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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Written byAnna Baluch
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4+ years writing insurance and personal finance content
MBA from Roosevelt University
Anna leverages her personal finance and insurance knowledge to create educational content that helps people make smart financial decisions.
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Edited byBecky Helzer
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Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
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Table of contents
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.[1] 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
cheap rates
Westfield
Compare personalized, real-time quotes
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | NR |
|---|---|
| A.M. Best A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor). | NR |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $113/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $136/mo |
If your goal is to score a great deal on homeowners insurance coverage, Westfield should be on your radar. On average, the home insurer charges an average annual rate much lower than the premiums of other Chicago home insurance companies.
In addition to low average rates, Westfield offers various insurance products like flood insurance, umbrella insurance, replacement coverage, and home equipment breakdown coverage.
Pros
Some of the cheapest premiums among insurers that Insurify analyzed
Policies available with replacement cost coverage
Cons
Personal insurance available in only 10 states
Quotes not available online
Best insurer for new construction homes: Allstate
AllstateCompare personalized, real-time quotes
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.2/10 |
|---|---|
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 631 |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $81/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $94/mo |
If you have a new home in the Windy City, you may want to consider Allstate for home insurance. Allstate offers a homebuyer discount for newly constructed homes. Other noteworthy discounts include its claims-free discount, protective device discount, and responsible payment discount.
Pros
Multiple advertised discounts
HostAdvantage coverage available for home-sharing hosts
Cons
D- rating from Better Business Bureau (BBB)
Below-average customer satisfaction rating in J.D. Power 2025 U.S. Home Insurance Study
Best insurer for high-value homes: Erie
Erie InsuranceCompare personalized, real-time quotes
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 7.4/10 |
|---|---|
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 674 |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $191/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $276/mo |
Chicago is home to many luxury properties. If you live in a high-value home in the city, Erie may be a solid option for homeowners insurance. It offers guaranteed replacement coverage, which is the most comprehensive form of home insurance available. This type of insurance policy can give you peace of mind that your high-end home and personal belongings are protected.
Pros
High J.D. Power customer satisfaction rating
Many add-on coverage options
Cons
Quotes available only through an agent
Fewer discounts than competitors
Best insurer for green homes: Farmers
green homes
Farmers
Compare personalized, real-time quotes
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.4/10 |
|---|---|
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 609 |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $87/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $142/mo |
Green homes have become more popular in Chicago. If you live in an eco-friendly property, Farmers might be a good fit. The home insurer offers a discount for homes with ENERGY STAR, LEED, and EPA certifications. You can also land a discount if you bundle your home and auto policies with Farmers.
Pros
Below-average number of customer complaints with the National Association of Insurance Commissioners (NAIC)
Quotes available online
Cons
Discounts vary by location
Below-average J.D. Power customer satisfaction rating
Best insurer for policy add-ons: State Farm
State FarmCompare personalized, real-time quotes
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.2/10 |
|---|---|
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 643 |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $143/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $191/mo |
State Farm is known for offering customized coverage. Its standard coverage includes dwelling, other structures, personal property, and liability coverage. You can also take advantage of policy add-ons like extended replacement cost coverage, water backup protection, home systems protection, and personal umbrella insurance.
Pros
Nation’s largest insurer in terms of policies written
Above-average J.D. Power customer satisfaction rating
Cons
Quotes available only through an agent
Rates in Illinois increased by more than 25% in 2025
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.[2]
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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: Tuesday, October 7 at 12:00 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: Tuesday, October 7 at 12:00 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: Tuesday, October 7 at 12:00 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.[3] 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:
Floods
Floods are common in Chicagoland. Since a basic home insurance policy won’t cover them, you’ll need to invest in flood insurance through the National Flood Insurance Program or a private insurer.
Winds
Chicago is called the Windy City because it’s prone to heavy windstorms. Since homeowners insurance covers wind damage, you won’t need a separate policy.
Theft
Theft is a common occurrence in Chicago.[4] The good news is that a standard home insurance policy with personal property coverage will cover theft-related home insurance claims.
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: Tuesday, October 7 at 12:00 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.
Methodology
Insurify data scientists analyzed rates from more than 180 home insurance companies sourced directly from Insurify’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.
Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:
Default Coverage Assumptions
- Dwelling coverage: $300,000
- Deductible: $1,000
- Personal property limit: $25,000
- Liability limit: $300,000
Additional data points beyond these default values are sourced from Insurify’s proprietary database. Rates are updated monthly.
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Sources
- Chicago.gov. "Floods."
- National Association of Insurance Commissioners. "A Consumer's Guide to Home Insurance."
- Insurance Information Institute. "How much homeowners insurance do I need?."
- Chicago Police Department. "Crime Complaints."
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Anna BaluchInsurance Writer
Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.
Anna has been a contributor at Insurify since December 2022.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.