14 Min to Read

8 Best Renters Insurance Companies in Illinois of 2022

Augustine Reyes Chan

Augustine Reyes Chan

Find the best renters insurance companies in IL and compare their quotes to save on your premiums. Compare prices, policies, and reviews.
Illinois Chicago

If you rent in a suburb or city in Illinois, you probably already know that renting a property here comes with a hefty price tag, especially in Chicago.

Because of this, you may think it's a good idea to skip renters insurance to save money.

But renters insurance is the best way to cover the cost of replacing your belongings if they are damaged due to fire or wind or if they are stolen.

If you don’t have renters insurance, you’d have to pay out of pocket to replace your belongings.

And renters insurance allows you to add additional coverages that are important to you, such as increasing your coverage of high-value items like jewelry.

That’s what renters insurance can do. It can be tailored to your needs and is not a one size fits all policy.

But in the end, the reason to buy renters insurance comes down to you having peace of mind.

You’ll know your belongings are protected.

And if your dog bites your neighbor on your property that leads to severe damage, you are also protected.

There are many renters insurance to choose from. How do you decide?

We’ve made it easier for you.

Take a glance at our best renters insurance companies ranked by category to start you out and to give you an idea of what an insurer can offer.

Best Renters Insurance in Illinois

  • Lemonade:Best for the Technologically Savvy

  • Allstate: Best for Policy Bundles

  • Liberty Mutual: The Second Most Affordable Policy

  • Nationwide: Best for Coverage Options Offered in Basic Plan

  • State Farm: Best Low-Cost Renters Insurance

  • Travelers: Best for the Most Policy Coverages

  • Progressive: Best for Discounts

  • Erie: Best For Cheap Renters Insurance

Lemonade: Best for the Technologically Savvy

Lemonade Renters iInsurance IL
Editors star rating review
Editor's Rating (4.5 Stars out of 5)

Lemonade is the first online insurance company. It is based online and on its app using AI.

Both the website and the app are intuitive and streamlined.

With Lemonade, you do everything online or through its app. You can get a quote, sign up, add a policy, manage your insurance, and pay your bill.

Because of that, you save a lot of time. You don’t have to phone in and wait a long time just to speak to a rep. (Although Lemonade does lack many reps).

But the best thing about Lemonade is that it’s easy to file a claim. Using the app, you send the insurer a video stating your loss or damage and explaining why this happened.

In most situations, your claim may be paid in as little as three minutes.

Whether you're looking to save some money or get the most value out of your investment, Lemonade has a variety of different policies with rates that start at only $5 per month.

Lemonade now sells auto insurance, and it just so happens to be that Illinois is the first market to do so.

As usual, Lemonade’s rates are affordable and offer cheaper premiums for safe or low-mileage drivers. The auto app uses telematics to detect how its customers drive.

Like other auto insurances, Lemonade will be providing 24/7 on-location roadside assistance, real-time crash detection, and dispatch of emergency services.

The reason we mentioned this is because now Illinois has the most affordable renters insurance as Lemonade will let residents bundle auto with renters to get a good discount.

Read a full Lemonade home insurance review.

How is Lemonade Renters Insurance Rated?
J.D. Power (out of 1,000)870
BBBB+
NAIC Complaint Index1.94
Lemonade Renters Insurance Pros & Cons
ProsCons
Ability to sign up for coverage within minutesCovers Illinois but only available in 27 states and Washington, D.C.
Cheap renters insurance coverageMay not be a good fit for those who prefer working with an agent
Best for those looking for instant coverageLow prices and AI make it difficult to contact a live rep
If you want to avoid the hassle of speaking to an agent, then the digital approach works in your favorWon’t cover the cost of food spoilage due to power outages
Unused insurance premiums get donated to nonprofit charitiesBesides bundling auto and pet insurance, the company doesn’t offer any other bundling options. But multipolicy can save you 10%
You can also bundle your pet insurance

Allstate: Best for Policy Bundles

Allstate Renters Insurance IL
Editors star rating review
Editor's Rating (5 Stars out of 5)

Compared to other national insurers, Allstate ranks high for the best coverage because of its bundling policy.

Bundling allows you to save money by combining your renters and auto insurance policies as well as your life insurance.

Also called a multi-policy discount, Allstate’s bundling saves you a lot of money.

For example, bundling renters and auto insurance with Allstate gives you 10% off your auto policy and 25% off your renters policy.

In short, bundling can save you between $200 to $800 a year.

With Allstate’s savings, you also get to lower your premium with autopay and claims-free discounts. And you also get a discount if you are retired or older than 55. These are just a few; Allstate has many other discounts available.

Read a full Allstate renters insurance review.

How is Allstate Ranters Insurance Rated?
J.D. Power (out of 1,000)833
A.M. Best - Financial Strength RatingA+
NAIC Complaint Index2.05
Allstate Renters Insurance Pros & Cons
ProsCons
The best multipolicy discount among top insurersOnly affordable after bundling and adding certain discounts
Claim center is always open, but customer service is lackingDiscounts and policies may not be eligible for certain states
Different ways to customize your deductibles and coveragesNot as cheap as the other companies
Website helpful, resourceful, and easy to useRequires a higher premium for replacement cost coverage
You’ll have coverage for additional living expenses since the standard policy includes it
Offers identity theft restoration and flood insurance coverage options

Liberty Mutual: Best for Students

Liberty Mutual Renters Insurance IL
Editors star rating review
Editor's Rating (4.5 Stars out of 5)

Liberty Mutual stands out because of its affordability. The average cost per month for a policy with this insurer is only around $12 per month.

Now compare that to the average cost of renters insurance in Illinois, which is $14 per month. This of course means that Liberty is cheaper than the state average.

And then compare that with Liberty’s direct competitor. That would be State Farm, and their rate is lower than Liberty’s, which is $10 a month.

That’s not a big difference, and so now you have the choice to choose between Liberty and State Farm, which means you have options.

So, if you can’t get a good price at State Farm after you tack on an add-on, we recommend Liberty because it has the second-best price of any insurer we found during our search.

However, Liberty’s customer service is mediocre.

Read a full Liberty Mutual home insurance review.

How is Liberty Mutual Renters Insurance Rated?
J.D. Power (out of 1,000)872
A.M. Best - Financial Strength RatingA
BBBA+
NAIC Complaint Index2.37
Liberty Mutual Renters Insurance Pros & Cons
ProsCons
Nationwide coverageCustomer service is not local; all reps are in call centers nationwide
Has app to conveniently manage or track any claimsNot great for local assistance that knows your city or state
Claims can be filed by phone, online, or mobile appNot great for those with a lot of valuable possessions
Offers many discounts that will ultimately bring down your premium even moreSlim policy customization opportunities
Bundling or multi-policy discountDifficult to find covered perils and customer service numbers on website
Can choose between RCV and ACV personal property coveragCan only purchase up to $25,000 of personal property coverage
Over 100 years of experience providing insuranceClaims-free discount requires you to go a full five years without making a claim, which is a long time for many policyholders

Nationwide: Best for Coverage Options Offered in Basic Plan

Nationwide Renters Insurance IL

Nationwide is unique because it offers certain coverages as part of its basic policy that most insurers do not.

Here are a few:

Building Additions and Alterations

If you make any additions or improvements to your rented home, Nationwide will pay for covered damages.

Credit Card Coverage

If your credit or debit card is stolen and used, Nationwide will pay you for any unauthorized charges. The insurer also pays if you have forged checks.

Brand New Belongings

Like replacement cost coverage, if your personal belongings get damaged or destroyed during a covered event, Nationwide will pay you the depreciated value.

If it happens that replacing the items costs more than the claim reimbursement, the insurer will cover the difference.

To get replacement cost coverage with a similar insurer, you need to buy it as an add-on. With Nationwide, the coverage is standard in its basic policy.

However, Nationwide is expensive. The standard policy costs $205 per year, which is nearly $40 more than the Illinois average of $168.

How is Nationwide Renters Insurance Rated?
J.D. Power (out of 1,000)834
A.M. Best - Financial Strength RatingA+
BBBA+
NAIC Complaint Index0.04 (Very Low)
Nationwide Renters Insurance Pros & Cons
ProsCons
Website offers online quotes to save you timeMore expensive than similar insurers
File a claim onlineNo 24/7 customer service
Claims center 24/7Average customer satisfaction
Can receive personalized assistance from a Nationwide agentNot best fit for those who don’t want to work with an insurance agent
Multi-policy discount for having both renters and auto insurance coverage

State Farm: Best Low-Cost Renters Insurance

State Farm Renters Insurance IL
Editors star rating review
Editor's Rating (4.5 Stars out of 5)

State Farm is the best renters insurance company in Illinois because of its low rates.

The average cost of State Farm’s insurance is one of the cheapest, at $10 a month.

Realistically, though, after purchasing additional services or because, say, you don’t live in a safe neighborhood or you live on the first floor of a rental building, the average cost per month is more like $13.

That may seem a little steep, but if you compare the rate to comparable renters insurance companies, State Farm beats them every time.

How is State Farm Renters Insurance Rated?
J.D. Power (out of 1,000)866
A.M. Best - Financial Strength RatingA++
BBBA+
NAIC Complaint Index1.77
State Farm Renters Insurance Pros & Cons
ProsCons
Top-notch customer serviceMediocre coverage options
You can get a quote online with the easy-to-navigate websiteHas no replacement cost coverage
Pet insurance optionOffers fewer discounts than other companies
Has fewer complaints on average than its competitors
Most affordable rate in Illinois

Travelers: Best for the Most Policy Coverages

Editors star rating review
Editor's Rating (4 Stars out of 5)

Travelers is a competitor of Allstate and State Farm, but it holds its own due to the company having the most coverage options, including unique ones that we haven’t seen with other insurers, like being able to decrease your deductible.

Here are a few:

Housing Improvements Coverage

Your landlord may permit you to make alterations or upgrades to your apartment rental, such as putting in a built-in bookcase.

Travelers will cover alterations in case of fire or theft or up to 10% of your personal property limit. If you need more coverage, higher limits are available at an extra expense.

Mechanical Breakdown Coverage

This pays to repair machinery like a washing machine or a furnace if they malfunction.

Valuable Items

The standard policy limits for coverage of expensive or irreplaceable items are often inadequate. At a cost, Travelers will add extra coverage to your belongings as needed. And you don’t even have to get your mom’s heirloom silver tea service appraised!

The average monthly cost for Travelers is about $17.00.

How is Travelers Renters Insurance Rated?
J.D. Power (out of 1,000)815
A.M. Best - Financial Strength RatingA++
BBBA
NAIC Complaint Index3.88
Travelers Renters Insurance Pros & Cons
ProsCons
One of the oldest insurance providers in the industry, with over 160 years of experienceRates and services are average
24/7 for claims and customer service; limited for quotesYou can only buy policy annually rather than every month; this may be hard for people to come up with cash all at once
Useful features on website and appPartial refund if you cancel policy midyear but is a great hassle to do so
Numerous discounts availableCan’t go below $30,000 of personal property
Customers need to call to get a quote in some states

Progressive: Best for Discounts

Editors star rating review
Editor's Rating (4 Stars out of 5)

Progressive teams up with third-party insurers to provide renters insurance.

The insurer offers deep discounts in many ways. There are so many discounts to choose from, so we can only share with you a few.

But note first that discounts vary depending on the area you live in and which company you’re insured with as Progressive doesn’t act alone.

Discount for getting a quote at least three days before your policy takes effect.

Pay-in-full discount.

Paperless discount for communication.

If you have alarms, security features like remote cameras, or if you live in a gated community or your rental complex has a doorman or security guard, you’ll get a discount.

How is Progressive Renters Insurance Rated?
A.M. Best - Financial Strength RatingA+
NAIC Complaint Index1.66
Progressive Renters Insurance Pros & Cons
ProsCons
24/7 customer service. Customers can contact via phone, web, app, or online chatSells renters insurance through a subsidiary or third party, which could cause confusion over who’s servicing the policy
HomeShield offers increased coverage for collections, watercraft, theft of firearms, and business propertyWithout discounts, policy coverage can be expensive
Additional coverage for computer and equipment, as well as business use of your personal computerRequires your social security number for you to get a quote
Discount available when you bundle with another Progressive insurance, such as autoCoverage begins with an added fee, which makes the first month of coverage expensive
The app has lots of features, making it easy to file a claim or pay your bill, for examplePaperless discount is only available if you do it while applying for a quote

Erie: Best For Cheap Renters Insurance

Editors star rating review
Editor's Rating (4.5 Stars out of 5)

If you bundle your renters insurance with your auto, you probably know you’ll get a discount.

But how much? It varies per carrier. Some offer 20% off but realistically, it’s more like 10% off.

Erie blows the competition away.

Policyholders can bundle if they have auto or other insurance policies.

And here’s what Erie’s website says:

An auto insurance discount will most likely pay for some or all of a renters insurance policy.

Now here’s something good too: policyholders need not worry about their premiums being raised. They can lock in prices so they’re not submitting to unexpected increases in their premiums.

How is Erie Renters Insurance Rated?
J.D. Power (out of 1,000)835
A.M. Best - Financial Strength RatingA+
BBBA+
NAIC Complaint Index0.63
Erie Renters Insurance Pros & Cons
ProsCons
Covers Illinois and is one of the 12 states and Washington, DC. that the insurer also coversEverything you need for insurance like getting a quote, purchasing a policy, or filing a claim requires contacting an agent
Competitive pricingSince online presence is lacking, you waste time speaking to agent, especially when you are put on hold
Offers replacement cost coverageThe insurer is not available in most states, making it impossible at times to transfer a policy to a new home
Industry veteran; in addition to auto insurance, the company is branching out into a wide range of insurance policiesNot as many discounts are available aside from bundling and for having an alarm system
Good reputation: mostly positive customer reviews
Dealing with an assigned agent can help customers build a rapport with the company

How We Decided

The best renters insurance in Illinois has the highest customer satisfaction, affordable pricing, an array of coverage options, and tons of discounts that help policyholders lower their premium rate. We looked at all to determine which company we put on our list.

Discounts

Beyond bundling, we looked at how many discounts a company offered. Those who offered a good amount were put on our list because it lowered a policyholder’s premium rate.

Policy Coverage

A standard renters insurance comes with coverage that covers personal belongings if they are damaged or destroyed due to a covered peril. In most cases, if one made a claim, the insurer would only pay up to the policy limit.

If this forced the policyholder to take out additional insurance to get the full claims benefit, we were able to narrow down our list and choose only those insurers that offered affordable coverages.

Technology

An insurance company that had an online presence and a mobile app helped us narrow down our list. We were able to eliminate some inurers without AI.

The technology made buying a policy easier if you could get a quote on the company’s website. Also, if you could file a claim on the company’s app, as well as pay your bill, for example, this saved time for the user.

So the convenience of a company’s technology was very important to us.

Customer Reviews

When deciding on a renters insurance company, it's important to look at customer reviews. We scoured customer reviews from many sites to see how well a renters insurance performed. We then compared the reviews to how well the company ranked in professional ratings. These include AM Best, JD Powers, BBB, and the National Association of Insurance Commissioners.

If these service sources gave high grades to insurers when it came to customer satisfaction, we also put these companies on our list.

Price

We looked at renters insurance companies that hads the most affordable pricing. If the insurance had a premium below the national average, we put that company on our list.

Related: See Best Renters Insurance in the U.S.

Locations

We surveyed insurance coverage prices in Chicago, Aurora, Naperville, Joliet, and Rockford.

What Does Renters Insurance in Illinois Cover?

Renters insurance offers peace of mind. Its basic coverage, for example, can help pay for your personal belongings if they are damaged or destroyed from a covered peril.

Here’s the basic coverage in full:

Living Expenses

If your rental home is damaged due to, say, a fire, or any covered event, and it makes living there so uninhabitable that you need to move, your insurer will cover temporary living expenses, such as living in a hotel, having meals at restaurants, and more.

Medical Payments

Renters insurance will pay if a guest at your rental gets hurt by accident.

If your dog bites the guest or the guest slips on a wet floor that you’ve just mopped and gets hurt, all medical bills will be paid by the insurer.

Personal Liability

If the guest is injured badly by accident and sues you, personal liability will pay for any legal expenses.

Personal Property

Covers personal property that is damaged or destroyed due to a peril that you can’t predict, such as theft, vandalism, water damage, and fires.

However, your policy may pay only up to the limit, which is why many renters pay extra to fully cover any valuables like artwork or jewelry.

It’s important to note that if the damage was caused by a flood, the insurer will not reimburse you, but will cover water damage due to leaks or fire suppression.

Do You Need Renters Insurance?

By law, you are not required to purchase renters insurance while renting a house or an apartment in Illinois. But your landlord might require you to have coverage when you sign a lease.

That’s in case if your interior is badly damaged by fire or other covered peril and it causes destruction to the exterior of the rental.

Even if your landlord does not require a policy, renters insurance can be a fairly inexpensive way to protect your assets.

If you don’t get renters insurance and your personal belongings are stolen or destroyed, you have to shell out your own money if you want to replace them.

Your landlord will have insurance that covers the structures and common rooms of an apartment or condo complex, but that insurance does not and in no way cover you and the interior of your rental.

How Much Does Homeowners Insurance Cost in Illinois?

The average cost of renters insurance in Illinois is $15 per month.

This average is based on a policyholder with personal property coverage of $20,000, liability coverage of $100,000, and a deductible of $500.

However, some renters insurance companies are cheaper than others.

The cheapest company we found, State Farm, charges just $10 per month: The runner-up is Liberty Mutual, which charges $12 a month.

What Factors Impact Renters Insurance Costs in Illinois?

Several criteria determine the cost of renters insurance in Illinois. You should consider them before choosing a policy.

Location

The area where you rent helps insurers calculate the price of your premium.

If you live in a safe area with a low crime rate and low natural disasters such as not residing in a place where there are frequent hurricanes or torrential downpours, you’ll get a better quote.

The following other factors also determine your rate:

  • The distance of your house being near a fire hydrant.
  • The building materials used to build or renovate your home.
  • The size of your mortgage and how much you owe.
  • The square footage of your house.

Coverage Amount

Most of us have to add on add-ons or riders to fully insure personal belongings because a standard policy only covers up to the policy limit. The more coverage you have, the higher your rate.

Deductible

Renters insurance requires you to have a deductible. This is how much money you pay before your insurer kicks in to make a payout for a claim. If you have a high deductible, you’ll pay less for your monthly premium, and vice versa.

Credit Score

Your premium is also based on your credit score. If you have a high FICO score, your policy cost will be cheaper. This is based on the fact that policyholders with great scores are less likely to file a claim.

Replacement Cost Value (RCV) vs. Actual Cash Value (ACV)

ACV only pays the depreciated amount of your belongings. So, if your laptop is three years old and gets damaged or stolen, ACV will only pay the cost of a three-year-old laptop.

The better choice is RCV. RCV pays you in full. For example, if your laptop gets damaged under a covered peril, replacement cost will give you a brand-new model that is comparable to the one you owned.

With RCV you get higher payouts on your claim. But the bad part is that this will result in higher rates for you.

How Much Does Homeowners Insurance Cost in Chicago?

Chicago is Illinois’s largest city and is known for its severe weather conditions and its high crime rates.

Natural Disasters

In the winter, the average low temperature in Chicago is only 21 degrees.

The city is susceptible to heavy snowfall, high winds, and devastating hurricanes.

Due to the frigid weather, it’s easy for pipes to freeze and burst. If your rental is inside an apartment complex, chances are that water from broken pipes can damage your personal belongings.

So, the severe weather in Chicago is also a reason to buy renters insurance.

While most natural disasters are covered in a basic policy, for a nominal monthly fee you can buy additional coverage so that your insurer will reimburse you for your damaged items in full and without depreciation. (RCV).

For example, if a hurricane breaks a window of your rental apartment and damages your laptop, musical instrument, furnishings, and more, your renters insurance will replace them with brand new comparables.

The good thing is that Windy City residents have coverage for hurricanes in their standard policy.

In addition, they are also covered for fire, lightning, wind, hail, non-flood water damage, and falling objects.

What’s missing? A basic policy from any renters insurance company in the US will not cover floods.

To protect yourself from floods, you should buy a separate flood insurance policy that will be able to cover your damaged possessions.

Crime Rates

Because of the high crime rates in Chicago, your premium will be costlier than if you lived in a city with low theft and burglaries.

According to the FBI’s Crime Data Explorer, Chicago had over 14,200 burglaries and over 62,400 thefts in the last few years.

This brings us to the average cost of renters insurance in Chicago.

The average cost will differ with each insurer. But if you factor in natural disasters and a high crime rate, your premium will be a lot higher than if you lived in a safe suburban town outside of the city limits.

As such, the average renters insurance rate for Chicago residents is a whopping $268 per year with $30,000 in personal property coverage.

This is higher than the state average and higher than any of the rates for the insurance companies we selected for your review.

Can You Get Any Discounts When Signing Up for Renters Insurance?

Now that you know what will drive up your rate, here’s a way to lower it.

Get discounts. All renters insurance companies offer discounts that can lower the cost of your premium. Here are a few discounts you can get in Illinois.

Bundling renters and auto insurance.

Being Claims-Free

If you don’t make a claim in a set period of time, you’ll receive a discount.

Home Security

If you install a security system, a smoke detector, or an alarm, you’ll get a discount.

If your rental building has security cameras and doormen, that’s even better.

Home Credit

If you purchase new and costly home equipment such as a dryer and a laundry machine, your rate will go down.

Going paper-free, purchasing your policy online, and signing up for autopay.

What Renters Insurance Doesn’t Cover in Illinois

You need to know what your renters insurance does not cover so that you can purchase riders to protect yourself and your property and to prepare yourself for any possible emergencies, such as a natural disaster.

Flooding

Illinois renters insurance companies may pay for water damage due to broken pipes, but they will not pay for flooding caused by natural disasters.

So, your insurer will cover water damage if your roof leaks due to a hurricane, but it won’t cover flood damage from the same hurricane.

Earthquake Damage

Most insurers don’t cover earthquake damage. Since Illinois is not prone to earthquakes, you don’t need to get a rider.

Roommate Property

If you have a roommate, your renters insurance will not cover the roommate’s personal property. This person must take out her own policy to protect her belongings.

Expensive Items

A basic renters insurance pays for personal belongings, but if these are high in value, your insurer will only pay up to a certain amount.

To protect your valuables, you should purchase a “scheduled” rider.

Scheduling means you can add expensive personal belongings to your insurance, such as precious jewelry or artwork, to increase coverage for your items that are included in your basic policy but which are subject to a low limit of liability.

Customer Service

Great customer service is a necessity when searching for a renters insurance policy.

You should consider the way customer service operates before buying your policy.

Customer service should have friendly reps who will make the process of buying insurance much easier, as well as save you time and reduce the stress when filing a claim. Reps then should be patient and dependable and not curt you short.

Frequently Asked Questions

What does renters insurance cover in Illinois?

Living expenses, medical payments, personal liability, and personal property.

What does renters insurance not cover in Illinois?

It does not cover flooding, roommate property, earthquake damage, and expensive items.

How much does renters insurance typically cost?

The average cost of renters insurance in Illinois is $15 per month.

Is renters insurance required in Illinois?

No, but your landlord might require you to have coverage when you sign a lease.

How can you get discounts when signing up for renters insurance?

Home credit, home security and being claims-free are all considered for discounts.