Report shows Illinois 2nd in nation for sharpest homeowners insurance increases

(The Center Square) – Already faced with the second-highest property taxes in the nation, a new report shows just how challenging it is for Illinoisans to own a home.

The Consumer Federation of America released a new report that shows Illinois homeowners saw their insurance premiums increase by an average of 50% over the past three years. Only Utah (56%) was higher.

The study authors of “Overburdened: The Dramatic Increase in Homeowners Insurance Premiums and its Impacts on American Homeowners” used proprietary industry data purchased for this research to evaluate the growth in insurance premiums for typical homeowners in every ZIP code in the country.

Douglas Heller, CFA director of Insurance, said the increases come as the U.S. property and casualty insurance industry sits on a $1.1 trillion surplus.

“That massive surplus doesn't mean that insurers can’t ask for more rates if they need it, but regulators should be asking tougher questions and demanding more transparency to determine if all these rate hikes are truly justified,” said Heller.

From 2021 to 2024, annual insurance premiums for a typical homeowner increased by an average of $648 across the country. By 2024, typical homeowners paid $3,303 per year for homeowners insurance. American homeowners saw their insurance premiums increase by an average of 24% over the past three years, but it was more than double the percentage in Illinois.

“Here in Illinois, insurers are able to do this without any meaningful scrutiny as Illinois regulators have no authority to reject or modify excessive property or casualty insurance rate hikes,” said Abe Scarr, director of the Illinois Public Interest Research Group.

CFA calls on lawmakers and regulators to require insurance companies to publicly disclose all transactions with consumers in ways that mirror the detailed data reporting of mortgage applications.

“We’ve seen the insurance industry transition from climate denialism to climate opportunism,” said Scarr. “These problems will only get worse and it's time for policymakers to get more proactive to ensure a stable and fair homeowners insurance market.”