Updated: February 2, 2026
Advertising & Editorial Disclosure
Cheapest home insurance company in Chicago: Allstate
Best home insurance company in Chicago: Chubb
Average cost of Chicago home insurance: $3,445
Allstate offers the cheapest home insurance in Chicago at $1,100 annually, 68% below the city's average of $3,445. Chicago premiums run higher than Illinois' average. Chicago homeowners save hundreds by comparing quotes from multiple insurers, since rates vary widely for identical coverage.
Based on MoneyGeek's analysis of average annual premiums, the five most affordable home insurance companies in Chicago are Allstate, USAA, Farmers, State Farm and Nationwide.
| Allstate | $1,100 | -68% |
| USAA | $1,592 | -54% |
| Farmers | $1,710 | -50% |
| State Farm | $1,724 | -50% |
| Nationwide | $3,034 | -12% |
*Rates are for a 2,500-square-foot home built in 2000, with $250,000 of dwelling coverage and a $1,000 deductible.
Chicago homeowners pay $3,445 annually for home insurance, 11% higher than Illinois' average of $3,114. Higher premiums stem from increased property crime and weather-related claims. The cheapest Chicago insurers offer rates well below both city and state averages.
Chubb offers the best home insurance in Chicago with an overall score of 4.6 out of 5. Our team evaluates affordability, coverage offerings and customer service reputation when calculating scores.
The top five homeowners insurance companies in Chicago are Chubb, USAA, State Farm, Farmers and Auto-Owners Insurance.
| Chubb | 4.61 | $3,088 |
| USAA | 4.96 | $1,592 |
| State Farm | 4.54 | $1,724 |
| Farmers | 4.43 | $1,710 |
| Auto-Owners Insurance | 4.43 | $4,552 |
*USAA membership is limited to military-affiliated individuals. Although it earned the highest MoneyGeek score, we ranked it No. 2 due to its eligibility requirements.
Our Top Recommendation for Chicago Homeowners
Average Annual Premium
J.D. Power Customer Satisfaction Score
Number of Discounts
Coverage limits determine your premium. Higher dwelling coverage costs more but covers you if rebuilding expenses exceed your policy limits.
Allstate offers the cheapest rates across most coverage tiers in Chicago, though USAA beats all competitors for basic coverage if you qualify for membership.
| $100K Dwelling / $50K Personal Property / $100K Liability | USAA | $868 |
| $250K Dwelling / $125K Personal Property / $200K Liability | Allstate | $1,100 |
| $500K Dwelling / $250K Personal Property / $300K Liability | Allstate | $1,313 |
| $750K Dwelling / $375K Personal Property / $500K Liability | Allstate | $1,664 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | Allstate | $2,159 |
Middle-age Chicago homes cost slightly more to insure than older or newer properties. Newer homes with modern safety features cost the least, while properties built before 1980 fall in the middle price range.
| Newer | USAA | $970 |
| Older | Allstate | $1,094 |
| Middle Age | Allstate | $1,100 |
Credit scores strongly impact Chicago home insurance rates. Excellent credit earns you the lowest premiums, while poor credit costs much more for identical coverage. Insurers use credit-based insurance scores to predict claim likelihood. Allstate offers the most affordable average rates for most credit scores, but Auto-Owners is the cheapest choice for those with excellent credit.
| Allstate | $86 | $1,029 |
| Farmers | $143 | $1,721 |
| USAA | $151 | $1,812 |
| State Farm | $154 | $1,847 |
| Nationwide | $434 | $5,210 |
Chicago homeowners find affordable home insurance by comparing quotes from multiple companies and adjusting coverage based on their home's risks.
Determine your home insurance coverage needs before requesting quotes. This helps you compare rates accurately and avoid agents upselling unnecessary add-ons.
Home insurance costs vary across Illinois. Our analysis of the best homeowners insurance in Illinois shows which companies balance cost, service and coverage for Chicago rates.
Beyond cost, review each company's add-on coverage options and claims-handling reputation. Check J.D. Power ratings, NAIC complaint data, Reddit forums and Trustpilot reviews for customer experiences.
Request home insurance quotes from at least three insurers for the best rate on your coverage needs.
Chicago homeowners often have questions about coverage requirements, costs and how local risks impact their policies.
Illinois doesn't legally require home insurance, but mortgage lenders require it until you pay off your loan. Homeowners without mortgages should still carry coverage to protect against financial losses from fires, theft and liability claims.
Chicago insurers consider your home's age, construction type, roof condition, distance from fire stations and neighborhood crime rates. Your credit score, claims history and chosen coverage limits also affect your premium.
Standard home insurance excludes flood damage. Chicago homeowners near Lake Michigan or the Chicago River need separate flood insurance through the National Flood Insurance Program or private insurers.
MoneyGeek analyzed home insurance premiums from 10 companies in Chicago using data from Quadrant Information Services and customer satisfaction scores from J.D. Power surveys.
We collected quotes for a 2,500-square-foot home built in 2000 with $250,000 dwelling coverage, $125,000 personal property coverage, $200,000 liability coverage and a $1,000 deductible. We also gathered quotes for homes with different construction dates, coverage limits, deductibles and credit scores across multiple scenarios.
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.
