The average cost of homeowners insurance in Illinois remains near the middle of the country, with recent reports showing it ranked #23 out of 50 states, with an average annual premium of $2,079. Fortunately, for first-time buyers in Illinois, this is $101 less than the national average. However, Illinois is a large state with many city centers, which leads to a wide range of possible homeowners insurance costs.
This article details homeowners insurance rates in Illinois to help first-time buyers plan for their annual premiums and protect themselves, their assets, and their properties from costly accidents.
What are the Homeowners Insurance Rates in Illinois?
As mentioned, the average annual premium for homeowners insurance in Illinois is $2,079, which comes out to a monthly premium of $173. This average is calculated based on the average premiums for $300,000 of dwelling coverage. Homes requiring more or less coverage will likely experience different rates.
More importantly, first-time homebuyers should be aware that different areas of Illinois will provide different home insurance averages. In Joilet, for example, the average cost of an annual home insurance policy is only $1,880, while in Chicago, the same policy will cost $2,505.
To put this into perspective, while Illinois as a whole is ranked #23 among all 50 states for the price of home insurance, Chicago would be ranked #14 if its average insurance rate was used instead, which is around $317 over the national average.
This difference highlights the importance of researching and budgeting your home insurance premiums based on your new home’s location. Local agents familiar with insurance rates in Illinois can help you match your needs to your budget, but there’s a lot you can do on your own to plan ahead.
How to Buy Homeowners Insurance in Illinois
There are many reasons why homeowners are interested in saving money on insurance in 2025. Rising insurance costs in the wake of COVID-era inflation were matched and even exceeded by rising replacement costs, which spiked 55% at the start of the pandemic. While supply chains and construction costs have leveled out, rates are still higher than they were.
Here are some steps that you can take to buy homeowners insurance plans in Illinois while managing costs:
1. Assess Coverage Needs
Before shopping for homeowners insurance, list the assets you want to protect, including their estimated value. If you’re in the process of buying a house, your list should include the projected value of the house you want to buy.
By understanding your needs, you can shop for a policy that covers them. High-value assets like art and jewelry collections require different coverage than lower-value belongings. Other factors for consideration include owning multiple vehicles, having a disability, or running a business out of your home.
These factors should change your assessment of the liability limits you need. An experienced insurance firm can help you understand your coverage needs and customize a policy based on your home, property value, and business.
2. Identify Potential Discounts
Many homeowners seek discounts to help pay for their policies amidst rising premiums. Many homeowners are aware that they can receive discounts by bundling policies, such as home and auto or home and business. However, lesser-known discounts, including home protections and security upgrades, could benefit new homeowners seeking lower premiums.
Safer homes are less likely to be the site of accidents, theft, or vandalism. As such, insurance providers feel more confident investing in these homes, which can lead to lower premiums following home protection upgrades.
For example, in areas prone to wildfires, homeowners can upgrade their windows with tempered glass or stucco sidings to mitigate potential damage. They can add storm-resistant features to the home’s exterior, invest in security cameras, or, in the case of a home business, add accessibility features to protect visitors.
3. Review Options
New homeowners have numerous options for homeowners insurance policies. After writing down your coverage needs and figuring out your budget, you should compare different quotes from multiple providers, compare customer reviews, and research the financial stability of each provider.
4. Choose a Plan
Once you choose a provider, you need to choose a deductible and compare the coverage amounts to find a balance that works in your situation. An experienced insurance advisor can help you find the coverage you need and assess your eligibility for discounts, such as bundles and home improvement upgrades.
As a first-time buyer, you may not understand the Illinois home insurance market or how to navigate rising costs. An experienced local insurance firm can help you identify your coverage needs and customize a policy that meets them.
Contact Pro Insurance Group to Get Competitive Homeowners Insurance Rates in Illinois
At Pro Insurance Group, our team provides first-time homeowners with the tools they need to choose their insurance policy. We compare coverages, prepare quick quotes, and keep your budget in mind when searching for policy options. Our goal is to protect homeowners from liability while making sure they have premiums they can afford. Contact our team today to learn how we can help you get your first homeowners insurance policy in Illinois.