Homeowners insurance rates have spiked by 25% in Illinois

So what's behind this sudden upsurge in homeowners insurance rates, and how are homeowners dealing with it? Moreover, is there anything you, as a homeowner, can do about it? Read on for answers.

What Illinoisans Are Paying for Homeowners Insurance

First, let's take a look at what Illinoisians are paying for their homeowners insurance right now. Kristine Lee at insurance comparison site The Zebra has some numbers: The average Illinois homeowner pays about $1,443 a year, or $120 a month, which is slightly higher than the national average of $1,406. Lee also points out that you can certainly get lower rates — Liberty Mutual, for example, can offer rates for as low as $816 yearly, though that coverage may or may not be everything you need. Rates by city also vary — for example, you can expect to pay even more than $120 a month in Chicago.

What's Affecting Home Insurance Costs?

Several factors are influencing this expensive state of affairs in Illinois. For one, supply chain issues and inflation have raised the cost of almost everything, from food to fuel to utilities. Construction costs for both materials and labor have also gone up, meaning repairs or rebuilding as the result of an insurance claim are more expensive. The increased frequency of weather-related disasters like storms and floods also tend to result in expensive claims, and insurers nationwide are passing that risk on to the consumer in the form of higher premiums. Sadly, most of these issues are not going away, and homeowners can expect prices to rise even more going into the future.

As a result, homeowners insurance is getting more difficult to afford or even obtain. In some states, such as Florida, insurance companies are pulling up stakes entirely. Others are not offering policies to residents of certain disaster-prone areas, potentially leaving homeowners high and dry. While things aren't that dire in Illinois yet, the surge in prices will undoubtedly make it more challenging for aspiring and existing homeowners.

How Homeowners Are Responding

The situation is serious enough that some homeowners are making the drastic decision to go without insurance. According to reinsurance company Swiss Re, the number of insured homeowners has dropped from 95% to around 88% in recent years, usually due to financial strain. While this is only an option for people who own their home free and clear — practically all lenders will require homeowners insurance as part of a mortgage — it's still not good news.

How You Can Lower Your Rates

So what can homeowners do to find the best cheap homeowners insurance in Illinois? Here are a few strategies to get you started:

Look into the FAIR Plan

FAIR stands for Fair Access to Insurance Requirements, which is a program available in many states designed to help provide coverage to struggling homeowners. If you are having difficulty finding coverage due to high-risk factors (such as bad credit), then the FAIR program may be able to help you find more accessible, affordable home insurance options.

Shop Around for Homeowners Insurance

One of the best ways to find cheap Illinois car insurance is to use a comparison website to get quotes. Not all insurance companies are created equal, and you may find that your potential premiums vary a great deal from one to the next. With luck and a little homework, you can find a policy you can afford without having to compromise on the amount of coverage.

Reinforce Your Home and Beef Up Security

Weighing risk is at the heart of how insurance companies make money — in a way, they are gambling on whether or not you'll have a reason to make a claim. The higher the likelihood of a claim, the more they'll charge you for premiums. So it stands to reason that one the best ways to bring premiums down is to reduce that risk.

This can be done in a few ways. First, you can take some proactive measures to fortify your home against things like extreme weather events: install storm doors and windows, reinforce your roofing, build a storm shelter, or install fire-resistant materials on the outside of your house.

But reducing risk isn't just about protecting against natural disaster: you can also take steps to help avoid burglary, such as installing burgler alarms, surveillance systems, automatic lights, smart-home features, and other safety measures. This will reduce the chance of your home being burglarized and, by extension, may earn you a hefty discount on your home insurance premiums.

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