Illinois has seen 1 of greatest increases in home insurance rates. Here’s why

Illinois has seen the 7th-greatest cumulative increase in average home insurance rates from 2020 to 2025, according to a recent analysis.

Financial company LendingTree found in its June 8 report, “State of Home Insurance: 2026,” Illinois’ average home insurance rate increased by 68% over the five-year period, while Colorado led the nation with the greatest cumulative increase of more than 100%.

The steep increases are not exclusive to a few states.

“Between 2020 and 2025, home insurance rates have risen 46.8% cumulatively. That multiyear climb has been anything but gradual,” LendingTree’s analysis said.

In Illinois, an increase in tornadoes has contributed to spikes in home insurance rates as wind, hail and other storm damage batter homes.

“There has been a rise in claims in Illinois over the past few years, primarily driven by climate patterns and weather,” Frank Manzo IV, an economist with the Illinois Economic Policy Institute, told the News-Democrat in a recent interview.

Illinois hasn’t been the only state to see weather impact insurance rates — Florida has also been particularly affected due to hurricanes and flooding events.

“If your neighbor submits a claim, and then another neighbor submits a claim, even if you don’t, your homeowner’s insurance premiums are likely to increase because the insurance cost is spread out over the whole population,” Manzo said.

In addition to storm damage, another factor leading to increased rates is home price growth, Manzo said. Home prices saw a 5.6% increase in Illinois from May 2025 to May 2026, according to real estate company Redfin, and Madison County’s increase was even steeper, at 5.9% per Zillow.

When insurance companies reduce or eliminate coverage for homes in certain states due to an increase in natural disasters, less competition often leads to higher rates and fewer options for homeowners to shop around, Manzo said.

Here’s how Illinois compared to other states for the increase in home insurance premiums. Top 10 states with greatest increases

Here’s how the top 10 states with the biggest cumulative increases in home insurance rates from 2020 through 2025 compared, according to LendingTree:

1. Colorado: 100.8% increase

2. Iowa: 96%

3. Minnesota: 88.2%

4. Utah: 77.2%

5. Nebraska: 72.2%

6. Arizona: 71%

7. Illinois: 68%

8. South Dakota: 62.8%

9. Oregon: 56.5% (tie)

9. Montana: 56.5% (tie)

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