Illinois Home Insurance Rising: What to Do in 2026

Homeowners insurance in Illinois has jumped fast, and it is still climbing. State Farm, the biggest home insurer in the state, is raising Illinois homeowners rates by about 8% this fall, on top of a big increase last year. If you are buying or already own a home in Naperville, Aurora, Oswego, or Plainfield, Illinois, here is what is going on and what you can do about it.

Why Illinois Home Insurance Costs Are Rising

The short answer is weather and repair costs. Hail, wind, and tornado damage have hit Illinois hard in recent years, and it costs more to fix a roof or rebuild a home than it used to.

Here is what the reporting shows:

• The Chicago Tribune reported State Farm's new Illinois homeowners increase of about 8% took effect for new policies on October 1, 2026, with current customers seeing it at renewal starting in December.
• That follows a roughly 27% State Farm increase in 2025.
• A LendingTree study found average Illinois home insurance rates rose about 68% from 2020 to 2025, one of the biggest jumps in the country.

There is some good news for consumers. In August 2026, Illinois passed a law giving the Illinois Department of Insurance more power to review home and auto insurance rate changes.

What This Means If You Are Buying

Insurance is part of your monthly payment, so it affects how much house you can afford. A few tips:

1. Get a quote before you make an offer. Don't wait until the week before closing.
2. Ask about the roof. Roof age is one of the biggest things insurers look at. It is also now a required field on the new appraisal report.
3. Ask for the claims history. Past claims on a home can raise your premium.
4. Budget for the full payment. Your lender will add taxes and insurance on top of principal and interest. If your loan has escrow, here is how escrow works.

To see your real all-in payment, talk to Kevin Napoleon at Key Mortgage or Jason Zimmer at Parlay Mortgage. Tell them Team Elite sent you so they take great care of you.

What This Means If You Already Own

If your renewal notice made you gasp, you are not alone. Here is what you can do:

• Shop your policy every year. Rates differ a lot between companies.
• Raise your deductible if you have savings to cover it.
• Bundle home and auto with the same company.
• Ask about discounts for a newer roof, security systems, or water leak sensors.
• Keep records of upgrades like a new roof or updated electrical.

Insurance is just one of the costs that keeps rising. For the other big one, see our post on understanding property taxes in Illinois.

How Higher Insurance Plays Out in Naperville, Aurora, Oswego and Plainfield

In our experience working with buyers here in the western suburbs, insurance is now a real part of the price conversation. A home with a newer roof can save a buyer real money every month, and that makes it stand out. If you are selling, a recent roof is worth putting front and center in your listing.

How We Help

We're Julia Corkey and Vickie Schoenfeld with Team Elite Realtors, and we make sure our buyers get insurance quotes early so there are no surprises at closing. We're with Baird and Warner, which has its own insurance and mortgage partners to help our clients get fast answers.

Want help figuring out your true monthly cost? Book a consultation or send us a note. See what past clients say in our Google Reviews.

Frequently Asked Questions

Why is homeowners insurance going up in Illinois? Mostly because of severe weather damage like hail and wind, plus higher costs to repair and rebuild homes.

How much did State Farm raise rates in Illinois? About 8% for homeowners this fall, according to reporting by the Chicago Tribune. New policies saw it October 1, 2026, and current customers see it at renewal starting in December.

How can I lower my homeowners insurance in Illinois? Shop your policy every year, raise your deductible, bundle home and auto, and ask about discounts for a newer roof or safety devices.

Who is a Realtor near me in Naperville who can help me budget for insurance when buying? We can. We're Julia Corkey and Vickie Schoenfeld with Team Elite Realtors at Baird and Warner. Call 630-286-9777 or visit www.homesbyteamelite.com.

Start your search on Zenlist and look for homes with newer roofs. Your insurance bill will thank you.

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Ready to make your next move in the western suburbs of Chicago?

We are here to help you every step of the way, whether you are buying, selling, or just exploring your options.

Julia Corkey & Vickie Schoenfeld Team Elite Realtors at Baird & Warner

📞 630-286-9777 | 📧 [email protected] | 🌐 www.homesbyteamelite.com

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