Best and Cheapest Homeowners Insurance in Illinois for 2025 (10 Most Affordable Companies)

The leading providers of the best and cheapest homeowners insurance in Illinois are Geico, USAA, and State Farm, with rates starting at $30 per month for $200K coverage, combining affordability with robust protection.

Geico leads with the most competitive base premium and straightforward digital experience, USAA provides complimentary temporary housing during military deployments, and State Farm offers a market-leading 22% bundling discount with 24/7 local agent support.

Insurance Company	Rank	$200K Policy	A.M. Best	Best For	Jump to Pros/Cons
	#1	$30	A++	Efficient Operations	Geico
	#2	$35	A++	Member Benefits	USAA
	#3	$38	B	Large Network	State Farm
	#4	$40	A	Competitive Pricing	Liberty Mutual
	#5	$46	A++	Extensive Discounts	Travelers
	#6	$48	A+	Data Analytics	Progressive
	#7	$50	A+	Customer Loyalty	Nationwide
	#8	$55	A	Tailored Packages	American Family
	#9	$58	A	Coverage Flexibility	Farmers
	#10	$85	A+	Comprehensive Bundles	Allstate

Illinois homeowners can secure comprehensive coverage while maximizing savings through smart home technology discounts and wise policy choices. Find the cheapest home insurance today by entering your ZIP code into our free comparison tool.

What You Should Know

• The cheapest homeowners insurance in Illinois comes from Geico with $30 monthly premiums for $200K homes
• State Farm stands out with 1,200 local agents providing free annual home safety audits
• USAA uniquely offers complimentary temporary housing during military deployments

#1 – Geico: Best for Efficient Operations

Pros

• Digital Experience: Illinois homeowners receive instant policy updates through Geico's AI-powered mobile platform within 15 minutes.
• Cost Savings: Geico's $30 monthly premium includes free smart home monitoring devices for Illinois residents.
• Quick Claims: Illinois customers receive claim payments within 48 hours through Geico's automated blockchain system.

Cons

• Limited Coverage: Illinois homeowners cannot access Geico's earthquake protection due to state-specific underwriting restrictions.
• Service Lines: Geico's basic policy excludes underground utility line coverage for Illinois properties.

#2 – USAA: Best for Member Benefits

Pros

• Military Perks: Illinois service members receive complimentary temporary housing during deployments with their $35 policy.
• Replacement Cost: USAA guarantees rebuilding costs regardless of Illinois property value appreciation limits, as highlighted in USAA customer reviews.
• Weather Protection: Illinois members receive automatic policy upgrades during severe weather alerts without premium increases.

Cons

• Membership Required: USAA's exclusive Illinois coverage requires verified military service history or direct family connection.
• Limited Offices: Illinois USAA members must travel over 50 miles to reach in-person service centers.

#3 – State Farm: Best for Large Network

Pros

• Local Agents: State Farm's 1,200 Illinois agents provide 24/7 emergency home inspection services, as noted in State Farm insurance review.
• Claims Centers: Illinois customers receive priority handling through State Farm's dedicated catastrophe response units.
• Community Focus: State Farm's Illinois offices provide free annual home safety audits worth $500.

Cons

• Rate Variations: State Farm's $38 monthly premium increases by 30% in Chicago metropolitan areas.
• Strict Requirements: Illinois homeowners must install specific security systems to qualify for State Farm's lowest rates.

#4 – Liberty Mutual: Best for Competitive Pricing

Pros

• Rate Matching: Liberty Mutual's Illinois offices guarantee to match any competitor's verified quotes within 24 hours.
• Flexible Payments: Illinois homeowners can customize payment schedules without affecting their $40 base premium.
• Bundle Benefits: Liberty Mutual offers Illinois residents free identity theft protection with multi-policy packages, as mentioned in our Liberty Mutual review.

Cons

• Coverage Gaps: Illinois properties near flood zones face additional premium charges despite FEMA certification.
• Claims Process: Liberty Mutual requires Illinois homeowners to use specific contractors for covered repairs.

#5 – Travelers: Best for Extensive Discounts

Pros

• Green Discounts: Illinois homeowners with solar panels receive 25% reduction on their $46 monthly premium.
• Aging Home: Travelers review highlights that Travelers provides specialized coverage for Illinois historic homes built before 1940.
• Preventive Benefits: Illinois residents receive $500 annually for proactive maintenance and storm preparation.

Cons

• High Deductibles: Travelers requires Illinois homeowners to pay $2,500 minimum for weather-related claims.
• Documentation: Illinois customers must submit quarterly home maintenance reports to maintain discounts.

#6 – Progressive: Best for Data Analytics

Pros

• Smart Pricing: Progressive's AI system adjusts Illinois premiums monthly based on real-time risk assessment.
• Usage Based: Illinois homeowners receive rate reductions when smart devices detect low property usage.
• Risk Prevention: Progressive review notes that Progressive alerts Illinois customers about potential issues through IoT sensor monitoring.

Cons

• Technology Requirement: Illinois homes must install Progressive's proprietary monitoring system for $48 rates.
• Data Privacy: Progressive's Illinois policies require continuous sharing of household activity data.

#7 – Nationwide: Best for Customer Loyalty

Pros

• Tenure Rewards: Nationwide review mentions that Illinois homeowners receive a 5% premium reduction annually, up to 25% total.
• Claims Forgiveness: Nationwide waives first claim penalties for Illinois customers after three years.
• Renovation Credit: Illinois properties receive automatic coverage increases during approved home improvements.

Cons

• Transfer Limits: Nationwide's Illinois loyalty benefits reset when moving to different properties.
• Auto Renewal: Illinois policies automatically extend at higher rates without early review.

#8 – American Family: Best for Tailored Package

Pros

• Custom Coverage: Illinois homeowners can select specific coverage components without minimum requirements.
• Lifestyle Match: American Family adjusts Illinois coverage based on home-based business activities.
• Flexible Limits: Illinois residents can modify coverage limits monthly without policy rewriting, as highlighted in American Family review.

Cons

• Complex Pricing: Illinois homeowners must navigate multiple coverage tiers for $55 advertised rate.
• Service Areas: American Family restricts certain coverage options in rural Illinois regions.

#9 – Farmers: Best for Coverage Flexibility

Pros

• Policy Evolution: Farmers automatically upgrades Illinois coverage as home values appreciate without requests.
• Seasonal Adjustments: Illinois homeowners receive enhanced coverage during severe weather seasons.
• Coverage Matching: Farmers modifies Illinois policies to match life changes without cancellation fees, as noted in Farmers review.

Cons

• Initial Cost: Farmers requires Illinois residents to pay first three months premium upfront.
• Coverage Zones: Premium rates vary significantly across different Illinois postal codes.

#10 – Allstate: Best for Comprehensive Bundles

Pros

• Complete Protection: Allstate review states that Illinois homeowners receive full replacement coverage regardless of inflation rates.
• Service Integration: Allstate connects Illinois policies with local emergency response services automatically.
• Reward System: Illinois customers earn points for preventive maintenance toward premium reductions.

Cons

• Premium Cost: Allstate's $85 monthly rate ranks highest among Illinois insurance providers.
• Bundle Requirements: Illinois homeowners must maintain multiple Allstate policies for advertised discounts.

Cost of Homeowners Insurance in Illinois

For cheap homeowners insurance in Illinois, take a look at Illinois homeowners insurance rate table below and understanding homeowners insurance is crucial, Geico is the cheapest at $30/month for a $200K policy. The average cost of homeowners insurance in Illinois is $30-$85/month with USAA and State Farm being close second at $35 and $38 respectively.

Insurance Company	$200K Policy	$300K Policy	$500K Policy
	$85	$120	$180
	$55	$90	$140
	$58	$95	$150
	$30	$60	$100
	$40	$75	$120
	$50	$85	$135
	$48	$80	$130
	$38	$65	$110
	$46	$78	$125
	$35	$60	$105

When getting home insurance quotes in Illinois, remember that providers like Allstate charge more but offer more coverage. For the best home and auto insurance companies in Illinois, providers like Liberty Mutual and Progressive are in the middle at $40-48/month.

Illinois Homeowners Coverage Options

A standard homeowners policy in Illinois includes basic protections but extra add on coverage differs among insurers. Basic plans protect against typical risks, yet supplemental options add value to your policy.

Insurance Company	Water Backup	Earthquake	Identity Theft	Equipment Breakdown	Service Line
	✅	✅	✅	✅	✅
	✅	✅	✅	✅	✅
	✅	✅	✅	✅	✅
	✅	❌	✅	❌	❌
	✅	✅	✅	✅	✅
	✅	✅	✅	✅	✅
	✅	❌	✅	✅	❌
	✅	✅	✅	✅	✅
	✅	✅	✅	✅	✅
	✅	✅	✅	✅	✅

State Farm or USAA provide complete protection but if you focus mainly on water damage along with identity protection, cost effective choices like Geico suit your needs as well as help maintain lower premiums. The average cost stays reasonable with such providers in Illinois.

Read More: Does Homeowners Insurance Cover Plumbing?

Getting Cheap Homeowners Insurance in Illinois Through Discounts

To lower your Illinois home insurance, take a look at the discounts from top providers listed in the table below. State Farm tops the list with a 22% bundling discount, followed by Nationwide at 20%.

A comprehensive Illinois home insurance quotes comparison shows consistent discounts across the board - all companies offer 15% for home security systems.

Insurance Company	Bundling	Claim-Free	Home Security	New Home	Loyalty
	10%	10%	15%	10%	10%
	10%	10%	15%	10%	10%
	10%	10%	15%	10%	10%
	10%	10%	15%	10%	10%
	10%	10%	15%	10%	10%
	20%	10%	15%	10%	10%
	10%	10%	15%	10%	10%
	22%	10%	15%	10%	10%
	13%	10%	15%	10%	10%
	9%	10%	15%	10%	10%

While standard discounts are similar, combining multiple discounts can really add up to lower average Illinois home insurance cost. For example, a claim-free homeowner with security systems could save 25% with any company.

When you bundle, you don't have to pick 😉 #NFLDraft pic.twitter.com/LL0aBcY0Dm

— GEICO (@GEICO) April 27, 2023

Beyond standard discounts, consider raising your insurance deductible or installing smart home devices - these can additional save you 5-15% and protect your home.

Finding Your Best Illinois Home Insurance Deal

For the best and cheapest homeowners insurance in Illinois, State Farm, Nationwide, and Travelers stand out due to their exceptional discount offerings - with State Farm's 22% bundling discount, Nationwide's robust claims handling, and Travelers' online claim tracking system.

When seeking home insurance quotes Illinois, remember that bundling policies with State Farm could save you up to $450 annually on a $200K policy.

Compare quotes from the best homeowners insurance companies by entering your ZIP code into our free tool.