HomeHome InsuranceIllinois home insurance rises as legislators pass supervisory bill

Illinois home insurance rises as legislators pass supervisory bill


Nationwide hikes in home insurance premiums resulting from climate change have impacted Illinois residents, prompting legislators to work to pass a bill that would allow them to assess insurance rates.

In March, the Illinois House of Representatives passed a bill giving the Illinois Department of Insurance the ability to review rates for homeowners and automobile insurance. The bill is currently awaiting Senate approval.

Home insurance premiums in the state increased by almost $1,000 between 2021 and 2024, according to a report by the Consumer Federation of America, a nonprofit built around advancing consumer interests. Rates are expected to rise by an additional 5% this year, according to a projection from insurance price tracker Insurify. 

“We’ve heard from a lot of residents and they’re very frustrated,” said Michael DeLong, a research and advocacy associate at the Consumer Federation of America. 

The increase has affected homeowners nationwide. Across the country, the cost of home insurance rose nearly 9% faster than inflation between 2018 and 2022, according to a 2025 report by the Department of the Treasury. All states except Wyoming and Illinois currently have the authority to regulate insurance rates before they get onto the market. 

While home insurance is not required by federal or state law, most lenders require home insurance as a prerequisite for providing mortgages. 

The hike in rates is largely due to more frequent and stronger natural disasters that experts attribute to climate change, said Clifford Rossi, professor at the Robert H. Smith School of Business at the University of Maryland. 

“You can say what you will about climate change, but there are forces, environmental forces, happening that (we) don’t seem to be evading anytime soon,” Rossi said. “We should expect to see increases in the cost of homeowner insurance policies, largely not stopped by any other momentum.”

Nonprofit organizations like the Consumer Federation of America and Illinois Public Interest Research Group, a nonprofit focused on promoting the health, safety and well-being of Illinois residents, have been working to create consumer protections for residents looking to buy home insurance. Both groups have supported the bill’s passage. 

Abe Scarr, director of Illinois PIRG and program director of PIRG energy and utilities, said there is more work to be done to mitigate the costs of home insurance beyond the bill, largely regarding efforts to lessen the effect of climate change and to build more resilient homes.

“It’s going to be an ongoing problem, but we can prevent it from getting much, much worse in the future if we take more proactive action now,” Scarr said.

Email: [email protected] 

X: @AllisonRKuester 

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