If you’re considering purchasing a home in Illinois, make sure to consider homeowners insurance. Whether you plan to finance your home or pay in cash, ensuring your new investment is adequately protected through insurance is a must.
Let’s look closer at the importance of homeowners insurance and the coverage options for Illinois residents. You’ll also learn some tips on how to select the right policy.
What Is Homeowners Insurance?
Homeowners insurance is a type of property insurance that covers your home and its contents against damage or loss from unforeseen events. It also covers personal liability. The said events are usually outlined in the policy as perils and include fire, theft, vandalism, tornadoes, windstorms, hail, and other natural disasters.
Homeowners Insurance Policies in Illinois
Homeowners insurance policies in Illinois come in various types. Below are some of the most common:
- HO-1 covers specific perils, such as fire or lightning, explosion, theft, vandalism, and windstorms.
- HO-2 protects the policyholder from all perils in HO-1 plus other events, including falling objects, accidental discharge, or overflow of water or steam.
- HO-3 is designed to cover all perils other than those excluded in the fine print. Earth movements, war, flood damage, and nuclear accidents are some common exclusions.
- HO-4 is designed for renters to cover their personal property against 16 standard perils.
- HO-5 is similar to HO-3 except for a few differences. It covers personal property and the dwelling at replacement cost value, while HO-3 covers personal property at actual cash value.
- HO-6 is designed for condo owners. The coverage may depend on the condo association’s insurance policy or HOA. It typically covers the individual dwelling, personal property, and liability protection.
- HO-7 is similar to HO-3 but is specifically designed for mobile or manufactured homes.
- HO-8 provides coverage for older homes that fail to meet current building code standards.
Coverage Options Available in Illinois
The most common coverage options in Illinois are:
Dwelling Coverage
Dwelling coverage protects your house and its attached structures from damages or loss caused by the perils listed in the policy. These include materials used to construct the home, electrical wiring, plumbing, and heating and cooling systems.
Personal Property Coverage
It covers personal belongings, such as furniture, electronics, clothing, and appliances, but only up to a specific limit.
Liability Coverage
Suppose someone gets injured on your property and sues you for medical expenses or damages. In that case, liability coverage will protect you financially. It also covers damages accidentally caused by a family member to another person’s property or its owner.
Factors Affecting Homeowners Insurance Costs in Illinois
Bankrate reports that Illinois homeowners insurance costs locals an average of around $2,186 per year for a $300,000 property. The exact price varies depending on:
- Home characteristics: Large and expensive homes incur higher repair or replacement costs, hence high premiums. Also, old houses are considered more vulnerable to weather elements and are more costly to insure.
- Location: Homes in areas prone to the covered perils entail higher insurance costs.
- Coverage options: Comprehensive policies, such as HO-3 and HO-7, have higher premiums. If the exclusions in these contracts are limited, the costs will be even higher. Basic policies, such as HO-1, will have lower premiums.
- Deductible: The higher the deductible, the lower the premium, and vice versa.
- Claim history: A homeowner or property with a history of multiple and severe claims signifies higher risk and will get higher insurance premiums.
- Security features: Security features, such as smoke detectors, security systems, and fire extinguishers, make a home less risky, lowering insurance costs.
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How to Select Homeowners Insurance in Illinois
A tailored insurance policy will help protect your Illinois home while keeping the premiums affordable. Below are tips to help you select the best homeowners insurance in Illinois:
- Assess your needs: Know what you want and need to be covered, then choose a suitable policy. Don’t go for a comprehensive policy if you only need basic coverage and don’t pay for coverage you don’t need.
- Compare different insurers: Look for insurers with good financial strength, a track history of good customer service, and fast claims processing.
- Compare quotes: Compare quotes from different insurers. Consider their rates, policies, coverage, and deductibles.
- Consider bundling: Prioritize insurers offering discounts for the purchase of multiple policies.
- Review your policy: Your insurance needs will change as you renovate or acquire new possessions. As such, review your policy regularly.
Protect Your Home With Pro Insurance Group
Protect your Illinois home against natural disasters and other perils with homeowners insurance. Pro Insurance Group offers comprehensive and customizable coverage options tailored to your needs.
As a multi-line agency, Pro Insurance Group also provides bundling options to enable you to save on premiums. Contact the seasoned homeowners insurance agents of Pro Insurance Group today or request a quote online.