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Edited by John Leach
Last Updated February 28, 2022
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Chicago, IL Homeowners Insurance
The Windy City, Chi-Town, the City of Big Shoulders—there are many nicknames for Chicago. Nestled on Lake Michigan’s shore, Chicago is the biggest city in the Midwest. Chicago has a bustling community, pride, and historic architecture, with a long heritage like the John Hancock Center and Willis Tower. All-time favorite sports teams like the Cubs, the Bears, and the Bulls call Chicago home. Residents are never short of entertainment in and around the city in all four seasons. Chicago residents also have thick skin, bracing themselves every winter for the deep freeze. Residents brave the frigid temperatures and navigate higher crime rates.
The quality of life is high for residents working in Chicago’s top industries. Information technology, manufacturing, and health services are a few popular sectors. Living expenses are also high for the Midwest. Yet they rank lower compared to other large cities on the east and west coasts. It’s all about finding the right neighborhood for the right price. Have you recently bought a new home? Or are you looking for a better deal? As a Chicagoan, you know you need to save where you can. But how can you protect your home from the wacky weather, vandalism, and theft that come with living in a big city? Saving starts with the best and cheapest Chicago homeowners insurance.
Cheapest Home Insurance Companies in Chicago
For homeowners in Chicago, it's important that you evaluate all of your potential insurance options to ensure you are finding the best rate. Comparing the right insurance companies will allow you to get the best possible insurance rate for your home.
To simplify comparing companies, Insurify has analyzed rates from top insurance providers in Chicago. The following are the best insurance rates from carriers that offer homeowners insurance in Chicago.
How to Find Cheap Home Insurance in Chicago
Chicago is in a good place right now when it comes to the real estate market. The housing market is balanced, which means there’s a healthy number of buyers and sellers. Whether you’re buying your first home or your next home, there’s enough property to pay the fair market price.
Chicago is chock-full of contemporary homes as well as heritage homes. As a homeowner, you must protect your home, whether older or brand new, and that is a lot of responsibility. Consider the possible property damage and theft that comes with homeownership in the city. Where do you start? By finding the best and cheapest coverage options while minimizing risk.
There’s the Northside in Wrigleyville, the Southside in Hyde Park, and the Westside in Humboldt Park. Each Chicago neighborhood has its unique property type, culture, and home insurance rates. Learn about the best way to compare home insurance and save to find the best cheapest Chicago homeowners insurance for you and your needs.
Read on as you get the full guide on Chicago home insurance. You’re now on your way to savings!
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Cheapest Home Insurance in Chicago by Company
Homeowners insurance rates aren’t always designed with savings in mind. That’s where Insurify comes in. Our free home insurance comparison tool allows you to find the best policy for the best rate fast. And your information stays private and protected.
As of 2021, the average home insurance premium in Chicago costs $2,093 annually, and the median home value is $256,191.
Home insurance premiums are higher than the national average in Chicago. However, prices depend on the price of your home and your neighborhood. While the costs of Chicago home insurance are high, how will you provide for you and your family while still keeping living expenses low?
You can use Insurify to compare and save money where you need to. Here is the cheapest home insurance by the company in the Chicagoland area.
|Average Home Cost in Chicago||Average Annual Insurance Premium in Chicago|
Average Annual Home Insurance Premium in Chicago by Company
Average prices for standard homeowners insurance for a 7-15 year old home, $200,000 in coverage
Cheapest ZIP Codes in Chicago for Home Insurance
Property costs in Chicago can vary in specific neighborhoods from being relatively high like Lincoln Park or Wicker Park to being low in Portage Park areas. Home insurance works the same way. Your ZIP code determines the price you pay on Chicago home insurance premiums. The number of claims in the vicinity, crime rates, natural disasters, property costs, and other risk variables also affect the price. It comes down to which neighborhood you reside in to determine if you pay more or less on homeowners insurance rates.
Rates in Chicago can be relatively higher or lower than the national average; it all comes down to your ZIP code.
Home Insurance Coverage Types in Chicago
There are several types of home insurance. Specific terms of insurance policies may vary by city, but in general, the standard policy types are as follows:
The simplest and least comprehensive type of homeowners insurance
Provides coverage for a handful of potential problems, including
- Dwelling coverage for damages from some natural disasters (storms, fires, wind, lightning, volcanic eruption),
- damage from vehicles,
- or civil commotion.
Broad form homeowners insurance policies include all basic form coverage, plus protection from:
- falling objects,
- damage from the weight of ice, snow, or sleet,
- freezing of household systems including HVAC and pipes,
- sudden and accidental damage to pipes and other household systems from artificially generated electrical current,
- accidental discharge or overflow of water or steam,
- sudden and accidental damage.
HO-2 policies typically cover both dwelling protection and personal property.
In some cases, broad form coverage may also include liability coverage. However, it still only covers the specific damages listed in the policy.
The most common form of homeowners insurance is known as a “special form” policy.
While HO-1 and HO-2 policies are “named peril” policies (meaning they only cover dangers that are specifically listed in the policy), HO-3 policies are “open peril” policies meaning they’ll cover all dangers except those specifically excluded in the policy documents.
HO-4 policies, also known as renters insurance, are for people who lease rather than own their homes.
Tenant’s form policies typically cover all the same dangers as HO-2 policies.
These policies include personal property coverage and liability coverage but don’t cover the physical structure of the house.
Some HO-4 policies may also include loss of use coverage for the tenants.
Comprehensive form policies are usually the broadest and provide the highest level of coverage; not surprisingly, they also tend to be the most expensive type of homeowners insurance policy.
The biggest difference between HO-3 and HO-5 policies is that most HO-3 policies are “actual cash value” policies, whereas typically HO-5 policies are “replacement cost value” policies.
An actual cash value policy will only reimburse you for the actual value of a damaged or destroyed item, while a replacement cost value policy will reimburse you for however much it would cost to completely replace or repair the damaged or destroyed item (up to the coverage limits on the policy).
HO-5 policies also provide personal property coverage against a wider range of dangers than the typical HO-3 policy. Many HO-5 policies also have extra coverage for high-value personal property, such as jewelry and artwork.
Not surprisingly, condo form insurance is for condominium owners. HO-6 policies generally protect against the same types of dangers as HO-3 policies.
They provide dwelling protection coverage with a twist: HO-6 policies cover the walls, floors, and ceiling of the condo unit but not the rest of the building.
These policies also include personal property and liability coverage and may include loss of use coverage.
If you own a mobile home or manufactured home, you likely have an HO-7 policy.
Mobile home form policies are typically identical to HO-3 policies, except they’re designed specifically for mobile and manufactured homes.
Like HO-3 policies, they provide dwelling protection coverage, other structures coverage, personal property coverage, liability coverage, and possibly loss of use coverage as well.
HO-7 policies generally only protect the home when it’s stationary; if you plan to move your mobile or manufactured home, you’ll need to get a special policy to cover it while it’s in transit.
Older homes have generally been built to less stringent code standards than recently built homes, and so insurers have designed a specialized type of homeowners insurance policy for them.
HO-8 policies often only cover the basic perils listed in HO-1 policies and generally apply to homes that are registered landmarks or otherwise deemed historic homes.
Owners of registered landmarks are typically forbidden from making the updates to HVAC, electrical, and other parts of the home that would enable them to qualify for a standard HO-3 policy, so an HO-8 policy is often the only option for them.
For more detailed Illinois city level guides, check out these below.
Extreme Weather and Illinois Homeowners Insurance
Chicago homeowners know that Illinois encounters some crazy, extreme weather. Earthquakes and tornadoes are rare, but winter storms, severe storms, and windstorms are common in the Windy City. Blizzards, excessive freezing and ice, and heavy rain take their toll on Chicago buildings. The damage can either be slight or severe when it comes to property damage. Home insurance companies raise rates depending on the number of claims in your neighborhood. These claims directly affect your premiums. The more damage to homes, the more home insurance rates will rise.
Chicago homeowners insurance covers most property damage due to snow, hail storms, and windstorms. As a result of these weather events, flooding happens a lot in the area during the spring and fall months. The Chicago River flows throughout the city and can rise to unsafe levels. Then, water can get in basements and cause a huge mess.
Additional coverage on home insurance is sometimes necessary for Chicago. Flood insurance is not included in a standard Chicago homeowners insurance policy. Even if you do not live in a flood zone, the risks are there, no matter where you live. Flood insurance is available through the National Flood Insurance Program. Talk to your local insurance agent to see if you will need coverage for flooding. It’s wise to look at your home insurance policy to determine if you have the right coverage. This is especially true for more valuable items.
Chicago Homeowners Insurance and Crime
It’s widely known that vandalism and theft are common in Chicago. In 2020, Chicago homicides and shootings rose sharply. Overall crime, including burglaries and robberies, decreased by nine percent compared to 2019. The Chicago crime rate is higher than statewide and national averages. The total amount of daily crime in Chicago is almost two times more than the Illinois average, and the overall rate is one and a half times higher than the national average. There are 42 total crimes (including property) per 1,000 residents in Chicago per year.
You must know your neighborhood crime data for home insurance rates in Chicago. Crime can vary from neighborhood to neighborhood, especially in a city of almost nine million residents. Crime rates drive up claim numbers, which makes premiums higher. Having the best home insurance is crucial, even if you live in a ZIP code with less crime than greater Chicago. Having the right coverage will keep you and your family protected from what could happen. Your policy will cover medical payments and liability protection in special cases. For instance, if you or a guest is injured on your property. Talk to your local insurance agency to see if you have the right liability protection and protection on personal belongings for a covered loss.
Finding the best and cheapest home insurance in Chicago doesn’t have to be complicated. Use Insurify’s comparison tool, and pull up free quotes all in one place in just a couple of minutes.
How to Find the Cheapest Home Insurance in Chicago
The famous Chicago hot dog, deep-dish pizza, and Italian beef all taste amazing. But the best homeowners insurance in Chicago tops them when you get savings. Thankfully, you can use Insurify to compare home insurance quotes that fit your needs. From Lincoln Square to Noble Square, get the best and cheapest homeowners insurance in Chicago.
Use Insurify to compare home insurance premiums for your property in Chicago, Illinois. We simplify comparison shopping by giving you multiple home insurance quotes using one simple form.
Frequently Asked Questions
Chicago home insurance rates are dependent on neighborhood crime rates and home prices. The higher the crime rate or property prices, the more you can expect to pay on Chicago home insurance. Of course, there are other risk factors involved with pricing as well. Compare home insurance companies to find the best price before purchasing homeowners insurance.
Yes! Many insurance carriers, like Allstate and State Farm, offer bundling discounts. You can combine home insurance with car insurance or life insurance. Check with the insurance company before buying a policy to see if bundling is offered.
Many well-known insurance companies offer identity theft coverage on insurance products. Check with your local agent. You could bundle identity theft with other insurance coverage.
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