Alyssa Lane
The cost of homeowners insurance in Illinois depends on various factors, including location, age, square footage, deductibles, policy limits, and the cost of building materials. The average cost of homeowners insurance in Illinois is $1,760 annually, or $147 per month, which is 16% more expensive than the national average. However, the cost can vary significantly depending on the specific location within the state. For example, the average cost of homeowners insurance in Chicago is $2,750 per year, while in Aurora, it costs approximately $2,275 per year. It's important to note that homeowners insurance typically doesn't cover flood damage, so residents may need to purchase separate flood insurance if their home is at risk.
| Characteristics | Values |
|---|---|
| Average cost of home insurance in Illinois | $1,760 annually or $147 per month |
| Average cost of home insurance in the U.S. | $2,466 per year for $300,000 in dwelling coverage |
| Average cost in Illinois for a newer home built in 2021 | $1,197 per year |
| Average cost in Illinois for an older home built in 2011 | $1,760 per year |
| Average rate for home insurance in Illinois from Allstate | $2,225 per year |
| Average rate for home insurance in Illinois from Nationwide | $1,545 per year |
| Average rate for home insurance in Illinois from Erie | $2,075 per year |
| Average rate for home insurance in Illinois from USAA | $2,013 per year |
| Average rate for home insurance in Illinois from State Farm | $1,004 per year |
| Average cost of homeowners insurance in Chicago | $2,750 per year or $229 per month |
| Average cost of homeowners insurance in Aurora | $2,275 per year or $190 per month |
| Average cost of home insurance in Naperville | $2,337 per year |
| Average cost of home insurance in Will County | $2,000 per year |
| Average cost of home insurance in Cook County | $2,800 per year |
| Average cost of home insurance in Madison | $900 for homeowners and $1,000 for flood |
| Average cost of home insurance in LaSalle County | $2,400 per year |
| Average cost of home insurance in McHenry County | $1,380 per year |
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What You'll Learn
Home insurance costs vary by location
The age of a home can significantly impact insurance quotes, with outdated plumbing, electrical systems, and old roofs increasing the cost of insurance. In Illinois, the average cost of insuring a newer home built in 2021 is about $1,197 per year, while an older home built in 2011 would cost around $1,760 per year. Additionally, the cost of building materials and labour has been rising, affecting insurance rates. This is especially true in Illinois, where claims from natural disasters and severe weather have increased, further driving up insurance costs.
Location plays a crucial role in determining insurance rates, as certain areas are more prone to extreme weather events and natural disasters. For example, tornadoes are a risk in Illinois, and while windstorm protection is typically included in standard homeowners policies, this may vary depending on the insurance provider and specific policy details. Furthermore, the distance from emergency response services can impact insurance rates, as seen in one case where being 11 miles from the nearest fire station resulted in a $1,000 increase in annual insurance costs.
The cost of home insurance is also influenced by factors such as the square footage of the home, the deductibles and policy limits chosen, and the coverage options selected. For example, homeowners insurance in Illinois typically does not cover flood damage, so purchasing separate flood insurance may be necessary, especially in areas with a high flood risk. Overall, the combination of these factors results in varying home insurance costs across different locations in Illinois, making it essential for homeowners to compare quotes from multiple insurers to find the most suitable coverage at the best price.
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Older homes are more expensive to insure
The cost of homeowners insurance in Illinois varies depending on location. For instance, the average yearly cost of homeowners insurance in Chicago is $2,750, while in Aurora, it is $2,275. The average cost of homeowners insurance across Illinois is $2,420 per year. However, the cost of insurance also depends on various other factors, such as the age of the home.
The building materials used in older homes can also impact insurance costs. Reclaimed wood, hand-painted windows, antique doors, custom wood carvings, and accents are common features of older homes. However, these materials can be challenging and costly to replace due to their rarity and the fact that they may not meet current safety standards. Additionally, older roofs may have deteriorated over time due to exposure to weather, wind, and wildlife, leading to damage, leaks, and compromised insulation.
The cost of rebuilding an older home can be significantly higher than its market value, especially if rare or handmade materials were used in its original construction. Older homes may also require specialized coverage, such as ordinance coverage or an HO-8 policy, which covers fewer perils and has lower dwelling coverage limits but may be more affordable.
While older homes can be more expensive to insure, there are options to mitigate these costs. Homeowners can increase their dwelling coverage or personal property coverage deductibles or bundle their homeowners insurance with another policy, such as auto, boat, or RV insurance. Updating older homes with renovations, such as a new roof, can also help safeguard the property against damage and potentially lower insurance rates.
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Natural disasters impact insurance rates
The cost of homeowners insurance in Illinois varies depending on location and other factors, such as the age and condition of the home. For example, the average yearly cost of homeowners insurance in Chicago is $2,750, while in Aurora, it is $2,275. In Mchenry County, the cost is about $5,000 per year, and in Will County, it is around $2,000.
Natural disasters can significantly impact insurance rates, and with climate change increasing the frequency and severity of catastrophic events, reinsurance companies have increased their rates, which gets passed on to policyholders. Homeowners in high-risk areas may pay more for insurance than those in lower-risk regions, even within the same state.
The main natural disasters that influence the cost of homeowners insurance include tropical cyclones, wildfires, tornadoes, flooding, earthquakes, and severe storms. Typically, standard homeowners insurance policies do not cover damage from earthquakes, floods, mudflows, landslides, and tsunamis. As a result, homeowners in high-risk areas for these events may need to purchase separate flood insurance policies or additional coverage.
When an insurance company has to pay out for natural disasters in a particular area, it can affect the insurance rates of all its policyholders, especially in states prone to future catastrophic losses. As the severity and frequency of claims increase, insurance companies may increase their rates and refuse to insure certain homes to mitigate their risk.
It is essential for homeowners to understand their insurance coverage for natural disasters and take steps to protect their property and belongings. Inventories of personal property, receipts, and video recordings or photographs of the home's interior can help streamline the claim process and ensure proper reimbursement.
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The average Illinois rate is $2,743
The average Illinois rate for home insurance is $2,743 per year, which is 16% more expensive than the national average of $2,466. This rate is based on a sample homeowner profile that includes good credit, $300,000 of dwelling coverage, $300,000 of liability coverage, and a $1,000 deductible.
However, it's important to note that rates can vary significantly depending on individual factors. For example, the age of your home can greatly impact the quotes you receive. According to The Zebra, the average cost in Illinois for a newer home built in 2021 is about $1,197 per year, while an older home built in 2011 would cost around $1,760. Location also plays a significant role, with the average cost of homeowners insurance in Chicago being $2,750 per year, compared to $2,275 per year in Aurora.
Additionally, your credit history can have a substantial impact on your rates. On average, homeowners with poor credit histories pay 82% more for home insurance than those with excellent credit. The cost of building materials, the coverage limits you choose, and the presence of a mortgage are also factors that can influence your premium.
It's always a good idea to shop around and compare quotes from several insurers to ensure you're getting the most coverage at the best price.
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The cheapest Illinois company is Auto-Owners
The cost of homeowners insurance in Illinois varies depending on where you live. For instance, the average cost of homeowners insurance in Chicago is $2,750 per year, while in Aurora, it costs around $2,275 per year. This is due to various factors, such as the risk of natural hazards like flooding, which is not typically covered by standard homeowners insurance.
When it comes to finding the cheapest homeowners insurance in Illinois, Auto-Owners Insurance stands out as the most affordable option. Auto-Owners Insurance is a highly respected and top-rated company, known for its exceptional financial strength and stability. With nearly 3 million policyholders, Auto-Owners is one of the nation's largest insurers, offering a range of insurance products, including home, auto, life, and business coverage.
One of the key advantages of choosing Auto-Owners Insurance is their commitment to customer service. They have consistently been certified as a Great Place to Work®, and their famous "No Problem"® claims service has earned them a reputation for excellence. The company is rated A++ (Superior) by the A.M. Best Company, reflecting their strong financial standing and ability to honour claims.
In addition to their financial strength and customer service, Auto-Owners Insurance also provides convenient online access, making it easy for policyholders to manage their insurance. By offering their products through independent agents, Auto-Owners ensures that their clients receive personalised service and the best rates possible.
When considering homeowners insurance in Illinois, it's essential to shop around and compare rates from multiple companies. While Auto-Owners Insurance offers competitive pricing, it's always beneficial to explore various options and tailor your coverage to your specific needs and location within the state.
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Frequently asked questions
The average cost of homeowners insurance in Illinois is $1,760 annually or $147 per month. This is 16% more expensive than the national average.
The cost of homeowners insurance in Illinois depends on various factors, including the location, age, and square footage of the home, the deductibles and policy limits chosen, and the cost of building materials. Older homes with outdated features may be more expensive to insure.
The cheapest homeowners insurance company in Illinois varies, but sources suggest Auto-Owners, Progressive, Nationwide, and Erie as options with low rates.
Homeowners insurance in Illinois typically covers damage from tornadoes and other natural disasters. However, it generally does not cover flood damage, so a separate flood insurance policy may be needed.
