Chicago Homeowners Insurance

Chicago is the second most populous city in the US. With around 2.7 million residents, this diverse city has something to offer everyone. If you own a house in one of this city’s 200 distinct neighborhoods, a good homeowners insurance policy can protect your investment.

Local independent agents are available to help you find the best insurance for your Chicago home. Because they are not captive to a particular insurance company, they can shop around to find a policy that meets your coverage and budgetary needs. Contact an insurance agent near you to learn more.

How Much Does Homeowners Insurance Cost in Chicago, IL?

Overall, homeowners insurance rates in Illinois are lower than the national average.

• National average yearly premium: $1,211
• Illinois average yearly premium: $1,056

Of course, this average is statewide. Actual rates in the Chicago area can vary. Your quoted costs will be based on several factors such as:

• Your home’s age, size, and value
• The type of home you are insuring (e.g., single-family detached, multi-family home, condo, townhouse, rental property, etc.)
• The crime rate and weather risks where your house is located
• Your claims history and credit score
• The size of your deductible
• Whether you are bundling your home insurance with other coverage like car insurance or life insurance

Some neighborhoods have higher average insurance rates than others. Houses in Chicago’s Forest Glen neighborhood, which has a lot of larger and more expensive homes will have higher insurance rates than the Englewood neighborhood, where many live in smaller homes and duplexes.

Whatever neighborhood you live in, comparing quotes from a few different providers lets you be sure you are getting your policy at the most competitive price.

Chicago Homeowners Insurance Covers Your Property

Homeowners insurance is designed to cover the cost to rebuild, repair, or replace your property if it is damaged by a covered event. Most homeowners insurance policies cover damage caused by:

• Fires
• Property crimes
• Severe weather events like thunderstorms, windstorms, blizzards, tornadoes, or hail

Your property insurance will include coverage for the structure of your home (dwelling insurance) and coverage for your personal property (contents insurance).

You will want to be sure that your coverage limits in both categories are high enough to enable you to fully replace your property if you experience a total loss, such as if your house burns down.

A Word about Flood Insurance in Chicago, IL

FloodFactor has identified more than 164,000 properties in Chicago that have a significant risk of experiencing flood damage. In fact, floods in the Chicago area cause an average of about $70 million in property damage a year. 

Unfortunately, homeowners insurance does not cover against floods.

The good news is that you can supplement your home insurance with an affordable flood insurance policy through the National Flood Insurance Program (NFIP). This government-backed insurance allows homeowners to cover their property with up to $250,000 in dwelling coverage and $100,00 in contents coverage.

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What Is Loss of Use Insurance?

The risk of tornado activity in Chicago is 46% higher than the national average. The worst to strike in the area was an F5 twister that touched down in 1990, causing about $165 million in property damage in the Chicago suburbs of Oswego, Plainfield, Crest Hill, and Joliet.

If serious damage from a covered event like a tornado or a structure fire renders your home uninhabitable, loss of use insurance can help. This coverage is included as a standard part of your home insurance policy.

Loss of use insurance is designed to pay for your alternate living accommodations while your house is being repaired. It can also provide you with a meal allowance if you do not have access to a kitchen and can reimburse you for mileage if you have to drive further to get to work.

Why Do Homeowners in Chicago Need Liability Insurance?

There are times when accidents, negligence, and errors in judgement can lead to extremely expensive lawsuits. That is why homeowners insurance also provides policyholders with a significant amount of personal liability coverage.

Homeowners liability insurance is designed to cover expenses like court costs, legal fees, settlements, and judgements if you are unintentionally responsible for someone outside your household experiencing injuries, financial losses, or property damage.

Examples of situations when homeowners liability coverage can help you include:

• A friend slips on an icy walkway while approaching your house for a visit.
• Your dog runs out of your house and bites someone.
• You accidentally hit someone with a golf ball while enjoying a day at the Harborside International Golf Center.
• Someone accuses you or someone in your household of libel or slander.

If you have a lot to lose and would like to have more liability coverage than your home insurance policy can provide, you may want to also consider purchasing an umbrella insurance policy. This is an affordable way to boost all of your personal liability coverage.

Homeowners Insurance Covers against Property Crimes in Chicago

The burglary rate in Illinois and in Chicago is lower than the national average.

• Number of burglaries per 1,000 people in the US: 3.76
• Number of burglaries per 1,000 people in Illinois: 3.07
• Number of burglaries per 1,000 people in Chicago: 4.82

Of course, some Chicago neighborhoods have higher crime rates than others, so your insurance company will take your ZIP code into account when calculating your rates.

If you want to take steps to prevent criminals from taking your property, be aware that home security systems are among the most effective theft deterrents. In fact, many insurance companies offer discounts to policyholders who have these systems installed in their homes.

Unfortunately, nothing is 100% foolproof against a determined burglar, so you may be relieved to know that if your house is burglarized, your homeowners insurance can provide you with compensation for your lost and damaged property.

Why Work with an Independent Insurance Agent in Chicago, IL?

Independent insurance agents in Chicago are ready to help you find the best and most affordable homeowners insurance policy. These experienced agents can answer your insurance-related questions and can ensure that your property is suitably covered at a competitive price.

Arrange an obligation-free consultation with an insurance agent near you to learn more. You will soon discover how easy it can be to review customized homeowners insurance quotes from a variety of the area’s best insurers.