Homeowners insurance protects you if your house is damaged or destroyed by fire, weather, theft, or other disasters. Most mortgage lenders require you to have this insurance. 

Shopping for homeowners insurance

When you shop for homeowners insurance, it’s a good idea to compare rates and get quotes from different insurance companies. You will want to ask for the same coverage and limits to be able to compare the options. Consider getting a quote from an insurer you already work with, such as your auto insurer. Many insurers will offer discounts if you “bundle” your coverage, meaning that you buy both car and homeowners insurance from the same company. 

When you’re asking for quotes, you may want to ask the insurance agent:

• Are you licensed by the Illinois Department of Insurance?
• What deductible will I have to pay if I make a claim? 
• How will having a higher or lower deductible affect my premium? 
• If I submit a claim, how will that affect my premium?
• How will my credit history affect my premium?
• What damage or losses does the policy cover, and what doesn’t it cover? 
• Does the policy include enough coverage to rebuild my home if it is destroyed? 
• Think through your personal belonging and which possessions you want to make sure are covered. Would the policy cover the value of these items?
• How much liability coverage does the policy include?
• What options are available for flood insurance and earthquake coverage, and how much does the additional coverage cost?
• What types of water damage are covered, and which are not? 
• Is mold damage covered?
• Are there any discounts I may qualify for?

Be sure to work with a licensed insurance agent or company. Insurers are required to be licensed. If you work with an unlicensed agent or company, they may not pay your claims or refund your premiums if you cancel your policy. 

Learn more about shopping for homeowners insurance on the Illinois Department of Insurance’s website. 

What is covered, and what is not

Homeowners insurance policies offer different packages to protect your home and belongings. Read your insurance policy closely to understand what your policy covers. Some types of coverage include damage or loss to: 

• Your house,
• Other structures, such as a detached garage, shed, or fence, and, 
• Personal property, such as furniture, electronics, appliances, and clothing. Personal property can be covered even when it isn’t on your property, such as belongings at an off-site storage locker or with your child at college. There may be a limit on the amount you can recover for property away from your home, or on high-priced items like jewelry and computers.  

Your policy will include detailed information about what is covered and what is not covered. Generally though, covered events include sudden and accidental damage to your property, such as fire, windstorm, or theft. Damage caused by wear and tear, age, rotting, or lack of maintenance is not covered.  

Most policies also include additional living expense coverage. This pays for costs above your normal living expenses when your house cannot be occupied due to a covered loss. For example, the policy may pay part of your hotel and restaurant expenses if a fire destroys your house.  

Homeowners insurance policies also offer liability protection. Comprehensive personal liability coverage protects you against claims when an accident occurs to others on your property. Liability protection includes coverage of medical expenses. It can cover medical expenses for someone accidentally hurt on your property by you, your family, or your pets. It can also pay for a lawyer to defend you if you need one. 

Coverage for vehicles, including cars, motorcycles, and trailers, is usually separate from homeowners insurance.  

Homeowners insurance typically covers tree removal and structural repairs if a storm causes a tree to fall on top of your home, garage, or outbuilding. If the tree fell but did not damage your home or another covered structure, homeowners insurance probably will not cover debris removal. If your healthy tree is blown over onto your neighbor's home, your neighbor would need to make a claim through their homeowners insurance. Homeowners insurance would not cover tree damage to parked vehicles, but the car owner could check with their auto insurance company.  

Most homeowners insurance policies do not cover flood damage. Water damage from the home’s plumbing or a leaky roof is typically covered. Flooding from groundwater or rain runoff and snow melting is not covered. Flood insurance may be bought separately. Learn more about buying flood insurance.

Sewer and drain water backups are generally not covered, but you can ask to add this to your policy. This extra coverage can include damage from a sewer, drain, or sump pump backup or overflow. However, water backup coverage does not cover damage related to flooding, maintenance issues, or replacing or repairing a broken sump pump. Ask your homeowners insurance agent for information on coverage and costs.  

Illinois Fair Plan

If you have tried but are not able to get homeowners insurance, ask your insurance agent about the Illinois Fair Plan. To be able to apply for the FAIR plan, you must have unsuccessfully tried to buy homeowners insurance 3 times. 

What to do if your house is damaged or destroyed

If your house is damaged or destroyed, such as in a fire or other disaster, report the loss to your insurance company as soon as possible. Report any criminal damage to the police, too. 

The insurance company will assign a claim number and adjuster to your loss. Fill out a claim report and describe your loss. Gather information about the loss that you can share with the adjuster, such as photos or videos of the damaged property and damage estimates. 

If you make temporary repairs to protect the property from more damage, keep receipts for any materials so you can give them to the insurance company. 

If you have to move out of the property because of severe damage, save the receipts for your expenses. Those expenses may be covered under additional living expense coverage. 

Review your insurance policy, paying close attention to the coverages, exclusions, and conditions. Talk to your insurance adjuster or agent about the claim process and any settlement offer. 

What to do if you disagree with your insurance company

If the insurance company denies part or all of your claim, ask for the basis of the denial in writing. If you disagree with the denial of your claim, contact the insurance agent or company about your concern. Keep a record of any phone calls and other communications. 

If the insurance company has offered you a settlement, but you disagree with the offer, talk to the insurance adjuster. Explain your concerns and offer any documentation to support your position. Check the appraisal clause in your policy. You may be able to request an appraiser to decide on the amount of damage if you disagree about the value of your loss. 

If talking with the insurance company does not resolve your concerns, you can call the Illinois Department of Insurance Consumer Assistance line at (866)445-5364. 

You can also file a complaint with the Illinois Department of Insurance. Complaints may be related to coverage issues, claim disputes, premiums, and more. The Department will investigate your complaint and send you a written response with its findings. 

If you are still not happy with the resolution of your problem, you may want to talk with a lawyer. Learn more about Litigating policyholder claims against insurance companies.

More resources

The Illinois Department of Insurance website has helpful resources for homeowners and definitions of common homeowners insurance terms.

The Illinois Insurance Hotline (1-800-444-3338) is an information source for Illinois consumers. The Hotline is operated by the Illinois Insurance Association.