When we look at the average price of home insurance in Illinois, we definitely see annual increases – in fact, Illinois homeowners saw a 7% increase in premiums from 2021 to 2022 and then another 7% increase from 2022 to 2023 – and part of that is because Illinois had 257% more natural disasters over the last 20 years than in years past! But don’t fret, there are ways you can maintain lower insurance premiums with a little thought and effort.
- First – shop around: it’ll take some time to research but it can save money. Check with various insurance agents and companies. You will get a good idea of price ranges and which companies offer lower premiums. Always check reviews and make sure you talk to these insurers and ask questions!
- Next; raise your deductible: the higher your deductible, the lower your premium. You can save up to 25% on your premium. In the long run, the monthly savings can cover the higher deductible if you have a claim.
- Don’t confuse what you paid for the home with rebuilding costs: the land under your home is not at risk from theft, wind, or fire so do not include the value of the land when deciding how much insurance to buy. Deduct the value of the land from the cost to rebuild.
- Bundle! Buy a home and auto policies from the same insurer: do your research first and make sure the combined premium is lower than buying the insurance separately from different companies.
- Finally – improve your home: if you are in an old home – do updates on your electrical and plumbing or even consider changing old damaged wood siding to fiber cement – if you have an aged cedar shake roof – replace it with asphalt – your premiums will go down with these less flammable products protecting your home. But be sure to tell your insurance agent you made these updates and get them reflected!
There’s a lot to consider when owning a home. Reach out to me if you have questions or need to connect with an insurer in the Chicagoland area.