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The [average cost of homeowners insurance](https://www.policygenius.com/homeowners-insurance/) in Chicago is $2,130 per year. This is a few hundred dollars higher than the Illinois state average of $1,720 per year, and about 21% higher than the national average of $1,754.

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## Compare the best cheap homeowners insurance companies in Chicago

To find the best cheap homeowners insurance in Chicago, Policygenius rated over a dozen of the largest insurance companies in Illinois across several categories, such as average policy cost, financial strength ratings with AM Best, customer and claims satisfaction scores with J.D. Power, available policy options, and more.

| Company | Average monthly cost | Policygenius rating |
| --- | --- | --- |
| [State Farm](https://www.policygenius.com/homeowners-insurance/reviews/state-farm/) | $134 | 4.8 out of 5 |
| [American Family](https://www.policygenius.com/homeowners-insurance/reviews/american-family/) | $160 | 4.5 out of 5 |
| [Erie](https://www.policygenius.com/homeowners-insurance/reviews/erie/) | $102 | 4.5 out of 5 |
| [Farmers](https://www.policygenius.com/homeowners-insurance/reviews/farmers/) | $146 | 4.5 out of 5 |
| [Allstate](https://www.policygenius.com/homeowners-insurance/reviews/allstate/) | $98 | 4.4 out of 5 |

### State Farm

Policygenius rating

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

4.8

AM Best rating

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$$$$$

Bundle home & autoOffers extended replacement costOffers flood insuranceOffers earthquake insuranceWind/hail deductibleOffers wildfire insurance

Get quotesWhy we chose it

State Farm is one of the best home insurance companies in Chicago thanks to its large selection of policy options, high customer service marks, and industry-best financial stability ratings.

Pros and cons

##### Pros

- Save up to $1,127 per year when you bundle your home and auto insurance

- Excellent line-up of policy add-ons, including extended replacement cost coverage

##### Cons

- 20% more complaints filed with the NAIC than other companies of its size

More details

Why we chose State Farm

State Farm is one of the best home insurance companies in Chicago. One of the reasons why we picked State Farm is because of its coverage options. State Farm lets homeowners get extended replacement cost coverage for their homes, replacement cost coverage for their personal property, water backup protection, and much more.

State Farm's customer service is top-rated, too. The company has received high ratings from policyholders according to J.D. Power’s 2022 customer satisfaction, claims, and digital experience surveys. It has also received the highest rating possible from A.M. Best for financial strength and stability.

The company doesn't offer as many discounts as other insurers in the state, but if you're planning to bundle home and auto insurance with State Farm, you may receive a large discount.

How do State Farm home insurance rates compare to the Chicago average?

The average cost of home insurance from State Farm in Chicago is $134 per month, which is less expensive than the statewide average.

How to get a quote

Online through State Farm or by contacting your local State Farm agent.

[Read our full review of State Farm home insurance](https://www.policygenius.com/homeowners-insurance/reviews/state-farm/)

### American Family

Policygenius rating

4.5

AM Best rating

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost

$$$$$

Offers extended replacement costOffers flood insuranceBundle home & auto

Get quotesWhy we chose it

American Family is one of the best home insurance companies in Chicago. It also has industry-best coverage options and high customer service ratings.

Pros and cons

##### Pros

- Affordable rates and 11 available discounts

- Ranked #2 in J.D. Power’s 2022 U.S. Home Insurance Study

- Diminishing deductible feature to lower out-of-pocket claim costs

##### Cons

- Offers online quotes, but requires talking to an agent to complete the process

More details

##### Why we chose American Family

AmFam's wide range of coverage options provides discounts (many of which may be easy to qualify for) can make your premiums even cheaper.

American Family offers lots of additional coverage options that you can choose to add to your home insurance policy, too. You can customize your policy with up to 15 additional coverage options — including inland flood, equipment breakdown, and service line coverage.

##### How do American Family home insurance rates compare to the Chicago average?

The average annual cost of American Family home insurance in Chicago is $160 per month, which is a little more expensive than the statewide average.

##### How to get a quote

Online with American Family or by contacting a local agent

[Read our full review of American Family home insurance](https://www.policygenius.com/homeowners-insurance/reviews/american-family/)

2026 Policygenius award winner

### Erie

Policygenius rating

4.5

AM Best rating

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost

$$$$$

Mobile appBundle home & auto

Get quotesWhy we chose it

Erie's wide range of coverage options, industry-best customer service ratings, and affordable rates make it one of the best home insurance options in the country.

Pros and cons

##### Pros

- Cheap rates

- Guaranteed replacement cost comes standard on Erie policies

- Excellent customer service and claims satisfaction ratings

##### Cons

- Only available in 12 states

- Just three available discounts

- Can’t get quotes or file claims online

More details

Why we chose Erie

Home insurance policies from Erie come standard with guaranteed replacement cost coverage — which you often have to pay extra for at other companies. A basic policy also covers lost and misplaced items, jewelry, and gift cards to closed businesses.

Erie also offers a range of add-ons that you can purchase, like short-term rental coverage, equipment breakdown coverage, water backup protection, underground service line coverage, and more.

How do Erie home insurance rates compare to the average in Chicago?

The average cost of Erie home insurance in Chicago is $102 per month, which is cheaper than the average monthly premium in Chicago of $178 per month.

How to get a quote

Online through Erie

[Read our full review of Erie home insurance](https://www.policygenius.com/homeowners-insurance/reviews/erie/)

### Allstate

Policygenius rating

4.4

AM Best rating

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost

$$$$$

Bundle home & autoSmart home discounts

Get quotesWhy we chose it

Airbnb hosts in Illinois may like Allstate thanks to HostAdvantage — its affordable short-term rental coverage that can be easily added to any policy. Whether you’re looking for basic or comprehensive home insurance coverage, Allstate is a standout option.

Pros and cons

##### Pros

- High-quality and flexible policy options

- Numerous discounts and features that help you save

- Below-average customer complaints

##### Cons

- Below-average digital experience rating with J.D. Power

More details

##### Why we chose Allstate

If you're looking to cover your short-term rental, Allstate's HostAdvantage makes it our top pick for homeowners insurance in Illinois. HostAdvantage comes with theft protection, coverage for your damaged property ($10,000 per host period), and a $25 discount on cleaning services from Merry Maids.

Allstate also offers a few coverages that you can add to your home insurance policy for more protection. This includes water backup protection, scheduled personal property coverage, and identity theft restoration coverage.

##### How do Allstate home insurance rates compare to the Chicago average?

The annual average cost of Allstate home insurance in Illinois is $98 per month, significantly less expensive than the statewide average.

##### How to get a quote

Online through Policygenius or Allstate, or by contacting a local Allstate agent.

[Read our full review of Allstate home insurance](https://www.policygenius.com/homeowners-insurance/reviews/allstate/)

Methodology & why you can trust our rates

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

- Dwelling: $300,000

- Other structures: $30,000

- Personal property: $150,000

- Loss of use: $60,000

- Liability: $300,000

- Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Compare home insurance rates in Chicago

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## How much is homeowners insurance in Chicago?

The [average cost of home insurance](https://www.policygenius.com/homeowners-insurance/how-much-does-homeowners-insurance-cost/) in Chicago is $2,130 per year, or $178 a month, for a policy with $300,000 in dwelling coverage. This is around 15% cheaper than the average annual cost of $1,720 for homeowners insurance in Illinois, and about 21% higher than the national average.

### Chicago home insurance rates by ZIP code

Home insurance rates can vary substantially depending on which ZIP code your home is located in, as homes in certain Chicago neighborhoods may be more prone to extreme weather damage or property crime than others.

To help you find out how much home insurance costs where you live, we calculated average home insurance rates by ZIP code in Chicago.

| ZIP code | Average annual cost | Difference from state average (%) |
| --- | --- | --- |
| 60629 | $1,983 | 15% |
| 60618 | $1,873 | 9% |
| 60639 | $2,144 | 25% |
| 60632 | $1,975 | 15% |
| 60647 | $2,088 | 21% |
| 60617 | $2,407 | 40% |
| 60608 | $2,202 | 28% |
| 60625 | $1,736 | 1% |
| 60634 | $1,936 | 13% |
| 60623 | $2,372 | 38% |

Expand table

### Cheapest ZIP codes for home insurance in Chicago

With an average home insurance rate of $1,647 per year, the 60656 ZIP code is the most affordable area for home insurance in Chicago.

| ZIP code | Average annual cost | Difference from state average (%) |
| --- | --- | --- |
| 60656 | $1,647 | -4% |
| 60631 | $1,668 | -3% |
| 60646 | $1,677 | -3% |
| 60630 | $1,715 | 0% |
| 60625 | $1,736 | 1% |
| 60659 | $1,736 | 1% |
| 60613 | $1,762 | 2% |
| 60657 | $1,794 | 4% |
| 60614 | $1,837 | 7% |
| 60701 | $1,844 | 7% |

Expand table

### Most expensive areas for homeowners insurance in Chicago

With an average annual premium of $2,642, the 60621 ZIP code is the most expensive ZIP code in Chicago for home insurance. If you live one of these ZIP codes, your rates might be among the highest in the city.

| ZIP code | Average annual cost | Difference from state average (%) |
| --- | --- | --- |
| 60621 | $2,642 | 54% |
| 60636 | $2,605 | 51% |
| 60624 | $2,573 | 50% |
| 60620 | $2,563 | 49% |
| 60609 | $2,562 | 49% |
| 60644 | $2,554 | 48% |
| 60651 | $2,548 | 48% |
| 60619 | $2,533 | 47% |
| 60637 | $2,501 | 45% |
| 60628 | $2,454 | 43% |

Expand table

Learn more >> [Home insurance rates by ZIP code](https://www.policygenius.com/homeowners-insurance/home-insurance-rates-by-zip-code/)

### Chicago home insurance costs by coverage amount

Along with your home's location, your homeowners insurance premiums are primarily based on how much [dwelling coverage](https://www.policygenius.com/homeowners-insurance/what-is-dwelling-coverage/) is in your policy. This is the centerpiece of your home insurance coverage, covering the cost to repair or rebuild your home after a covered disaster.

Here are the average rates for homeowners insurance by coverage amount.

| Dwelling coverage limit | Average annual cost |
| --- | --- |
| $100,000 | $1,125 |
| $200,000 | $1,633 |
| $300,000 | $2,130 |
| $400,000 | $2,619 |
| $500,000 | $3,175 |

### Chicago home insurance costs by deductible amount

Your [home insurance deductible](https://www.policygenius.com/homeowners-insurance/what-is-a-homeowners-insurance-deductible/) is the amount you’re responsible for paying on each claim before insurance kicks in to help cover the cost of repairing or replacing your property. A higher deductible means lower insurance premiums, but it also means you're responsible for paying more out of pocket when you file a claim.

Here are the average rates for homeowners insurance by deductible amount.

| Deductible | Average annual cost |
| --- | --- |
| $500 | $3,572 |
| $1,000 | $1,617 |
| $2,000 | $1,448 |

### Cheapest homeowners insurance companies in Chicago

Based on our analysis, Allstate, Erie, and Hippo are the three [cheapest home insurance](https://www.policygenius.com/homeowners-insurance/cheap-homeowners-insurance/) companies in Chicago, with average premiums citywide ranging from $1,171 to $1,349 per year.

Here are the cheapest rates for homeowners insurance in Chicago.

| Company | Average annual cost |
| --- | --- |
| [Allstate](https://www.policygenius.com/homeowners-insurance/reviews/allstate/) | $1,171 |
| [Erie](https://www.policygenius.com/homeowners-insurance/reviews/erie/) | $1,219 |
| [Hippo](https://www.policygenius.com/homeowners-insurance/reviews/hippo/) | $1,349 |
| [USAA](https://www.policygenius.com/homeowners-insurance/reviews/usaa/) | $1,394 |
| [State Farm](https://www.policygenius.com/homeowners-insurance/reviews/state-farm/) | $1,609 |
| [Farmers](https://www.policygenius.com/homeowners-insurance/reviews/farmers/) | $1,751 |
| [American Family](https://www.policygenius.com/homeowners-insurance/reviews/american-family/) | $1,922 |
| [Nationwide](https://www.policygenius.com/homeowners-insurance/reviews/nationwide/) | $2,070 |
| [Progressive](https://www.policygenius.com/homeowners-insurance/reviews/progressive/) | $2,488 |
| [AAA](https://www.policygenius.com/homeowners-insurance/reviews/aaa/) | $2,619 |
| [Foremost](https://www.policygenius.com/homeowners-insurance/reviews/foremost/) | $2,766 |
| [Chubb](https://www.policygenius.com/homeowners-insurance/reviews/chubb/) | $3,068 |
| [Country Financial](https://www.policygenius.com/homeowners-insurance/reviews/country-financial/) | $3,094 |
| [Auto-Owners Insurance](https://www.policygenius.com/homeowners-insurance/reviews/auto-owners-insurance/) | $3,306 |

Expand table

### Cheapest home insurance in Chicago if you have poor credit

A [bad credit score](https://www.policygenius.com/homeowners-insurance/how-your-credit-score-can-affect-your-homeowners-insurance-rates/) does more than just cost you a few dollars in late payment fees — it can also make your auto and home insurance rates thousands of dollars higher.

Here are the average insurance rates for homeowners with poor credit.

| Company | Average annual cost |
| --- | --- |
| USAA | $1,862 |
| Allstate | $1,890 |
| Hippo | $1,905 |
| State Farm | $2,754 |
| Progressive | $2,906 |
| American Family | $2,954 |
| Nationwide | $3,064 |
| Erie | $3,333 |
| Farmers | $3,893 |
| Foremost | $4,230 |
| Country Financial | $4,263 |
| AAA | $4,453 |
| Chubb | $7,226 |
| Auto-Owners Insurance | $33,832 |

Expand table

### Cheapest home insurance in Chicago if you have an older home

Insurance carriers consider [older homes](https://www.policygenius.com/homeowners-insurance/homeowners-insurance-for-older-homes/) to have a higher risk of damage or loss compared to newer homes since they're constructed with older and more difficult to replace materials. Additionally, certain structural components in older homes, like the roof or plumbing systems, may not be up to code.

Here are the average insurance rates for homeowners with older homes.

| Company | Average annual cost |
| --- | --- |
| Allstate | $1,152 |
| USAA | $1,309 |
| Erie | $1,330 |
| State Farm | $1,609 |
| Farmers | $1,712 |
| Hippo | $1,925 |
| American Family | $1,985 |
| Nationwide | $2,185 |
| Progressive | $2,329 |
| Foremost | $2,729 |
| Chubb | $2,758 |
| AAA | $3,062 |
| Country Financial | $3,247 |
| Auto-Owners Insurance | $3,529 |

Expand table

### Cheapest homeowners insurance in Chicago if you have a history of claims

[Claims history](https://www.policygenius.com/homeowners-insurance/does-homeowners-insurance-go-up-after-a-claim/) is one of the biggest factors that insurance companies use when calculating your home insurance premiums. If you have multiple claims on your record, your insurer will likely view you as a risk for filing future claims and may charge you higher rates as a result.

Here are the average insurance rates for homeowners with multiple claims.

| Company | Average annual cost |
| --- | --- |
| USAA | $1,745 |
| State Farm | $1,835 |
| Allstate | $1,988 |
| Erie | $2,074 |
| Farmers | $2,226 |
| Progressive | $2,925 |
| American Family | $3,317 |
| Auto-Owners Insurance | $3,499 |
| Hippo | $4,031 |
| Chubb | $5,457 |
| Country Financial | $5,808 |
| Nationwide | $6,386 |
| AAA | $7,852 |
| Foremost | $8,080 |

Expand table

### How to get homeowners insurance quotes in Chicago

Here are a few steps to follow as you shop for homeowners insurance in Chicago:

1. Reach out to a licensed Policygenius agent. Our team of licensed insurance experts are ready to help you find the coverage to match your insurance needs and budget — for free and with no impact to your personal credit score.

2. Ask about FAIR coverage options. The Chicago area offers the Illinois FAIR Plan for qualified individuals and homes. Ask your Policygenius agent about whether a policy through the Illinois FAIR Plan makes sense for you rather than looking for traditional insurance coverage.

3. Figure out how much you can afford to pay for your deductible. You'll want to figure out home much you'll be able to afford out of pocket when filing a claim. This amount will help determine coverage options and rates.

4. Compare quotes from a Policygenius agent. Once you've determined your coverage needs, limits, and deductibles, a Policygenius agent will help you wade through quotes from a few different companies in order to find the best policy for you.

5. Choose your policy, sign it, and pay your first premium. After you've selected the policy you want, your Policygenius will help you complete all of the necessary paperwork.

Learn more about home insurance in Illinois

- [Our complete guide to home insurance in Illinois](https://www.policygenius.com/homeowners-insurance/illinois/)

- [Best home insurance companies in Illinois in 2024](https://www.policygenius.com/homeowners-insurance/illinois/best-companies/)

- [Average cost of home insurance in Illinois](https://www.policygenius.com/homeowners-insurance/illinois/average-cost/)

- [Cheapest home insurance companies in Illinois in 2024](https://www.policygenius.com/homeowners-insurance/illinois/cheapest-companies/)

- [How to buy home insurance in Illinois](https://www.policygenius.com/homeowners-insurance/illinois/how-to-buy-home-insurance/)

Compare home insurance rates in Chicago

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### Frequently asked questions

Why is home insurance in Chicago so expensive?

Home insurance is so expensive in Chicago because of the dense population. In areas and cities with more people, there is generally a higher risk of claims submitted.

How can I lower my homeowners insurance in Chicago?

You can lower your homeowners insurance in Chicago by taking advantage of discounts offered through your home insurance company. This might mean bundling your home and auto policies together for discounts, or adding a security system to your home.

Author

\\
\\

[Rachael Brennan](https://www.policygenius.com/author/rachael-brennan/)

Senior Editor & Licensed Insurance Expert

Rachael Brennan is a licensed auto insurance expert and a former senior editor at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Editor

\\
\\

[Pat Howard](https://www.policygenius.com/author/pat-howard/)

Managing Editor & Licensed Home Insurance Expert

Pat Howard is a licensed insurance expert and former managing editor at Policygenius. Pat has written extensively about the home insurance industry and his insights as a subject matter expert have appeared in several top tier publications, including The New York Times, The Wall Street Journal, CNBC, and Reuters. Pat has a bachelor's degree in journalism from Michigan State University.

Questions about this page? Email us at [editorial@policygenius.com](mailto:editorial@policygenius.com).

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