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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 $2,053 per month, 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.
UPDATE: Home insurance premiums up 13.6% in Illinois
Home insurance premiums in Illinois increased nearly 14% from May 2021 to May 2022, according to our latest analysis of internal policyholder data. This is due to a mix of rising inflation, labor shortages, and severe natural disasters that have caused insurance companies to increase rates and establish stricter underwriting rules to offset the risks.
Of the companies we evaluated, Allstate has the lowest rate in Illinois, with an average policy cost of $1,059 per year — almost $1,000 less than the state average. Average annual rates for State Farm, American Family, 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 2022. We then looked at 2021 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
Average yearly cost
J.D. Power Rating
State Farm
$1,561
835
Allstate
$1,059
829
Country Financial
$2,558
830
American Family
$2,025
831
Farmers
$1,590
813
State Farm
There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.
Pros
Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage
Get up to $1 million in personal liability coverage
Score discounts for bundling, installing security devices, and choosing a high deductible
File and track claims online, over the phone, in person, or through its mobile app
High customer satisfaction and financial strength ratings
Cons
No discounts for first-time homebuyers or going a year without a claim
State Farm consistently meets or exceeds customer satisfaction in J.D. Power’s annual homeowner’s insurance customer satisfaction study and earned the highest rating for homeowners insurance customers in Illinois.
With options for up to $1 million in personal liability coverage and an easy-to-follow process for filing a claim, it’s not surprising why State Farm ranks highest for Illinois residents given the risk of property damage during extreme weather events.
How to get a quote
Online through State Farm
Allstate
Allstate's mix of exceptional customer satisfaction ratings, personalized coverage options, and numerous discount opportunities make it one of the most popular homeowners insurance companies on the market.
Pros
Several coverage add-ons, including ones for roof surfaces, water backup, green improvements, and mold protection
8+ discounts, including autopay, bundling, zero claims, and new homebuyer
Get up to 25% off your premiums when you bundle home and auto insurance
File and track claims online or through its mobile app
Cons
Lower-than-average claim satisfaction and digital experience ratings from J.D. Power
Allstate scored an 829 out of 1,000 in J.D. Power’s 2021 home insurance study, coming in as second highest-rated homeowner’s insurance company for Illinois residents. In addition to exceptional customer service, Allstate also offers a range of personalized coverage options as well as policy discount opportunities.
Of the best home insurance companies in Illinois, Allstate offers the cheapest policy rates, making it a great option for Illinois homeowners, especially first-time homebuyers.
How to get a quote
Online through Policygenius or Allstate
Country Financial
While around for nearly 100 years, Country Financial continues to adapt. Our favorite perk? Its extended replacement cost coverage, which let's you rebuild your home fully even if construction costs go up — a must-have with rising inflation.
Pros
Customer service ratings among the best in the business
10+ discounts for bundling, newer roofs, on-time payments, smart locks, and more
Offers earthquake insurance — hard to come by with many insurers
Excellent policy add-ons, including extended or guaranteed replacement cost dwelling coverage
Country Financial was founded by a group of Illinois farmers in 1925, so the company knows Illinois customers in and out. With its Midwest roots, Country Financial is well seasoned in meeting the needs of Illinois homeowners. With extended replacement cost coverage that lets you build your home even if costs go up (a nice perk given the country’s rising inflation) and hard-to-come-by earthquake protection, Country Financial has some unique offerings.
The one downside to choosing Country Financial is the potentially expensive premiums — its average annual premium cost of $2,558 is the highest of the companies we evaluated.
How to get a quote
Online through Country Financial
American Family
American Family's status as the 7th largest home insurance provider in the U.S. speaks to its popularity and reputation. Our fave perk? Its diminishing deductible program that lets you earn credits for every year you go without filing a claim.
Pros
Unique coverage add-ons, like matching siding insurance and hidden water damage coverage
Save up to 20% on home insurance and 29% on auto insurance for bundling the policies together
Earn a $100 credit toward your deductible for ever year you go without filing a claim
File claims online or on its mobile app — with 24/7 claims support
Cons
Doesn't offer extended or guaranteed replacement cost coverage
Above-average customer complaints according to the NAIC
American Family scored an 831 of 1,000 in J.D. Power’s 2021 home insurance study, making it one of the top-rated companies in the analysis for Illinois residents. American Family is a great option for those looking for additional policy perks — its diminishing deductible program puts money back in your pocket if you go an extended period without filing a claim. It also offers a significant bundling discount if you combine your home and auto insurance under a single policy package.
How to get a quote
Online through American Family
Farmers
Farmers is one of the largest and most reputable home insurance providers in the industry, offering special discounts for teachers, nurses, first responders, and non-smokers — plus the option to rebuild your home with green materials after a claim.
Pros
Several discounts and unique ways to save, including claim forgiveness and declining deductibles
3 flexible coverage packages with varying levels of protection for most coverage and budget needs
Offers extended and guaranteed replacement cost coverage options
File claims online, via text, on its mobile app, or by calling its claims center
Cons
Rates are typically more expensive
Below-average customer satisfaction ratings
No repair network to help you find a certified contractor or repair professional after filing a claim
Farmers’ $1,590 average annual premium is less than the statewide average of $2,053, making it a relatively affordable coverage option for most Illinois residents.
Farmers policies also come with several impressive perks that can help you save money, including its claim forgiveness program that guarantees your rate won’t go up after a claim if you’ve gone claim-free with Farmers for five years — a perk not offered through most providers. Additionally, its “declining deductibles” feature subtracts $50 from your deductible each year you’re a customer — without it impacting your rate.
How to get a quote
Online through Farmers
Cheapest homeowners insurance companies by city in Illinois
The cheapest homeowners insurance companies in Illinois are Allstate and Auto-Owners Insurance. These insurers have the cheapest average home insurance rates in all but seven Illinois cities.
Allstate’s average annual premium of $734 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 $1,171 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.
When looking for the best homeowners insurance for you, it’s best to shop around and compare policy options from several companies. Comparing rates, researching discounts, and weighing your options are all important factors when searching for a policy that fits your homeownership needs.
Policygenius gives Illinois residents the tools and information they need to make informed decisions when purchasing a homeowner’s insurance policy. Our experts can help you navigate your coverage needs and help you find the best deals on homeowners insurance in Illinois.
In this section, we break down the average annual home insurance rates in Illinois for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with poor credit scores, dog owners, and pool owners.
Illinois home insurance costs by coverage amounts
Dwelling coverage is the part of your homeowners insurance policy that protects your house from covered losses, such as a fire or major weather event. It’s important to note that your dwelling coverage amount should be equal to your home’s replacement cost. That means your coverage is calculated based on things like construction costs in your ZIP code and your home’s square footage, not the amount it would go for on the open market.
As the table below highlights, more dwelling coverage means higher homeowners insurance rates. In Illinois, the most significant rate jump occurs in the $400,000 to $500,000 range — with more than a $500 difference in premiums between those two coverage levels.
Dwelling coverage amount
Average yearly cost
$100,000
$1,104
$200,000
$1,584
$300,000
$2,053
$400,000
$2,512
$500,000
$3,063
The personal liability portion of your homeowners insurance policy provides coverage to pay for claims of property damage or bodily injury that someone might sustain in your home if you’re found legally responsible.
For example, if your visiting relative falls down the stairs or if your dog bites a neighbor, personal liability coverage would cover any related medical expenses. This coverage also covers you in the event of a lawsuit if the injured party decides to pursue legal action.
As the table below highlights, more liability coverage doesn’t always mean higher average home insurance premiums. While choosing high liability coverage limits will generally make your individual rate go up, the difference is often minimal, making it a great value add for any policy.
Liability coverage amount
Average yearly cost
$100,000
$2,069
$200,000
$1,626
$300,000
$2,053
$400,000
$1,492
$500,000
$2,113
Illinois home insurance costs by deductible amount
Your homeowners insurance deductible is the amount you must pay toward a covered loss if you file a claim. So, if you filed a claim for $3,000 in water damage and you have a $1,000 deductible, your insurer would reimburse you for $2,000 to pay for the damage.
A higher policy deductible usually means lower premiums, and a lower policy deductible usually means higher premiums. In Illinois, the average yearly savings between deductible amounts does not vary greatly, so you might be better off opting for a lower deductible policy.
Deductible amount
Average yearly cost
$500
$2,291
$1,000
$2,053
$2,000
$2,032
Home insurance discounts in Illinois
In Illinois, you may be eligible for certain discounts if your dwelling has certain safety features like a deadbolt or burglar alarm. Since these features can reduce the chance of a filing a claim, insurers incentivize customers to install or choose homes that already have these features.
Insurance companies in Illinois don’t appear to provide discounts for deadbolts, and smoke alarms are good for a small 0.15% discount. But you can get a slightly larger discount if you install a burglar alarm or security system in your home. The average discount for fitting your home with one of these is 3%.
Discount
Average yearly cost
Dead bolt
$2,053
Smoke alarm
$2,050
Burglar alarm
$2,010
Home insurance companies in Illinois for dog owners
Insurance companies often deem certain dog breeds as more dangerous since some are responsible for a majority of dog bite liability claims. Since insurers must reimburse an injured third party in the event of a dog bite, they opt to cover the risk by charging higher premiums for these breeds.
In Illinois, lawmakers are pushing for legislation that bans insurance companies from discriminating against breeds. But for now, when shopping around for homeowners insurance, it’s important to research whether your dog is categorized as a higher risk breed or if it is covered at all — some companies deny coverage altogether for specific breeds.
Below are the average yearly policy costs from Illinois insurance companies for a homeowner who owns a dog breed that is considered aggressive. Allstate has the lowest average rate at $1,059, while Country Financial’s $2,558 average annual premium is the highest.
Company
Average yearly cost
Allstate
$1,059
State Farm
$1,561
Farmers
$1,590
American Family
$2,035
Country Financial
$2,558
Home insurance companies in Illinois for poor credit
Your credit score has an impact on your insurance policy premium options, so you’ll need to consider this when shopping for homeowners insurance.
Generally, the better your credit score, the lower your policy premium will be. Insurance companies view customers with lower credit scores as a higher risk of filing a claim since they may not be in a financial position to pay for minor damage like missing roof shingles or leaky pipes.
It’s important to note that while your credit score impacts your policy premiums, some insurance companies don’t weigh this factor as heavily as others, so it’s important to do your research and shop around.
Here is the average yearly policy cost from Illinois insurance companies for a homeowner with a poor credit score. Allstate has the lowest average rates, while Farmers has the highest rates.
Company
Average yearly cost
Allstate
$1,666
State Farm
$2,672
American Family
$2,826
Country Financial
$3,524
Farmers
$3,528
Home insurance companies in Illinois for pool owners
While Illinois only provides a few months of pool weather, nothing is more ideal for getting through those humid summer months than a backyard pool. While pool season in Illinois might be shorter than a state with a warmer year-round climate, having one can still impact your home insurance rates in two specific ways.
Since pools are considered an “attractive nuisance” aka a liability risk, your insurance company will charge you higher rates to reflect that risk
Since a pool is considered a “structure” you’ll need extra dwelling or other structures coverage to cover the value of the pool if it gets damaged by a covered peril
Owning a pool increases homeowners insurance rates an average of $89 per year in Illinois, according to our analysis. With an average annual premium of $1,059, Allstate has the lowest average rates for an Illinois home with a pool, while Country Financial’s rate of $2,558 is the highest.
Company
Average yearly cost
Allstate
$1,059
State Farm
$1,561
Farmers
$1,590
American Family
$2,041
Country Financial
$2,558
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.
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.
Methodology
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.
