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Checked against official sources · Last reviewed October 13, 2026

What homeowners insurance costs in Illinois: average premium, 2023 $1,480 a year in Illinois vs. $1,737 countrywide · 32nd highest of 51 · All states (HO-3 policies; NAIC)

Illinois's market right now

The Illinois Department of Insurance's 2026 report to the General Assembly (dated July 1, 2026) gives the latest official picture, for calendar year 2025:

- Homeowners premiums written in Illinois rose 9.6% in 2025, to about $6.93 billion. - The share of premiums paid out for losses (the loss ratio) fell 16.4 percentage points from 2024 to 61.4% in 2025. - State Farm Fire and Casualty wrote 33.73% of the market. The ten largest homeowners insurers together held 66%. - The Illinois FAIR Plan wrote about $4.5 million of dwelling and homeowners premium, 0.06% of the market. The department calls property insurance "widely available in the voluntary marketplace" in Illinois. - Homeowners policies written by surplus lines insurers (see below) rose from 1,392 in 2023 to 2,499 in 2025.

On July 10, 2025, Governor JB Pritzker called State Farm's homeowners rate increase "unfair and arbitrary" and said it was "predicated on catastrophe loss numbers that are entirely inconsistent with the Illinois Department of Insurance's own analysis." He directed the department "to take all available regulatory action" and asked lawmakers for "a legislative solution." In 2026, lawmakers passed the rate-review law described next. [12][13]

New laws passed in 2026

Three laws passed in 2026 change Illinois homeowners insurance. The parts described here were not yet in effect as of Oct. 13, 2026.

The rate-review law does not cover policies on rented-out homes, vacant homes being readied for sale or rent, farm policies, or commercial policies.

One thing that did not pass: SB 4006 as first filed would have created a "Strengthen Illinois Homes" grant program and required premium discounts for homes built to mitigation standards. A Senate committee amendment removed both before the bill passed. [4][7][10][11][14][15][16]

If your insurer won't renew your policy

Illinois law calls a homeowners policy a "policy of fire and extended coverage insurance": it covers a home used mainly as a residence, up to a 4-family dwelling, and household belongings. For these policies:

- Notice: your insurer must mail you at least 30 days' advance notice that it won't renew, keep proof of mailing, and send a copy to your agent and mortgage lender. The nonrenewal can't take effect until at least 30 days after the mailing date. Starting Jan. 1, 2027, both numbers become 60 days (Public Act 104-534). The official statute page also shows versions of this section from two later 2026 laws (Public Acts 104-752 and 104-753) that still print 30 days; those laws changed other parts of the section, not the nonrenewal notice period. - Reason: the notice must give "a specific explanation of the reasons for nonrenewal." The Department of Insurance says the company "may not simply state 'fraud' or 'misrepresentation'." - Insured 5 years or more: once the policy has been in effect or renewed for 5 or more years, the insurer may not refuse to renew unless the policy was obtained by misrepresentation or fraud, the risk has "measurably increased," or you got 60 days' notice. - Reasons insurers can't use: the age or location of the property, or the age, sex, race, color, ancestry, marital status or occupation of the people living there. The department adds that an insurer can't nonrenew based solely on your credit report. - Repairs: if the reason is that your home's condition has declined, the department says the company must give you time ("not more than 90 days") to make the required repairs. - If the insurer skips the notice: the policy stays in force until you get similar coverage elsewhere. - FAIR Plan notice: unless the reason is nonpayment or evidence of arson ("incendiarism"), the insurer must tell you that you may be eligible for the Illinois FAIR Plan and how to apply. From Jan. 1, 2027, that notice must include the plan's mailing address, website and phone number.

Even without a nonrenewal, an insurer that changes deductibles or coverage across a whole line of policies must mail you notice at least 60 days before your renewal date. [1][2][3][4][5][17][18]

If your insurer cancels mid-term

During the first 60 days of a new policy, the department says the company "may cancel for almost any reason." After that, or on any renewal policy, Illinois law lets the insurer cancel only for:

• nonpayment of premium;
• a policy obtained by misrepresentation or fraud; or
• "any act which measurably increases the risk originally accepted."

An insurer may not cancel a homeowners policy when "the sole basis" is that it paid a claim or claims on the policy. The cancellation notice must be mailed at least 30 days ahead (10 days for nonpayment) and must explain the specific reasons.

Under Public Act 104-534, starting Jan. 1, 2027, Section 143.16's timing also covers homeowners policies: at least 30 days' notice during the first 60 days, and at least 60 days once coverage has been in effect 61 days or more (still 10 days for nonpayment). Section 143.15, with its 30-day rule, was not repealed, so ask the Department of Insurance which applies to your notice. [4][16][19][20][21][22]

You can ask for a hearing

If you think a cancellation or nonrenewal breaks the rules, you can appeal to the Director of Insurance. Mail or deliver a written hearing request that "clearly state[s] the basis for the appeal" at least 20 days before the cancellation or nonrenewal takes effect. This doesn't apply to cancellation for nonpayment. The notice you received must explain this right.

The law says the director must call a hearing within 10 days of getting your request and issue written findings within 20 days after it ends, and "The policy will remain in force" until then. If you win, the insurer must withdraw the notice. If the company wins, the termination takes effect at least 30 days after the order. Hearing costs charged to the losing side can't exceed $100. [3][19][23]

Last resort: the Illinois FAIR Plan

The Illinois FAIR Plan Association is a not-for-profit association funded by Illinois insurance companies. It sells homeowners, renters, condo, dwelling and commercial property policies to people who can't get coverage in the regular market "for reasons beyond their control."

- Who qualifies: the Department of Insurance says you need "three unsuccessful attempts" to buy coverage, and your property "must meet basic fire, loss prevention, and safety standards." - How to apply: through any licensed Illinois insurance agent or broker. The plan surveys every property. - Limits: up to $750,000 on a home and $1,000,000 on commercial property. - Hail and storm losses: the plan says it "generally does not decline properties affected by acts of nature losses," but coverage may be reduced or deductibles raised. - Rates: homeowners rates rose an average 11.6% on April 1, 2026.

Full details are on our Illinois FAIR Plan page. [8][9][24][25][26]

Hail, storms and your claim

The Department of Insurance's 2026 report lists windstorm and hail among the perils covered even by the most basic homeowners form (HO-1). A few state rules matter when a storm hits:

- Roofers must be licensed. The Illinois Department of Financial and Professional Regulation (IDFPR) licenses roofing contractors. Its roofer brochure says a roofer may not promise to pay or rebate any part of your insurance deductible. - After a storm "catastrophe" (such as a windstorm or hailstorm that damages more than one home), IDFPR says you may cancel a roofing contract within five business days of hearing from your insurer that all or part of the claim isn't covered, and the roofer may not represent you on the claim or file it for you. - Public adjusters work for you and charge a fee, usually a percentage of your settlement; your policy doesn't pay that fee. The Department of Insurance says you don't have to hire one and suggests talking to department staff first. - Temporary repairs: the department says to make "all necessary temporary repairs" to prevent more damage, keep receipts, and get your adjuster's agreement before contracting for permanent repairs.

Mitigation discounts: Illinois has no law requiring insurers to discount stronger roofs (the proposal was dropped from SB 4006, above). The department says some insurers offer discounts if you "disaster-proof your home," "get a new roof" or add security devices, so ask your agent. [7][8][12][27][28][29]

Other Illinois rules worth knowing

- Turned down elsewhere? An insurer can't refuse or drop you solely because another insurer refused, canceled or didn't renew you. - Location: insurers may not refuse coverage "solely on the basis of the specific geographic location of the risk" unless it's for a real business purpose that is "not a mere pretext for unfair discrimination." - Insurers leaving the market must notify the Director of Insurance 90 days before dropping a line of business. - Sewer backup: insurers must tell homeowners applicants about sewer backup and sump pump overflow coverage, and give you information on it at least 30 days before each renewal. - Earthquake: in the New Madrid Seismic Zone, insurers must tell homeowners applicants about earthquake coverage. The department says basic homeowners policies don't cover earthquake or mine subsidence. - Mine subsidence: Illinois law requires policies on homes to include mine subsidence coverage, at a separately stated premium, unless you waive it in writing. Counties of 1 million or more people and the counties next to them are exempt, and the director may exempt others. [29][30][31][32][33][34][35][36]

Surplus lines

If regular (admitted) insurers and the FAIR Plan won't take you, an agent may place you with a surplus lines insurer, an unlicensed ("non-admitted") company placed through a licensed surplus lines producer. The Department of Insurance warns that it "has little jurisdiction over unlicensed companies and the Illinois Insurance Guaranty Fund provides no protection for the consumer." More on how these policies work: surplus lines insurance. [12]

Flood is a separate policy

The Department of Insurance says "The standard homeowners insurance policy does not cover flood damage." Starting Jan. 1, 2027, insurers must give you a plain-language notice saying so. For flood zones and flood insurance, see our sister site FloodHawk. [4][8]

Where to get help

The Department of Insurance says to contact your insurance company or agent first and keep notes and copies. If that doesn't work, call its Consumer Assistance line at (866) 445-5364. Complaints "MUST be submitted in writing":

- online through the IDOI Help Center (see the department's complaint page for forms); - by email to DOI.complaints@illinois.gov; - by mail to 4800 Wabash Avenue, Springfield, IL 62711; or - by fax to (217) 558-2083.

What to expect: "Illinois law allows 21 days for an insurer or agent to respond," and the department asks you to allow four to six weeks for its investigation. The department can't act as your lawyer or recommend an insurer. [6][37][38]

Questions people ask