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PERSONAL INSURANCE · ILLINOIS
Illinois Landlord Insurance
A local independent brokerage with offices in Huntley and Elgin, writing rental property coverage across Illinois. We know which carriers want a McHenry County duplex and which will decline a 1920s Chicago three flat, before you waste a week finding out.
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- Illinois Landlord Insurance
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Quick Answer: Illinois landlord insurance costs about $2,000 per year for a rental with a $200,000 dwelling limit. Illinois does not require landlord insurance by statute, but your mortgage lender almost certainly does, and a homeowners policy will not pay a claim on a tenant occupied property. Chicago area rentals price above collar county and downstate properties.
Illinois is a strong rental market and a genuinely tricky insurance market. Housing stock in Chicago and the older river towns runs a century old. The Fox River corridor floods. Carrier appetite for habitational risk shifts every year. The result is that two owners with nearly identical buildings can pay very different premiums depending on which carrier they happened to call.
Own a rental anywhere in Illinois?
We shop it across 20+ A-rated carriers and tell you where your current policy has gaps. No agency fees, ever.
Get My Free QuoteIs landlord insurance required in Illinois?
Not by state law. There is no Illinois statute requiring a landlord to carry property or liability insurance on a rental. In practice you will still need it for three reasons:
- Your lender requires it. Essentially every mortgage on an investment property requires proof of coverage naming the lender as mortgagee.
- Your homeowners policy will not respond. Once a tenant occupies the property, a homeowners form is the wrong policy and the claim can be denied.
- Some municipalities and rental registration programs ask for evidence of insurance as a condition of a rental license.
More detail: what landlord insurance is required in Illinois and whether landlords must carry insurance by law.
What Illinois landlords pay by region
| Region | Relative premium | What drives it |
|---|---|---|
| Chicago and near suburbs | Highest | Pre-1940 housing stock, combined sewers, higher liability severity, knob and tube wiring |
| McHenry and Kane counties | Mid | Newer construction and good protection class, but Fox River flood exposure in places |
| DuPage and Lake counties | Mid to high | Higher property values push dwelling limits up |
| Downstate | Lowest | Lower rebuild costs, though rural protection class can offset it |
Full breakdown by dwelling limit and property type on our landlord insurance cost guide.
Four Illinois exposures we see on almost every rental
Sewer and water backup
Excluded by default. In older combined-sewer neighborhoods this is the single most common claim we see on Illinois rentals. Always add it.
Fox River flood zones
Elgin, Algonquin, Carpentersville and McHenry all have mapped flood exposure. Flood is never in a landlord policy. You need a separate flood policy.
Freeze and burst pipes
Illinois winters plus a vacant unit is a burst pipe waiting to happen. Most forms restrict freeze coverage if heat was not maintained, so vacancy handling matters.
Ordinance or law
Rebuilding a century old Illinois property to current code costs far more than the original structure. This endorsement is cheap and routinely left off.
Where we work
Our offices are in Huntley and Elgin, and we write rental property across the state. If you own in McHenry County or Kane County we are local to you. If you own in Chicago, Aurora, Naperville, Rockford or downstate, we are licensed there too and shop the same carrier panel. Also see Illinois home insurance if you live in one unit and rent the others.
Send us your declarations page
We will show you exactly which Illinois exposures your current policy is missing, free, with no obligation to move it.
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Illinois Landlord Insurance FAQ
How much is landlord insurance in Illinois?
About $2,000 per year for a rental with a $200,000 dwelling limit, which is roughly 15 to 25 percent above a comparable homeowners policy. Chicago area rentals price higher than collar county and downstate properties because of older housing stock and higher liability severity.
Is landlord insurance required by law in Illinois?
No Illinois statute requires it. Your mortgage lender will require it on a financed investment property, some municipal rental registration programs ask for evidence of coverage, and a homeowners policy will not pay a claim once the property is tenant occupied.
Can I require my Illinois tenants to carry renters insurance?
Yes. You can make renters insurance a condition of the lease in Illinois, and you should. It moves tenant contents claims off your policy, gives the tenant liability coverage that can respond before yours does, and some carriers credit your premium for it. Ask to be named as an interested party so you are notified if it lapses.
Do I need flood insurance on an Illinois rental?
Flood is never included in a landlord policy. If the property sits in a mapped flood zone, including much of the Fox River corridor through Elgin, Algonquin, Carpentersville and McHenry, a lender will require a separate flood policy. Even outside a mapped zone it is worth quoting, since most Illinois flood claims happen to properties that were not required to carry it.
Illinois Rentals Are Our Home Market
Offices in Elgin and Huntley, licensed in 40+ states, appointed with 20+ A-rated carriers. We know which markets want your building. No agency fees, ever.
Get My Quote Call 833-776-4671Call 833-776-4671 or text "quoteme" to 312-878-9416.
DR
Reviewed by Dave Rysavy
VP, Personal Lines · Pro Insurance Group. Dave places personal lines and rental property coverage for Illinois property owners at Pro Insurance Group.
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