Illinois's average home insurance premium costs $259 monthly or $3,114 annually. This is 10% below the national average, saving residents $29 each month or $354 per year. Illinois ranks 15th among all states for home insurance costs.
Average Home Insurance Cost in Illinois
Updated: January 7, 2026
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Key Takeaways: Illinois Home Insurance Rates
Illinois ranks as the 15th most expensive state for home insurance, with coverage averaging $259 monthly or $3,114 annually.
Determine your coverage needs, research providers and gather multiple quotes to find the best home insurance in Illinois.
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How Much Is Home Insurance in Illinois?
| Illinois | $3,114 | $3,467 | -10% |
*These rates are for a frame construction home built in 2000 with $250,000 dwelling, $125,000 personal property, $200,000 liability coverage and a $1,000 deductible.
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$220
High
$144
Average
$104
Low
Rates updated:
Jan 07, 2026
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What Affects Average Illinois Home Insurance Costs?
Home insurance costs in Illinois vary based on multiple factors. Your location, coverage limits, home's construction materials, insurance company, credit score and claims history all impact your premium. Each of these elements plays a distinct role in determining what you'll pay for coverage.
Average Illinois Homeowners Insurance Pricing by Coverage Level
Illinois homeowners insurance premiums vary based on your coverage choices, ranging from $1,938 to $8,315 annually. Selecting higher coverage limits and lower deductibles pushes premiums up, while choosing lower coverage amounts and higher deductibles brings costs down.
| $100K Dwelling / $50K Personal Property / $100K Liability | $161 | $1,938 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $259 | $3,114 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $399 | $4,782 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $530 | $6,357 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $693 | $8,315 |
Average Cost of Illinois Home Insurance by Company
Insurance company choice dramatically affects home insurance costs in Illinois. Travelers charges an average of $9,280 annually while Allstate averages just $1,064. The most expensive provider costs nearly nine times more than the most affordable option for similar coverage.
| Allstate | $89 | $1,064 |
| Farmers | $130 | $1,564 |
| State Farm | $144 | $1,726 |
| USAA | $147 | $1,766 |
| Chubb | $192 | $2,300 |
| Auto-Owners Insurance | $221 | $2,653 |
| Nationwide | $227 | $2,727 |
| American Family | $412 | $4,942 |
| Travelers | $773 | $9,280 |
Average Illinois Home Insurance Cost by City
Home insurance costs across Illinois cities range from $2,874 to $3,445 annually. Urban centers like Chicago command premium rates at $287 monthly, while mid-sized cities such as Rockford, Urbana and Joliet cluster near $240 monthly. The $571 annual difference between Chicago and Rockford reflects urban risk factors including higher property values and claim frequency in densely populated areas.
| Aurora | $243 | $2,920 |
| Chicago | $287 | $3,445 |
| Coatsburg | $279 | $3,353 |
| Elgin | $246 | $2,951 |
| Elmwood Park | $251 | $3,017 |
| Joliet | $242 | $2,910 |
| Naperville | $246 | $2,956 |
| Peoria | $253 | $3,039 |
| Percy | $282 | $3,382 |
| Rockford | $240 | $2,874 |
| Springfield | $255 | $3,055 |
| Urbana | $241 | $2,892 |
Illinois Homeowners Insurance Costs by House Age
Your home's construction date impacts insurance premiums in Illinois. Newer homes built around 2020 average $152 monthly, while older homes constructed in 1980 reach $273 monthly. The $121 monthly difference between new and old construction reflects increased maintenance risks, outdated electrical systems and aging roofing materials that raise claim likelihood.
| Newer | $152 | $1,823 |
| Middle Age | $259 | $3,114 |
| Older | $273 | $3,271 |
Average Illinois Home Insurance Cost by Credit Score
Illinois insurers put a ton of weight on credit scores when they set home insurance premiums. Poor credit will cost you $8,517 every year compared to just $1,240 with excellent credit. That's a 587% jump. Drop down even one credit tier and watch your premiums climb. Insurers tie lower credit scores to more frequent claims, so they charge accordingly.
| Excellent | $103 | $1,240 |
| Good | $259 | $3,114 |
| Below Fair | $380 | $4,557 |
| Poor | $710 | $8,517 |
Why Is Home Insurance So Expensive in Illinois?
Illinois home insurance costs remain high due to frequent storm damage claims, the state's location in tornado alley, and expensive construction materials and labor needed for repairs.
High Tornado and Severe Storm Activity
Illinois deals with major tornado and severe thunderstorm threats throughout the state. The Illinois State Climatologist reported that Illinois experiences an average of 54 tornadoes per year, causing widespread property damage across multiple counties. These weather patterns increase damage likelihood, pushing insurers to raise rates in high-risk areas.
Rising Claims
When homeowners frequently file insurance claims, insurers may increase premiums to cover the higher risk of payouts. Illinois homeowners with a clean five-year claims history pay $3,114 annually on average. File one claim and your premium jumps to $3,609 on average — a $495 increase. Two claims push costs to $4,026, adding $912 to your baseline rate.
Frequent Hail Damage Claims
According to the Insurance Information Institute, Illinois ranks as one of the top states for hail claims by State Farm. Hailstorms damage roofs, siding and windows, creating expensive claims that insurers offset through higher premiums.
Tips to Save on Illinois Home Insurance
Illinois home insurance costs continue climbing, but smart strategies can help you secure cheapest home insurance in Illinois rates. These practical tips work for new buyers and current homeowners looking to slash their premiums.
- 1Calculate Coverage Needs
Start by determining your home's actual replacement cost using current construction prices, not market value. Document your belongings to establish accurate personal property limits. Cook County homeowners should evaluate water backup coverage due to severe weather patterns, while those in newer Naperville developments need adequate replacement cost coverage for modern fixtures and finishes.
- 2Research Rates and Discounts
MoneyGeek's Illinois home insurance calculator provides instant cost estimates based on your home's specifics without requiring personal information. When collecting quotes, ask every insurer about available discounts. Security systems, newer roofs, claim-free records and protective devices like smoke detectors reduce premiums 5% to 15%. Stacking multiple discounts can cut costs substantially.
- 3Compare Multiple Providers
Collect at least three quotes and evaluate the complete picture, not just the annual premium. Review each company's complaint ratio, claims satisfaction ratings and financial stability through AM Best. Homeowners in Rockford or Peoria may find cheaper policies that fail during claims processing, creating frustration and unexpected costs when coverage matters most.
- 4Bundle Your Policies
Pairing home and auto insurance with the same carrier saves 10% to 25% on combined premiums in Illinois. This strategy works especially well for suburban homeowners in areas like Schaumburg or Aurora where both coverage types run high. Calculate both bundled and unbundled scenarios since occasionally separate policies from specialized insurers provide better overall value.
- 5Lower Your Risk Profile
Add safety equipment like smoke detectors, security systems or storm shutters to qualify for premium reductions. Maintaining a claim-free record saves $495 to $912 annually compared to filing one or two claims. Improving credit from below fair to good cuts premiums about 32%, saving Illinois homeowners approximately $1,443 yearly. These long-term strategies reduce rates more effectively than simply shopping for cheaper coverage.
Calculate Illinois Homeowners Insurance Costs: FAQ
Illinois homeowners insurance costs depend on many factors specific to your home and location. The following FAQs help you understand what affects your rates and estimate potential expenses for coverage in the state.
How much will my premium increase after filing a claim in Illinois?
Filing a claim in Illinois increases your homeowners insurance premium by $496 for one claim and $912 for two claims compared to claim-free customers. Illinois homeowners without claims pay $3,114 annually on average. One claim raises your rate to $3,609 per year. Two claims bump your annual premium to $4,026. Claims stay on your record for five years, meaning you'll pay these higher rates throughout that entire period.
How much can I save by choosing a different insurer in Illinois?
Comparing home insurance options in Illinois can lead to major cost differences from one company to the next. For similar coverage, American Family averages $412 per month, while Allstate comes in at $89 monthly.
Price gaps also show up among mid-range providers. USAA averages $147 per month, compared with $192 from Chubb, a $45 difference each month. Reviewing quotes from several insurers gives you a clearer view of which option fits your budget best.
Does home insurance in Illinois cover tornado damage?
Standard home insurance policies in Illinois include coverage for tornado damage. This protection applies to your main home, other structures on your property and your personal belongings if they are damaged by a tornado.
Wind damage from tornadoes is part of this coverage, which can include repairs for roofs, windows and detached buildings such as garages or sheds. Once you pay your deductible, your insurer covers the remaining repair or replacement costs up to the limits listed in your policy.
For most homeowners in Illinois, this coverage is already built into a standard home insurance policy. There’s no need to purchase separate tornado coverage, since wind damage protection comes standard with most plans.
Why does home insurance cost more for older homes in Illinois?
Home age has a clear effect on insurance pricing in Illinois. Properties built in 1980 average $3,271 per year, compared with $1,823 for homes constructed in 2020. That gap adds up to a $1,448 difference in annual premiums, with houses from 2000 landing in between at $3,114 a year. In practice, older homes cost about 79% more to insure than newer construction.
Insurers assign higher rates to older properties because wear and aging systems increase the likelihood of claims. Electrical wiring, plumbing and roofing in older homes tend to fail more often over time. Repair work can also be more expensive, especially when materials or methods must match the home’s original design.
How can I lower my home insurance costs in Illinois?
You can lower your Illinois home insurance costs with several effective strategies. Shopping around is crucial since rates can vary by thousands of dollars between insurers for identical coverage. Maintaining a claim-free record delivers savings of $496 annually compared to filing one claim and $912 yearly versus filing two claims.
Raising your deductible from $500 to $1,000 saves you $226 per year ($3,340 versus $3,114 annually). While you'll pay higher out-of-pocket costs when filing a claim, these annual savings add up over time.
Contact insurers about available discounts for bundling multiple policies, installing security systems or owning a newer home. Even modest discounts can meaningfully reduce your annual premium costs.
How We Analyzed Illinois Home Insurance Rates
MoneyGeek calculated Illinois home insurance estimates using actual rate data from major insurers. We created a standard homeowner profile to ensure fair comparisons across different factors that affect your premium.
Our baseline profile includes $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage, and a $1,000 deductible. The analysis assumes a home built in 2000 with frame construction and a composition roof, plus no insurance claims filed in the past five years.
We selected these details because they match typical Illinois homeowners. The $250,000 dwelling coverage aligns with median home values across many Illinois markets. The 2000 construction year represents the most common age range for homes in the state.
Our research method changed one factor at a time while keeping everything else identical. For example, when testing how home age affects rates, we compared houses built in 1980, 2000 and 2020 while maintaining the same coverage amounts and homeowner characteristics. This approach shows the true impact of each individual factor.
Your actual premiums will vary depending on your specific situation, including your home's construction type, roof condition, location, coverage choices, claims history, credit score and chosen insurance company. These rate comparisons demonstrate how much each factor influences your final cost.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Illinois State Climatologist. "Tornadoes in Illinois." Accessed January 7, 2026.
- Insurance Information Institute. "Facts + Statistics: Hail." Accessed January 7, 2026.