The average cost for $300,000 of dwelling coverage in 2025 is $2,139 per year for Illinois homeowners, which is around $100 less than the national average. However, individual premiums vary significantly based on important factors such as the homeowners’ financial status and insurance history.
In an uncertain market, homeowners in Illinois need accurate information on how property types, market changes, location differences, and more will impact their homeowners insurance costs. We have compiled a list of considerations that impact insurance costs and some practical strategies for reducing your premiums in 2025 and beyond.
1. Credit Score
A homeowner’s credit score dramatically impacts their insurance premiums. Excellent credit scores (720+) signal to insurers that the borrower is reliable, financially stable, and a low-risk investment. Conversely, low credit scores and a history of late payments result in significantly higher premiums.
The extent to which credit scores impact premiums differs widely between states. However, according to recent rate analyses, Illinois is in the top third of states where insurers tend to charge more for low credit scores. Illinois lenders charge 97% more for “poor credit” loans than “good credit” loans.
2. Location
Location impacts a home’s insurance costs. Homes in areas with lower crime rates, closer proximity to fire departments, and more favorable weather patterns receive lower premiums. Insurers look at historical weather forecasts to determine whether a home is in an area with frequent floods, windstorms, hail, and tornadoes before determining rates.
3. Home Age
Older homes often have increased insurance premiums due to aging plumbing, electrical, HVAC, and structural systems that increase their risk for damage. Additionally, outdated building materials may need to be replaced or repaired to bring the home up to code.
In anticipation of these claims, insurers often hike up their premiums. They may use a proprietary calculation to factor material costs into their predicted premiums.
4. Claims History
Insurers also review the homeowner’s claims history to determine their risk tolerance. A history of frequent, minor claims may increase their perceived risk, resulting in higher premiums.
Importantly, this may not only relate to the current property. Insurers in Illinois often reference the homeowner’s C.L.U.E. report (“Comprehensive Loss Underwriting Exchange”) when evaluating their claims history. This report includes the homeowner’s addresses, claim numbers, insurers, dates of loss, and amounts paid for claims as far back as seven years.
5. Deductible Amount
The deductible, or the amount the homeowner pays out-of-pocket before insurance coverage applies, directly impacts the homeowner’s monthly premiums. A higher deductible means lower monthly premiums but higher out-of-pocket costs for claims. A lower deductible means higher premiums but lower out-of-pocket costs.
Deductibles are set at the homeowner’s preferred risk tolerance level. However, homeowners may adjust their deductibles based on changes in risk tolerance or financial stability, which will impact their premiums.
6. Marital Status
The homeowner’s marital status impacts their insurance premiums. Insurers consider married homeowners less likely to file claims and often offer discounts to homeowners living with their spouses.
7. Endorsements
Many homeowners choose to add endorsements to broaden their coverage for extra protection. For example, coverage for service lines, water backup, and extra windstorm coverage are common endorsements to protect against specific risks.
How to Lower Homeowners Insurance Premiums in Illinois
Homeowners can take the following proactive steps to lower their homeowners insurance premiums in Illinois:
- Consolidate debt, pay off loans, and make smart investments to improve credit scores
- Buy homes in locations with insurance-friendly features, such as proximity to emergency services and low crime rates
- Opt for a higher deductible in exchange for lower premiums, or itemize coverage to pay different deductibles for various risks
- Ask providers for discounts related to marital status or bundling options
- Install material or security upgrades to maintain regulatory compliance in older homes
- Obtain your C.L.U.E. report, which is free once per year, to view what the insurers will see when they check your claims history
Contact Pro Insurance Group to Plan Affordable Homeowners Insurance
Knowing the major factors affecting homeowner insurance premiums in Illinois can help homeowners make informed decisions about their coverage in 2025. Our local team of insurance experts can review your home’s risk profile to determine potential policy adjustments, bundles, and endorsements that can make a difference to your premiums. Contact our team today to learn how we help Illinois homeowners manage their insurance costs while maintaining comprehensive home protection.