Illinois Homeowners Pay Some of the Lowest Insurance Costs In The Country

Illinois homeowners continue to enjoy relatively low insurance costs compared with many parts of the country.

While premiums have surged in high-risk markets along the Gulf and Atlantic coasts, new data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report show that Illinois households remain largely insulated from the steepest increases.

Illinois’s Insurance Costs Stay Affordable

According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Illinois homeowners with a mortgage typically pay $1,000–$1,499 annually for homeowners insurance, while those without a mortgage average the same range of $1,000–$1,499. Overall statewide costs also fall between $1,000–$1,499.

Illinois has 3,449,961 insured homeowner households in total—2,060,729 with a mortgage and 1,389,232 without. Among mortgaged owners, 174,465 pay less than $100 annually and 107,007 pay $4,000 or more. Among those without a mortgage, 217,993 pay less than $100 and 56,501 pay $4,000 or more.

Compared with nearby states, Illinois is on the affordable end. Indiana homeowners typically pay $1,000–$1,499 regardless of mortgage status, while Wisconsin averages the same. Michigan is similarly affordable, with mortgaged owners paying $1,000–$1,499 and non-mortgaged paying $800–$999. To the west, Iowa homeowners also fall into the $1,000–$1,499 range. By contrast, Missouri trends slightly higher at $1,500–$1,999 for mortgaged households. This makes Illinois one of the more affordable options in the Midwest.

Climate Risks and Regional Impacts

The Realtor.com 2025 Climate Risk Report emphasizes that the steepest insurance burdens are concentrated in coastal states. Miami homeowners pay an average of $22,718 annually, representing 3.7% of median home value—the highest in the country. Other Florida metros, along with New Orleans, also rank among the most expensive.

Illinois does not appear on the list of metros with the heaviest insurance burdens, nor does it rank highly for flood or hurricane risk. However, the state is not without exposure. Severe storms, flooding along river systems, and occasional tornadoes can all create insurance challenges at the local level.

Still, compared with the Gulf Coast and wildfire-prone Western states, Illinois’s risks remain moderate, helping keep premiums affordable for most households.

Insurance Affordability A National Issue

Even with relatively low costs in Illinois, insurance affordability remains a national concern. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they have already faced difficulties renewing or obtaining policies.

These pressures are reshaping housing decisions. Nearly 30% of homebuyers said they had completely changed the area where they were searching due to insurance concerns, while another quarter reported overhauling their entire buying strategy. Perhaps most concerning, 58% of homeowners said they would consider dropping insurance altogether if premiums became too expensive, with younger generations the most likely to take that risk.

For Illinois households, affordability provides a buffer compared with more climate-exposed states. But with severe weather events becoming more frequent across the U.S., even states with relatively modest premiums may not remain insulated forever.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.