The average cost of homeowners insurance in Chicago is $2,130 per year. This is a few hundred dollars higher than the Illinois state average of $1,720 per year, and about 21% higher than the national average of $1,754.
Compare the best cheap homeowners insurance companies in Chicago
To find the best cheap homeowners insurance in Chicago, Policygenius rated over a dozen of the largest insurance companies in Illinois across several categories, such as average policy cost, financial strength ratings with AM Best, customer and claims satisfaction scores with J.D. Power, available policy options, and more.
Company | Average monthly cost | Policygenius rating |
|---|---|---|
$134 | 4.8 out of 5 | |
$160 | 4.5 out of 5 | |
$102 | 4.5 out of 5 | |
$146 | 4.5 out of 5 | |
$98 | 4.4 out of 5 |
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 Chicago 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 Chicago. 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 Chicago average?
The average cost of home insurance from State Farm in Chicago is $134 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.
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 Chicago. 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 Chicago average?
The average annual cost of American Family home insurance in Chicago is $160 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
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 Chicago?
The average cost of Erie home insurance in Chicago is $102 per month, which is cheaper than the average monthly premium in Chicago of $178 per month.
How to get a quote
Online through Erie
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 Chicago average?
The annual average cost of Allstate home insurance in Illinois is $98 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.
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.
How much is homeowners insurance in Chicago?
The average cost of home insurance in Chicago is $2,130 per year, or $178 a month, for a policy with $300,000 in dwelling coverage. This is around 15% cheaper than the average annual cost of $1,720 for homeowners insurance in Illinois, and about 21% higher than the national average.
Chicago home insurance rates by ZIP code
Home insurance rates can vary substantially depending on which ZIP code your home is located in, as homes in certain Chicago neighborhoods may be more prone to extreme weather damage or property crime than others.
To help you find out how much home insurance costs where you live, we calculated average home insurance rates by ZIP code in Chicago.
ZIP code | Average annual cost | Difference from state average (%) |
|---|---|---|
60629 | $1,983 | 15% |
60618 | $1,873 | 9% |
60639 | $2,144 | 25% |
60632 | $1,975 | 15% |
60647 | $2,088 | 21% |
60617 | $2,407 | 40% |
60608 | $2,202 | 28% |
60625 | $1,736 | 1% |
60634 | $1,936 | 13% |
60623 | $2,372 | 38% |
Cheapest ZIP codes for home insurance in Chicago
With an average home insurance rate of $1,647 per year, the 60656 ZIP code is the most affordable area for home insurance in Chicago.
ZIP code | Average annual cost | Difference from state average (%) |
|---|---|---|
60656 | $1,647 | -4% |
60631 | $1,668 | -3% |
60646 | $1,677 | -3% |
60630 | $1,715 | 0% |
60625 | $1,736 | 1% |
60659 | $1,736 | 1% |
60613 | $1,762 | 2% |
60657 | $1,794 | 4% |
60614 | $1,837 | 7% |
60701 | $1,844 | 7% |
Most expensive areas for homeowners insurance in Chicago
With an average annual premium of $2,642, the 60621 ZIP code is the most expensive ZIP code in Chicago for home insurance. If you live one of these ZIP codes, your rates might be among the highest in the city.
ZIP code | Average annual cost | Difference from state average (%) |
|---|---|---|
60621 | $2,642 | 54% |
60636 | $2,605 | 51% |
60624 | $2,573 | 50% |
60620 | $2,563 | 49% |
60609 | $2,562 | 49% |
60644 | $2,554 | 48% |
60651 | $2,548 | 48% |
60619 | $2,533 | 47% |
60637 | $2,501 | 45% |
60628 | $2,454 | 43% |
Learn more >> Home insurance rates by ZIP code
Chicago home insurance costs by coverage amount
Along with your home's location, your homeowners insurance premiums are primarily based on how much dwelling coverage is in your policy. This is the centerpiece of your home insurance coverage, covering the cost to repair or rebuild your home after a covered disaster.
Here are the average rates for homeowners insurance by coverage amount.
Dwelling coverage limit | Average annual cost |
|---|---|
$100,000 | $1,125 |
$200,000 | $1,633 |
$300,000 | $2,130 |
$400,000 | $2,619 |
$500,000 | $3,175 |
Chicago home insurance costs by deductible amount
Your home insurance deductible is the amount you’re responsible for paying on each claim before insurance kicks in to help cover the cost of repairing or replacing your property. A higher deductible means lower insurance premiums, but it also means you're responsible for paying more out of pocket when you file a claim. Here are the average rates for homeowners insurance by deductible amount.
Deductible | Average annual cost |
|---|---|
$500 | $3,572 |
$1,000 | $1,617 |
$2,000 | $1,448 |
Cheapest homeowners insurance companies in Chicago
Based on our analysis, Allstate, Erie, and Hippo are the three cheapest home insurance companies in Chicago, with average premiums citywide ranging from $1,171 to $1,349 per year.
Here are the cheapest rates for homeowners insurance in Chicago.
Company | Average annual cost |
|---|---|
$1,171 | |
$1,219 | |
$1,349 | |
$1,394 | |
$1,609 | |
$1,751 | |
$1,922 | |
$2,070 | |
$2,488 | |
$2,619 | |
$2,766 | |
$3,068 | |
$3,094 | |
$3,306 |
Cheapest home insurance in Chicago if you have poor credit
A bad credit score does more than just cost you a few dollars in late payment fees — it can also make your auto and home insurance rates thousands of dollars higher. Here are the average insurance rates for homeowners with poor credit.
Company | Average annual cost |
|---|---|
USAA | $1,862 |
Allstate | $1,890 |
Hippo | $1,905 |
State Farm | $2,754 |
Progressive | $2,906 |
American Family | $2,954 |
Nationwide | $3,064 |
Erie | $3,333 |
Farmers | $3,893 |
Foremost | $4,230 |
Country Financial | $4,263 |
AAA | $4,453 |
Chubb | $7,226 |
Auto-Owners Insurance | $33,832 |
Cheapest home insurance in Chicago if you have an older home
Insurance carriers consider older homes to have a higher risk of damage or loss compared to newer homes since they're constructed with older and more difficult to replace materials. Additionally, certain structural components in older homes, like the roof or plumbing systems, may not be up to code. Here are the average insurance rates for homeowners with older homes.
Company | Average annual cost |
|---|---|
Allstate | $1,152 |
USAA | $1,309 |
Erie | $1,330 |
State Farm | $1,609 |
Farmers | $1,712 |
Hippo | $1,925 |
American Family | $1,985 |
Nationwide | $2,185 |
Progressive | $2,329 |
Foremost | $2,729 |
Chubb | $2,758 |
AAA | $3,062 |
Country Financial | $3,247 |
Auto-Owners Insurance | $3,529 |
Cheapest homeowners insurance in Chicago if you have a history of claims
Claims history is one of the biggest factors that insurance companies use when calculating your home insurance premiums. If you have multiple claims on your record, your insurer will likely view you as a risk for filing future claims and may charge you higher rates as a result. Here are the average insurance rates for homeowners with multiple claims.
Company | Average annual cost |
|---|---|
USAA | $1,745 |
State Farm | $1,835 |
Allstate | $1,988 |
Erie | $2,074 |
Farmers | $2,226 |
Progressive | $2,925 |
American Family | $3,317 |
Auto-Owners Insurance | $3,499 |
Hippo | $4,031 |
Chubb | $5,457 |
Country Financial | $5,808 |
Nationwide | $6,386 |
AAA | $7,852 |
Foremost | $8,080 |
How to get homeowners insurance quotes in Chicago
Here are a few steps to follow as you shop for homeowners insurance in Chicago:
Reach out to a licensed Policygenius agent. Our team of licensed insurance experts are ready to help you find the coverage to match your insurance needs and budget — for free and with no impact to your personal credit score.
Ask about FAIR coverage options. The Chicago area offers the Illinois FAIR Plan for qualified individuals and homes. Ask your Policygenius agent about whether a policy through the Illinois FAIR Plan makes sense for you rather than looking for traditional insurance coverage.
Figure out how much you can afford to pay for your deductible. You'll want to figure out home much you'll be able to afford out of pocket when filing a claim. This amount will help determine coverage options and rates.
Compare quotes from a Policygenius agent. Once you've determined your coverage needs, limits, and deductibles, a Policygenius agent will help you wade through quotes from a few different companies in order to find the best policy for you.
Choose your policy, sign it, and pay your first premium. After you've selected the policy you want, your Policygenius will help you complete all of the necessary paperwork.
Frequently asked questions
Why is home insurance in Chicago so expensive?
Home insurance is so expensive in Chicago because of the dense population. In areas and cities with more people, there is generally a higher risk of claims submitted.
How can I lower my homeowners insurance in Chicago?
You can lower your homeowners insurance in Chicago by taking advantage of discounts offered through your home insurance company. This might mean bundling your home and auto policies together for discounts, or adding a security system to your home.
