5 Best Chicago Homeowners Insurance Companies (2025)
Westfield, Allstate, and Erie offer some of the best homeowners insurance policies in Chicago.
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Chicago residents pay an average of $2,472 per year for a homeowners policy with a $1,000 deductible and $300,000 in dwelling coverage, according to Insurify data. This is slightly lower than the national average of $2,532 per year for the same coverage. Fortunately, you may be able to lock in affordable coverage from several 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.[?] Here’s what you need to know about comparing homeowners insurance quotes and finding a policy in the Windy City.
Quick Facts
Westfield, Allstate, Erie, and Farmers offer some of the cheapest homeowners policies in Chicago.
Standard home insurance policies don’t cover flood damage. You’ll need to purchase a separate policy for flood coverage.
A home insurance policy in Chicago with a $500 deductible and $300,000 in dwelling coverage costs $3,041 per year, on average — slightly more than a policy with a $1,000 deductible.
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.
Cheap rates: Westfield
Best insurer for new construction homes: Allstate
Best insurer for high-value homes: Erie
Best insurer for green homes: Farmers
Best insurer for policy add-ons: State Farm
Our editorial team analyzed regional and national home insurance companies that sell policies in Chicago to assess which offer the best rates, coverage options, customer service, and savings to homeowners. We prioritized competitive rates, 24/7 customer service, homeownership discounts or bundling options, and specialty or supplemental coverages.
How much is home insurance in Chicago?
The cost of home insurance in Chicago averages $2,472 per year for $300,000 in dwelling coverage and a $1,000 deductible. Your premium will depend on several factors, such as your home’s size, coverage level, deductible, cost of materials and construction, and previous home insurance claims.[?]
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Cheapest home insurance companies in Chicago
For the cheapest home insurance coverage in Chicago, you may want to explore Allstate. On average, Allstate policyholders pay $81 per month for $300,000 in dwelling coverage with a $1,000 deductible. In comparison, homeowners across the country pay an average of $211 per month for the same coverage.
The table below shows some of the cheapest home insurance companies in Chicago.
The below rates are estimated rates current as of: Monday, October 6 at 5:00 PM PDT.
Insurance Company  | Average Annual Premium |
|---|---|
| Farmers | $768 |
| Allstate | $900 |
| USAA | $984 |
| Travelers | $1,020 |
| Westfield | $1,116 |
| State Farm | $1,356 |
| Erie | $1,680 |
| American Family | $1,836 |
| Chubb | $2,040 |
| COUNTRY Financial | $2,724 |
| Encompass | $2,772 |
| Foremost | $2,904 |
| Auto-Owners | $4,008 |
The below rates are estimated rates current as of: Monday, October 6 at 5:00 PM PDT.
Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $1,128 |
| USAA | $1,596 |
| Westfield | $1,632 |
| Farmers | $1,704 |
| Travelers | $2,196 |
| State Farm | $2,292 |
| Erie | $3,312 |
| American Family | $3,492 |
| Chubb | $4,188 |
| Encompass | $4,560 |
| COUNTRY Financial | $5,580 |
| Foremost | $7,044 |
| Auto-Owners | $7,836 |
The below rates are estimated rates current as of: Monday, October 6 at 5:00 PM PDT.
Insurance Company | Average Annual Premium |
|---|---|
| Allstate | $1,416 |
| USAA | $2,016 |
| Westfield | $2,196 |
| Farmers | $2,472 |
| State Farm | $2,868 |
| Travelers | $3,228 |
| Erie | $4,572 |
| American Family | $4,704 |
| Encompass | $5,868 |
| Chubb | $6,108 |
| COUNTRY Financial | $8,136 |
| Foremost | $10,524 |
| Auto-Owners | $11,568 |
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 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. Otherwise, you could face unwanted financial surprises in the future.
The following are the four components included in what your homeowners insurance policy covers:
Dwelling coverage: This pays to repair or rebuild your home if a covered peril damages or destroys it. You’ll want to choose enough dwelling coverage to rebuild your home if it’s a total loss.
Personal property: If a covered peril damages your belongings, such as your clothing, furniture, or electronics, home insurance will pay to replace them. Creating a home inventory can help you determine how much personal property coverage you need.
Additional living expenses: If your home becomes uninhabitable, this portion of your policy pays for your temporary living expenses beyond the norm, such as hotel stays.
Personal liability: If someone is injured on your property and sues you, personal liability pays for medical bills and legal fees.
Think about your home’s unique features, the value of your belongings, and your personal liability risk when determining how much home insurance you need.[?] If you need help selecting coverage limits, your insurance agent can help.
What to know about home insurance in Chicago, IL
As a Chicago homeowner, it’s a good idea to be prepared for several risks and natural disasters that could affect your home, including:
Average cost of home insurance in other cities in Illinois
Your location and ZIP code within Illinois and Chicago affect 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 flood zone, you’ll pay more expensive rates than a homeowner in a low-risk flooding area.
See how rates compare in some other Illinois cities. Rates shown below are for policies with a $1,000 deductible and $300K in dwelling coverage.
The below rates are estimated rates current as of: Monday, October 6 at 5:00 PM PDT.
City | Average Annual Premium |
|---|---|
| Rockford | $2,004 |
| Springfield | $2,052 |
| Peoria | $2,064 |
| Chicago | $2,472 |
Chicago homeowners insurance FAQs
If you’re shopping for a home insurance policy in Chicago, this additional information may help as you research your coverage options.
Home insurance in Chicago costs an average of $2,472 per year for a policy with a $1,000 deductible and $300,000 in dwelling coverage, according to Insurify data. Your rates will vary depending on a number of factors, including your ZIP code, age and square footage of your home, and the coverage levels you choose.
Allstate has the cheapest homeowners insurance in Chicago, with average monthly premiums of $81 for a policy with $300,000 in coverage and a $1,000 deductible. Other affordable insurers in the Windy City include Allstate and Erie.
No. Illinois doesn’t require homeowners insurance, but your lender will if you have a mortgage on your home. Having home insurance is important because if something damages or destroys your home and you aren’t covered, you’ll be financially responsible for the repairs.
There’s not a single “best” home insurance company in Chicago. But Westfield, Allstate, and Erie are a few of the best home insurance companies in Chicago.
Insuring a $400,000 home in Chicago with a $1,000 deductible costs an average of $3,060 each year. You can often save money on your premium with home insurance discounts. For instance, installing smoke detectors and fire alarms and taking advantage of multi-policy discounts can lower your rate.
Home insurance costs in Illinois are expected to increase by a record 27% in 2025, according to an Insurify report. Extreme losses related to severe weather are largely to blame for the increased home insurance costs in the state.
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