From accidental fires burning down your home’s structure to burglars stealing your personal belongings, a home insurance policy can provide peace of mind and the coverage you need to feel safe and protected.
The This Old House Reviews team researched the best homeowners insurance companies in Illinois and found that American Family, State Farm, and Lemonade are the top providers in the state. Read our review below to compare each company’s coverage offerings, pricing, and benefits.
Illinois’ Top 3 Home Insurance Companies
1. American Family: Best in Illinois
American Family is available in 17 states, including Illinois, and offers some of the best policies in the state. It offers comprehensive coverage with personal property limit options of up to 75% of the dwelling coverage amount. It also has an add-on that increases the dwelling limit by 20% for those who want extra peace of mind for rebuilding coverage.
American Family also offers these benefits:
- Multi-product bundling discounts
- 24/7 claims support
- Additional coverage options for dangerous pet liability and fungi or bacteria damage
For personalized cost information, get a free online quote from American Family.
2. State Farm: Best Endorsements
We chose State Farm for its extensive list of endorsement options. In addition to offering add-ons for items, such as roof surfaces, home systems, and energy efficiency upgrades, State Farm includes unique coverage in its standard policies for business properties, firearms, building ordinances, and fire department service charge fees. In general, these coverages are often included in standard home insurance policies from other competitors for an extra fee.
State Farm also offers these benefits:
- Connects you to a local agent
- Has a unique add-on for homes near man-made mines
- Covers fire department service charges between $500 and $2,000
3. Lemonade: Quickest Sign-Up
Lemonade has a website and mobile app that features AI technology for a fast sign-up and claims filing process. Another impressive feature of Lemonade is its charitable business model that donates unused premiums to certain charities at the end of every year.
Use this tool to receive a quote from Lemonade.
Lemonade also stands out for the following reasons:
- Includes special electronics coverage in its standard policies
- Has an online chat function available
- Offers customizable limits for each coverage category
Illinois Homeowners Insurance Coverage
Typically, homeowners insurance policies in Illinois feature the following coverage types:
- Dwelling—This type of coverage is dedicated to repairing or rebuilding your house if it’s destroyed during a covered peril. For example, if a covered natural disaster destroys the structure of your home, your insurer will cover the cost to rebuild it up to an agreed limit, which is typically equal to the estimated value and replacement cost of the property.
- Other structures—Similar to dwelling coverage, this type of coverage repairs or rebuilds structures that aren’t considered part of your home, such as a fence or shed. Typical limits for this coverage are around 10% of the total dwelling coverage amount.
- Personal liability—If someone gets injured on your property and you’re considered at fault, personal liability coverage will pay for their medical bills and legal fees if they decide to sue you over the incident.
- Medical payments to others—Your insurer will make medical payments for injuries on your property that aren’t your fault. This form of protection usually covers around $1,000–$2,500 of someone’s bills.
- Personal property—You can purchase coverage for the actual cash value (ACV) or replacement cash value (RCV) of your personal belongings, which means your home insurance provider will pay for either the depreciated value of your items or the replacement cost for brand-new ones.
- Loss of use—This coverage is for any additional living expense that you may accrue if you’re displaced from your house after a covered peril. For example, if a fire leaves your property uninhabitable, you may have to stay at a hotel paid for by your provider. This coverage can also pay for other expenses, such as gas from an extra commute or extra food.
How Much Does Home Insurance Cost in Illinois?
Based on the quotes we received on a 1,800-square-foot single-family house in Shorewood, Illinois, insurance premiums in the state cost around $111 per month. We found State Farm to be the cheapest home insurance provider, quoting a policy with a monthly premium as low as $83.08.
Factors To Consider Before Buying Homeowners Insurance
Here are a few factors to consider before purchasing a home insurance policy.
- Home value—Have an appraisal specialist come out to your property and estimate its worth so that you know exactly how much dwelling coverage you need for rebuilding the structure if it gets destroyed from an unexpected event.
- Additional coverage—If you have a pool in your backyard, you may want to consider extra liability coverage for unexpected pool-related incidents. Additionally, if you’re worried about damage from sewage or drain backups, you may want to purchase optional water backup coverage, which is offered by most companies.
- Common discounts—Looking for discounts is a great way to save money on your premium. When getting quotes from different companies, check what discounts they offer to compare the opportunities you may have for savings. For example, if you currently have auto insurance, check with your car insurer to see if it offers home and auto bundles.
- Deductibles—Choosing a higher deductible can help you lower your premium. However, keep in mind that raising your deductible can be more costly in the long run if you need to file a claim.
Compare Homeowners Insurance Coverage Options
|Provider||American Family||State Farm||Lemonade|
|Provider||American Family||State Farm||Lemonade|
|Get a free quote||Amfam.com||Not available through This Old House||Lemonade.com|
|Personal property coverage limits||50%, 60%, or 75% of dwelling||55% or 75% of dwelling||40%–83% of dwelling|
|Liability coverage limits||$100,000, $300,000, $500,000||$100,000, $300,000, $500,000, $1 million||$100,000, $200,000, $300,000, $400,000, $500,000, $1 million|
|Unique add-ons||Pet liability coverage, fungi or bacteria coverage, building ordinance||Coverage for home businesses, earthquakes, and sinkhole collapses||Coverage for musical instruments, significant other coverage, swimming pool liability protection|
|Customer service||24/7 claims support, local agent||Local agents available at different hours, online claims||Online chat on website and mobile app|
*Based on sample quotes we received on a 1,800-square-foot single-family house in Shorewood, Illinois
**Figures pulled from the companies’ Better Business Bureau (BBB) profiles as of April 17, 2021
For the best homeowners insurance in Illinois, we recommend American Family for its overall coverage, State Farm for its list of endorsements, and Lemonade for its unique technological features and purpose-driven giveback program. Before signing up for a policy, we recommend requesting quotes from all three providers in this review to compare pricing in your area.
FAQs About Homeowners Insurance in Illinois
Is homeowners insurance more expensive in Chicago?
Based on the sample quotes we received, Chicago premiums can be slightly more expensive than other areas of the country because of generally higher home values. Since home insurance pricing depends on your property size, location, home value, and credit score, the best way to get accurate estimates is by requesting quotes from different providers.
Who’s the cheapest homeowners insurance provider in Illinois?
After receiving sample quotes from a few different companies, we found that State Farm is the cheapest homeowners insurance provider compared to Lemonade and American Family. However, Lemonade is not far behind and gave us a quote on an insurance premium of $103.84 per month.
Do I have to get home insurance in Illinois?
Home insurance isn’t legally required in Illinois, but your mortgage lender may require you to buy a policy if you have a loan on the property. Check with your lender to determine how much minimum coverage you need on your policy before you move forward with a purchase.
How do I file a homeowners insurance claim?
Each company has a unique method for filing homeowners insurance claims, but you can typically begin the process online or over the phone. For example, Lemonade has a mobile app with AI technology that processes your personal information and can make decisions on how much you’re owed for repairs.
Other companies may send out an adjuster to your home before paying for a claim. Speak with an insurance agent to get more information about how the company handles claims.
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