The Cheapest and Best Homeowners Insurance in Chicago
The Cheapest Home Insurance Companies in Chicago
One of the most important factors homeowners should consider when looking for the best homeowners insurance in Chicago is the price because most companies in the city offer the same basic coverages.
For a policy with $500,000 in dwelling coverage, the most affordable homeowners insurance in Chicago on average are:
- Allstate: $1,613 per year
- American Family: $2,296 per year
As for homeowners insurance policies with $2,000,000 in dwelling coverage, the cheapest companies are, on average:
- Allstate: $5,584 per year
- Farmers: $5,844 per year
The table below shows how insurance rates change depending on the dwelling coverage limits.
The Cheapest Home Insurance in Chicago, Ranked
Scroll for more
The policies in this study that have initial baseline dwelling coverage include property limits of $2,000,000, while the policies with $2,000,000 dwelling coverage limits have personal property limits of $800,000. All policies have liability coverage limits of $100,000.
Homeowners living in the same state but in a city other than Chicago can also check homeowners insurance in Illinois.
The Average Cost of Homeowners Insurance in Chicago for 2022
On average, Chicago homeowners pay higher insurance rates than the state and national averages. The average rate in the city is $2,945 per year, which is more expensive than the $1,751 state average. It is also higher than the average cost of home insurance in the country, which is $2,103.
Calculate the Cost of Home Insurance in Chicago
While the location of your home plays a role in determining the cost of your homeowners insurance in Chicago, your annual premium is also affected by how much dwelling coverage you buy, the personal property coverage limits, your insurance history and your credit score, among other factors.
Use MoneyGeek’s home insurance calculator to compare quotes in your city.
Home Insurance Calculator
These are annual estimates. Get a personalized quote to determine your costs.
The Best Home Insurance Companies in Chicago
Homeowners insurance Chicago rates are an important factor to consider. But it is also necessary to look into the company’s customer service and financial stability. Choose a company that can process legitimate claims quickly and fairly.
MoneyGeek’s study shows that the best homeowners insurance companies in the city are:
- Best Overall: Allstate
- Runner-Up: USAA (only available to current and former military members)
MoneyGeek rated insurance companies in the city based on affordability, user satisfaction and financial stability.
Allstate offers unique features, such as the Claim Rateguard. This makes sure policyholder’s rates will not go up due to a claim. The company also rewards policyholders who remain claim-free. Every year that you do not file a claim, your deductible will be $100 with a maximum of $500.
Allstate is MoneyGeek’s top pick in Chicago. It garnered high ratings across all categories, including a perfect score in affordability.Read MoneyGeek's Allstate home Insurance Review
USAA offers discounts to homeowners who have security systems in place. Policyholders who remain claims-free can also enjoy significant discounts. If you are an active service member, your USAA policy will even cover the loss of your uniform without any additional deductible.
USAA ranked high across categories, especially in customer satisfaction, where it got a perfect rating. Only current and former military members or their families qualify for USAA policies.Read MoneyGeek's USAA home Insurance Review
Cheapest Home Insurance Companies in Chicago for Newly Constructed Homes
For newly constructed homes, the cost of homeowners insurance in Chicago is cheaper than older houses. That is because newer homes using modern materials tend to be more resistant to damage, which reduces the likelihood of a claim. Insurance companies may also find it easier to replace newer materials.
The cost to insure a Chicago home built in 2000 is $2,945 per year on average. Meanwhile, homeowners insurance for a new home typically costs an average of $2,197 annually.
On average, the cheapest home insurance companies in Chicago for homeowners with newly built homes and $500,000 in dwelling coverage are:
- American Family: $1,606 per year
- USAA: $1,619 per year
The Cheapest Home Insurance in Chicago for New Homes, Ranked
Scroll for more
Cheapest Home Insurance Companies in Chicago if You Have a Lot of Personal Property
Homeowners insurance in Chicago also includes personal property coverage for the belongings you keep in the insured home.
The average rate for a standard policy with $200,000 personal property coverage limits is $2,945 per year. Increasing the personal property limits to $500,000 will increase the average rate to $3,201.
On average, the most affordable insurance companies in the city for a policy with personal property coverage limits of $500,000 are:
- Allstate: $1,651 per year
- Farmers: $2,378 per year
Cheap Companies in Chicago for Extra Personal Property Coverage
Scroll for more
Cheapest Home Insurance Companies in Chicago for High Deductibles
Your deductible, which is the amount you pay out of pocket when you make a claim, will also affect the cost of homeowners insurance in Chicago. That means that increasing the deductible reduces the annual premium.
For instance, a standard policy with a $1,000 deductible typically costs $2,945 per year. A similar policy with a $2,000 deductible costs $2,567 on average.
Based on average rates, the most affordable companies for a home insurance policy with a $2,000 deductible in Chicago are:
- Allstate: $1,430 per year
- Farmers: $2,208 per year
The Cheapest Companies in Chicago for High Deductibles, Ranked
Scroll for more
Cheapest Home Insurance Companies in Chicago if You Have Poor Credit
Your credit score is also a factor when companies calculate homeowners insurance quotes in Chicago. Poor credit scores can result in higher home insurance premiums.
For example, the average cost of insurance for a Chicago homeowner with good credit is $2,945 per year. The rate for homeowners with bad credit averages $7,066.
For homeowners with poor credit, the cheapest insurance companies in Chicago on average are:
- Allstate: $3,739 per year
- Country Financial: $4,032 per year
The Cheapest Companies in Chicago for Poor Credit, Ranked
Scroll for more
Getting Online Homeowners Insurance Quotes in Chicago
Getting homeowners insurance quotes in Chicago online will require you to provide the following information:
- Home replacement cost – This refers to how much it would cost to rebuild your home and is necessary information to determine the dwelling coverage limit. The best way to get an accurate estimate is to hire a professional.
- Personal property value – Since home insurance policies include personal property coverage, insurers may ask for the value of the personal belongings you keep at home.
- Personal information – You will have to provide basic information, such as your address, the number of people living with you and your insurance history.
- Details about your house – Insurance carriers may ask you for information about your house, like when it was constructed, how big it is and whether you have safety devices.
Homeowners Insurance in Chicago Analysis: Methodology
MoneyGeek evaluated homeowners insurance premiums from 10 carriers in Chicago using collected data in partnership with Quadrant. For affordability, MoneyGeek calculated scores based on quotes for a home with varying coverage levels. Meanwhile, customer satisfaction ratings were derived from J.D. Power’s study.
To help you find the best homeowners insurance for your situation, MoneyGeek gathered quotes for newly constructed homes, higher dwelling coverage, higher personal property coverage, increased deductibles and poor credit scores.
For this study, the base profile for the average Chicago homeowner is someone who owns a 2,500 square-foot home built in 2000 and a policy with dwelling coverage of $500,000, personal property coverage of $200,000 and liability coverage of $100,000. The deductible is worth $1,000.
About Mark Fitzpatrick