Alyssa Lane
The average cost of homeowners insurance in Illinois varies depending on several factors. These include location, coverage level, credit score, and the age and value of the property. The average annual premium for a new home in Illinois is $1,078, while the average cost of insuring an existing home is $2,119. According to Insure.com, the average cost of homeowners insurance in Illinois is $3,044 per year for $300,000 dwelling coverage, $100,000 liability, and a $1,000 deductible. However, rates may vary across different zip codes and insurance companies.
| Characteristics | Values |
|---|---|
| Average annual cost | $2,119, $2,060, $3,044, $1,579-$13,428, $2,110 |
| Average monthly cost | $240, $176, $207 (Aurora), $250 (Chicago) |
| Average annual premium for policies with $250K in dwelling coverage, $125K in personal property coverage and $200K liability coverage | $2,119 |
| Average annual premium for new homes | $1,078 |
| Average annual premium for claim-free status for over five years | $2,119 |
| Average annual premium for one claim within the past five years | $2,453 |
| Average annual premium for two claims within the past five years | $2,711 |
| Average annual premium for homeowners with poor credit | $9,452 |
| Average annual premium for homeowners with excellent credit | $1,213 |
| Cheapest homeowners insurance in Illinois | Champaign, followed by Elgin and Rockford |
| Most expensive homeowners insurance rates in Illinois | $4,665 (ZIP code 60644) |
| Most affordable homeowners insurance in Illinois | $2,589 (ZIP code 60178), $1,720 (Allstate) |
| Percentage increase in premiums on home insurance policy renewals | 24% |
| Percentage increase in homeowners insurance rates from 2022 to 2023 | 18% |
| Percentage increase in the average premium by State Farm | 27% |
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What You'll Learn
Average costs
The average cost of homeowners insurance in Illinois varies depending on several factors. According to Insure.com's data analysis, the average cost is $3,044 per year for coverage limits of $300,000 in dwelling coverage, $100,000 in liability, and a $1,000 deductible. However, rates can differ based on your chosen insurance company and coverage limits. For example, Allstate provides the most affordable home insurance in Illinois, with an average annual premium of $1,720.
Location is the most significant factor influencing home insurance rates in Illinois, with rates varying by up to 15%. Certain areas have higher insurance premiums due to elevated crime rates, increased risk of natural disasters, and higher living costs. For instance, the ZIP code 60644 has the most expensive homeowners insurance rates in the state, with an average annual cost of $4,665. In contrast, the ZIP code 60178 offers the most affordable rates at around $2,589 annually.
The age and value of your home, as well as the coverage you select, also impact insurance costs. The average monthly home insurance cost in Illinois is $240 for dwelling coverage of $250,000. However, your rate will depend on factors such as your credit score, liability, and property coverage limits. A higher credit score can make you appear more reliable and lower your insurance costs. Conversely, homeowners with poor credit pay an average annual premium of $9,452, compared to $1,213 for those with excellent credit.
Additionally, the type of roof and construction materials used can affect your insurance premium. Tile roofs, known for their durability, can lead to lower insurance costs, while shake-treated roofs may result in higher premiums due to their susceptibility to damage. Similarly, superior construction that is more resistant to perils such as fire typically results in lower insurance rates.
It's worth noting that insuring a new construction home in Illinois is typically cheaper than insuring an existing one due to modern materials and adherence to current building codes. The average annual premium for new homes is $1,078, while the average cost of insuring an existing home is $2,119.
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Premiums by location
The cost of homeowners insurance in Illinois varies depending on location, with city location being a notable influence on premium prices. The average annual cost of homeowners insurance in the state is $2,119, which is $304 less than the national average. However, this figure can vary significantly depending on the city and ZIP code.
For example, in Aurora, the average annual cost is around $1,905, while in Chicago, it is significantly higher at $2,284. Chicago residents also face higher monthly costs, with an average of $250 compared to $207 in Aurora. The 60644 ZIP code in Chicago has the most expensive homeowners insurance rates in the state, with an average annual cost of $4,665. On the other hand, the 60178 ZIP code offers more affordable rates at around $2,589 per year.
The cost of insurance is influenced by various risk factors, including the property's age, weather-related factors, and home valuations. Illinois has seen an increase in insurance rates due to severe weather events, rising replacement costs, and natural disasters such as snowstorms, tornadoes, and floods. Additionally, the cost of building materials and labour has risen due to inflation, contributing to higher insurance rates.
The choice of insurer can also significantly impact the cost of homeowners insurance in Illinois. Premiums can vary by up to 132%, with annual rates ranging from $1,579 to $13,428. It is essential for homeowners to research and compare rates from different insurers, as each company has its own way of assessing risk and determining premiums.
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Claims history
In Illinois, claims history has a smaller impact on homeowners' insurance premiums than other factors, affecting rates by up to 11% or about $331 annually. However, filing more claims increases the perceived risk, leading to higher premiums.
Most homeowners insurance companies subscribe to C.L.U.E. (Comprehensive Loss Underwriting Exchange), a seven-year claims history database operated by LexisNexis. Participating insurers can search the database for past claims to evaluate an applicant's potential for future claims. An insurer may opt to decline an application for homeowners coverage based on past claims listed in the C.L.U.E. report.
Insurers in Illinois consider several factors when determining homeowners insurance premiums, including location, coverage level, provider, age of the home, construction materials, roof type, credit score, and claims history. The average monthly home insurance cost in Illinois is $240 for a dwelling coverage of $250,000, with annual premiums ranging from $1,579 to $13,428.
Homeowners with poor credit in Illinois pay an average annual premium of $9,452, while those with excellent credit pay around $1,213. The average annual premium for new homes is $1,078, while the average cost of insuring an existing home is $2,119.
To secure the best rates, it is recommended to research your needs, compare options, and use estimate tools to find the most suitable coverage.
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Credit score impact
The average annual cost of homeowners insurance in Illinois is $3,044, with rates varying from $1,600 to $13,428. The cost of insurance depends on several factors, including location, coverage choices, home details, and the insurance provider. Location is the biggest factor, with rates varying by up to 15% depending on weather risks, home value, and population density in the area.
Homeowners insurance companies in Illinois consider an individual's credit history and credit-based insurance scores when calculating premiums. While it is challenging to determine exactly how much credit score affects homeowners insurance rates, a poor credit score can negatively impact the rates offered by insurance companies. Homeowners with poor credit pay an average of 82% more for home insurance than those with excellent credit. In Illinois, the average annual premium for homeowners with poor credit is $9,452, compared to $1,213 for those with excellent credit.
In most states, credit history and credit-based insurance scores can impact the availability of homeowners insurance policies and the amount of premiums. However, insurance companies cannot deny applications or renewals based solely on an individual's credit. California, Maryland, and Massachusetts prohibit the use of credit history as a rating factor for home insurance, while Michigan and Oregon have restrictions in place.
When insurance companies request a credit report or score, these are typically soft credit inquiries that do not affect an individual's credit score. These inquiries can remain on a credit report for up to two years. While shopping for insurance and getting quotes can help individuals find more affordable rates, it is important to note that credit score is only one of several factors considered by insurance companies when determining rates. Other factors include location, claims history, home details, and coverage choices.
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Natural disasters
The average cost of homeowners' insurance in Illinois is $3,044 per year, but this can vary depending on location, coverage level, and provider. For example, the average monthly home insurance cost in Aurora is around $207, while in Chicago, it is $250. The cost of insurance is influenced by the risk of natural disasters, with certain areas of Illinois experiencing higher premiums due to an increased risk.
Illinois has experienced numerous natural disasters throughout its history, with 128 confirmed weather and climate disaster events between 1980 and 2024, resulting in losses of over $1 billion each. These events have included severe storms, tropical cyclones, flooding, and droughts.
One notable disaster in Illinois was the Cherry Mine Disaster of 1909, when a fire in a coal mine in Cherry, Illinois, killed 259 people, including four boys under the age of 16. Another tragic event was the Eastland disaster of 1915, when a ship capsized in the Chicago River, resulting in the deaths of nearly 850 people.
In recent years, tornadoes and flooding have been the most costly natural disasters for homeowners in Illinois. While home insurance typically covers tornado damage, flooding is often not included in standard policies, and separate insurance is required to protect against floods and other natural disasters.
The cost of homeowners' insurance in Illinois can also be influenced by factors such as credit score, claims history, and home details like age, construction materials, and roof type. By considering these factors and comparing quotes from multiple companies, homeowners can find the most affordable coverage for their needs.
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Frequently asked questions
The average cost of homeowners insurance in Illinois varies depending on the source and the factors considered. According to Insure.com, the average cost is $3,044 per year for $300,000 dwelling coverage, $100,000 liability, and a $1,000 deductible. MoneyGeek estimates the average to be $2,119 per year for $250,000 dwelling coverage, $125,000 personal property coverage, and $200,000 liability coverage. Meanwhile, NerdWallet reports an average of $2,110 per year.
The cost of homeowners insurance in Illinois is influenced by various factors, including location, coverage choices, home details, and the chosen insurance provider. Location is the biggest factor, with rates varying by up to 15% depending on weather risks, home value, and population density. Coverage choices also play a significant role, as higher coverage limits and lower deductibles increase premiums. Home details, such as age, construction materials, and roof type, affect replacement costs and the risk of damage or theft. Additionally, the choice of insurer can result in prices ranging from 42% below to 185% above the state average.
Claims history has a notable impact on homeowners insurance rates in Illinois. While it may affect premiums by up to 11% or about $331 annually, it is not as significant as other factors. Filing more claims indicates a higher risk, leading to increased premiums. Maintaining a claim-free status for over five years can result in lower average annual premiums, while filing one or two claims within the same period can increase the premium by several hundred dollars.
