Chicago residents pay an average of $2,408 per year for a homeowners policy with a $1,000 deductible and $300,000 in dwelling coverage, according to Insurify data. This is slightly higher than the national average of $2,377 per year for the same coverage. Fortunately, you may be able to lock in affordable coverage from a variety of home insurance companies.
Depending on where you live in Chicago, you might want to invest in flood insurance in addition to standard home insurance, as certain parts of the city are at high risk for flooding.1 Here’s what you need to know about comparing homeowners insurance quotes and finding a policy in the Windy City.
Best home insurance companies in Chicago
A number of reputable homeowners insurance companies serve Chicago residents. The best home insurance company for you will depend on your unique situation and specific needs.
Start your search for a home insurance policy with the insurers below.
Cheapest rates: Westfield
Best insurer for new construction homes: Allstate
Best insurer for high-value homes: Erie
Best insurer for green homes: Farmers
Cheapest home insurance in Chicago
For the cheapest home insurance coverage in Chicago, you may want to explore Westfield Insurance. On average, Westfield policyholders pay $828 per year for $300,000 in dwelling coverage. This is a great deal when you consider that many homeowners insurance companies charge more than $1,000 per year for the same type of policy.
Explore the cheapest home insurance companies in Chicago in the table below.
Cost of homeowners insurance in Chicago
Average home insurance rates in Chicago range from $828 to $4,702 per year for $300,000 in dwelling coverage. Your premium will depend on several factors, such as the size of your home, your coverage level, your deductible, the cost of materials and construction, and previous home insurance claims.2
Cost of homeowners insurance by dwelling coverage amount
It’s important that you have enough dwelling coverage to rebuild your home if it sustains damage from a covered loss. The ideal dwelling coverage amount will depend on your square footage, home’s age, architectural style, number of stories, and interior features. A higher coverage level will result in higher home insurance premiums.
You can see below how different dwelling coverage levels in the state of Illinois can affect your yearly home insurance premiums. Rates shown are for policies with a $1,000 deductible.
Cost of homeowners insurance by deductible
Your home insurance deductible is how much you’ll have to pay out of pocket after a covered claim before your home insurance coverage kicks in and takes care of the rest. A higher deductible will lead to lower home insurance rates. But if you choose a higher deductible amount, make sure you budget for greater out-of-pocket expenses if you have to file a claim.
You can see how your deductible amount can affect your yearly home insurance premium in Chicago in the table below.
How to get cheap homeowners insurance in Chicago
Follow these tips to get cheap home insurance premiums in Chicago:3
Shop around. Home insurance companies aren’t created equal. Do your research, and compare home insurance quotes from at least three different insurers. An independent agent can help you.
Look for discounts. Take advantage of as many discounts as you can qualify for. Common homeowners insurance discounts include a claims-free discount, loyalty discount, and roof upgrade discount.
Bundle. If you have another insurance policy, such as car insurance or boat insurance, bundle it with your home insurance. Many homeowners insurance companies offer discounts to people who purchase more than one policy from them.
Improve your home security discount. You may save money on a homeowners policy if you equip your home with certain safety features. Some home insurers offer more competitive rates to homeowners with deadbolt locks, burglar alarms, and smoke detectors.
Adjust your coverage. Be sure you only pay for the home insurance coverage you need. If your policy has coverage options that don’t apply to you or your property, get rid of them to lower your insurance premiums.
Illinois homeowners insurance rates by city
Your location and ZIP code within Illinois and Chicago will play a role in your home insurance costs. Different cities and areas can yield different home insurance quotes due to variances in weather, crime rates, and proximity to fire stations. If you live in a part of Chicago that’s prone to flooding, for example, you can expect more expensive rates than a homeowner in a low-risk flooding area.
See how rates compare in some other Illinois cities. Rates shown are for policies with a $1,000 deductible and $300K in dwelling coverage.
How much homeowners insurance do you need in Chicago?
You’re not required to have home insurance in Chicago. But if you have a mortgage on your property, your mortgage lender or company will probably require you to purchase homeowners insurance.
Before you commit to homeowners insurance in the Windy City, make sure you read your insurance policy terms and understand exactly what your policy covers. Otherwise, you could face unwanted financial surprises in the future.
What are some of the biggest risks when owning a home in Chicago?
As a Chicago homeowner, it’s a good idea to be prepared for several risks that could affect your home, including: