The Best Homeowners Insurance in Illinois of 2023

Choosing the best homeowners insurance in Illinois involves finding a company with affordable rates, easy methods for filing a claim, and strong financial strength.

By Karon Warren and Jeff Keleher | Published Feb 8, 2023 11:29 AM

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The Best Homeowners Insurance in Illinois Options

Photo: istockphoto.com

To find the best homeowners insurance, Illinois residents will want to look for companies that meet a number of factors. Most homeowners want to find insurance coverage that won’t break the bank, so it’s important that they look for a company that offers affordable rates plus an array of discounts to maximize savings. When searching for a company with great rates, Illinois homeowners will find that the best companies often have a quick and easy process for obtaining rate quotes. In addition, homeowners will want to look for companies that offer a wide range of coverage options so they can get the protection they need for their home and belongings. Also, many of today’s homeowners want a variety of avenues for filing and tracking claims, so the best companies will offer several ways for homeowners to handle claims.

  1. BEST OVERALL: State Farm
  2. RUNNER-UP: Allstate
  3. BEST FOR LOW RATES: Farmers Insurance
  4. BEST FOR SERVICE MEMBERS: USAA
  5. ALSO CONSIDER: American Family Insurance
The Best Homeowners Insurance in Illinois Options

Photo: istockphoto.com

What to Consider When Choosing One of the Best Homeowners Insurance Companies in Illinois

When searching for homeowners insurance, Illinois residents will want to look at certain key features to ensure the policy and the company will meet their needs. This includes reviewing the coverage options to get the right level of protection for the home should it need to be replaced, in addition to a streamlined quote process and a variety of deductible options.

Coverage Amount

When buying homeowners insurance in Chicago and elsewhere in Illinois, residents will want to find out what coverage amounts each insurance company offers. This is essential because homeowners will need a company that will cover the value of both their home and their personal belongings. For example, if a home is insured for $600,000 but costs $650,000 to rebuild, the homeowner could be liable to pay that additional amount out of pocket (along with their deductible), depending on whether their policy covers replacement cost. Similarly, if a homeowner’s personal belongings will cost $100,000 to replace but their personal property coverage limit is $80,000, they will likely have to pay the extra $20,000 to replace their belongings following a covered event.

Policy Options

The best insurance companies in Illinois will offer many policy options beyond the basic homeowners insurance coverage. While a standard policy covers the repair or replacement of the home and personal items as well as loss of use coverage, medical payments to others, and liability coverage, additional policy add-ons may cover such things as earthquakes and sewer backups, and homeowners can add coverage for specific high-value items such as jewelry, artwork, or sports equipment. Additionally, Illinois homeowners may want to consider a mine subsidence endorsement, which can help cover any damage caused by a sinking man-made mine. These add-ons will likely add to the cost of the homeowners policy, but they could provide peace of mind for policyholders. Some homeowners insurance provides protection against identity theft. Ask the insurance agent for a complete listing of all available policy options when reviewing coverage.

Insurance Premiums

The insurance premium is the amount of money homeowners pay for their home insurance. Insurance premiums may be paid monthly, quarterly, semiannually, or annually, depending on the arrangement set up between the homeowner and the insurance company. If a homeowner has a mortgage, a portion of the insurance premium will be collected each month as part of the mortgage payment. The amount of the insurance premium is based on the amount and type of coverage purchased, the amount of the policy deductible, the age and location of the home, and the claims history of the homeowner. Insurance premiums can be reduced or increased by adjusting such factors as the deductible and the amount and type of coverage purchased. Discounts also could help reduce the amount of the insurance premiums.

Quote Process

When starting to get homeowners insurance quotes, Illinois residents will want to look for insurance companies that make it easy to get rate quotes. Many of today’s insurance companies have a rate quote tool on their company website. Using these rate quote tools, homeowners can enter some basic information regarding the home and what coverage they want, and the tool will provide a quote estimate. Many companies also offer rate quotes by phone or by talking to an agent in person. These interactions often result in rate quotes that are more accurate because the insurance company representative or agent can gather more detailed information than the rate tool.

Claims Process

No one likes to file an insurance claim, especially a homeowners insurance claim. These claims often can be time-consuming, and receiving the claims proceeds can take longer than the policyholder would like. As such, homeowners will want to look for companies that make it easy to file a claim, whether using the company app or website or talking with an agent by phone or in person. Great homeowners insurance companies also will make it easy to check the claim’s progress, so homeowners can stay up to date on the claims process.

It’s also a good idea to find out what customers have to say about a company’s claims process. For that reason, homeowners may want to speak to friends and family who have filed claims with the insurance companies they’re considering to see how they were handled. Reading customer reviews on sites such as the Better Business Bureau also can provide insight into the company’s claims process.

Deductibles

A deductible is the amount the policyholder is responsible for when a claim is filed. For instance, a policy may have a deductible of $3,000. If the homeowner files a claim and the cost is $50,000, the insurance company will pay $47,000, and the homeowner will be responsible for the $3,000 deductible.

The amount of the deductible can be based on the coverage amount or it could be a flat rate. In some cases, insurance companies may apply an extra deductible for specific coverage, such as wind damage. Policies that have high deductibles usually have lower premiums. Likewise, if the deductible is low, homeowners can expect to pay higher premiums.

Additional Policies

When shopping for homeowners insurance, homeowners often like to buy their coverage from the same insurance company that carries their other insurance policies, such as car or life insurance. Therefore, it’s important to find out what additional policies are offered by the insurance company to determine whether staying with the company is a good fit. In addition to car and life insurance, additional policies offered may include pet insurance, RV insurance, boat insurance, and umbrella coverage to cover any gaps. Working with just one insurance company can make it easier for homeowners to manage all their insurance policies, and it can also allow policyholders to take advantage of some of the best home and auto insurance bundles to save even more money.

Discounts

Many homeowners want to find the least expensive homeowners insurance that offers the best coverage. One of the best ways to find affordable home insurance is by taking advantage of all available discounts from the insurance company. Bundling discounts are a popular way to save money when buying home and auto insurance policies together. Other discounts include multipolicy discounts, loyalty discounts, and early renewal discounts. Homeowners will want to make sure they ask the insurance company for a list of all available discounts, since they may not all be listed on the company website. Unpublished discounts could include paperless billing and automatic payments discounts.

AM Best Ratings

Homeowners need insurance companies that will pay their claims as agreed, so looking for insurance companies with high AM Best ratings could provide a good indication of companies in good financial standing. AM Best is a credit-rating agency that reviews insurance companies’ credit rating to determine the companies’ financial strength. AM Best then issues ratings based on its research. The ratings range from A++ (Superior) to D (Poor). Ideally, homeowners will want to look for companies with a rating of A (Excellent to Superior), although companies with a rating of B+ or B++ (both “Good”) could be acceptable choices as well. Working with a company that has a high AM Best rating could provide the homeowner with peace of mind that the insurance company will honor its claims.

Our Top Picks

When researching home insurance companies in Illinois, we looked for companies with the best rates, a good array of coverage options, various options for getting quotes as well as filing claims, and high AM Best ratings.

Best Overall

The Best Homeowners Insurance in Illinois Option State Farm
Photo: statefarm.com

Why It Made the Cut: State Farm offers high personal property coverage options, a generous bundling discount, and the option for a mine subsidence endorsement.

State Farm’s standard personal property coverage is typically 75 percent of the policy’s dwelling limit, but Illinois customers have the option to increase their personal property coverage to up to 150 percent of their dwelling amount, which could help if they have a lot of possessions that they would like to insure. Also, Illinois policyholders can purchase an extra endorsement that offers additional protection if their home is damaged due to ground movement related to local mines.

While the company offers a generous 35 percent discount on home and auto bundles, it offers relatively few additional discounts. However, the company’s A++ AM Best rating—the highest available—can give policyholders peace of mind that their insurance provider is in good financial standing. In addition, State Farm offers homeowners a free smart device to monitor for electrical fires, plus an online platform to speak with assigned agents virtually.

Specs

  • Quote process: Online, phone, agent
  • Claims process: App, online, phone, agent
  • Deductibles: 0.5 percent, 1 percent to 5 percent, $5,000 or $10,000
  • Discounts: Multipolicy, protective device, claim-free
  • AM Best rating: A++

Pros

  • High personal property coverage of up to 150 percent of dwelling limit
  • Mine subsidence endorsement available
  • Generous 35 percent discount on home and auto bundles available
  • Smart-technology fire safety devices available for free
  • Convenient virtual agent support via online video meetings
  • A++ AM Best rating

Cons

  • Somewhat limited discount opportunities

Runner-Up

The Best Homeowners Insurance in Illinois Option Allstate
Photo: allstate.com

Why It Made the Cut: Allstate offers $50,000 in water backup coverage as an extra endorsement, along with a mine subsidence endorsement and a low deductible option.

Allstate offers some interesting coverage options that go beyond the norm. One example is a water backup endorsement for coverage up to $50,000 in the event the property is damaged by sewer or drain overflows and backups, which are not typically covered by a standard homeowners insurance policy. Another coverage option is the mine subsidence endorsement, which can help pay to repair or rebuild a home that is damaged by ground movement related to nearby underground mines.

While some customers may find that Allstate’s insurance rates can be relatively high, the company does offer a low $500 deductible that could make the overall cost of the policy more affordable. Allstate also has an online tool homeowners can use to see the most common or most expensive claims among other customers in their ZIP code. This tool can help customers determine what type of coverage they need plus how much coverage they need to fully cover their costs.

Specs

  • Quote process: Online, phone, agent
  • Claims process: App, online, phone, agent
  • Deductibles: 1 percent or 2 percent, $500 to $5,000; Wind/hail: 1 percent or 2 percent, $1,000 to $5,000
  • Discounts: Multipolicy, protective device, responsible payment, claim-free, loyalty, new customer, home buyer, automatic payments, early signing, smoke-free
  • AM Best rating: A+

Pros

  • High $50,000 water backup coverage available
  • Mine subsidence endorsement available
  • Low $500 deductible option
  • Insightful online tool identifies common and expensive claims for each ZIP code

Cons

  • Relatively high insurance premiums

Best for Low Rates

The Best Homeowners Insurance in Illinois Option Farmers Insurance
Photo: farmers.com

Why It Made the Cut: Farmers Insurance offers relatively low insurance premiums as well as high personal liability coverage and a standard diminishing deductible that could save homeowners money.

Farmers Insurance offers personal liability protection with the option to set coverage limits as high as $2 million, which is very high for this type of coverage. Homeowners who are concerned about paying out of pocket for any damages they are legally responsible for may prefer to have higher liability limits to avoid paying these costs out of pocket. This can cover expenses if a guest is injured on their property or a member of the household causes property damage elsewhere.

Farmers’ deductibles for windstorm and hail damage can be relatively high—as much as 5 percent of the dwelling limit—which could mean owing a deductible costing tens of thousands of dollars depending on the covered property’s replacement cost. However, the company offers relatively low rates for Illinois homeowners, along with its standard diminishing deductible (decreases the deductible by $50 for each year the policyholder goes claim-free), which could reduce how much homeowners pay when filing a claim.

Specs

  • Quote process: Online, phone, agent
  • Claims process: Online, phone, agent
  • Deductibles: 1 percent to 5 percent, $1,000 to $10,000; Wind/hail: 1 percent to 5 percent, $1,500 to $5,000
  • Discounts: Multipolicy, protective device, non-smoker, preferred payment plan, claim-free, good payer, fortified home
  • AM Best rating: A

Pros

  • High $2 million personal liability coverage available
  • Relatively low insurance premiums
  • Standard diminishing deductible

Cons

  • Potential for high 5 percent windstorm and hail deductible

Best for Service Members

The Best Homeowners Insurance in Illinois Option USAA
Photo: usaa.com

Why It Made the Cut: USAA offers standard replacement cost coverage with every policy, boasts an A++ AM Best rating, and provides extra perks like replacing lost uniforms or military equipment.

Available only to active and former members of the military and their families, USAA includes replacement cost coverage as part of a standard homeowners insurance policy. Replacement cost coverage is sometimes an added endorsement with other insurance companies, but rather than accounting for depreciation when determining the value of covered possessions, the insurance company replaces lost property with brand-new items at today’s prices in the event of a claim. Additionally, service members on active duty can get extra perks with their USAA homeowners insurance policy, including deductible-free coverage for lost service uniforms or military equipment.

Although USAA limits its homeowners insurance rate quotes to USAA members, customers who qualify can feel confident the company is a good choice thanks to its A++ AM Best rating.

Specs

  • Quote process: Online (for USAA members), phone
  • Claims process: App, online, phone
  • Deductibles: Unknown
  • Discounts: Multipolicy, protective device, connected home, loyalty, claim-free
  • AM Best rating: A++

Pros

  • Standard replacement cost coverage
  • ​​No deductible on lost or damaged military equipment for active-duty members
  • A++ AM Best rating

Cons

  • USAA membership limited to service members and their families
  • Online quote process restricted to USAA members

Also Consider

The Best Homeowners Insurance in Illinois Option American Family Insurance
Photo: amfam.com

Why It Made the Cut: American Family (AmFam) Insurance offers a diminishing deductible on every policy, pollutant cleanup and removal coverage, and a generational loyalty discount for eligible homeowners.

American Family Insurance’s Illinois homeowners insurance policies come with pollutant cleanup and removal as part of its standard coverage. This can help policyholders cover the costs to remove dangerous pollutants from their property, which could potentially include hazardous chemicals, lead pipes, or asbestos.

While the AmFam online quote tool is limited when providing custom quotes, customers can expect to save money with the company’s standard diminishing deductible, which will lower their deductible $100 for every year they go without filing a claim. This can help customers receive a larger payout on a future claim since their deductible will be lower the longer they go without submitting a claim.

The company also offers a generational loyalty discount in addition to its more typical customer loyalty discount, which gives a lower rate to customers between the ages of 18 and 30 who have a parent who is a current AmFam customer.

Specs

  • Quote process: Online, phone, agent
  • Claims process: Online, phone, agent
  • Deductibles: $1,000; Wind/hail: $1,000
  • Discounts: Multipolicy, protective device, autopay, age of home, loyalty, renovated home, generational loyalty
  • AM Best rating: A

Pros

  • Standard pollutant cleanup and removal coverage
  • Standard diminishing deductible
  • Unique loyalty discount available

Cons

  • Limited online quote policy options

Our Verdict

State Farm was named Best Overall because it offers unique coverage options with its high personal property coverage limits and mine subsidence endorsement. Allstate was chosen Runner-Up because it has a low deductible option plus a high amount of water backup coverage.

How We Chose the Best Homeowners Insurance Companies in Illinois

When determining the best homeowners insurance companies in Illinois, we looked at each provider’s coverage options, including dwelling, personal property, personal liability, loss of use, and other forms of coverage that come with homeowners insurance. We also considered the extra endorsements that might be available to customers to help them expand the scope of their coverage. Cost considerations were another important factor we weighed, including deductible options and available discounts that could provide savings on homeowners insurance. Both the quote and claims processes for each company were also assessed, as they can greatly impact the overall customer experience. We also looked at the financial stability and long-term outlook of each organization, referencing AM Best ratings when possible.

Before You Choose One of the Best Homeowners Insurance Companies in Illinois

The companies listed here are well qualified as some of the best homeowners insurance companies in Illinois. However, that doesn’t necessarily make them the best choice for every homeowner. That’s why it’s important for homeowners to conduct their own research. A good starting point for many homeowners is with their current insurance company; it’s possible they will be able to get the coverage they need at a fair price without having to look elsewhere.

Also, it’s important for homeowners to consider local insurance companies in their research that are not listed here. Those companies may offer additional coverage not found elsewhere, and they may offer lower rates. It’s important for homeowners to find out all the ins and outs of each potential insurance provider before purchasing a homeowners insurance policy. Policyholders who don’t live in their home but rent it out for profit will want to compare landlord insurance vs. homeowners insurance to make sure they get the right policy type for their needs.

Cost of Opting for One of the Best Homeowners Insurance Companies in Illinois

When searching for the cheapest homeowners insurance, Illinois homeowners may want to take the time to find the lowest rates. It’s possible those rates could come from one of the best homeowners insurance companies listed here, but that may not always be the case. Homeowners will want to shop around and get a minimum of three rate quotes from different companies. Because insurance rates fluctuate, homeowners will want to make sure they provide the same information to each company, make sure the quotes apply to the same types of homeowners insurance and amount of coverage, and get the quotes on the same day. This ensures the comparison is fair and equitable. It’s also wise for homeowners to ask about available discounts that could lower the price of some rate quotes.

The Advantages of Opting for One of the Best Homeowners Insurance Companies in Illinois

Researching homeowners insurance companies is a time-consuming but necessary process. There are several perks of choosing one of the best homeowners insurance companies for a home policy. Potential customers will find that the best options will offer various deductible choices, a variety of endorsements or add-on policies, and strong AM Best ratings, all of which can benefit policyholders. In addition to these benefits, the best homeowners insurance companies in Illinois also offer the following:

  • Several different ways for customers to get a quote and file a claim;
  • An AM Best rating of A or higher; and
  • Various discounts to maximize savings for policyholders.

FAQs

When homeowners are shopping for homeowners insurance, it’s smart to research each company to ensure it’s a good fit. Along the way, the following are some of the most frequent questions homeowners have regarding homeowners insurance.

Q. What is the average cost of homeowners insurance in Illinois?

The average cost of homeowners insurance in Illinois is $1,410 per year per $250,000 of dwelling coverage. The cost of homeowners insurance is based on numerous factors, including the home’s location, age, and value; and the homeowner’s age, gender, marital status, and claims history.

Q. What is not covered by homeowners insurance in Illinois?

Examples of events that are typically not covered by homeowners insurance include water damage due to sewer backups and damage caused by normal wear or tear or a homeowner neglecting to properly maintain their home. In addition, flood damage is not covered by homeowners insurance; customers who live in high-risk flood zones will want to consider one of the best flood insurance policies to make sure they’re covered for this type of loss in case disaster strikes.

Q. What is the 80/20 rule in homeowners insurance?

When insuring a home, most insurance companies require policyholders to purchase a coverage amount equal to a minimum of 80 percent of the home’s replacement cost (though the best option is to cover the home at 100 percent of its replacement cost).

Q. How high should my homeowners deductible be?

Deductibles vary based on a number of factors, but, generally speaking, homeowners will want to have a minimum deductible of $1,000 to keep premium costs down.

Q. Can I claim homeowners insurance on taxes?

Homeowners insurance premiums are not typically deductible on taxes, but there are some exceptions for a home office, renting out the home, or an uncovered claim. Policyholders can check with a tax professional to determine whether they are eligible to claim their homeowners insurance on their tax return.

Q. How long does it take to get homeowners insurance in Illinois?

Most homeowners can get homeowners insurance in just a few minutes, but in some cases, it could take a few days or weeks. The timeline can vary between different companies and different customers.

Q. Does Illinois homeowners insurance cover foundation issues?

While the foundation is covered by homeowners insurance as part of the home’s structure, certain causes of foundation damage may not be covered, such as those determined to be caused by a lack of home maintenance.

Q. Does homeowners insurance cover water damage?

Most homeowners insurance covers water damage due to a busted pipe (as long as the cause was not wear and tear or homeowner neglect), but water damage due to flooding, leaking, or sewer backups is not covered.

Sources: Bankrate, ValuePenguin, Morningstar