Best Homeowners Insurance in Illinois (2022)

Allstate offers the cheapest average rate in the state, $125 a month, beating out Country Financial and State Farm.

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Allstate offers the cheapest homeowners insurance in Illinois, with an average rate of $125 a month, while State Farm and Country Financial are close behind. Price is important, but not the only factor to consider. Here’s what you should know about finding the best homeowners insurance in Illinois.

In this article:

What is the average cost of home insurance in Illinois?

The average cost of home insurance for a typical Illinois home is $1,708 a year, or $142 a month. This is just a tad lower than the national average of $1,754 a year, or $146 a month. Among all states and the District of Columbia, the average cost of home insurance in Illinois ranks 18th in the nation.

Insurance companies evaluate a number of factors about you and your home to determine your homeowners insurance rate. The most common include:

  • Your credit and insurance history
  • The location of your home, including its proximity to a fire station
  • The construction style of your home and any safety features it may include
  • The estimated cost to rebuild your home in the event of a total loss
  • Any discounts you may be eligible to receive

Since insurance companies weigh each factor differently and offer different discounts, you may qualify for a significantly better rate with one company than you do with others. This is why it’s best to compare quotes from multiple companies.

Which are the cheapest home insurance companies in Illinois?

Allstate offers the cheapest home insurance in Illinois, with an average rate of $1,496 a year, or $125 a month. USAA’s rate of $114 a month is lower, but USAA is only available to current and former members of the military and their family members.

Among insurance companies available to the general public, the next cheapest after Allstate are State Farm, $127 a month, and Country Financial, $133 a month.

Allstate, Country Financial and State Farm each have headquarters in Illinois.

Average statewide rates for Illinois insurance companies
Company Annual Monthly
Allstate $1,496 $125
State Farm $1,524 $127
Country Financial $1,601 $133
State average $1,708 $142
American Family $2,051 $171
Farmers $2,205 $184
USAA $1,369 $114
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

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Best homeowners insurance companies in Illinois

Based on a combination of price, customer service metrics and financial stability, Allstate, State Farm, Country Financial and USAA are the best companies for homeowners insurance in Illinois.

Best customer service: State Farm and Country Financial

Among the companies in our analysis, USAA and State Farm have the highest overall satisfaction scores from J.D. Power, while Country Financial has the best Complaint Index from the National Association of Insurance Commissioners (NAIC).

Based on a 1,000-point scale, J.D. Power’s overall satisfaction ranking is based on surveys asking customers to rate their insurance company on interaction, policy offerings, price, billing process, policy information and claims.

USAA's satisfaction score, 882, is highest among the companies in our analysis, followed by State Farm, 835, American Family, 831, Country FInancial, 830, and Allstate, 829. All five companies beat the segment average of 825.

Insurance company satisfaction rankings
Company Satisfaction ranking
USAA 882
State Farm 835
American Family 831
Country Financial 830
Allstate 829
Segment average 825
Farmers 813
Source: J.D. Power 2021 U.S. Home Insurance Study.

The NAIC Complaint Index compares companies by confirmed complaints, which are complaints that lead to a finding of fault.

The National Complaint Index is 1.0. A 2.0 Complaint Index reflects twice as many complaints as expected for a company of its size. A 0.5 Complaint Index reflects half as many. In this respect, lower is better.

Of the companies in our analysis, Country Financial has the best Complaint Index, 0.29, followed by American Family, 0.37, and USAA, 0.42.

Complaint Index ratings for Illinois insurance companies
Company Complaint Index
Country Financial 0.29
American Family 0.37
USAA 0.42
Farmers 0.55
National Complaint Index 1.0
State Farm 1.01
Allstate 1.11

Source: National Association of Insurance Commissioners, 2021 data.

Best overall insurance company: Country Financial

Even though its prices are slightly higher than those offered by Allstate and State Farm, Country Financial’s strong Complaint Index makes it the best overall insurance company in Illinois. A low Complaint Index and above-average satisfaction ranking indicate strong performance in meeting customer expectations.

Country Financial offers three home insurance policy tiers — Standard, Combination and Premier — which provides flexibility. The Premier tier costs more, but also offers more coverage.

Based on price and overall satisfaction rankings, Allstate and State Farm are also solid choices. 

Best for military: USAA

USAA’s high overall satisfaction ranking reflects favorably on its ability to deliver on its promises to the military community. A particularly nice feature about USAA’s home insurance is replacement cost coverage for personal property, which pays to replace eligible belongings with new items.

Standard homeowners insurance usually covers your belongings at actual cash value, which is their value after depreciation. For example, a five-year-old flat-screen TV may cost $500 to replace, but after depreciation, its actual cash value may only be $250.

With actual cash value coverage, the difference between your personal property’s depreciated value and the price of new replacements comes out of your own pocket.

Many insurance companies offer an upgrade to replacement cost coverage on your personal property, but USAA usually offers it as a standard feature.

How much is home insurance in Illinois cities and metro areas?

Among the state’s major cities and metro areas, homeowners insurance rates range from $128 a month in Rockford to $157 a month on the Illinois side of greater St. Louis. The average price of home insurance in Chicago is $134 a month.

Illinois homeowners insurance rates by city/metro area
City/metro Annual Monthly
Rockford $1,537 $128
Champaign-Urbana $1,560 $130
Chicago $1,606 $134
Peoria $1,687 $141
State average $1,708 $142
Quad Cities $1,729 $144
Springfield $1,796 $150
St. Louis $1,878 $157
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

While Allstate has the cheapest average statewide rate in Illinois after USAA, Country Financial and State Farm have lower rates in certain cities and metro areas.

  • State Farm has the lowest rates after USAA in Chicago, $120 a month, and the St. Louis area, $131 a month.
  • Country Financial is the cheapest after USAA in Champaign-Urbana, $117 a month, and Springfield, $124 a month.
  • Allstate has the cheapest non-USAA rates in the Peoria area, $116 a month, and the Quad Cities, $120 a month. Allstate’s rate in Rockford, $99 a month, is even cheaper than the rate offered by USAA.
Monthly insurance rates by city/metro area
City/metro Allstate Country Financial State Farm
Champaign-Urbana $122 $117 $121
Chicago $126 $126 $120
Peoria $116 $133 $128
Quad Cities $120 $132 $123
Rockford $99 $119 $130
Springfield $129 $124 $125
St. Louis $142 $147 $131
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

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How to compare home insurance quotes

As you compare home insurance quotes, it’s important to understand how the types of coverage in each proposal may affect your final rate.

Named peril vs. open peril

Most homeowners insurance policies cover your home on an open-peril basis and your personal property on a named-peril basis. However, some companies offer open-peril coverage on both your home and personal property. Others offer named-peril coverage on both your home and personal property.

Country Financial’s Standard package is an example of a policy offering named-peril coverage on both your home and your belongings.

An open-peril policy protects your property from any cause of damage not specifically excluded in the policy. Since named-peril policies only cover damage from causes specifically named in the policy, they generally don’t offer as much coverage as open-peril policies.

Actual cash value vs. replacement cost

Another significant factor to check in an insurance quote is whether the proposed policy offers replacement cost or actual cash value coverage for your personal property. While actual cash value coverage for personal property is common, some companies, including USAA, offer replacement cost coverage as a standard feature. Others offer it as an upgrade.

Most homeowners insurance policies cover your home on a replacement cost basis, but you should still check to make sure.

In general, open-peril coverage costs more than named-peril coverage, and replacement cost coverage costs more than actual cash value coverage.

Your quote should indicate the type of coverage the proposed policy offers, but you can always ask your agent or the insurance company if you’re not sure.

Choosing your deductible

You can usually reduce your homeowners insurance rate by selecting a higher deductible. Your policy’s deductible is the amount you pay on an insurance claim before insurance funds kick in.

In Illinois, increasing your deductible from $1,000 to $2,000 shaves $12 a month off the average homeowners insurance premium.

Insurance rates by deductible
Deductible amount Annual premium Monthly premium
$500 $1,792 $149
$,1,000 $1,708 $142
$1,500 $1,607 $134
$2,000 $1,564 $130
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Flood insurance in Illinois

Flooding is a widespread risk in Illinois, and neither open-peril nor named-peril homeowners insurance policies cover flood damage. Instead, you can purchase separate flood insurance to protect against this risk.

Lenders usually require flood insurance for mortgages on homes in high-risk flood zones. You can also purchase flood insurance on an optional basis if you don’t have a mortgage or if your home is in a low- or moderate-risk flood zone.

Most flood insurance is purchased through the federally managed National Flood Insurance Program (NFIP). In Illinois, the average cost of NFIP flood insurance is $1,132 a year, or $94 a month.

Flood insurance is also available through private insurance companies. Private flood insurance includes alternatives to NFIP flood policies, sometimes at a lower rate, as well as coverage to add to the base protections of an NFIP policy.

Frequently asked questions about home insurance in Illinois

Is homeowners insurance required in Illinois?

There is no legal mandate to purchase homeowners insurance in Illinois, or any other state. However, lenders typically require it for a mortgage, with specified minimum coverages and limits.

How much is home insurance in Illinois?

The average cost of home insurance in Illinois is $1,708 a year, or $142 a month.

Who offers the cheapest homeowners insurance in Illinois?

USAA offers the cheapest homeowners insurance in Illinois, with rates averaging $1,369 a year, or $114 a month. USAA is only available to the military community. The next cheapest home insurance is available from Allstate, whose rates average $1,496 a year, or $125 a month.

Methodology

We collected quotes from every ZIP code in Illinois for a standard HO-3 homeowners insurance policy. Unless otherwise noted, the quoted rates were based on policies with the following coverages:

  • Dwelling limit: $275,000
  • Other structures: $27,500
  • Personal property: $137,500
  • Loss of use: $55,000
  • Liability: $100,000
  • Medical payments: $5,000
  • Deductible: $1,000

The rates shown for cities and metro areas are based on quotes obtained from the two counties comprising Champaign-Urbana, seven counties of greater Chicago, six counties in the Peoria metro area, the two Illinois counties in Quad Cities, all four counties of greater Rockford, both counties comprising greater Springfield and the eight Illinois counties of greater St. Louis.

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