The cost of owning your home includes the cost of home insurance. The average cost of homeowners insurance across the United States is $1,083 per year; in the state of Illinois, the average annual cost in the year 2020 was $1,443. Among the top eight insurance carriers, the average annual cost ranges from a low of $1,015 to a high of $2,152.
Factors Which Pricing Of Home Insurance Premiums In Illinois
The average cost should be regarded as a ballpark estimate only; it may differ considerably from what you actually pay for your premiums. When you compare what you are paying for your homeowners insurance to the national or statewide average cost, you may be comparing apples and oranges.
Before you conclude that you are paying too much for your premiums compared to the cost averages, consider what risks your policy covers. In Illinois, premium prices vary based on a number of factors, including the value and frequency of homeowners claims filed in the state. The price also factors in the value of the home and any personal property you seek to insure. Many other factors affect the price you pay for homeowners insurance in Illinois:
The dwelling coverage of your policy covers damage to your home caused by wind, hail, and snow. Illinois is a state that experiences extreme weather events, such as tornadoes, hail, thunderstorms and harsh winters. In fact, Illinois has an average of about 54 tornadoes each year.
As a homeowner in a state where tornadoes are not uncommon, your risks of wind and hail damage are higher than in other parts of the country. Even within the state itself, some parts of Illinois experience a higher frequency of tornadoes than other parts of the state. You should have sufficient coverage for the cost of rebuilding your home if it is destroyed by a tornado.
Be aware that wind protection provides coverage to your home’s exterior and structure; however, your policy may or may not cover damage to your home’s interior. Also, some damage caused by a storm or tornado may not be covered. A common example is a storm that causes flooding and damages your home. The standard homeowners insurance policy does not provide coverage for flood damage; that would specifically require flood insurance coverage.
Your dwelling coverage is also limited to the replacement value of your home. Consult with your insurance agent to determine the amount of depreciation of your home against the amount of dwelling protection provided by your policy. If you find yourself to be underinsured, you may want to consider buying guaranteed replacement cost coverage.
With some companies, you may be able to pay a little more for premiums in exchange for better coverage. For example, with a top tier carrier, your homeowners insurance may include replacement cost coverage at no extra cost. An additional benefit provided by replacement cost coverage is that your coverage may not be reduced based on your property’s depreciation. You may pay a little more for the basic premiums but you will not have to pay as much as you would to upgrade your policy to include this coverage with another provider.
Location, Location, Location
Another risk factor is the location of your home. If it is located in Chicago, your premiums will be higher than in smaller metropolitan areas. In fact, the cost of homeowners insurance in Chicago is higher than any other part of the state. The cost premiums in the Champaign and Elgin areas are among the lowest of Illinois’ metropolitan areas.
The deductible amount is the amount you pay out of your pocket before the insurance coverage begins. You can lower your total cost of premiums by increasing the amount of deductible you will pay in the event of damage. Conversely, you will pay higher premiums for lower deductible amounts. Deductible amounts range from a low of $500 up to $5,000.
Your insurance company may offer discounts based on many different reasons. Bundling is one way you may be able to save some money on your premium costs. If you bundle your homeowners insurance with other insurance offered by the same company, such as your automobile insurance, you may get better rates.
Shop around for discounts offered by different carriers. One well-known carrier, for example, offers a discount of up to 28% off your homeowners policy for new wiring in your home. You can also benefit from discounts if your home is new or if you have taken steps to deter theft by installing an alarm system.
Customer Satisfaction When Filing A Claim
When you need to file a claim for damage to your home, you want to know that your insurance company will be there for you. One of the most important considerations is how well your company will respond when you have a claim and how quickly you can get it resolved.
Though you may be paying less for your premiums than the statewide average, if you are unable to get a response or timely assistance when you have questions or problems, there becomes no value in that savings.
Contact The Homeowners Insurance Specialists At Pro Insurance Group
When it comes to homeowners insurance for your Illinois home, ensure that you are fully covered and paying a fair price for premiums.
Contact the home insurance specialists at Pro Insurance Group today for more information about the coverage and competitive rates available to you by calling 833.619.0770 or by requesting a quote online.