Purchasing a home insurance policy can protect the homeowner’s assets when disaster strikes, and if they finance a house, the lender will require them to carry a policy. Illinois residents pay an average of $1,376 per year for homeowners insurance with $250K in dwelling coverage, a few dollars less than the national average of $1,383 per year for the same coverage. After an exhaustive survey, Reviews has found several outstanding home insurance companies, including Allstate, American Family, and State Farm, that offer Illinois homeowners policies with rates below state and national averages.
The 5 Best Home Insurance Companies in Illinois
- Allstate: Best for Coverage Options
- American Family: Best for New Homes
- State Farm: Best for Digital Experience
- COUNTRY Financial: Best for Bundling
- USAA: Best for Standard Policies
Compare the Best Home Insurance Companies in Illinois
To determine the best homeowners insurance in Illinois, Reviews evaluated the market to find insurers with good consumer ratings, minimal customer complaints, and financial strength. We also sought carriers that offer affordable basic coverages and a selection of optional coverages.
| Average Annual Premium* | AM Best AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. Power** J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|
| Pin Allstate | $930 | A+ | 815 | |
| Pin American Family | $1,090 | A | 842 | |
| Pin State Farm | $1,138 | A++ | 829 | |
| Pin COUNTRY Financial | $2,525 | A+ | 830 | |
| Pin USAA*** | $802 | A++ | 884 |
Information accurate as of October 2022
*2022 premium data provided by Bankrate.com
**J.D. Power’s 2022 U.S. Home Insurance Study. Based on a 1,000-point scale.
***USAA is not ranked by J.D. Power due to eligibility requirements
Best for Coverage Options
WHY WE CHOSE IT
Why we chose it
Pros
- Diverse coverage and discount opportunities
- Informative website and digital tools
- Above-average customer service
Cons
- No replacement cost coverage endorsement advertised online
- Financial strength ratings good, but not great
Discounts
- Multi-policy
- Responsible payer
- Claim-free
- Welcome & loyalty
- Automatic payments
- Early signing
- Homebuyer
- Protective device
Add-On Coverages
- Multi-policy
- Responsible payer
- Claim-free
- Welcome & loyalty
- Automatic payments
- Early signing
- Homebuyer
- Protective device
Best for New Homes
WHY WE CHOSE IT
Why we chose it
Pros
- Customizable coverage options
- Helpful digital resources for new homebuyers
Cons
- Higher than average home insurance complaint index score
- Limited coverage availability
Discounts
- Bundle & save
- Age of home
- Various billing discounts
- Loyalty
- Generational
- Renovated home
- Smart Home
- Home Purchase
- Renovated Home
Add-on coverages
- Equipment breakdown
- Water backup
- Matching siding
- Credit theft protection & monitoring
- Hidden water damage
Best for Digital Experience
WHY WE CHOSE IT
Why we chose it
Pros
- Financially strong
- Excellent web presence
- 19,000+ agents nationally
- Informative blog
Cons
- Limited discounts
- Higher rates than some carriers
Discounts
- Multi-line
- Home security
- Impact-resistant roof discount
Add-on coverages
- Replacement cost coverage
- Identity restoration coverage
- Water back up coverage
- Earthquake insurance
- Ordinance/law coverage
- Personal articles coverage
Best for Bundling
WHY WE CHOSE IT
Why we chose it
Pros
- Local agents available
- 24/7 claims service
- Provides a variety of discounts
Cons
- Poorly-rated mobile app
- High average premium
Discounts
- Multi-policy
- Safe home
- New home
- Hail-resistive roof
- Safe heat
- Age of wiring
- New roof
Add-on coverages
- Water backup
- Earthquake
- Identity theft
- Flood insurance through the National Flood Insurance Program
Best for Standard Policies
WHY WE CHOSE IT
Why we chose it
Pros
- Low average rates
- Good consumer ratings
- Standard home insurance policies include personal property replacement cost coverage
Cons
- Only available to military members, veterans and their family members
- No many optional coverages
Discounts
- Bundle
- Protective device
- Safety device
- Multi-policy
- Loyalty
- Claims free
Add-on coverages
- Computer
- Valuable personal property
- Cell phone
The Average Cost of Home Insurance in Illinois
| Insurance Company | Average Annual Premium* |
| Allstate | $930 |
| American Family | $1,090 |
| Chubb | $1,982 |
| Country Financial | $2,525 |
| Encompass | $1,904 |
| Farmers | $1,503 |
| Hastings Mutual | $1,306 |
| Member Select Insurance | $1,056 |
| State Farm | $1,138 |
| Travelers | $993 |
| USAA | $802 |
*Based on $250,000 in dwelling coverage
Source: Bankrate.com
Top 3 Cheapest Home Insurance Companies in Illinois
| Company | Average Annual Premium* |
| USAA | $802 |
| Allstate | $930 |
| Travelers | $993 |
*Data from Bankrate.com
Top 3 Most Expensive Home Insurance Companies in Illinois
| Company | Average Annual Premium* |
| COUNTRY Financial | $2,525 |
| Chubb | $1,982 |
| Encompass | $1,904 |
*Data from Bankrate.com
Key Things to Know About Home Insurance in Illinois
Standard homeowners policies do not cover losses caused by sewer backups or floods. However, some insurers offer water backup endorsements that policyholders can add to their standard home insurance policies. Homeowners may also need to consider flood insurance. Some carriers sell private flood insurance, while others offer coverage through the National Flood Insurance Program (NFIP). Homeowners can also purchase a policy directly from the NFIP.
Since most home insurance policies impose sub-limits for certain types of personal property, people with expensive belongings, like artwork, jewelry, or musical instruments, may need the protection of a scheduled personal property endorsement. Homeowners might also want to shop for insurers that offer replacement cost coverage endorsements for increased coverage. Most home insurance policies pay the depreciated value for personal property losses, but replacement cost coverage pays to replace items without depreciation.
Home Insurance Coverage Options
Some homeowners may only need the coverage of a standard homeowners policy, but others may require more robust protection. For example, if a homeowner has a swimming pool and likes to entertain guests, they might consider increasing their liability protection by purchasing an umbrella insurance policy. Umbrella insurance kicks in when a claim exceeds the home insurance policy’s personal liability limit.
Optional coverages vary by provider, but some insurers offer a variety of garden and yard protections that pay to remove downed trees or replace damaged shrubs and plants, following a covered loss. Many carriers offer optional credit card and identity theft endorsements and some offer ordinance or law coverage, which pays the extra costs of bringing an older home up to code, following a covered loss.
Frequently Asked Questions
Methodology
We evaluated the companies based on their third-party agency ratings for customer experience, financial stability, and coverage options to determine which might be the best providers.
To compare home insurance companies across the board, we considered the following factors:
- Customer Ratings: Customer ratings are an indication of satisfaction with the overall experience with a company. We measured this using 2022 J.D. Power Home Insurance Study ratings.
- Coverage: As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence: It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength ratings indicate a positive history of being able to pay out claims. We measured this using AM Best ratings.
- Customer Experience: The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the National Association of Insurance Companies National Complaint Index.
Rates are based on quoted annual premiums from Bankrate.com. These are sample rates and should be used for comparative purposes only. Your quotes may be different.
The coverage limits for home insurance rates reflect the following coverage and limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
About the Authors
Michael Evans is a freelance finance writer. His work has been published by Bankrate, Fox Business, The Guardian and Yahoo Finance.
