There are plenty of different ways that one can go about lowering their Illinois homeowners insurance rates. However, before one can find the best Illinois home insurance rates it is important to understand some of the various factors that influence IL home insurance rates.
There are approximately 12 million people residing in the state of Illinois (according to figures from the United States Census Bureau) and of those people, most homeowners require home insurance. But with so many people how does Illinois rank among the states of this country when it comes to homeowner insurance? In this article you will be able to see the many rates and figures of homeowners insurance in the state of Illinois and all over the United States.
Average Illinois Homeowner Insurance Rates
It is important to understand that Illinois is not one of those states that suffers a lot due to natural disasters and stuff of that magnitude and for this reason the homeowner insurance rates might not be that high. According to the National Association of Insurance Commissioners Illinois ranked 31 out of the 50 states in the United States when it comes to homeowners insurance rates with an average rate of $660 in the year 2005. However, the rates have gone consistently up in every single state of the nation due to the inflation of the dollar through the years.
Another thing that is important to understand about this rate is that not everyone in Illinois will be close to this dollar amount. Many people might have a more expensive premium or a least expensive one for reasons that we will discuss later in the article. It is also good to note that the survey was conducted in dwelling that had standard home insurance policies and that those of people that have a higher degree of coverage were more than likely not included. Nevertheless, the rates in Illinois are nothing compared to the ones in Florida which were an average of $1,083 and Louisiana with an average of $1,144. It is also important to mention that the average premium in all the United States was approximately $764 in the year 2005.
Things That Can Affect Your Illinois Homeowners Insurance Rates
There are many things that can affect your Illinois homeowners insurance rates and that many people don’t know. For this reason below you will find out the main causes of high rates along with some of the things that people don’t know will affect their rates and a with a brief description of each.
1. Credit Report: This is a main reason that people pay much more for premiums that they should. If you have a good credit report then you should be off the hook and in fact companies will more than likely give you a better rate than the others. On the other hand if you don’t have a good credit report you should be expecting to pay much more. The reason for this is that an insurance company will simply take the “risk” of insuring you and will expect you to pay monthly without missing any payments. The people that have bad credit scores are more than likely to stop payments or not have enough to cover the deductible when making a claim.
2. Your Claim History: Another big thing that can affect your Illinois home insurance rates and that many people don’t know about is an individuals claim history – both with the current insurance company and with past insurance companies. If you have a long history of claims then you are not in good standing. Of course we are not talking about the kind of claims that include a natural disaster, but mostly the claims that have to do with personal possessions. Because your policy covers the things inside your home as well as furniture and electronics in case of accident, some people take advantage and claim when something gets broken just because. If you do this a lot, the next Illinois homeowners insurance company that you apply for will see that in your record and it will raise your rates a little bit. Keep in mind that homeowner insurance companies can also deny you, so it’s better to pay out of pocket for the possessions that you can afford before making a claim. Avoid making frivolous claims at all cost.
3. Age, Location, and Type of Property: This is perhaps one of those things that people are mostly aware of. A home made out of frame will be easier to destroy or be subject to damage that one made out of brick. A house that is located near the coast will be more expensive to insure than one of the coast. The reason is because the one near the ocean is subject to flooding and storm waves. Last but not least an old house that will be subject to repairs all the time is more likely to have a higher premium than a brand new one!
Tips To Find Cheap Illinois Homeowners Insurance Rates
It is true that the rates in the state of Illinois are not that high in comparison to the rest of the country, but you have to know that there are many ways to save some money regardless of how much you are paying at the moment. Below you will find a few tips that can help you save on IL homeowners insurance.
1. Ask for Discounts: It is important to understand that every insurance company will give you discounts if you ask and are actually eligible for them. If you are applying online make sure to do the research and apply for as many discounts as possible, and if you apply in person don’t hesitate to ask the agent for any discounts.
2. Bundle Insurances: This is perhaps the most important and money saving opportunity that most people are looking for. If you have more than one type of insurance and you see that one of your company features all of them then you could put all insurance needs under one company. You will be rewarded for being a “premier customer” and save about 10-15% on everything.
3. Only Buy The Coverage That You Need: It is important to understand that many people in the United States buy less than what they need. However, there are also a lot of people that buy much more than what they need. Try to get rid of the coverage that you don’t need by revaluating your policy every year. An example of this is that if you have flood insurance and you do not live in a flood zone then it would be smart to get rid of it.
4. Compare Multiple Quotes: Whether you are doing the shopping online or in person make sure that you shop around. Visit various locations or websites and compare as many quotes as you can. The more quotes you get, the better chance of lowering your rates.
You Too Can Lower Your Illinois Homeowners Insurance Rates
As you can see from the article the rates for homeowners insurance in the state of Illinois are not that high compared to those of other states. In fact, they were lower than the nation’s average in the year 2005. Nevertheless you can save money and lower your IL home insurance rates by following the tips above!