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Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
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Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.
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At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
Most homeowners assume they’re getting a fair deal on insurance until they discover their rates could be cheaper with a different company. With homeowners in Chicago paying an average of $206 per month, comparing insurers could save you some serious money.
Allstate consistently offers some of the lowest rates in the Windy City, averaging $81 per month for $300,000 of dwelling coverage. But the right company for your home depends on your situation.
We’ll tell you how to balance price, protection, and service to find the best homeowners insurance company for your situation.
Erie, Nationwide, and Chubb are some of Chicago’s best home insurance companies.
Chicago homeowners with older homes or in high-risk neighborhoods often pay more for insurance.
Standard policies don’t cover Chicago-specific risks, like flooding or sewer backup, so you may need extra coverage.
There isn’t one single best insurance company for all homeowners. The best choice for you depends on your budget, coverage, and home value.
We picked these companies based on factors important to Chicago homeowners, including average rates, available discounts, customer satisfaction scores, and coverage options.
Erie Insurance| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | NR |
|---|---|
| J.D. Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | Not rated |
Erie is ideal if you value one-on-one attention. It has a large agent network throughout the city and earns high marks for customer satisfaction from J.D. Power. Policy options like guaranteed replacement cost coverage and protection for jewelry and watches offer peace of mind for Chicago homeowners.
But while Erie offers personal service, it can come at the cost of convenience. You can’t get a quote or file a claim online, and the company offers fewer discounts than competitors.
Above-average customer satisfaction rating[1]
Extensive local agent network
Generous bundling discounts available
Quotes available only through agents
Online claims filing not available
Limited discounts available
Nationwide| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.2/5 |
|---|---|
| AM Best AM 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). | A+ |
| $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. | $223/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. | $339/mo |
Chicago has no shortage of fixer-upper properties, making Nationwide’s renovation-focused benefits particularly valuable. If you’re updating a Humboldt Park home’s electrical system or modernizing plumbing in Jefferson Park, Nationwide’s home renovation credit can reduce your premiums as you improve the property.
But Nationwide has a poor rating from customers on Trustpilot. The company can also be more expensive than some competitors, so you should compare rates from multiple companies before making a decision.
Home renovation credit available
Customizable policies
Various discounts available
Mobile and modular home coverage may not be available
Poor Trustpilot rating[2]
More expensive than some competitors
Chubb| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 3.9/5 |
|---|---|
| AM Best AM 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). | A++ |
| $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. | $204/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. | $317/mo |
Chubb specializes in protecting Chicago’s most valuable properties, from Gold Coast estates to Lincoln Park historic homes. The company offers coverage with generous limits for high-end art, jewelry, and collectibles. Chubb ranks No. 1 for customer satisfaction from J.D. Power, and the insurer delivers the white-glove service that high-end property owners expect.
That said, Chubb doesn’t offer many ways to customize your coverage. The company’s luxury coverage also means it has higher rates than other insurers.
Above-average claims satisfaction rating
Offers cash settlement after a total loss
Special coverage for luxury items
Can’t get a quote online
May cost more than other insurers
Few options to customize coverage
Compare quotes from top insurers, starting at $81 per month.
Identical homes just blocks apart can have wildly different premiums because insurers use their own formulas to evaluate risk. That means one insurer might love your tree-lined street while another sees those same mature oaks as potential roof hazards. Comparing home insurance quotes can save you serious money.
The table below shows the cheapest home insurance companies in Chicago for $300,000 of dwelling coverage, based on Compare.com data.
Company  | Average Monthly Premium |
|---|---|
| Allstate | $81 |
| Farmers | $87 |
| USAA | $100 |
| Travelers | $113 |
| Westfield | $113 |
| State Farm | $143 |
| Erie | $191 |
| American Family | $201 |
| Chubb | $225 |
| Encompass | $291 |
| COUNTRY Financial | $302 |
| Foremost | $347 |
| Auto-Owners | $430 |
How much home insurance you need has a huge effect on your rate. Replacing a $500,000 home costs significantly more than rebuilding a $200,000 property, so home insurance companies set prices accordingly. Higher replacement costs mean higher potential payouts, leading to higher home premiums.
Here are the average rates in Chicago for different home values, according to our data.
Home Value | Average Monthly Premium |
|---|---|
| $200,000 | $157 |
| $300,000 | $206 |
| $400,000 | $255 |
| $500,000 | $300 |
| $750,000 | $422 |
Get rates from Chicago’s top insurers and save money in seconds.
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You might think home insurance companies use only your property value when setting your rates. But companies examine plenty of details, including some you may not have considered.
Insurance companies closely inspect your property and consider all kinds of factors, including:
Your home’s age: Older Chicago properties often have higher rates because aging electrical, plumbing, and heating systems increase claim risks.[3]
Construction materials: Stone and brick homes can lower your bill since they resist fire better than wooden structures.
Your home’s roof: A newer roof can earn you a discount, while an aging roof increases rates.
Square footage: Larger homes cost more to rebuild, which means higher coverage limits and premiums.[4]
Home features: Hardwood floors, original millwork, and cast iron plumbing can all affect your insurance costs.
Security upgrades: Installing monitoring systems and smart locks can lower your rates.[5]
Claims history: A home with frequent insurance claims often sees higher rates.
Your ZIP code directly affects what you pay, with some Chicago neighborhoods facing significantly higher risks than others.
Distance to fire stations: Living far away from the nearest station bumps up your premiums.
Flood zones: Properties near Lake Michigan or the Chicago River often need additional flood insurance.
Weather exposure: Chicago’s storms and high winds make certain neighborhoods riskier to insure.
Building density: Urban areas have higher fire risks, where flames can jump between buildings.
Your policy choices let you customize your coverage, but each adjustment can change your final cost.
Deductible amount: Choosing a higher deductible lowers your insurance bill but costs more out of pocket when filing a claim.
Coverage limits: Higher dwelling, personal property, and liability limits increase costs.
Policy add-ons: Adding specialty coverage for valuables or equipment breakdowns increases your costs.
Bundling discounts: Bundling your auto and home insurance typically discounts both premiums.
Payment frequency: Making one yearly payment is often cheaper than making monthly installments.
Replacement cost vs. actual cash value: Replacement cost coverage is more expensive but provides better protection.
Insurance companies also look at your demographics and background, not just your home, when calculating premiums.
Claims history: Filing previous claims can keep your insurance rates high.
Insurance gaps: Maintaining continuous coverage without lapses earns you better pricing.
Credit history: Better credit often translates to lower insurance prices in Illinois.[6]
Chicago homeowners experience everything from harsh winters that freeze pipes to summer storms that send tree branches crashing onto roofs. Fortunately, standard homeowners insurance handles most of these risks.
Most policies cover damage to your home from fire, wind, hail, vandalism, and theft. You’ll also typically get protection for detached structures, such as garages or sheds, plus coverage for your personal belongings. Policies include liability coverage, too, helping if someone injures themselves at your home or if you accidentally damage someone else’s property.[7]
Many policies also include additional living expenses, which help pay for hotels and meals if a covered claim temporarily forces you out of your home.
Standard policies don’t cover everything, though. Here are coverage gaps that Chicago homeowners need to know about.
Flood damage: Water damage from Chicago’s heavy rains or runoff from snowmelt may require separate flood insurance through the National Flood Insurance Program (NFIP).
Sewer backup: A common occurrence in older Chicago neighborhoods with aging infrastructure, sewer backup is usually not part of a homeowners policy.
Maintenance issues: Homeowners insurance doesn’t cover problems like roof leaks or foundation settling.[8]
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Chicago doesn’t experience hurricanes or wildfires, but severe weather can still damage homes and strain finances without proper coverage.
Illinois ranks among the top states for tornado activity.[9] Along with tornadoes, Chicago’s thunderstorms can bring damaging winds and hail. Standard homeowners insurance usually covers these events, but check your policy’s wind and hail deductibles. In some cases, higher deductible amounts may apply for that type of damage.[10]
Chicago’s proximity to Lake Michigan and the Chicago River creates flood risks that home insurance policies don’t cover. You need separate flood insurance through the NFIP or private insurers. Heavy rain can overwhelm the city’s aging sewer system and cause flooding, even outside designated flood zones.[11]
Chicago’s brutal winters bring ice storms, blizzards, and extreme cold that can cause serious home damage. While policies usually cover bursting frozen pipes, insurers can deny a claim if you don’t take precautions like keeping the heat on or shutting off the water while you’re away.[12]
We answered some common questions from Chicago homeowners about home insurance. Check them out below.
Chicago homeowners pay an average of $206 per month for $300,000 of coverage, according to Compare.com data. But your costs depend on factors specific to your house and where you live.
No single company works best for everyone. The best home insurance company depends on what matters most to you, like price, customer service, or specific types of property coverage. Comparing rates from multiple companies can help you find the coverage you need at the right price.
It depends. Chicago homeowners pay an average of $206 per month for $300,00 of dwelling coverage, according to Compare.com data. Compare that to the national average of $211 per month. Your rates depend on many factors, including your home’s age and location.
Allstate has the cheapest homeowners insurance rates in Illinois, starting at $81 per month for $300,000 of dwelling coverage, according to Compare.com data. Your rates can vary widely, so compare quotes from multiple companies to find the cheapest coverage.
The 80% rule in homeowners insurance means your insurance company will pay for damages to your home as long as you’ve insured it for at least 80% of its value. If your insurance coverage is less than 80%, your insurer will typically reduce your claim payout.
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Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.
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