Home Insurance in Illinois


UPDATED: NOV 2020 | 1 MIN READ

Illinois is in the lower 50% when it comes to how expensive homeowners insurance is. This will save homeowners a good deal of money in the long run. This can be attributed to moderate housing prices, as well as lower than average rates of property crime in the state. But homeowners in Illinois we’ll have to worry about standard perils such as flooding and tornadoes. In addition, hundreds of thousands of miles of abandoned underground mining tunnels mean that your insurance provider we’ll have to offer specialized coverage to protect your domicile from these risks. 

  • Fun fact – The first modern skyscraper, dating all the way back to 1885, was built in the heart of Chicago. And guess what it’s name is? The Home Insurance Building. 

Average Rates in Illinois

The average homeowner in Illinois can expect to pay $1,056 each year in annual premiums for their insurance. How does this compare to the national average? Well, homeowners in other states, on average, are paying around $1,211. This puts the state of Illinois at number 29 on the list of most expensive states to insure your home. It also puts an extra $200 in your pocket each year that you can spend on other, more important things. Residents in North Carolina are paying more, on average, than Illinois homeowners, likely because of their proximity to the coast and vulnerability to hurricane damage. Maryland residents, on the other hand, are you getting a slightly better deal on their homeowners insurance premiums than people in Illinois. 

But what if you don’t own your own home? What if you’re still renting, and planning to purchase a home in the near future? You’ve got a good deal going on there, too. Renters insurance on the national level averages out to about $180 per year. In Illinois, however, renters can expect to pay around $167 per year, which is a pretty good deal. It only averages out to an extra dollar or two in savings per month if you pay your premiums monthly, but it’s still good for your bottom line.

Illinois Legal Insurance Requirements

For the most part, Illinois follows the same rules that you would see in any other state. Neither the state itself nor the federal government legally require you to purchase homeowners insurance if you don’t want to. However, if you took out a mortgage on your home and you owe money to a bank, then the home is typically under the ownership of the financial institution you owe that money to. And in order to protect their investment, your bank or lender will almost always require you to purchase coverage. Additionally, for residents of Illinois, homeowners insurance companies are required to offer mine subsidence coverage. Because there are so many abandoned mines underground within the state of Illinois, the odds of one collapsing and damaging or destroying the foundation of your home are higher than they are in other areas. Be sure to ask your homeowners insurance agent about what your risk is with regard to underground mine collapse, and discuss with them whether or not you need this coverage and how much coverage would be ideal for your home. 

Common Risk Factors in Illinois

We’ve already discussed the danger of underground mining tunnels collapsing and severely damaging or destroying your property. But floods and tornadoes are also a problem in Illinois. Much of Illinois sits on the northern end of Tornado Alley, where tornadoes, severe thunderstorms, and even hail damage are frequent problems for homeowners. It’s also adjacent to the Mississippi River, and there are many low-lying areas which are vulnerable to flooding damage. Unfortunately, flood damage is almost never covered by your standard homeowners insurance policy. This is why FEMA offers coverage as does the National Flood Insurance Program, as do some local, private insurance companies. You should check with both the nfip and any local providers in your area to find out where you can get the best rate. 

There are rare cases, even in Illinois, we’re a homeowner may be trying desperately to get insurance for their home but constantly rejected by Standard Insurance companies. If you’ve been rejected by at least three major providers, you may want to start thinking about a FAIR insurance plan. Just to be clear, though, this should be a last resort option for most homeowners. Sarah plans typically don’t cover as much as standard homeowners insurance, and what little they do cover usually costs a great deal more in annual premiums. As a matter of fact, the state of Illinois just recently approved a 9.7% rate hike for fair insurance plans, so that’s something to watch out for. But if you’re struggling with rejection and you’re not sure what to do, reach out and contact the Illinois FAIR Plan Association. They will be able to give you advice and potentially sell you a decent amount of home insurance coverage. 

Insurance Demographics/Statistics in Illinois

Believe it or not, it isn’t just the state you live in or the natural disasters which frequently happen there which will determine your total premium. When it comes to homeowners insurance coverage, many other factors come into play – especially average home values in your area, crime rates, income, and education.

  • Home Values – Typical home values in Illinois average out at about $209,335. This is just shy of $50,000 less the national average. Why is this important? Because it means you’ll be paying less for your homeowners insurance premium. You see, most banks require you to insure your home for at least 80% of its replacement cost value. If your home costs less, you can get away with purchasing less coverage – and saving money. 
  • Crime Rates – In Illinois, the most recent statistical data shows that there were 19.33 incidents of property crime per 1,000 residents. This means, statistically, you have a 1 in 52 chance of becoming a victim of property crime in Illinois. Nationally, the odds are 1 in 43. So Illinois homeowners are sitting pretty.
  • Annual Income – How much do you make each year? The average Illinois homeowner is making around $69,187. This is important because the more money you make, the more your homeowners insurance company will trust you to make regular payments on time. Most homeowners get at least a modest discount thanks to this proof of financial responsibility.
  • Education –  What about your education level? As it turns out, Illinois homeowners are right on par with the national average of 32% of homeowners who have earned a bachelor’s degree or higher. In the more education you have, in a roundabout way, the more likely you are to be financially responsible. As with a higher income, a higher education gives your homeowners insurance company an incentive to offer you a lower premium. 

Where To Purchase Home Insurance in Illinois

The first step that most people take to find good homeowners insurance is to ask around among people they know. Friends and family who know you best can give you the most honest recommendation and point you in the right direction. But not everyone can or wants to take this option. If you’re more curious, you may want to look through your local Yellow Pages or even shop around online.

Why should you be shopping around for homeowners insurance? Because the market is constantly changing, and although some homeowners insurance companies offer loyalty discounts for maintaining a policy for many years, there’s always a chance you could find a better rate with a new provider. 44% of homeowners realize this, and actively shop around on an annual basis in order to get that better deal. Unfortunately, 83% of those people are making the mistake of not shopping around online. That’s why Agile Rates exists. We provide a unique online service that quickly and easily helps you comparison-shop between multiple providers in your area absolutely free! You can save hundreds on your homeowners insurance this year alone if you shop right now with us. Please reach out – we would love to hear from you.

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