Best Homeowners Insurance in Illinois (2024)
- Expertise: Auto insurance, home insurance and renters insurance
- Education: Sonoma State University (BA in English)
Aaron Besson has worked at LendingTree for more than seven years and has been a staff writer for the last five years. He specializes in producing research-backed content about auto, home and renters insurance. Aaron enjoys the deep dig into insurance data to get the right answers to hard questions. His work has been cited by CBS, iHeart Radio, the Sacramento Bee and Yahoo.
Erie is the best home insurance company in Illinois, though Nationwide has the cheapest rates for most homeowners.
Illinois’ cheapest home insurance companies
Most Illinois homeowners get the cheapest home insurance coverage from Nationwide, which offers an average rate of $1,545 a year. This is 44% less than the state average rate of $2,743.
Cheapest companies in Illinois
| Company | Average annual rate |
|---|---|
| Nationwide | $1,545 |
| Erie | $2,075 |
| Allstate | $2,225 |
| State Farm | $2,311 |
| Country Mutual | $2,378 |
| Great Northern | $2,444 |
| American Family | $2,924 |
| Farmers | $3,562 |
| Auto Club | $5,948 |
| USAA* | $2,013 |
Although USAA is the second-cheapest home insurance company in Illinois, with an average rate of $2,013 a year, it only sells insurance policies to current and veteran military.
Best homeowners insurance companies in Illinois
Erie is the best home insurance company in Illinois, based on policy price, satisfaction ratings and complaint trends. Nationwide, Allstate, Great Northern and USAA are great choices, too.
Illinois home insurance companies by cost, customer satisfaction and complaint rating
| Company | Annual rate | Overall satisfaction | Complaint index rating |
|---|---|---|---|
| Best overall: Erie | $2,075 | 856 | NA |
| Best rates: Nationwide | $1,545 | 812 | 1.47% |
| Best for military: USAA | $2,013 | 881 | 0.52% |
| Best complaint rating: Great Northern | $2,444 | NA | 0.03% |
| Best discounts: Allstate | $2,225 | 809 | 2.90% |
Ratings include satisfaction scores from J.D. Power’s 2023 U.S. Home Insurance Study and 2022 complaint data from the National Association of Insurance Commissioners (NAIC).
The J.D. Power Property Claims Satisfaction Study measures policyholder satisfaction with their home insurer’s claims experience by tracking factors such as settlement, claim servicing and payout. The average rating is 819. The higher a company’s rating, the better.
NAIC’s Complaint Index rates policyholders’ claim-based complaints filed with state insurance departments compared to other insurers of similar size. The current average index is 1.0. The lower the index, the better.
Best overall home insurance in Illinois: Erie
Erie has the second-cheapest home insurance rates for most Illinois residents, averaging $2,075 a month. Also, its overall satisfaction rating is the second highest of the companies we surveyed in Illinois.
Erie’s replacement coverage is noteworthy, too. After a total loss, its guaranteed replacement coverage takes care of the entire cost of rebuilding your home, even if the cost exceeds your dwelling coverage limit.
Pros
Low average rates
Excellent customer satisfaction scores
Discounts provide up to 25% savings
Cons
No online quotes
Best rates in Illinois: Nationwide
Nationwide has the lowest rates for home insurance in Illinois, at an average of $1,545 a year. It also offers some good discounts, such as its bundling and new home purchase discounts, that can lower your annual premium even more.
Pros
Low rates
Good discounts
Cons
No online chat function
Best for Illinois homeowners in the military: USAA
USAA has a great reputation for affordable rates and top-notch customer service. It only sells insurance products to currently serving and veteran military, though, as well as their families. If you fall into any of those categories, USAA is an excellent choice.
USAA has a low average rate of $2,013 a year for Illinois homeowners. Also, USAA received a score of 881 out of 1,000 in the 2023 J.D. Power U.S. Home Insurance Study, the best of any home insurer. USAA isn’t officially ranked in the study due its limited market; otherwise, it would be at the very top of the study.
Pros
Low average rates
Excellent customer satisfaction
Low complaint rating
Military-specific home insurance coverage, including coverage for personal property damaged by an act of war and coverage of military uniforms with no deductible
Cons
You’re not assigned a specific USAA agent, and may get a different one every time you contact the company
Best complaint rating: Great Northern
While Great Northern’s average rates may be on the higher side in Illinois, its complaint rating is the lowest of the companies we surveyed, at 0.03%. When looking for a home insurance company, customer satisfaction is as important a factor to consider as cost and coverage.
Great Northern also holds an A+ (Excellent) rating from A.M. Best for financial strength, showing strong confidence and capability to pay out on claims.
Pros
Low complaint rating
Cons
Little website info regarding policy pricing and discounts
No mobile app access
Best homeowners insurance discounts: Allstate
Allstate’s average rate for home insurance in Illinois is $2,225 a year. While not the cheapest policy available in the state, Allstate does have the best selection of discounts to possibly lower your premium to something competitive with less expensive insurers.
Allstate’s discounts include:
- Early signing discount: Save up to 10% on your premium by signing up for a new home insurance policy at least seven days before the end of your current policy.
- Claim-free discount: Having no recent claims on your homeowners insurance when you sign with Allstate can save you up to 20%.
- Bundling discount: Bundling your home insurance policy with auto or life insurance through Allstate can save up to 25% on your premiums.
- Welcome and loyalty discount: Save 10% on your home insurance when you switch to Allstate. This discount continues as long as you have your policy with Allstate.
How much is home insurance in Illinois?
The average cost of homeowners insurance in Illinois is $2,743. Your premium cost is based on many factors, including:
- The age of the home
- Construction materials used
- Crime rates and extreme weather trends in your area
- Your insurance claim history
- Coverage limits
- Discounts
Home insurance companies place different risk weights on these factors, resulting in different policy prices. The best way to get the most coverage at the cheapest price is to compare home insurance quotes from several insurers.
Home insurance rates by coverage amounts
Part of the cost of your home insurance policy depends on the amount of dwelling coverage you need. Dwelling coverage is the amount required to rebuild your home after a total loss.
Home insurance cost by dwelling coverage limit
| Coverage amount | Average annual rate |
|---|---|
| $350,000 | $2,472 |
| $400,000 | $2,743 |
| $450,000 | $3,022 |
While no state law requires you to carry home insurance, your mortgage lender will usually require you to carry it at replacement value as part of your lending agreement.
Even if you don’t have a mortgage, home insurance is an excellent investment to protect yourself from a financial disaster.
Illinois home insurance rates by city
Of Illinois’ biggest cities, Naperville has the lowest average rate of $2,337 a year for home insurance. Chicago has the most expensive rate of $3,322 a year.
Cost of home insurance by city
| City | Average annual rate |
|---|---|
| Arlington Heights | $2,442 |
| Aurora | $2,360 |
| Bloomington | $2,422 |
| Bolingbrook | $2,486 |
| Champaign | $2,355 |
| Chicago | $3,322 |
| Cicero | $2,648 |
| Elgin | $2,410 |
| Joliet | $2,544 |
| Naperville | $2,337 |
| Peoria | $2,525 |
| Rockford | $2,479 |
| Schaumburg | $2,466 |
| Springfield | $2,708 |
| Waukegan | $2,596 |
Methodology
The rates shown in this article are based on non-binding quotes collected from Quadrant Information Services. Average rates were compiled from rates in every Illinois ZIP code.
Unless otherwise noted, quoted policies contain the following:
- Dwelling coverage: $400,000
- Other structures: $40,000
- Personal property: $200,000
- Loss of use: $80,000
- Personal liability: $100,000
- Guest medical payments: $5,000
- Deductible: $1,000
Rates are provided for comparative purposes only.
Overall satisfaction ratings were obtained from J.D. Power’s 2023 U.S. Home Insurance Study. The agency’s scores are based on customer surveys that rate insurance companies on factors including price, policy offerings and claims.
Complaint ratings are based on NAIC Complaint Index data from 2022. A company with a 2.0 Complaint Index score has twice as many confirmed complaints as expected for its size. A company with a 0.5 rating has half as many.
*USAA only provides insurance to currently serving and retired military personnel, and their families.