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

Home insurance costs in Illinois have climbed sharply over the past two years. The state now ranks among the highest in the US for rising premiums, with extreme weather and climate change driving the increases. Illinois homeowners currently pay an average of £2,731 a year for coverage. This figure is 14% above the national average and places the state at number 17 for premium costs.

Since 2020, rates have jumped by 68%, the seventh-largest rise in the country. In 2025 alone, Illinois saw a 14.1% increase, ranking it fourth nationwide for the steepest hikes. The trend has outpaced the national average, creating growing affordability concerns for residents.

Severe weather has worsened the situation. On Wednesday, Beverly in Chicago experienced over 75 tree emergencies and nearly 2,000 power outages due to thunderstorms. Some homeowners in the area waited more than a week for insurance support after the damage. Illinois now faces some of the fastest-growing home insurance costs in the US. The combination of extreme weather and rising premiums has left many homeowners struggling with higher bills. The state’s position in national rankings reflects the scale of the challenge.