5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Chicago residents pay an average of $2,408 per year for a homeowners policy with a $1,000 deductible and $300,000 in dwelling coverage, according to Insurify data. This is slightly higher than the national average of $2,377 per year for the same coverage. Fortunately, you may be able to lock in affordable coverage from a variety of 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 all offer homeowners policies with yearly premiums of less than $1,500 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 an average of $2,486 per year — 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.
Insurance Company
▲▼
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.
▲▼
Average Annual Premium
▲▼
Best For
▲▼
Westfield
N/A
$828
Cheapest rates
Allstate
4.1
$980
New construction homes
Erie
3.7
$1,389
High-value homes
Farmers
4.2
$1,415
Green homes
Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.
Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.
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
$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.
$69/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.
$81/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 $828 for $300,000 in dwelling coverage, which is much less 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
Cheapest premiums among insurers that Insurify analyzed
Some policies may include replacement cost coverage
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.
8.9/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833
$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.
$111/mo
If you have a new home in the Windy City, you may want to consider Allstate for home insurance so you can take advantage of its homebuyer discount for newly constructed homes. Other noteworthy discounts include its claims-free discount and responsible payment discount.
Pros
Multiple advertised discounts
HostAdvantage coverage available for home-sharing hosts
Cons
No extended or guaranteed replacement cost coverage add-ons
Below-average J.D. Power customer satisfaction rating
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.
9.0/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
870
$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.
$121/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.
$175/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 policy can give you peace of mind about your high-end home and your personal belongings.
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.
8.3/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
815
$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.
$118/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.
$201/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 property claims satisfaction rating
Cheapest home insurance in Chicago
For the cheapest home insurance coverage in Chicago, you may want to explore Westfield Insurance. On average, Westfield policyholders pay $828 per year for $300,000 in dwelling coverage. This is a great deal when you consider that many homeowners insurance companies charge more than $1,000 per year for the same type of policy.
Explore the cheapest home insurance companies in Chicago in the table below.
Insurance Company
▲▼
Average Annual Premium
▲▼
Westfield
$828
Allstate
$980
Erie
$1,389
Farmers
$1,415
State Farm
$1,438
Hastings Mutual
$1,594
USAA
$1,667
American Family
$1,971
Travelers
$2,018
Nationwide
$2,036
Cost of homeowners insurance in Chicago
Average home insurance rates in Chicago range from $828 to $4,702 per year for $300,000 in dwelling coverage. Your premium will depend on several factors, such as the size of your home, your coverage level, your deductible, the cost of materials and construction, and previous home insurance claims.[2]
Find Cheap Home Insurance in Chicago
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Based on 3,806+ reviews
4.8/5
Cost of homeowners insurance by dwelling coverage amount
It’s important that you have enough dwelling coverage to rebuild your home if it sustains damage from a covered loss. The ideal dwelling coverage amount will depend on your square footage, home’s age, architectural style, number of stories, and interior features. A higher coverage level will result in higher home insurance premiums.
You can see below how different dwelling coverage levels in the state of Illinois can affect your yearly home insurance premiums. Rates shown are for policies with a $1,000 deductible.
Coverage Limit
▲▼
Average Annual Premium
▲▼
$100,000
$1,122
$200,000
$1,602
$300,000
$2,050
$400,000
$2,577
$500,000
$3,077
Cost of homeowners insurance by deductible
Your home insurance deductible is how much you’ll have to pay out of pocket after a covered claim before your home insurance coverage kicks in and takes care of the rest. A higher deductible will lead to lower home insurance rates. But if you choose a higher deductible amount, make sure you budget for greater out-of-pocket expenses if you have to file a claim.
You can see how your deductible amount can affect your yearly home insurance premium in Chicago in the table below.
Deductible Amount
▲▼
Average Annual Premium
▲▼
$500
$2,486
$1,000
$2,408
How to get cheap homeowners insurance in Chicago
Follow these tips to get cheap home insurance premiums in Chicago:[3]
Shop around. Home insurance companies aren’t created equal. Do your research, and compare home insurance quotes from at least three different insurers. An independent agent can help you.
Look for discounts. Take advantage of as many discounts as you can qualify for. Common homeowners insurance discounts include a claims-free discount, loyalty discount, and roof upgrade discount.
Bundle. If you have another insurance policy, such as car insurance or boat insurance, bundle it with your home insurance. Many homeowners insurance companies offer discounts to people who purchase more than one policy from them.
Improve your home security discount. You may save money on a homeowners policy if you equip your home with certain safety features. Some home insurers offer more competitive rates to homeowners with deadbolt locks, burglar alarms, and smoke detectors.
Adjust your coverage. Be sure you only pay for the home insurance coverage you need. If your policy has coverage options that don’t apply to you or your property, get rid of them to lower your insurance premiums.
Your location and ZIP code within Illinois and Chicago will play a role in 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 part of Chicago that’s prone to flooding, for example, you can expect more expensive rates than a homeowner in a low-risk flooding area.
See how rates compare in some other Illinois cities. Rates shown are for policies with a $1,000 deductible and $300K in dwelling coverage.
City
▲▼
Average Annual Premium
▲▼
Aurora
$1,952
Berwyn
$2,066
Cicero
$2,096
Des Plaines
$1,942
Joliet
$2,094
Naperville
$1,868
Springfield
$2,016
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 or company 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 and understand exactly what your policy covers. Otherwise, you could face unwanted financial surprises in the future.
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4.8/5
What are some of the biggest risks when owning a home in Chicago?
As a Chicago homeowner, it’s a good idea to be prepared for several risks 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. Fortunately, homeowners insurance covers wind damage, so you won’t need a separate policy.
Theft
Unfortunately, theft is a common occurrence in Chicago.[4] The good news is a standard home insurance policy with personal property coverage will cover theft-related home insurance claims.
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.
How much is home insurance in Chicago?
Home insurance in Chicago costs an average of $2,408 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 of your home, square footage of your home, and the coverage levels you choose.
Which company has the cheapest homeowners insurance in Chicago?
Westfield has the cheapest homeowners insurance in Chicago, with rates of $828 per year.
Other affordable insurers in the Windy City include Allstate and Erie, with annual premiums of $980 and $1,389, respectively.
Does Chicago require homeowners insurance?
No. Chicago doesn’t require homeowners insurance, but your lender will require it 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.
Why is homeowners insurance so high in Illinois?
Home insurance costs in Illinois are expected to increase by 10% in 2024, according to an Insurify report. Rising building repair costs could be partly to blame for the increased home insurance costs in the state.
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.
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Westfield
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Erie Insurance
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