Understanding the Issues in Illinois

paid-claims final

Home insurance claims costs are exceeding premiums collected. The cost of covering Illinois homeowners’ losses is exceeding the premiums we’re earning—an indication we need to adjust prices. Last year, those total costs amounted to $1.26 for every dollar in premium we collected. The year before, it was $1.30. Such losses are unsustainable. 

Inflation matters. The costs of materials and labor have risen, affecting how much it costs to repair or rebuild homes. In the insurance business, the rates we charge are set in advance to cover potential future losses, including the costs to rebuild homes. As repair costs continue to rise, home insurance rates are as well.