The Best Cheap Home Insurance in Illinois for 2022

The Best Cheap Home Insurance in Illinois for 2022

The average cost of homeowners insurance in Illinois is $2,021 per year, according to NerdWallet’s rate analysis. That’s higher than the national average of $1,784. Our sample rates are based on a homeowner with $300,000 in dwelling coverage, $300,000 in liability coverage and a $1,000 deductible.

NerdWallet looked at more than a dozen insurers across the state to determine the best and cheapest homeowners insurance in Illinois. The rates in this analysis are estimates based on many factors, so your rate may differ.

Why you can trust NerdWallet

The best cheap homeowners insurance in Illinois

NerdWallet looked at rates across Illinois to find the lowest home insurance premiums in the state. Below are the companies we found with average rates below the state average of $2,021.

Company	Average annual rate	NerdWallet star rating
Allstate	$1,198	4.0 NerdWallet rating
Nationwide	$1,263	5.0 NerdWallet rating
Westfield	$1,285	3.5 NerdWallet rating
Foremost	$1,395	3.0 NerdWallet rating
Erie	$1,764	4.5 NerdWallet rating
American Family	$2,015	4.0 NerdWallet rating
USAA*	$1,630	5.0 NerdWallet rating
*USAA homeowners policies are available only to active military, veterans and their families.

Note that the cheapest company in our rate analysis may not have the most affordable premium for your own home, so it’s worth shopping around. Below is some more information on a few of the companies above.

The cheapest option: Allstate

One of the largest home insurance companies in the country, Allstate offered the cheapest average rates in our Illinois analysis. You can lower your premium even further by bundling your home and auto policies or going for several years without a claim. Other discounts are available for recent home buyers or those who buy a newly constructed home.

You may also want to sign up for the company’s Deductible Rewards program, which lowers your deductible by $100 each year you go without filing a claim (up to $500).

Allstate’s website has lots of features, including a claim center where you can file and track claims online. You can also pay bills and get quotes on the website. However, the company has drawn more than the expected number of complaints to state regulators for an insurer of its size, according to the National Association of Insurance Commissioners.

Learn more with our Allstate home insurance review.

The best affordable option: Nationwide

With its combination of low rates and high NerdWallet star rating, we consider Nationwide to be the best option for many Illinois homeowners.

Nationwide stands out for its many coverage options. For example, its standard policy may include ordinance or law coverage, which can help pay to bring your home up to the latest building codes after a claim.

You may also be able to add replacement cost coverage, which ensures that if your belongings are stolen or destroyed, you’ll be paid enough to purchase brand-new replacement items. (Without this coverage, depreciation may be subtracted from your claim payout.)

Illinois homeowners can get a discount for using Notion smart devices to monitor their home for potential water leaks, fires and break-ins. When you buy the devices through Nationwide, you can get nearly 50% off the purchase price.

To learn more, read our Nationwide home insurance review.

Worth considering for military and veterans: USAA

Though its average rates are slightly higher than some of the other options in our list, USAA offers perks worth considering for active members of the military. (The company’s policies are sold only to active military, veterans and their families.)

For example, USAA covers military uniforms without a deductible if you’re on active or reserve duty. And unlike other insurance companies, it will cover your personal belongings if they’re damaged or destroyed by acts of war.

Illinois homeowners can participate in USAA’s Connected Home program, which gives you a discount for installing select smart technology in your home. These devices can send alerts to your home if they detect water leaks, smoke or other problems.

USAA has drawn far fewer consumer complaints to state regulators than expected for a company of its size, according to the NAIC. Check out our USAA home insurance review to learn more.

The best Illinois homeowners insurance for different scenarios

The best insurance option for your home depends on your circumstances. For example, you may find certain companies more affordable if you have poor credit or a newer home. Below are the best options for a few common scenarios.

The best homeowners insurance in Illinois for those with poor credit

Many insurers in Illinois use your credit-based insurance score to help set homeowners insurance rates. An insurance score is similar but not identical to a traditional credit score. If you have a low credit score, your insurance score is likely low as well.

Because studies have found that people with low insurance scores are more likely to file claims, insurance companies generally charge more for home insurance if you have poor credit.

Below are the companies with the most affordable rates, on average, for homeowners with poor credit.

Company	Average annual rate	NerdWallet star rating
Nationwide	$1,263	5.0 NerdWallet rating
Foremost	$1,395	3.0 NerdWallet rating
Erie	$1,764	4.5 NerdWallet rating
Chubb	$2,200	5.0 NerdWallet rating
USAA*	$1,630	5.0 NerdWallet rating
*USAA homeowners policies are available only to active military, veterans and their families.

The best homeowners insurance in Illinois for those with a claims history

If you’ve filed a homeowners claim recently, you can generally expect your insurance rates to go up for at least a few years afterward. Below are the companies with the cheapest rates, on average, for homeowners with a recent water damage claim.

Company	Average annual rate	NerdWallet star rating
Westfield	$1,391	3.5 NerdWallet rating
Foremost	$1,586	3.0 NerdWallet rating
Allstate	$1,644	4.0 NerdWallet rating
Nationwide	$1,701	5.0 NerdWallet rating
USAA*	$1,988	5.0 NerdWallet rating
*USAA homeowners policies are available only to active military, veterans and their families.

The best homeowners insurance in Illinois for newer homes

Newer homes tend to be less expensive to insure than older ones. Below are the companies with the cheapest average rates for a home built in 2021.

Company	Average annual rate	NerdWallet star rating
Nationwide	$627	5.0 NerdWallet rating
Allstate	$694	4.0 NerdWallet rating
Erie	$703	4.5 NerdWallet rating
American Strategic	$726	Not rated
USAA*	$804	5.0 NerdWallet rating
*USAA homeowners policies are available only to active military, veterans and their families.

The best homeowners insurance in Illinois for higher deductibles

One way to save money on your annual home insurance rates is to raise your deductible — the amount of a claim you’re responsible for paying. Below are the companies that will charge you the least, on average, for a policy with a $2,500 deductible.

Company	Average annual rate	NerdWallet star rating
Allstate	$1,036	4.0 NerdWallet rating
Nationwide	$1,045	5.0 NerdWallet rating
Westfield	$1,150	3.5 NerdWallet rating
Foremost	$1,211	3.0 NerdWallet rating
USAA*	$1,438	5.0 NerdWallet rating
*USAA homeowners policies are available only to active military, veterans and their families.

Average homeowners insurance cost in Illinois by city

The amount you’ll pay for homeowners insurance depends on where in Illinois you live. Here are the average annual and monthly rates for 20 of the biggest cities in Illinois.

City	Average annual rate	Average monthly rate
Arlington Heights	$1,781	$148
Aurora	$1,748	$146
Bloomington	$1,748	$146
Bolingbrook	$1,792	$149
Champaign	$1,726	$144
Chicago	$2,284	$190
Cicero	$1,976	$165
Decatur	$1,848	$154
Des Plaines	$1,870	$156
Elgin	$1,801	$150
Evanston	$1,824	$152
Joliet	$1,854	$155
Naperville	$1,729	$144
Palatine	$1,802	$150
Peoria	$1,813	$151
Rockford	$1,849	$154
Schaumburg	$1,865	$155
Springfield	$1,874	$156
Tinley Park	$1,850	$154
Waukegan	$1,905	$159

What to know about Illinois homeowners insurance

When evaluating your options for home insurance in Illinois, make sure you’re adequately covered for these common natural disasters.

Floods

Despite its inland location, Illinois does see various types of flooding, including flash floods from heavy rain. Homeowners insurance generally doesn’t cover flood damage, so if your home is at risk, you may need to buy a separate flood insurance policy.

Most people get this coverage through the federal government’s National Flood Insurance Program, though private flood insurance may also be available in your area.

» MORE:Flood insurance: What it is and what it covers

Tornadoes

Illinois averages more than 50 tornadoes per year, with most occurring between April and June. A standard homeowners insurance policy typically covers damage caused by a tornado, along with any additional living expenses you might have if you’re temporarily displaced from your home because of tornado damage.

Winter storms

If a heavy blizzard knocks a tree onto your roof or frigid weather causes a pipe to burst, your homeowners insurance policy will likely cover the damage. Snow and ice are among the “perils,” or causes of damage, that are commonly covered by a standard homeowners policy.

How to get the best home insurance

The best home insurance for you will give you the coverage you need at a price you can afford. Here are a few tips to help you find it.

Estimate your coverage needs. A standard homeowners policy includes the following types of coverage:

Coverage type	What it does	Typical amount
Dwelling	Covers damage to the home and attached structures, such as a porch.	Enough to rebuild your home.
Other structures	Covers stand-alone structures on your property, such as a fence or shed.	10% of dwelling coverage.
Personal property	Pays to repair or replace stolen or damaged belongings.	50% to 70% of dwelling coverage.
Loss of use	Helps pay temporary living expenses while your home is being repaired.	20% of dwelling coverage.
Personal liability	Pays if you injure someone or cause property damage unintentionally or through neglect.	$100,000 to $500,000.
Medical payments	Pays to treat someone injured on your property, regardless of who’s at fault. It also pays if you, a family member or a pet injures someone away from your home.	$1,000 to $5,000.

To better understand these coverage types and figure out how much you need, see our guide to homeowners insurance coverage.

Shop around. We recommend getting home insurance quotes from at least three different companies. You can do so online or by having an independent insurance agent shop around on your behalf. When evaluating quotes, make sure they all have the same coverage options and deductibles so you know you’re getting a fair comparison.

Read reviews. The cheapest company may not necessarily be the one with the best coverage and customer service. See NerdWallet’s homeowners insurance reviews for our ratings of more than a dozen popular companies.

Illinois Department of Insurance

Got a complaint about your insurance company? Confused about your rights as a policyholder? The Illinois Department of Insurance may be able to assist. On the agency’s website, you can look up insurance companies, file a complaint or chat with a virtual assistant in English or Spanish. For personalized help, you can call the agency’s customer hotline at 866-445-5364.

The agency also provides information on your rights as a homeowner in Illinois. For example, your insurance company must give you at least 30 days’ notice if it’s canceling your homeowners policy for any reason other than nonpayment. If you’ve been denied coverage by at least three companies, you may be eligible for a policy from the Illinois FAIR Plan, the state’s insurer of last resort.

Looking for more insurance? Check out our guide to the cheapest car insurance in Illinois.

Frequently asked questions

Is homeowners insurance required in Illinois?

Homeowners insurance isn’t legally required in Illinois, but if you have a mortgage, your lender will likely require you to have it.

Can an Illinois homeowners insurance company deny your claim?

In Illinois and any other state, an insurance company may deny a homeowners claim for a variety of reasons. For instance, the damage may have been caused by something the policy doesn’t cover. (Most homeowners policies specifically exclude coverage for things like flood or earthquake damage.) Your claim may also be denied if you’ve failed to pay your premiums or you can’t provide enough evidence of the damage.

Who regulates homeowners insurance companies in Illinois?

The Illinois Department of Insurance oversees the state’s insurance market, including homeowners insurance companies. The agency is responsible for evaluating consumer complaints about insurance carriers and making sure companies operating in the state are financially solvent.

What is the average cost of homeowners insurance in Chicago?

The average cost of homeowners insurance in Chicago is $2,284 a year, according to NerdWallet’s rate analysis. Your own premium may differ depending on the size of your home and the amount of coverage you need.