Key Takeaways
- Erie Insurance has Chicago’s cheapest home insurance rates, charging $1,410 a year, on average.
- Chicago homeowners pay an average of $2,053 a year for insurance — $200 more than the Illinois state average of $1,834.
- Chicago homeowners also pay more than the average homeowner nationwide.
In this article
Average home insurance rates in Chicago
The average home insurance rate in Chicago is $2,053 a year, or $171 a month.
That’s higher than the statewide average cost of home insurance, which is $1,834 a year, or $153 a month.
There are numerous factors that determine your total home insurance cost, including:
- Your insurance claim history
- Your home’s age and construction style
- Your home’s location
- The cost to rebuild your home
Rates are also heavily influenced by your deductible and dwelling coverage. The chart below shows the average annual cost for some of the more common deductible amounts:
| Deductible | Annual premium |
|---|---|
| $500 | $2,193 |
| $1,000 | $2,053 |
| $1,500 | $1,963 |
| $2,000 | $1,855 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
While a higher home insurance deductible usually means a lower premium, dwelling coverage affects premiums the opposite way. As this chart shows, a high dwelling coverage amount can add a lot to your annual costs.
| Dwelling coverage amount | Annual premium |
|---|---|
| $200,000 | $1,735 |
| $275,000 | $2,053 |
| $350,000 | $2,405 |
| $425,000 | $2,799 |
| $500,000 | $3,236 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
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Cheapest home insurance companies in Chicago
Erie Insurance offers the cheapest homeowners insurance in Chicago, according to our 2023 survey. The company charges an average of $1,410 a year.
Allstate is the next-cheapest provider, charging $1,501 per year. State Farm, meanwhile, offers an annual premium of $1,534.
| Insurance company | Annual premium |
|---|---|
| Erie Insurance | $1,410 |
| Allstate | $1,501 |
| State Farm | $1,534 |
| Country Mutual | $2,510 |
| Chubb | $2,684 |
| Farmers | $2,718 |
| American Family | $2,757 |
| USAA | $1,311* |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Only available to current/former military and their families. | |
To get the best price on a policy plus the coverage you need, compare home insurance quotes from several companies.
Chicago's best home insurance companies
We’ve found Erie Insurance and Allstate to be the best home insurance companies in Chicago. Here’s why:
Cheapest rates: Erie Insurance
Erie Insurance leads the city with a low annual premium of $1,410. That’s almost $100 less than the next-cheapest provider.
Erie scores well in terms of customer satisfaction, too. The company received an above-average rating of 827 on J.D. Power’s satisfaction score index. It’s also the city’s fourth-best company on the NAIC Complaint Index ratings, which measures customer complaints.
Best discounts: Allstate
In addition to offering Chicago’s second-best rates, Allstate is the city's best option for those seeking home insurance discounts, including:
- Multi-policy discounts: Savings of up to 25% for bundling home and auto coverages.
- Responsible payment discounts: Get a discount for paying reliably and on time.
- Claim-free discounts: Save up to 20% for joining Allstate without a recent claim.
Customer service ratings for Chicago home insurance companies
American Family is the city’s top-rated company on J.D. Power’s customer satisfaction index. It has a rating there of 842, well above the average rating of 819.
J.D. Power’s customer satisfaction scores are based on customer surveys that rate home insurers on interaction, policy offerings, price, billing process, policy information and claims. Higher scores are better than lower ones.
| Insurance company | Overall satisfaction score |
|---|---|
| American Family | 842 |
| Country Mutual | 830 |
| State Farm | 829 |
| Erie Insurance | 827 |
| Allstate | 815 |
| Chubb | 809 |
| Farmers | 792 |
| USAA | 884* |
| Source: J.D. Power 2022 U.S. Home Insurance Study. *Brand is not rank eligible because it does not meet study award criteria. | |
Chubb, meanwhile, tops all Chicago providers on the NAIC Complaint Index.
The NAIC Complaint Index compares insurance companies by confirmed complaints. A company with a 2.0 Complaint Index rating has twice as many confirmed complaints as expected for its size. A 0.5 rating reflects half as many as expected.
| Insurance company | Overall satisfaction score |
|---|---|
| Chubb | 0.04 |
| Country Mutual | 0.07 |
| American Family | 0.13 |
| Erie Insurance | 0.14 |
| USAA | 0.31 |
| Allstate | 0.33 |
| State Farm | 0.35 |
| Farmers | 0.39 |
| Source: National Association of Insurance Commissioners (2022 data) | |
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Home insurance risks in Chicago
Chicago homeowners face a variety of natural disasters each year, from flooding and thunderstorms to fires and earthquakes. These disasters can cause major damage — to your home and bank account — if you’re not insured properly.
Thankfully, most standard home insurance policies cover damage from wind, hail and fires.
Earthquakes, however, are a different story. Illinois is part of America’s most seismically active region east of the Rocky Mountains, and the city government has at times encouraged residents to consider getting earthquake coverage.
Flood insurance in Chicago
Still, flooding is perhaps the biggest risk to Chicagoans’ homes. The water damage from flooding brought in by tornadoes and thunderstorms is not covered under most standard policies. So, buying separate flood insurance is a good idea if you live in an area prone to floods.
Frequently asked questions
The average cost of home insurance in Chicago is$2,053 a year.
Erie Insurance has the cheapest rates in Chicago, charging $1,410 a year, on average. After that, Allstate and State Farm have the next-best rates.
State law does not require home insurance in Illinois, but most lenders do. So, if you have a mortgage, you’ll probably have to purchase a policy.
Methodology
We collected quotes from every ZIP code in Chicago, Illinois, for a standard HO-3 homeowners insurance policy using the following coverages:
- $275,000 dwelling (unless otherwise noted)
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible (unless otherwise noted)
Home insurance by city
- Chicago
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