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The Land of Lincoln can also be the land of homeowners insurance savings — provided you follow proven methods to reduce associated costs.

Of course, you don’t want to compromise on coverage levels and put your home and possessions at risk. But aiming to pay less doesn’t necessarily mean you weaken your policy protections.

Insure.com has done a lot of the heavy lifting when it comes to finding affordable insurance options in Illinois. We’ve evaluated several insurers throughout the state and ranked the top three companies most likely to pocket you extra greenbacks in your search for cheaper home insurance, including Allstate at $1,344 on average annually. Read on to learn who made the cut and to apply techniques and tactics for further reducing your premium costs.

Cheapest homeowners insurance companies in Illinois

Allstate, Travelers and Country Financial have the lowest average homeowners insurance rates in Illinois for $300,000 dwelling and $300,000 liability coverage with a $1,000 deductible.

Here is the average cost of homeowners insurance by company in Illinois:

Company Average annual rate Average monthly rate
Allstate$1,344$112
Travelers$1,902$159
Country Financial$2,039$170
Nationwide$2,050$171
Foremost$2,122$177
USAA$2,221$185
Allstate$2,370$198
Farmers$2,394$200
American Family$2,449$204
State Farm$2,511$209
Garrison$2,701$225
Safeco$3,072$256
Illinois Farmers$3,372$281

Best homeowners insurance companies in Illinois

Finding the best homeowners insurance in Illinois depends on your needs and what you want from a policy.

Some things to look for when searching for the best home insurance company include:

  • Premiums
  • Discounts
  • Customer service
  • Consumer reviews

Home insurance costs are usually at the top of every homeowner’s wishlist. Let’s take a look at the three cheapest home insurance companies in Illinois.

Allstate

  • Headquarters: Northbrook, Ill.
  • Founded: 1931
  • Contact: (877) 366-1607, Allstate.com
  • Available: In all 50 states
  • Discounts available: Loyalty (up to 10%), multi-policy (up to 25%), claims-free (up to 20%), fire/burglar alarm, Easy Pay Plan (up to 5%), early signing (up to 10%)
  • Other types of insurance offered: Auto, renters, condo, life, identity theft, business, home-sharing
  • Insure.com score: 4 out of 5 stars
  • Better Business Bureau rating: A+
  • A.M. Best rating: A+
  • J.D. Power rating: Above average (score — 829 out of 1,000)

True to its name, Allstate is available in all states — including Illinois, where it tops our list for least expensive home insurance policies, on average.

A basic policy will safeguard your dwelling, other structures and personal property. It also covers liability, loss of use/additional living expenses and medical payments to guests.

The insurance provider garnered an impressive Insure.com score of four out of five stars overall and for customer service, claims and website/app. Plus, it ranked among the top five in our annual Best Home Insurance Companies review. Further kudos: Approximately nine in 10 Allstate policyholders we surveyed expect to renew their policies and nearly four in five said they would recommend this homeowners insurance company to a friend.

Liberty Mutual

  • Headquarters: Boston
  • Founded: 1912
  • Contact: (800) 295-2820, Libertymutual.com, Libertymutual.com/property-insurance/homeowners/coverage/illinois
  • Available: In all 50 states
  • Discounts available: Multi-policy, claims-free, online purchase, early shopper, new/renovated home, preferred payment, paperless, insured to value
  • Other types of insurance offered: Auto, motorcycle, watercraft, renters, condo, landlord, umbrella, flood, business, identity theft, life, accident, critical illness
  • Insure.com score: 4 out of 5 stars
  • Better Business Bureau rating: A+
  • A.M. Best rating: A
  • J.D. Power rating: Below average (score — 792 out of 1,000)

A standard policy from Liberty Mutual ensures coverage for your dwelling, personal property, liability, medical payments to others, wind and hail damage and additional living expenses.

Over nine in 10 Liberty Mutual customers we polled revealed that they anticipated renewing their policies with this carrier. More than four in five would recommend Liberty Mutual to a friend.

Liberty earned a top-five placement in Insure.com’s annual Best Home Insurance Companies review, scoring four out of five stars in our score overall and in price, claims, customer service and website/apps.

Travelers

  • Headquarters: Hartford, Connecticut
  • Founded: 1864
  • Contact: (800) 842-5075, Travelers.com/home-insurance, Agent.travelers.com/il
  • Available: In all 50 states
  • Discounts available: Multi-policy (up to 12%), claims-free, home buyer, protective device, early quote, green home (up to 5%)
  • Other types of insurance offered: Auto, renters, condo, travel, umbrella, landlord
  • Insure.com score: 4 out of 5 stars
  • Better Business Bureau rating: A+
  • A.M. Best rating: A++
  • J.D. Power rating: Below average (score — 808 out of 1,000)

Count on coverage for your dwelling, other structures, personal property, liability and loss of use as standard inclusions in Travelers’ basic homeowners insurance policy.

This is among the reasons we selected Travelers as the best home insurance company for price in our 2021 review of the best home insurance companies. The insurer not only boasted the lowest rates for coverage among those polled, but it also had a low level of complaints filed with state regulators.

What’s more, two out of three Travelers policyholders polled revealed they would refer Travelers homeowners insurance to friends, while 90% said they planned to renew with Travelers.

Cheapest homeowners insurance in Illinois by city

The cost of homeowners insurance in one ZIP code can vary by hundreds of dollars. For instance, you’ll pay much more for a home policy in Chicago than in the suburbs, such as Aurora and Downers Grove.

Here’s a look at the average homeowners insurance costs for a policy with $300,000 dwelling and $300,000 liability coverage with a $1,000 deductible.

CityAverage annual rateAverage monthly rate
Naperville$1,925$160
Aurora$1,970$164
Elgin$1,989$166
Champaign$2,001$167
Joliet$2,014$168
Bloomington$2,029$169
Rockford$2,053$171
Peoria$2,125$177
Evanston$2,149$179
Springfield$2,221$185
Chicago$2,462$205

How much is homeowners insurance in Illinois?

The average cost for homeowners insurance in Illinois is $2,201 for $300,000 dwelling and $300,000 liability coverage with a $1,000 deductible per annum. Experts recommend you have at least $300,000 liability coverage to protect your home against a lawsuit.

Beyond location, previous claims also influence illinois home insurance rates. How much your premium will increase depends on the premium and how many recent claims you’ve filed.

Here are the top average home insurance percentage premium increases based on claims:

  • Filing a second fire claim — 60%
  • Filing a second theft claim — 55%
  • Filing a second liability claim — 52%
  • Filing a second water damage claim — 50%
  • Filing a second medical claim — 34%
  • Filing a second weather claim — 29%
  • Filing a fire claim — 29%
  • Filing a theft claim — 27%
  • Filing a liability claim — 25%
  • Filing a water claim — 25%
  • Filing a medical claim — 18%
  • Filing a weather claim — 17%

Filing a claim is one of the quickest ways to see your rates increase. That’s why it’s vital only to file a homeowners insurance claim when you absolutely need it.

Filing a home insurance claim will likely increase your rates — and you have to pay a deductible. So, make sure you only file a homeowners insurance claim when the damage far exceeds your deductible.

How much does flood insurance cost in Illinois?

The average flood insurance rate in Illinois is $1,048. That figure is based on dividing the number of policies and the total policy cost from the National Flood Insurance Program (NFIP).

NFIP and private insurers that work with the NFIP offer flood insurance policies. NFIP policies provide $250,000 structural coverage and $100,000 personal property.

Homeowners insurance doesn’t typically provide flood coverage. If you experience flood damage and don’t have a separate flood insurance policy, you’ll like to have to pay for the repairs yourself.

Flood insurance costs vary based on your location. A home in a flood zone will cost more for coverage than one outside of a flood zone. Most flood insurance-related claims come from flood zones, but still, 20% of homes considered a low or moderate risk experience flood claims.

The Illinois Department of Natural Resources estimates that 15% of the state is subject to flooding. Floods are the most common type of natural disaster in Illinois — making up more than 90% of declared disasters.

If you live outside of a flood zone but are concerned about flooding, you’ll likely be able to find flood insurance for well under the state average costs.

You can get flood insurance quotes from the NFIP or private insurers working with the NFIP. If you need more coverage than what NFIP provides, private insurers may offer you more coverage.

Flood insurance policies don’t take effect until 30 days after purchase.

How to get the cheapest homeowners insurance in Illinois

It’s a smart idea to shop around carefully to find the cheap homeowners insurance in Illinois

As with any essential product, you’re more likely to pay less by shopping around and evaluating several different coverage options — in this case, insurance providers and policies.

“Get quotes from at least three or four different insurance companies. Or, if you have an independent agent you’ve worked with before, ask him or her to provide quotes from a few different carriers,” says John O’Brien, a Chicago-based attorney. “Either way, make sure the coverages and limits quoted are the same and then compare their prices.”

Stacy Caprio, blogger/owner of Fiscalnerd.com in Chicago, suggests not settling on the first quote.

“Also, if you’re looking for a policy for a new home purchase, ask your real estate agent for recommendations,” she recommends. “You can also call your automobile insurance agent and see if they offer cheaper package rates by bundling home and auto, which they often do.”

Be careful not to go with the absolute cheapest policy available, however. Some people may purchase an HO-1 basic form policy that only ensures the dwelling for those perils specifically identified under the policy, cautions Steven Mikuzis, a Chicago-headquartered insurance broker and independent agency owner.

Instead, opt for at least an “HO-3 special form policy that covers all dwelling perils except those specifically excluded,” he says.

You can further trim your premium price tag by following industry-recommended best practices.

“Increasing your deductible is a better way to save. A $500 rise to $1,000 could save you up to 25% on your premium payments,” notes Linda Chavez, founder/CEO of Seniors Life Insurance Finder.

Look for multi-policy discounts, also called bundling, as a further way to lower costs, too.

“Purchasing several plans with the same insurer, such as homeowners and auto, will save you money,” Chavez adds.

Four more ways to save on your home insurance

  • Improve your home’s security by adding an alarm system, installing deadbolts and security cameras and implementing a water sensor that shuts off your water valve if it detects a leak.
  • Avoid filing small claims. This can come back to haunt you in the form of higher premiums that can end up costing you a lot more than what the insurance company pays you for the small claim.
  • Strive to improve your credit. Review and correct any errors you see on your credit reports, pay your bills on time and don’t open or close too many accounts in a short amount of time. Doing so may increase your credit rating and credit score, which insurance companies look at closely as one factor in determining your rates.
  • Upgrade older home components, including a worn roof or outdated electrical system that are overdue for replacements. Tackle these to-dos before shopping for homeowners insurance policies, which can yield greater savings.

Frequently asked questions by Illinois homeowners

Does homeowners insurance cover snow damage?

Yes, a home insurance policy will usually cover snow damage. That can be critical to your financial situation if a major snowstorm damages your home.

So, if an ice dam forms after a rough stretch of weather and damages your roof and ceiling, your home insurance company should cover it.

Before winter, make sure your roof is in good shape. Homeowners insurance companies put great emphasis on roofs. Roofs protect the home against the elements and a worn roof can lead to a hefty home insurance claim.

Home insurers periodically check insurers homes to ensure they’re in good working order. An insurance representative can check your roof from the street. If there’s an issue, such as displaced, worn and cracked shingles, an insurance company may demand you replace the roof or it will drop you.

So, make sure your home’s roof is in good shape. Not only to avoid a hefty winter weather claim but to avoid a letter from your insurer.

Does homeowners insurance cover hail damage?

Yes, a home insurance policy typically covers hail damage. That can be crucial for Illinois residents since the state has frequent hail claims.

A homeowners policy should cover hail damage to your home, but you’ll need car insurance to protect your car. More specifically, you’ll need comprehensive car insurance. Collision coverage doesn’t protect against hail damage.

What can you do if you can’t find homeowners insurance in Illinois?

You may have trouble finding homeowners insurance coverage. Maybe your home is in rough shape or you’ve filed multiple claims in a short time.

If you can’t get homeowners insurance, check with the Illinois FAIR Plan Association. The nonprofit group that’s supported by about 500 Illinois insurance companies offers plans for high-risk homeowners who can’t get coverage anywhere else.

A FAIR Plan provides similar coverage to a homeowners policy though it may have more limited protection. Also, FAIR Plans cost more than a standard home insurance policy.

Know how much is home insurance in other states

Alaska$1,799/Year
Alabama$2,981/Year
Arkansas$3,439/Year
Arizona$1,976/Year
California$1,166/Year
Colorado$3,082/Year
Connecticut$1,961/Year
Washington D.C.$1,488/Year
Delaware$1,521/Year
Florida$3,439/Year
Georgia$2,555/Year
Hawaii$499/Year
Iowa$2,540/Year
Idaho$1,842/Year
Indiana$2,423/Year
Kansas$3,931/Year
Kentucky$2,862/Year
Louisiana$3,270/Year
Massachusetts$1,920/Year
Maryland$1,518/Year
Maine$1,833/Year
Michigan$2,153/Year
Minnesota$3,010/Year
Missouri$3,111/Year
Mississippi$3,340/Year
Montana$2,809/Year
North Carolina$2,009/Year
North Dakota$2,601/Year
Nebraska$3,133/Year
New Hampshire$1,455/Year
New Jersey$1,744/Year
New Mexico$2,299/Year
Nevada$1,486/Year
New York$1,840/Year
Ohio$2,107/Year
Oklahoma$4,445/Year
Oregon$1,608/Year
Pennsylvania$1,720/Year
Rhode Island$2,125/Year
South Carolina$2,678/Year
South Dakota$3,172/Year
Tennessee$2,692/Year
Texas$3,429/Year
Utah$1,378/Year
Virginia$1,956/Year
Vermont$1,212/Year
Washington$1,514/Year
Wisconsin$1,732/Year
West Virginia$2,486/Year
Wyoming$2,083/Year
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Les Masterson
Contributor

 
  

Les, a former managing editor, insurance, at QuinStreet, has more than 20 years of experience in journalism. In his career, he has covered everything from health insurance to presidential politics.

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