Best Homeowners Insurance in Illinois (2023)
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.
3 Best Home Insurance Providers in Illinois
- Lemonade: Easiest Sign-Up
- State Farm: Best Endorsements
- American Family: Most Comprehensive Coverage
Lemonade: Easiest Sign-Up
- J.D. Power Rating: N/A
- AM Best Rating: NR
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.
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
Get Your Free Home Insurance Quote: Lemonade Home Insurance Quotes
Learn More: Lemonade Home Insurance Review
*AM Best ratings accurate as of August 2023
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
Get Your Free State Farm Home Insurance Quote: Call 1-360-262-2561
Learn More: State Farm Home Insurance Review
American Family: Most Comprehensive Coverage
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
Get Your Free Home Insurance Quote: American Family Home Insurance Quotes
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.
To get the most accurate pricing estimates based on your personal information and coverage needs, request quotes from multiple Illinois home insurance providers.
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
|Link||Best For||Star Rating|
|Lemonade||Get Quote||Easiest Sign-Up|
|State Farm||Get Quote||Best Endorsements|
|Allstate||Get Quote||Best Coverage Options|
|Travelers||Get Quote||Most Experience|
|American Family||Get Quote||Most Comprehensive Coverage|
|Liberty Mutual||Get Quote||Best Discounts|
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.
Useful Resources for Residents in Illinois
Frequently Asked Questions
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.
Our Rating Methodology
The This Old House Reviews Team is committed to providing comprehensive and unbiased reviews to our readers. This means earning your trust through transparency and having the data to back up our ratings and recommendations.
With that in mind, we created an objective rating system to score each home insurance company. Here’s what that review process looked like:
- We analyze the information on each company’s website. This allows us to determine what products and services are offered by each home insurance provider.
- We get a sample quote from the companies by either talking to a sales representative or by using the online quote tool. This tells us what a policy looks like and costs.
- We test customer service by talking to a company representative, finding out their hours of operation, and determining what technological features are available for customers.
- We update all of this information on a continuous basis, storing it in a proprietary database that allows us to compare dozens of home insurance companies against each other.
With this data, we created a rating methodology to score each home insurance company. Our rating system is a weighted, 100-point scale based on the following factors:
- Coverage (30): We rated home insurance companies higher if they offered the six main types of homeowner protection—dwelling, other structures, personal property, loss of use, liability, and medical payments to others coverage.
- State availability (7.5): Companies scored higher if they covered more states than their competitors.
- Customer service (15): This factor is based on our communications with the company representatives, as well as the companies’ claims and quotes processes, availability throughout the week, and customer service information found on their websites.
- Technology (12.5): Technology can increase the efficiency of filing and tracking home insurance claims. Companies scored higher if they had technology options like mobile apps and online chat functions.
- Reputation (20): We gauged trustworthiness based on years of experience and Better Business Bureau ratings.
- Additional benefits (15): Companies that offered optional features, like discounts and endorsements, scored higher than competitors that didn’t.
The This Old House Reviews Team has a full-time researcher who collects and regularly updates data points from every company to help us compare them on key factors such as coverage, service, and dependability.
To share feedback or ask a question about this article, send a note to our Reviews Team at email@example.com.