Whether you live in the Windy City or on farmland near the Wabash River, Illinois residents can all agree that protecting your home and possessions from disaster is at the top of any homeowner’s to-do list.

When it comes time to purchase homeowners insurance, you’re probably looking for a few standout qualities in a company: sterling financial reputation, great customer service, affordable coverage, and friendly agents. We’ve researched homeowners insurance companies in Illinois, compared policies, and interviewed experts to whittle down our list of contenders to a handful of all-stars.

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The Best Homeowners Insurance in Illinois

Freshome’s Recommended Homeowners Insurance Companies in Illinois: State FarmAmicaLiberty MutualAllstateTravelers InsuranceErieShelterGEICO

When shopping for homeowners insurance, you’ll want to compare quotes to make sure you’re getting the best deal available. We investigated a range of companies to find the best homeowners insurance in terms of price, financial strength credibility, and overall customer satisfaction.

We decided to gather sample quotes from the top-tier insurance companies. Our quotes were based off a two-story town house in Naperville, built in 2016. We were looking for $250,000 worth of coverage. Each quote we obtained was part of an HO3 policy, which is the most popular policy for homeowners in the US. It’s also the policy we highly recommend using.

Typically, H03 policies allow for your home to be covered under an open perils policy and your personal property under a named perils policy. Perils are events or disasters that can harm or completely damage your property or home. For example, if a snowstorm causes damage to the roof on your house, that would be considered a peril. An open perils policy means that your home is covered by any peril, unless it is specifically excluded on your policy. Named perils policies are just the opposite — you’re only covered for the perils explicitly listed. An H03 policy has a named perils policy for your personal possessions. Additionally, personal liability and medical payments are covered under an HO3 policy. For example, if your child breaks an expensive vase and cuts themselves with the broken glass at your neighbor’s house, you will be covered under liability for the cost to replace the vase as well as the medical treatment for your child.

Our Quotes
Amica$600 Per Year
Liberty Mutual$780 Per Year
State Farm$789 Per Year

While price is a major factor when choosing homeowners insurance, there are other things to consider. For example, say you pay $400 less a year with Company A, but they fail to provide you with ample support during a time of need. That $400 will be something you wish you could have thrown at Company B, who is known to have excellent customer service. But, how can you be sure Company B is worth the extra weight in cash? Financial strength ratings.

Companies like J.D. Power, A.M. Best, Moody’s, Standard & Poor’s are reputable institutions that provide consumers with ratings that reflect the data collected to show how each company serves their customers. These ratings consider the policy offerings, price, customer satisfaction, insurer interactions, and claims. The sample quotes we have provided you meet our criteria of having a J.D. Power rating of three stars or more, A.M. Best rating of B+ or more and additionally, a high financial strength rating from Moody’s and/or Standard & Poor’s.

Our top three choices for the best homeowners insurance in Illinois are Amica, Liberty Mutual, and State Farm. In 2015, Amica was the winner of J.D. Power’s top choice for homeowners insurance; additionally, they had the best pricing available for our sample quote.

What You Should Know Before Getting a Quote

Finding a good insurance company is just one piece of the pie. Now that you’re familiar with financial strength rating companies, what an HO3 policy encompasses, and what companies we recommend, it’s time to dig a little bit deeper. Every homeowners insurance policy is different and should be tailored to fit your needs. In this next section, we’ll discuss what you need to know before sitting down to find a sample quote. We have pored over the research to parse out the different kinds of coverage you may need and what to expect when getting a quote.

Types of Insurance to Consider

As we mentioned earlier, an HO3 policy is the most basic and common insurance coverage to consider. Depending on your needs, you may want additional insurance. If you want additional coverage on your personal possessions, it would be wise to look into a HO5 policy. An HO5 policy covers your dwelling, your personal property, other structures, and loss of use under an open perils policy.

When consulting with your insurance agent, it is imperative that you discuss the various limits of your coverage. The market value of your home and the current replacement cost are two different things — market value is what your house would sell for and the replacement cost involves building a completely new structure from the bottom up. Taylor Burke, Content & Communications Manager of Margo Insurance, detailed for us, “One of the biggest points of confusion when shopping for home insurance is the answer to, ‘How much should I insure my home for?’ There are two values to a home — market value and replacement cost. Always make sure your home is insured for replacement value, otherwise you may be underinsured or overpaying for insurance.”

If you are putting a deposit down on your home that is less than 20 percent, you may be required by your lender to acquire private mortgage insurance, which would cover the lender in the case you default on your payment.

There’s a possibility that you still may be worried about having enough coverage on your home in a worst-case scenario. This is why there is umbrella insurance, which gives you excess liability limits. This type of insurance is only used when you have reached the liability limits on your standard policy, meaning there is a low chance you will make a claim. Thus, this type of insurance can be inexpensive to add on.

What to Expect When Obtaining a Quote

Illinois’ average cost of homeowners insurance is $847 per year, which is 16 percent less than the national premium of $952 annually. While the average homeowners insurance in Illinois is affordable, be aware that due to various circumstances your premium may be higher.

What can cause your premium to rise? Read on to find out.

Home Business

If you run a business out of your home, you’ll need more insurance coverage for your equipment and tools. An at-home business means your home may be at a higher risk for burglary or damage, as well. So, you may need an additional policy for your home business.

Property Additions

They may be fun, but elements such as a pool, trampoline, or even extensive landscaping can raise your premium. You’ll need more liability coverage as there is a higher risk of danger present.

Credit Score

If your credit score isn’t in tip-top shape, your premium may suffer. R.J. Weiss, a certified financial planner in Illinois told us, “Big data has shown a correlation between your credit score and the chance you’ll file a claim. Insurance companies use this to calculate your rate.” To prevent the shock factor while receiving an accurate quote from an agent, check your credit score before you apply for a quote.

If you are having difficulty locating homeowners insurance in Illinois, there is a local association that acts as an insurance company for those who have had three unsuccessful attempts at being insured. It’s called the Illinois FAIR Plan. If you meet all of the local fire, safety, and loss prevention standards, you will be able to qualify for this plan.

Information to Have Ready When You Obtain a Quote

Getting a quote from an insurance company can be an easy task if you have the right information on hand. After perusing multiple different insurance websites, we’ve compiled this list of information you’ll need to know about your home before you get a quote:

  • Age of home
  • Square footage of home
  • Construction details (roofing, structure, foundation, etc.)
  • Number of wood-fire burning stoves
  • Number of bathrooms, bedrooms, and levels
  • Previous insurance information, if applicable
  • Home renovation history
  • Detached or attached buildings or garage
  • Home insurance claims made within the past five years by you or previous homeowners
  • Distance from fire hydrants, fire station, and police station

Talk with your insurance provider to make sure you have given them ample information to ensure you have the correct amount of coverage.

To ensure your personal possessions are protected, make an itemized list of items you wish to have insured. Heirlooms, antiques, furniture, electronics, expensive jewelry and artwork are all among some of the items that would be included on this list. If some of these items are antiques or have great value, you may want to have them appraised by an outside appraiser. If an insurance provider under-appraises your items, you’ll end up underinsured.

Illinois’ State Regulations and Laws

As many other states, Illinois does not require you to have homeowners insurance by law. In Illinois, your lender will require you carry insurance that is at least equivalent to the amount of money you borrowed from them for your home.

Why Are Illinois’ Rates So Low?

One reason Illinois has affordable pricing is its climate. While we receive a significant amount of snow, we don’t have the threat of a hurricane. Of course, your premium may vary based on neighborhood crime or if you’re located in a floodplain.

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FAQs

What are common coverage gaps?

Coverage often excludes damage sustained from extreme weather disasters, such as tornadoes, earthquakes, and hurricanes. Illinois residents may be concerned with water damage and sewer back-up. Homeowners are responsible for maintaining their septic systems, and those who live in floodplains or areas that experience heavy amounts of rain will find that they are at the highest risk for damage. An additional coverage can be added annually to cover you in the case that your sewer backs up and causes damage to your home.

What about flood insurance?

Flood insurance is not included in the standard HO3 policy. If you are worried about suffering damage to your home and belongings from a flood, you should discuss obtaining this separate entity with your agent. If your home is situated in a floodplain, you are at obviously at a higher risk for encountering a flood in your home. A standard flood policy will likely cover the structural damage to your home as well as damage suffered to your water heater, air conditioner, and floor surfaces. Use this helpful map from FEMA to check the flooding history of your specific location. The map will also let you know if you are located in a floodplain.

But remember, flood damage claims come from low-risk areas, too. In fact, they make up more than 25 percent of flood insurance claims. Even if you are not located in an at-risk area, it may be wise for you to consult your agent about considering flood insurance.

How can I keep my premium low?

Stay up-to-date with payments not only on your homeowners insurance, but all bills, as this will affect your credit score, which in turn affects your premium. If you’re tempted to file a small claim, it may be in your best interest to instead pay out of pocket; small claims show up on your CLUE report, which is a report that shows all claims filed on a property. If you make too many claims, your premium can go up.

Take Action

We’ve gone over the ins and outs of homeowners insurance: different kinds of policies you may encounter how to find a company that will properly serve you, and which companies we recommend working with. You are now well on your way to finding the best homeowners insurance in Illinois.

We encourage you to get quotes from many different companies to ensure you find the best price in your area. Homeowners insurance is highly individualized so prices may vary greatly from home to home. However, using our research and strict criteria, we recommend working with Amica, Liberty Mutual, and State Farm. Your home is a source of joy, pride, and comfort, so find the homeowners insurance that will protect this valuable asset for years to come.

Freshome’s Recommended Homeowners Insurance Companies in Illinois: State FarmAmicaLiberty MutualAllstateTravelers InsuranceErieShelterGEICO

Compare Homeowners Insurance Rates

To quickly find and compare rates in your area, enter your ZIP code below.

Enter Your ZIP Code: