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Homeowners insurance policies provide Illinois homeowners with peace of mind and financial security. Finding affordable rates isn't always easy, but beginning the search with some of the best homeowners insurance in Illinois can make it much simpler. Here's a look at which companies offer the cheapest rates for several common scenarios.
- Cheapest overall for Illinois: Farmers
- Cheapest for new home construction: Erie Insurance
- Cheapest for older homes: Farmers
- Cheapest for homeowners who have filed a claim: Auto-Owners Insurance
Cheapest overall for Illinois
The typical homeowner pays about $1,869 per year for Illinois home insurance. But those who choose Farmers can get the same insurance coverage for a more affordable $1,174 per year.
A variety of unique discountsFarmers
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Other companies that offer cheap homeowners insurance in Illinois include:
- American Select Insurance, a subsidiary of Westfield Insurance, which charges about $1,201 per year on average
- Allstate, where the average homeowner pays about $1,243 for Illinois home insurance
Cheapest for new home construction
Erie Insurance only charges $455 annually for Illinois home insurance on new construction. This is roughly half the state average of $942 for these homes.
Bundling policiesErie Homeowners Insurance
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4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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These companies also top the list of the best homeowners insurance companies in Illinois for new houses:
- American Strategic Insurance, owned by Progressive, which charges $488 annually
- Memberselect Insurance, owned by AAA, which charges $574 for Illinois home insurance each year
Cheapest for older homes
Insuring an older home costs about $1,816 per year on average in Illinois. But Farmers once again offers Illinois residents a much better rate. Its average quote for insurance coverage on a 50-year-old home is just $1,010 per year.
These companies also offer great Illinois home insurance rates for older homes:
- Auto-Owners Insurance, which charges these homeowners about $1,117 per year
- State Farm, where older homeowners pay about $1,193 annually
Cheapest for homeowners who have filed a claim
Homeowners who have filed a claim before face the highest average Illinois home insurance premiums at $1,990 per year. This time, it's Auto-Owners Insurance that comes out on top among the best home insurance companies at $1,022 per year.
But close behind are these insurance providers:
- Farmers, where the average annual Illinois home insurance premium for these homeowners is $1,113
- American Select Insurance, which charges these homeowners $1,182 per year on average
Average home insurance cost in Illinois compared to the national average
Average Illinois home insurance costs are slightly above the national average, especially for older homes. New homes, though, are pretty reasonable to insure. The best home insurance gives you the coverage you need at a rate you can live with. Here's a table showing how Illinois home insurance rates stack up to the national average for the categories listed above.
| Average Rate Category | Illinois | National Average |
|---|---|---|
| Overall | $1,869 | $1,725 |
| New home construction | $942 | $943 |
| Older homes | $1,816 | $1,658 |
| When making a claim | $1,990 | $1,803 |
Illinois homeowners insurance overview
Here are some things Illinois homeowners should know when shopping for homeowners insurance:
The average cost of a home in Illinois is below the national average
The median U.S. house price is $293,349, but the typical Illinois home costs just $233,661, according to The Ascent's research on average home prices by state. Homes that cost more than this will likely cost more to insure while homes that fall below this average may qualify for cheaper home insurance rates. But that's not the only factor that matters when looking for an insurance policy. The quality of the fixtures, the home's claims history, and its location within the state also affect how much it costs to insure.
Southern Illinois sees the highest insurance rates
Location can significantly affect a homeowners insurance quote. One might expect the Chicago area to have the highest insurance rates in the state. But this distinction actually falls to the southern tip of Illinois. Several cities in this region see average annual home insurance premiums of around $2,550. The Chicago area, on the other hand, only has average annual premiums of about $2,187.
What are the most common homeowners insurance claims in Illinois?
Here are some of the most common homeowners insurance claims filed in Illinois:
Hail damage
Illinois filed the fifth-most hail damage claims in the country between 2017 and 2019, according to the Insurance Information Institute. Hail can damage roofs, break windows, and destroy personal property left outside. Because these claims can be so costly, many insurers now require homeowners to pay a separate wind and hail deductible if they file one of these claims.
Lightning losses
Illinois also cracks the top 10 for the most lightning-related homeowners insurance claims, according to the Insurance Information Institute. Lightning can damage electrical devices and systems in homes. It can also lead to fires in some cases. Insurance companies adjust premiums accordingly.
Winter storm damage
Like all states in the northern half of the country, Illinois sees its fair share of winter storms. These can cause a variety of problems, from heavy snowfall caving in a roof to frigid temperatures causing pipes to burst.
Homeowners insurance coverage options and discounts in Illinois
Here's a look at how several common home insurance discounts can affect rates in Illinois:
Bundling with car insurance shaves over $450 off the average bill
Homeowners who are also looking to insure their vehicles should strive to do so with the same company they insure their home through. Multi-policy discounts are some of the most valuable in the industry, and in Illinois, it shaves an average of $453 off the typical annual home insurance premium.
A sprinkler system could save homeowners around $200 per year
Installing sprinklers requires an upfront investment, but it will pay dividends for many years to come. On average, having sprinklers installed saves homeowners about $200 per year on their Illinois home insurance premiums. But homeowners interested in a sprinkler discount must make sure they choose an insurance company that rewards them for making this upgrade.
A new roof drops the average annual premium to $1,440
While upgrading other home systems, including the plumbing, can help lower home insurance costs, nothing quite compares to getting a new roof. This can reduce the risk of certain types of storm damage. So insurance companies reward homeowners with new roofs by offering them lower rates.
6 cheapest cities in Illinois for homeowners insurance
These six cities have the cheapest average Illinois homeowners insurance rates:
| City Name | Average Home Insurance Rate |
|---|---|
| Elmhurst | $1,483 |
| St. Charles | $1,500 |
| Oak Brook | $1,500 |
| Downers Grove | $1,501 |
| DeKalb | $1,502 |
| Clarendon Hills | $1,502 |
5 most expensive cities for homeowners insurance in Illinois
Homeowners who live in these five cities can expect to pay more than average for Illinois home insurance:
| City Name | Average Home Insurance Rate |
|---|---|
| Olive Branch | $2,609 |
| Unity | $2,551 |
| Perks | $2,551 |
| Joppa | $2,549 |
| Karbers Ridge | $2,537 |
Our Insurance Expert
Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.