Homeowners Insurance in Illinois

What factors influence my home insurance rate?

There are a lot of factors that play into how much you’ll pay for homeowners insurance in Illinois: 

• Location. You may notice that home insurance quotes in Chicago are higher than homeowners insurance quotes in other parts of Illinois, like Anchor, Chenoa, and Le Roy. 
• Average age of your home. You may pay more for insurance if you have an older home because it could be constructed with outdated building materials that need to be brought up to code if damaged. 
• Home features and upgrades. If your home has safety features like burglar alarms, smoke detectors, and fire sprinkler systems, these can all lower your premium. Having upgraded electrical, plumbing, and heating systems can also help reduce rates.
• Coverage limits and deductibles. Your home insurance rate will usually be higher if you need a larger coverage amount. Likewise, choosing a lower deductible will also raise your premiums, but it means you’ll pay less out of pocket when you file a claim.
• Credit score. In Illinois, insurers are allowed to use your credit score as the leading factor in determining your home insurance rate. You’ll save the most money if you have an excellent score. It’s estimated that 85% of home insurance companies use credit scores to calculate rates. 
• Claims history. If you or the home you live in has a history of filing claims, insurers may view you as a higher risk and charge more for home insurance in Illinois.

Common insurance discounts in Illinois

As you shop for Illinois home insurance, you may notice that some insurers offer discounts to help you lower premiums even more. Some common discounts you may come across include:

• Multi-policy discount. Many insurers, including Hippo, offer discounts for bundling your home insurance with other policies (like auto insurance).
• Home security discount. Installing safety devices like burglar alarms, smoke detectors, and fire sprinkler systems can qualify you for a discount on your home insurance premium. Hippo provides many customers with basic Smart Home devices for free, and activating these devices can lead to additional discounts.
• New home and home buyer discount. If your home is newly built or recently purchased, you may be eligible for a discount. Hippo offers a Home Buyer Discount for customers who have purchased their home within the 12 months prior to the policy's effective date.
• Loss-free discount. If you haven’t filed any claims for a certain period (usually three to five years), you may receive a discount on your premium. Hippo offers this discount to eligible customers.
• Affinity discount. Some insurers, like Hippo, give discounts to customers who purchase insurance through groups such as businesses, colleges, universities, membership clubs, or home service providers.
• Impact-resistant roof discount. Around 90% of Illinois experiences at least one day of hail per year. Luckily, installing a hail-resistant roof could make you eligible for a discount. 
• HOA discount. Some insurers, including Hippo, offer discounts to customers whose homes are located in qualifying HOAs.

Tips for lowering home insurance rates

Aside from discounts, there are other steps you can take to pay less for homeowners insurance in Illinois. 

• Consider switching insurance providers. It takes as little as 60 seconds to get an insurance quote in Illinois with Hippo. Ideally, you should get quotes from at least three insurance companies so you can compare rates side by side. 
• Increase your deductible. Your deductible is the amount you agree to pay upfront before insurance will pay a claim. If you agree to pay a higher deductible, your premiums will usually be lower.
• Install solar panels to your roof to save on monthly utility bills. Illinois gets an average of 198 sunny days a year, making it a great state for solar energy. You can even get solar panel insurance to protect your investment.
• Maintain a good credit score. Home insurers in Illinois can use your credit score to estimate your premium. Work on improving your score, and you may see it pay off in the form of cheaper insurance. 

What does Illinois home insurance cover?

Standard homeowners insurance in Illinois offers coverage in the event of perils like fires, windstorms and theft. Most home insurance policies cover: 

• Your home’s physical structure (the bricks, mortar, and everything that makes your house stand) 
• Your personal possessions (all the stuff you own, like clothing, furniture, appliances, electronics)
• Additional structures (like that shed or detached garage where you keep your lawnmower
• Liability protection (in case someone gets hurt on your property and decides to sue) 
• Living expenses (if you need to stay somewhere else while your home is being repaired after a covered loss)

Additional Illinois insurance coverage options

Though Illinois home insurance can cover most potential accidents, policies don’t protect you against some of the state’s most considerable risks (without supplemental coverage, that is). Luckily, there are insurance riders or separate policies you can purchase to help protect your homes against common insurance exclusions.

• Flood insurance. Standard home insurance in Illinois doesn’t cover floods, yet floods are a common weather event in the state. You can purchase flood insurance through the National Flood Insurance Program (NFIP) or a private insurer.
• Earthquake insurance. Illinois has experienced several earthquakes in the past, particularly in the southern part of the state near the New Madrid Seismic Zone. Earthquake damage isn't covered under standard policies, so if you live in an area at risk for earthquakes, consider getting catastrophe insurance.
• Mine subsidence coverage. Mine subsidence is a unique risk in Illinois. If you live in one of the 34 counties where mine subsidence coverage is legally required, your insurer must offer it. If not, you can still opt to add this coverage to your policy for added protection.
• Sewer backup coverage. Sewer backups can cause major damage to your home, but they're not always covered under standard policies. Adding sewer backup coverage can help protect you from these costly incidents.
• Scheduled personal property coverage. Home insurance often has sublimits for personal belongings. If you own high-value items like jewelry, electronics, art, antiques, or other collectibles, adding scheduled personal property coverage allows you to get fully reimbursed for them if they’re stolen or damaged after a covered event.
• Identity theft protection. Some insurers offer identity theft protection as a rider to help you financially and legally recover from identity theft.
• Home-based business coverage. If you run a business from your home, you may need home-based business coverage to protect your equipment and liability risks.

What coverage is recommended in Illinois?

At a minimum, make sure you have enough dwelling coverage to completely rebuild your home if it's destroyed by a covered peril. This is known as replacement cost coverage, and it’s based on local construction costs in your area.

Also, check what additional coverage you need. Depending on your location, you may need flood insurance, earthquake insurance or mine subsidence coverage.

Lastly, talk to your insurance provider. They can tell you about the specific risks in your area and help you determine how much home insurance you need.

Is it mandatory to have condo insurance in Illinois?

If you live in a condominium, you’ll need condo insurance in Illinois. Condo insurance, also known as an HO-6 policy, covers your personal property, the interior of your home, and your personal liability. It can also cover additional living expenses if you can’t live in your home temporarily after a covered event.

Your condo association will have a master policy that covers the common areas and the building's exterior. But it won’t include things inside your unit (hence why you need condo insurance in Illinois). 

The Illinois Condominium Property Act requires condo associations to have this minimum insurance coverage:

• Property insurance for the full replacement cost of the common elements and units.
• General liability insurance with a minimum coverage of $1,000,000.
• Directors' and officers' liability insurance with a minimum coverage of $1,000,000.
• Fidelity bond coverage protects against employee dishonesty, with minimum coverage equal to three months of assessments plus reserve funds.

Insuring your home in Illinois

Getting homeowners insurance in Illinois is as simple as grabbing a few insurance quotes online and choosing the company that fits your needs the best. While we recommend checking out Hippo first thing, you should know you also have other options to get the protection you need. 

Once you find a policy, you can apply online, schedule a home insurance inspection (if required), and pay your premiums. 

While uncommon, some Illinois residents may find themselves having trouble securing coverage for their homes. This could be due to living in a high-risk area, missing several payments or having a long history of claims. In this case, you can always turn to the Illinois Fair Access to Insurance Requirements (FAIR) Plan Association.

FAIR is a non-profit insurance association that provides affordable homeowners insurance in Illinois if you’re unable to purchase coverage. To qualify, you must have had three unsuccessful attempts to buy insurance from other companies. 

Whether you live in Chicago, Marion, or Springfield, homeowners insurance is always a good idea. When it comes to getting the best protection for your home, our Hippo insurance agents will make sure you get a customized policy for a fair price. It’s just what we do.

Is Illinois homeowners insurance required by law?

State law doesn’t require you to have home insurance in Illinois. But if you have a mortgage, your lender will require it. 

If you own your place outright, it's up to you whether to get coverage. But given how expensive it can be to rebuild your home from scratch, having insurance is a smart move. Without it, you could get stuck paying for damage or legal problems out of your own pocket.