Illinois Home Insurance Costs Surge 68% Since 2020 Amid Climate Risks

Home insurance costs in Illinois have risen sharply in recent years. The state now sits among the most expensive for premiums, with climate-related risks driving the increases. Illinois homeowners currently pay an average of £2,731 per year for cover. This figure is 14% above the national average, placing the state at number 17 for the highest premiums across the US.

Since 2020, rates in Illinois have climbed by 68%. This surge ranks the state seventh for the largest increase in home insurance costs over that period. In 2025 alone, premiums jumped by another 14.1%, making Illinois fourth for the steepest rise that year.

Insurance firms set rates using predictive analysis and catastrophe modelling. These tools assess the growing frequency and severity of storms, which are linked to extreme weather and a shifting climate. The state’s home insurance premiums now exceed the national average. The rapid growth in costs reflects both past increases and ongoing adjustments to weather-related risks. Insurers continue to rely on data-driven methods to price policies accordingly.