Best homeowners insurance in Chicago, IL for 2022

Laura Gunn

By 

Laura Gunn

Laura Gunn

Freelance contributor

Laura Gunn is an insurance expert and writer. As a former English teacher, she made the transition to full-time writing and editing in 2016. Since that time she has written extensively about insurance topics, as well as topics pertaining to education and marketing.

Her work has been published in The Millennial Source, News Hunt 360, Realty Today, HNGN, and other publications.

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Chicago is known for amazing food, the Navy Pier, and great baseball, but it's also known for cold winters and strong winds. These extreme weather patterns highlight the need for homeowners insurance in the Wind City. 

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The average cost of homeowners insurance in Chicago is $2,432 per year. This is a few hundred dollars higher than the Illinois state average of $2,053 per year, and about 28% higher than the national average of $1,899. 

However, cost isn’t the only factor to consider when choosing a home insurance company. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Chicago.  

Best homeowners insurance companies in Chicago

Of the companies we evaluated, Allstate's rate of $1,171 is the lowest in Chicago and about 50% lower than the city average. Average premiums for State Farm, American Family, and Farmers are also lower than the Chicago average.

While cost is important to consider when deciding on home insurance, it shouldn't be the only factor. You’ll also want to consider a company’s coverage options and customer satisfaction ratings with J.D. Power.

Policygenius analyzed thousands of quotes from the 5 largest Chicago insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Chicago residents to find the best homeowners insurance in Chicago.

Company

Average yearly cost

J.D. Power Rating

State Farm

$1,609

835

Allstate

$1,171

829

Country Financial

$3,094

830

American Family

$1,922

831

Farmers

$1,751

813

State Farm

State Farm logo

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

Why State Farm tops our best list

Not only does State Farm have high customer service ratings, they are also backed by high financial strength ratings. This means customers can have more peace of mind when choosing to insure through State Farm. But State Farm is also concerned with protecting more than just homes, they offer up to $1 million in personal liability coverage. 

How to get a quote

Online through State Farm

Allstate

Allstate logo

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

  • Excellent customer service and claims satisfaction ratings

  • File and track claims online or through its mobile app

Cons

  • Rates are typically high compared to competitors

Why Allstate tops our best list

Allstate ranks near the top of our list because of their customer service and extensive menu of bundle options. They also offer additional coverages for roof surfaces, water backup, mold, and green upgrades. 

How to get a quote

Online through Policygenius or Allstate

Country Financial

Country Financial logo

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

  • File claims online or through its mobile app

Cons

  • Strict dog breed restrictions

Why Country Financial tops our best list

Country Financial has over 100 years of experience protecting homes and their customer ratings have never dropped. One of the biggest benefits of insuring through Country Financial is their extended replacement cost coverage. 

How to get a quote

Online through Country Financial

American Family

American Family logo

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

Why American Family tops our best list

American Family is one of the most well known homeowners insurance providers in the game today. They offer unique coverage options and bunde discounts to help meet your needs and budget. The best part is American Family offers 24/7 claim support online or through their mobile app, so customers are never left guessing.

How to get a quote

Online through American Family

Farmers

Farmers logo

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

Why Farmers tops our best list

Farmers has one of the highest J.D. Power ratings in the Chicago area. It offers some of the most flexible coverage and claim options for Windy City homeowners, while packing in tons of discount options. They also offer guaranteed replacement cost coverage options that can be incredibly beneficial for homeowners in the Chicago area. 

How to get a quote

Online through Farmers

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Cheapest homeowners insurance companies by ZIP code in Chicago

In Chicago, some homeowners may see higher rates because of the population density or crime rates in their area. Areas in the northeast corner of Chicago have lower average premiums on average, while those near the center of the city see slightly higher premiums. 

ZIP code

Company

Average yearly cost

60601

Allstate

$1,000

60602

Allstate

$1,000

60603

Allstate

$1,000

60604

Allstate

$1,000

60605

Allstate

$1,000

60606

Allstate

$1,000

60607

Allstate

$1,058

60608

Allstate

$1,190

The most affordable areas for homeowners insurance in Chicago

If you're looking to move, consider some of the most affordable ZIP codes in Chicago. The 60656 ZIP code has some of the cheapest rates in the Chicago area. 

ZIP code

Average yearly cost

60656

$1,885

60631

$1,904

60646

$1,909

60630

$1,956

60625

$1,999

The most expensive areas for homeowners insurance in Chicago

Homeowners in these areas find themselves paying more for their insurance coverage. The 60636 area sees the highest average premiums potentially due to the proximity to downtown Chicago.

ZIP code

Average yearly cost

60636

$2,967

60621

$2,963

60651

$2,934

60620

$2,893

60699

$2,893

Shopping for homeowners insurance in Chicago

Shopping for a homeowners insurance policy may seem overwhelming, but it doesn’t have to be. As you begin shopping, it's important to understand how much coverage you need so you’re not left overpaying for coverage you don’t need. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and quotes to help you find the best deal on homeowners insurance in Chicago.

This section breaks down coverage costs based on different lifestyles and individual factors, like dog owners, lower credit scores, pool owners, and deductible amounts.

Chicago home insurance costs by coverage amounts

Dwelling coverage is the part of your homeowners insurance policy that covers the cost to rebuild your home. Standard dwelling coverage covers damage or destruction from wind, hail, lightning, or fire. 

More dwelling coverage often means higher homeowners insurance rates, as shown in the table below.

Dwelling coverage amount

Average yearly cost

$100,000

$1,300

$200,000

$1,871

$300,000

$2,432

$400,000

$2,990

$500,000

$3,646

Liability coverage is the section of your homeowners insurance that pays for medical or legal expenses in the event you’re legally responsible for an injury or property damage.

The table below outlines the average yearly cost for different liability coverage limits in Chicago. In most cases, higher liability coverage limits often mean higher premiums.

Liability coverage amount

Average yearly cost

$100,000

$2,472

$200,000

$2,237

$300,000

$2,432

$400,000

$1,659

$500,000

$2,509

Chicago home insurance costs by deductible amount

Your deductible is the amount of money you are responsible for paying when filing a claim. A higher deductible generally means a lower premium, but it also means you’ll be paying more out of pocket when you file a claim.

Chicago residents can save almost $400 a year when choosing a $2,000 deductible over the $500 deductible option.

Deductible amount

Average yearly cost

$500

$2,788

$1,000

$2,432

$2,000

$2,339

Home insurance discounts in Chicago

Many insurance providers offer discounts for qualified homeowners. In the Chicago area, homeowners can receive discounts when additional safety features are added to their home — including dead bolts, smoke and burglar alarms. 

Discount

Average yearly cost

Dead bolt

$2,431

Smoke alarm

$2,429

Burglar alarm

$2,373

Home insurance companies in Chicago for dog owners

Dog breeds that are deemed dangerous or aggressive often mean higher home insurance rates. In fact, having one of those so-called “aggressive" breeds can affect your ability to get covered at all. 

Based on our analysis, Allstate offers the cheapest coverage to Chicago dog owners, while Country Financial has the most costly premiums.

Company

Average yearly cost

Allstate

$1,171

State Farm

$1,609

Farmers

$1,751

American Family

$1,932

Country Financial

$3,094

Home insurance companies in Chicago for poor credit

Your credit score is another big factor when shopping for a homeowner's policy. If you have a lower credit score, you might see higher rates. 

The table below highlights the average yearly cost for Chicago residents with poor, or low credit scores. For those residents with low credit scores, Allstate offers the lowest premiums on average, and Country Financial offers the most expensive yearly cost — more than double that of Allstate. 

Company

Average yearly cost

Allstate

$1,890

State Farm

$2,754

American Family

$2,954

Farmers

$3,893

Country Financial

$4,263

Home insurance companies in Chicago for pool owners

Backyard pools are great for friends and family, but they carry additional risk when it comes to a homeowners policy. Having a pool in your backyard increases your liability risk, so pool owners often have to pay higher rates to account for that added risk. 

The table below identifies the average yearly cost for pool owners in the Chicago area. Pool owners who insure through Allstate pay less than $1,200 a year on average. Country Financial, on the other hand, charges nearly three times that amount. 

Company

Average yearly cost

Allstate

$1,171

State Farm

$1,609

Farmers

$1,751

American Family

$1,932

Country Financial

$3,094

How to buy homeowners insurance in Chicago

Here are a few steps to follow as you shop for homeowners insurance in Chicago:

  1. 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.

  2. 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.

  3. 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.

  4. 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. 

  5. 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.  

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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.

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.