Purchasing a home insurance policy can protect the homeowner’s assets when disaster strikes, and if they finance a house, the lender will require them to carry a policy. As of 2025, recent statewide analyses indicate Illinois homeowners pay roughly the mid-$2,000s per year on average for a standard policy with about $300,000 in dwelling coverage, $300,000 in liability, and a $1,000 deductible — similar to the U.S. average, though actual rates vary widely by city, home characteristics, and insurer (see Bankrate, Forbes Advisor, and Policygenius). Premiums have risen since 2022 amid elevated severe convective storm losses, higher reinsurance costs, and construction inflation, trends highlighted by the Insurance Information Institute and Swiss Re. After an exhaustive survey, Reviews has found several outstanding home insurance companies, including Allstate, American Family, and State Farm, that continue to be strong options for Illinois homeowners; the best price for you will depend on your profile and ZIP code.

The 5 Best Home Insurance Companies in Illinois

• Allstate: Best for Coverage Options
• American Family: Best for New Homes
• State Farm: Best for Digital Experience
• COUNTRY Financial: Best for Bundling
• USAA: Best for Standard Policies

Compare the Best Home Insurance Companies in Illinois 

To determine the best homeowners insurance in Illinois, Reviews evaluated the market to find insurers with good consumer ratings, minimal customer complaints, and financial strength. We also sought carriers that offer affordable basic coverages and a selection of optional coverages, using recent resources like the Illinois Department of Insurance complaint ratios, the latest J.D. Power homeowners satisfaction study, and current rate research to inform our picks (IDOI complaint ratios; J.D. Power 2024).

Information accurate as of October 2022

*2022 premium data provided by Bankrate.com

**J.D. Power’s 2022 U.S. Home Insurance Study. Based on a 1,000-point scale. 

***USAA is not ranked by J.D. Power due to eligibility requirements

The Average Cost of Home Insurance in Illinois

*As of 2025, many current benchmarks assume about $300,000 in dwelling coverage, $300,000 in liability, and a $1,000 deductible; actual premiums vary by home, insurer, and location.

Source: Bankrate.com

Cheapest home insurance in Illinois (2025): depends on your profile 

*Cheapest carrier varies by home and ZIP. Recent state pages from Bankrate and Forbes Advisor place the Illinois average in the mid-$2,000s for a $300,000 dwelling profile.

Highest-priced home insurance in Illinois (varies by profile) 

*Actual premiums depend on location, home characteristics, roof age/materials, loss history, and deductible choices; shop multiple quotes to find your best rate (Policygenius).

Key Things to Know About Home Insurance in Illinois

Standard homeowners policies do not cover losses caused by sewer backups or floods. However, some insurers offer water backup endorsements that policyholders can add to their standard home insurance policies. Homeowners may also need to consider flood insurance. Some carriers sell private flood insurance, while others offer coverage through the National Flood Insurance Program (NFIP). Homeowners can also purchase a policy directly from the NFIP. In wind- and hail-prone parts of Illinois, it’s increasingly common to see separate wind/hail or percentage deductibles and roof coverage limitations (e.g., ACV settlements or cosmetic-damage exclusions) unless you buy higher-tier options; clarify your deductible triggers and roof settlement terms before binding. FEMA’s Risk Rating 2.0 continues to phase in more property-specific flood premiums across Illinois, which may raise or lower costs depending on your location (FEMA Risk Rating 2.0).

Since most home insurance policies impose sub-limits for certain types of personal property, people with expensive belongings, like artwork, jewelry, or musical instruments, may need the protection of a scheduled personal property endorsement. Homeowners might also want to shop for insurers that offer replacement cost coverage endorsements for increased coverage. Most home insurance policies pay the depreciated value for personal property losses, but replacement cost coverage pays to replace items without depreciation. Other useful add-ons now widely available include service line coverage (learn more), equipment breakdown/home systems protection (what it covers), and personal cyber/identity protection (NAIC overview). Illinois also prohibits insurers from denying, canceling, or nonrenewing homeowners policies solely due to a dog’s breed; underwriting may still consider documented bite history (HB1049; IDOI).

Home Insurance Coverage Options 

Some homeowners may only need the coverage of a standard homeowners policy, but others may require more robust protection. For example, if a homeowner has a swimming pool and likes to entertain guests, they might consider increasing their liability protection by purchasing an umbrella insurance policy. Umbrella insurance kicks in when a claim exceeds the home insurance policy’s personal liability limit. If you rent out part or all of your home on a short-term basis, ask about specific home-sharing/host endorsements or separate policies to avoid coverage gaps (learn more).

Optional coverages vary by provider, but some insurers offer a variety of garden and yard protections that pay to remove downed trees or replace damaged shrubs and plants, following a covered loss. Many carriers offer optional credit card and identity theft endorsements and some offer ordinance or law coverage, which pays the extra costs of bringing an older home up to code, following a covered loss. Also consider endorsements for sewer/sump backup (coverage explained), underground service lines, equipment breakdown of home systems, and increased dwelling protection such as extended or guaranteed replacement cost to better address construction-cost volatility (Triple‑I guidance).

Frequently Asked Questions

Methodology 

We evaluated the companies based on their third-party agency ratings for customer experience, financial stability, and coverage options to determine which might be the best providers. We also reviewed recent Illinois complaint ratios, national satisfaction studies, and current statewide rate research to keep this guide up to date.

To compare home insurance companies across the board, we considered the following factors:

• Customer Ratings: Customer ratings are an indication of satisfaction with the overall experience with a company. We measured this using 2024 J.D. Power U.S. Home Insurance Study ratings.
• Coverage: As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available. 
• Confidence: It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength ratings indicate a positive history of being able to pay out claims. We measured this using AM Best ratings.
• Customer Experience: The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the National Association of Insurance Companies National Complaint Index.

Rates and averages referenced in this guide draw on current statewide analyses from sources like Bankrate (2025) and were cross-checked with Forbes Advisor and Policygenius. These are sample estimates and should be used for comparative purposes only. Your quotes may be different.

The coverage limits for home insurance rates reflect the following coverage and limits:

• Coverage A, Dwelling: $300,000
• Coverage B, Other Structures: $25,000
• Coverage C, Personal Property: $125,000
• Coverage D, Loss of Use: $50,000
• Coverage E, Liability: $300,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

Keep Reading

Guide to Homeowners Insurance Coverage

Homeowners Insurance Buyer’s Guide

The Best Companies for Bundling Home and Auto Insurance in 2025