In Chicago, State Farm offers the best mix of affordability, service and coverage, ranking high even among the best homeowners insurance companies nationwide. For those prioritizing price, State Farm also provides the lowest premium at $202 per month.
Cheap Home Insurance in Chicago
Updated: October 30, 2025
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Key Takeaways
State Farm is the top overall home insurance provider in Chicago and also offers the cheapest rate at $2,427 annually.
For most homeowners, the average home insurance cost in Chicago is $742 per month, totaling $8,900 yearly.
To secure the best and most affordable home insurance, assess your coverage needs, research providers and compare quotes thoroughly.
Best Cheap Home Insurance Companies in Chicago
| State Farm | 92 | $202 | $2,427 |
| American Family | 89 | $453 | $5,438 |
| Nationwide | 81 | $331 | $3,977 |
| Farmers | 77 | $377 | $4,519 |
| Allstate | 71 | $279 | $3,351 |
*Rates are for a 2,500-square-foot home with $250,000 in dwelling coverage and a $1,000 deductible, built in 2000.
How Much Does Chicago Home Insurance Cost?
Chicago home insurance costs vary widely by your personal profile, coverage chosen and home details. Rates range from $311 to $2,630 per month on average. Below, you can compare personalized rates based on your home age and desired coverage level.
Data filtered by:
Newer Home
$100K Dwelling / $50K Personal Property / $100K Liability
| $100K Dwelling / $50K Personal Property / $100K Liability | $311 | $3,734 |
How to Get the Best Cheap Home Insurance in Chicago
Finding affordable home insurance in Chicago can be challenging. We've put together a simple step-by-step guide to help you discover the best and most affordable coverage for your needs.
- 1Decide on Coverage Beforehand
Determine your home insurance coverage needs beforehand to compare quotes easily and prevent being oversold by agents.
- 2Research Cost and Discounts
Average home insurance costs in Illinois can fluctuate depending on location, so it helps to look at how major providers rank statewide. Our analysis of the best homeowners insurance in Illinois highlights which companies consistently balance cost, service and coverage, giving you a clearer benchmark for what’s fair in Chicago.
- 3Compare Company Offerings and Reputations
In addition to cost research, understand what add-on coverages companies offer and their reputations for handling claims, agent service, policy management and buying processes. Great resources for this include J.D. Power, the NAIC, forums like Reddit, and user review sites like Trustpilot.
- 4Compare Many Quotes Through Multiple Means
Comparing multiple quotes from various companies allows you to identify the best option for you. Pricing also varies depending on where you get your quote. We recommend requesting quotes online and from independent agents and captive agents to make sure you get the lowest price.
Best Home Insurance in Chicago: Bottom Line
The top three best and cheapest home insurance providers in Chicago are State Farm, American Family and Nationwide. While these are our recommendations for Chicago, pricing can shift across the state. If you’re comparing options beyond the city, our breakdown of cheap homeowners insurance in Illinois offers insights into average costs and provider trends across different regions.
Chicago Home Insurance: FAQ
Below, we’ve answered common questions about home insurance in Chicago.
Who offers the best home insurance in Chicago?
State Farm is the top home insurance provider in Chicago, offering low rates, excellent customer service and a wide range of optional coverages. We recommend you also request quotes from American Family, Nationwide, Farmers and Allstate when shopping for coverage.
Who has the cheapest home insurance in Chicago?
State Farm offers the most cost-effective home insurance for many Chicago homeowners at around $202 per month or $2,427 annually. Rates will differ based on individual circumstances and coverage choices.
What does home insurance cost in Chicago?
Home insurance costs in Chicago range from $3,734 to $31,564 annually, with rates influenced by home age and coverage options.
How We Decided the Best Cheap Home Insurance Companies in Chicago
MoneyGeek’s study analyzed home insurance premiums from 10 companies in Chicago. The data used was provided in partnership with Quadrant. The customer satisfaction scores used in this study were drawn from J.D. Power surveys. To calculate affordability scores, quotes were collected for a home with varying coverage levels.
In this analysis, MoneyGeek used a base profile for a homeowner with a 2,500 square foot home built in 2000 with dwelling coverage of $250,000, personal property coverage of $100,000, and liability coverage of $100,000. All the policies had the same deductible of $1,000.
Other quotes were also collected for homeowners with newly constructed homes, increased dwelling or personal property coverage, higher deductibles, and poor credit scores.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like 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.