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According to QuoteWizard, the average insurance premium
nationwide went up 2%, but the increase was larger in the Land
of Lincoln.
“When we look at Illinois, we saw about a 7% increase in the
average price of home insurance from 2021 to 2022,” analyst Nick
VinZant said.
Idaho had the largest increase in homeowners insurance rates at
34%, while Kentucky residents experienced the largest decrease
in rates at 25%.
The average premium in Illinois is now $1,708. That is compared
to $411 in Hawaii.
“When you look at Illinois, which had a 257% increase in the
number of natural disasters over the last 20 years, we are
starting to see that reflecting in home insurance where Illinois
is gradually getting more and more expensive every year,”
VinZant said.
According to the report, the most common type of home insurance
claim is wind and hail, followed by water damage and fire and
lightning. Only 3% of homeowners' claims are liability claims,
while the other 97% are for property damage.
Geography plays an integral role in insurance rates. In Florida,
the state’s property insurance crisis continues. Insurance
companies say they may not have what they need to get through
hurricane season, which means more residents may lose their
coverage.
Florida Gov. Ron DeSantis recently signed a law that gave
companies $2 billion in reinsurance. That is essentially
insurance for the insurance companies.
VinZant said rising home prices over the two years could leave
some homeowners underinsured.
“If you had a $400,000 policy in 2020, that is not going to
cover the cost of replacing your home now,” VinZant said.
Kevin Bessler reports on statewide issues in
Illinois for the Center Square. He has over 30 years of
experience in radio news reporting throughout the Midwest.
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