impact my policy?
Average homeowners insurance policy costs in Illinois are more than the national average. Depending on where you live in Illinois, you may be at risk for extreme weather like snow, wind, and even tornadoes. Due to the state’s extreme weather conditions, there is a higher chance of claims being filed for things like property damage, so companies raise the costs of premiums to cover the risk.
How can I lower my homeowners insurance in Illinois?
You can lower your homeowners insurance in Illinois by taking advantage of discounts offered through your home insurance company. This might mean bundling your home and auto policies together for discounts off your premiums, or adding security systems to your home. Another way to lower your homeowners insurance rates is by opting for a higher deductible. Just keep in mind a higher deductible means you’ll have to pay more money out of pocket when you file a claim.
Is it mandatory to have homeowners insurance in Illinois?
The state of Illinois does not require homeowners to purchase home insurance. However, if you have a mortgage on your home, your lender will usually require coverage to protect their investment. We recommend homeowners insurance to protect your home should catastrophe strike.
