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Homeowners Insurance in Illinois

Amy Danise

It’s important to have the right insurance in Illinois if you own property, especially because a standard home insurance policy may not be enough.

While Illinois home insurance is crucial coverage for any homeowner, it will generally not cover flood damage. And historic floods have made life extremely difficult in Illinois recently, ravaging many parts of the state for more than 100 consecutive days in 2019.

In addition, the New Madrid Fault Line, which produced major earthquakes in 1811 and 1812, runs through Illinois. It has the potential to produce serious quakes again, but scientists’ predictions about the chances of a huge earthquake along the fault line vary considerably. Homeowners nervous about the potential can consider earthquake insurance.

The New Madrid seismic zone, which has three faults, runs southward from around Cairo, Illinois, and has the potential to also impact Indiana, Missouri, Arkansas, Kentucky, Tennessee, Oklahoma and Mississippi.

What does Illinois homeowners insurance cover?

A typical policy in Illinois will have these six main coverage types:

  • Dwelling coverage if a house is damaged or destroyed by a problem covered by the policy, such as a fire.
  • Other structures coverage for structures not attached to the house, such as garages, storage sheds and fences.
  • Personal property coverage for belongings (such as furniture, clothing and decorations) that are damaged, stolen or destroyed.
  • Loss of use coverage, which pays for additional living expenses you have if you must temporarily move because of house damage.
  • Personal liability coverage in case you’re legally responsible for someone else’s injury or property damage. For example, if your child accidentally kicks a ball through a neighbor’s window.
  • Medical payments to others coverage in case people are hurt on your property.

How do I get Illinois flood insurance?

You can buy flood insurance through the National Flood Insurance Program (NFIP), a federal plan. To buy it, your community must participate in the NFIP program.

Private flood insurance is available from companies such as Palomar Specialty, as an alternative to the NFIP.

In addition, companies such as Wright Flood offer “excess” flood insurance, which gives you additional coverage above an NFIP policy.

What is Illinois mine subsidence damage?

Some Illinois homeowners are affected by mine subsidence. This is damage when a man-made underground mine collapses. Illinois homeowners in some areas may have problems because of the state’s old coal mines. The Illinois State Geological Survey estimates there are about 330,000 housing units that could have mine subsidence.

The state has set up a special fund to provide financial resources to affected homeowners when insurance won’t cover the damage. See more about the Illinois Mine Subsidence Insurance Fund.

How much is Illinois home insurance?

The average Illinois homeowners insurance premium is $1,042 a year for a typical policy, according to the National Association of Insurance Commissioners. That’s slightly less than the nationwide average of $1,192 a year.

20 largest Illinois homeowners insurance companies

Rank in Illinois Company Market share % in the state
1 State Farm 33.07
2 Allstate Corp. 12.05
3 COUNTRY Financial 8.43
4 Farmers Insurance 5.8
5 American Family Insurance 5.71
6 Liberty Mutual 4.93
7 Travelers 3.06
8 USAA 2.95
9 MetLife 2.26
10 Chubb 2.19
11 Erie Insurance 1.95
12 Auto-Owners Insurance 1.63
13 Nationwide 1.53
14 Pekin Insurance 1.43
15 The Hartford 1.29
16 Auto Club Insurance Association 1.16
17 The Hanover Insurance Group 1.02
18 National General Holdings Corp. 0.96
19 The Cincinnati Insurance Cos. 0.75
20 West Bend Mutual Insurance Co. 0.64
Source: S&P Global Market Intelligence, based on homeowners multiple peril insurance market share in 2018.