Everything You Need to Know about Home Insurance in Illinois

Illinois’ official nickname may be the Prairie State, but many more people have heard of the Land of Lincoln, since this is the birthplace of one of the country’s best-known presidents, Abraham Lincoln. Illinois is also home to one of the largest cities in the nation, Chicago, which sits on the shore of Lake Michigan. Despite a large swath of flat plains (perfect for agriculture), Illinois does offer attractions for the outdoors type with plenty of great fishing rivers, some forests and, of course, that big lake to the north for water sports.

Many people move to Illinois due to a lower-than-average cost of living, a strong job market and, in some areas, an international hub of cultural arts and entertainment. Don’t forget amazing culinary delights, such as Chicago’s famous deep-dish pizza! The winters can be brutally cold, but for hardy residents, the trade-offs are fair. As an Illinois resident, you need home insurance from a company that understands your specific needs. At InsureOne, we know protecting your home is of paramount importance. Our agents are experts in helping you design the best solution for your needs. Best of all, we do all the work, so you can get back to that delightful slice of pizza!

How Much Does Homeowners Insurance Cost in Illinois?

Homeowners in Illinois pay slightly less than their counterparts in other areas of the country, with a home valued at $300,000 costing about $1,675 in dwelling coverage. Across the nation, the average cost for a home of this value comes in at $1,800. This could be due to the fact that the cost of living is lower overall in Illinois. And although Illinois has seen more tornadoes in 2023 than any other state, they mostly happen in the center of the state and are typically ranked as EF-0 or EF-1, so don’t have much impact on life and property. Illinois is also prone to severe thunderstorms, but hasn’t seen a thunderstorm catastrophe since 1998.

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How Do Home Insurance Deductibles Affect Rates in the Prairie State?

Your deductible has an inverse relationship to your policy premium. The higher your deductible, the lower your premium and vice versa. This is because with a higher deductible, you are assuming more of the financial burden when there is a claim.

Filing too many claims can have an adverse reaction on your future rates, so it’s best to pay for the smaller items out of pocket and rely on your home insurance to cover the larger damages. If you want to learn more about how your deductible works, check out this article on home insurance deductibles.

Comparing Home Insurance Rates by Coverage Levels in Illinois

The dwelling coverage limit is the max amount your insurer will pay to replace or repair your home after a covered event. The dwelling coverage amount is different from the market value of your home, which is how much someone is willing to pay for it if you put it up for sale. In a seller’s market, the value is higher than the amount needed to repair or replace.

Dwelling Coverage (Illinois) Average Annual Insurance Cost
$100,000 $900
$200,000 $1,300
$300,000 $1,700
$400,000 $2,015
$500,000 $2,575

You’ll be able to decide how much dwelling coverage you want, but keep in mind that it needs to be enough to replace your home or help you buy a new one if necessary. This number should also be at least 80% of the replacement cost in order for your insurer to pay out the full coverage amount (the 80/20 rule).

At InsureOne, we can help you find the best home protection at the best price. We’ll shop around for you and provide you with the top options so you can choose.

Does Illinois Have the 80% Homeowners Insurance Rule?

The 80% homeowners rule is more about your insurance company than what state you claim as your primary residence. In a nutshell, the 80% rule can be found in the fine print of your insurance contract. Most insurers follow this rule which states you must carry at least 80% of your home’s replacement cost to receive a full payout from your insurer in the event of an approved claim.

Is Bundling Home and Auto Insurance in Illinois a Good Idea?

As a savvy consumer, you already know insurance companies will reward you for steps you take with your policy, especially steps that show loyalty. Allowing one company to insure more than one item is a good idea in that you could see up to 25% off your premium if you bundle your home insurance and auto insurance with one company. Since most insurance companies offer coverage plans for a variety of items (boats, business and life to name a few), you may be able to realize some real savings by bundling.

Is Home Insurance Tax Deductible in Illinois?

If your home is used in a way that brings in income, you may be able to write off something on your taxes. For the most part, however, it’s not tax deductible.

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What Weather Events Affect Home Insurance Costs in Illinois?

Illinois has brutally cold winters, especially if you live near Lake Michigan. Melting ice causes flooding issues in basements, while the weight of snow and ice can damage your roof or cause a tree to fall on your home.

Illinois is also in what is known as “tornado alley”, a swath of the U.S. that begins in Texas and ends in Michigan. Fortunately, Illinois is on the edge of this alley, but there are quite a few tornadoes that affect Illinois every year. More of a risk for damage than tornadoes and snow are severe thunderstorms, which cause more damage year-to-year than other natural events.



What are the Different Types of Home Insurance?

Most carriers offer 8 types of home insurance and these can be customized with special terms and riders to meet specific circumstances. In Illinois, the most common type of home insurance is HO-3, which is used for a majority of single-family homes throughout the country.

Every family is different, however, so make sure you connect with an insurer that understands home insurance is not a one-size-fits-all proposition.

Get the Best Homeowners Insurance in Illinois Today

When it’s time to protect the home that protects you and your family, reach out to InsureOne. We’ve got the best home insurance coverage at competitive rates in Illinois. Our agents will work with you to find flexible solution and, best of all, we’ll do the research so you have more time for the things that really matter. We’ll present you with several select options that meet your needs and we’ll continue to work with you until you are satisfied. Reach out to us today by phone at (800) 836-2240 or find a quick home insurance quote online. You are also welcome to stop by one of our convenient Illinois locations.