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Many people like living in Illinois because it's quiet, has many great sites to see, and more. However, they may not have the money to buy a house, which is why they rent. Though landlords expect them to protect their items, most tenants won't get renters insurance unless it's a requirement in the lease agreement.

The Illinois Department of Insurance has written a helpful article on how much renters insurance to get, how to create an inventory, and other tips. It might be a good idea to read it and let your tenants know about it.

Overall, you should learn as much as you can about Illinois renters insurance so that you understand what it covers, how it works, and why you must mandate it in your leases. This article will give you the information you require!

What Is Illinois Renters Insurance?

How many things can you think of that might go wrong on your rental property? Property damage, injuries, dog bites, and many other issues are all possible. Therefore, tenants must get renters insurance to protect themselves and their belongings.

In a sense, renters insurance is one type of insurance that can cover many covered perils. It offers coverage for personal property, liability, additional living expenses, and more.

Usually, renters insurance is broad enough to help in many situations. Tenants must know what coverages are available and invest in something that meets their needs now and in the future.

Average Cost of Renters Insurance in Illinois Per Year

Average renters insurance rates run about $124 per year. This is cheaper than the national average price of $159 by about $35. In most cases, tenants get $100,000 in liability coverage and $20,000 in property coverage with a $500 deductible.

The price tenants pay for renters insurance depends on how many items they have to cover, where they live, and other factors.

How Much Does Illinois Renters Insurance Cost (Based on Popular Cities)?

According to ValuePenguin, people in Chicago will pay a higher renters insurance cost than anyone else. However, other major cities might be less. Let's look at a few of the popular cities:

  • Springfield - $177/year
  • Naperville - $162/year
  • Chicago - $193/year
  • Champaign - $173/year
  • Peoria - $175/year
  • Oak Lawn - $169/year
  • Bloomington - $171/year

Is Renters Insurance Required in Illinois?

Many people wonder: Is renters insurance required in Illinois?

No law requires tenants to carry renters insurance, but landlords can mandate it in the lease agreement. If the lease specifies that it's needed, tenants must buy it before moving in.

Likewise, some landlords ask to be added as an interested party on the renters insurance policy. This alerts them to policy changes and cancellations, but they can't make modifications or file a claim.

What Does Renters Insurance Cover in Illinois?

Illinois is in the Midwest, so it gets many different weather patterns throughout the year. Winters are often cold and snowy, spring is full of tornadoes and strong storms, and summer holds excessively hot and humid temperatures.

In most cases, the best renters insurance in Illinois will cover most of these things. However, it might not assist with floods or high winds from tornadoes.

Let's take a look at what renters insurance might cover:

Personal Property Coverage

Personal property coverage will protect the tenant's personal belongings. They don't have to be at home for it to offer coverage. Therefore, if a laptop is damaged at a local coffee shop, the policy will reimburse the tenant for the item.

Medical Payments Coverage

The insurer will cover medical payments if a guest is injured in the unit or if the tenant hurts others. However, it won't help those living in the house.

Liability Coverage

Liability coverage covers property damage and legal fees when someone is hurt in the apartment or if a policyholder damages other people's things.

Loss of Use

If the apartment or home is damaged so much that tenants can't live there, loss-of-use coverage kicks in. This offers reimbursements for additional living expenses and temporary housing.

What Does Renters Insurance in Illinois NOT Cover?

Most cheap renters insurance policies will cover the basics listed above. However, they don't protect from everything.

Here are the things renters insurance might not cover:

  • High-cost items, such as jewelry, artwork, and electronics, aren't often covered. Tenants will need to get scheduled personal property coverage at an additional cost.
  • Some events won't ever be covered by the policy. Flood damage is often not covered, so if a flood damages items, they won't be replaced.
  • The tenant's coverage limits determine how much the policy pays. Anything over that amount is an out-of-pocket expense for the tenant.

How to Choose the Right Policy

When buying renters insurance in Illinois, tenants should get the right policy for their needs. Here are a few tips to give your tenants:

  • Multiple Quotes - Tenants should get multiple Illinois renters insurance quotes from providers to know they're getting the best deal.
  • Coverage Options - Basic insurance is often similar between companies, but tenants should focus on the coverage limits and get additional coverage when needed.
  • Discounts - Save money on insurance premiums with tons of discounts.
  • Technology - Renters often prefer the convenience of the internet, so mobile services are crucial when filing claims and buying policies.
  • Customer Service - Being frustrated after a disaster is common, and tenants want to file a claim quickly after their property is stolen or damaged.

Available Discounts in Illinois

Though the premiums tenants pay will be one of the most important factors, it's possible to lower renters insurance rates with discounts.

Here are some of the more common options:

  • Non-smoking discount
  • Safe home discount
  • Multi-policy discount
  • Loyalty discount
  • First responder's employee discount
  • Claims-free discount
  • Automatic payment enrollment discount

How Does a Renters Insurance Policy Protect the Landlord or Property Manager?

Requiring tenants to get a renters insurance policy will benefit them in many ways. However, how does it help you?

Here are the ways:

  • Lawsuit Protection - Renters insurance in Illinois protects you from a lawsuit if the tenant's personal property is damaged.
  • No Property Damage Payments - Similar to the lawsuit situation, the tenant might demand that you pay damages to their property if they can't cover it. With insurance, they can file their own Illinois renters insurance claims!
  • Lower Premiums - When tenants don't have renters insurance, you will likely be hit with damage and lawsuit claims. This might raise your premiums or get your policy canceled.
  • Accept Pets - Renters insurance will cover property damage from pets and offer liability protection after dog bites.

Top 5 Best Renters Insurance Companies in Illinois

Tenants will often want to find the cheapest renters insurance companies. You can help them do this by reading about the best options now!

1. Lemonade Renters Insurance

Lemonade Renters Insurance

When tenants want the cheapest renters insurance policies possible, they should go to Lemonade. It costs about $7 per month, which is less than the state average of $83/year.

Overall, Lemonade gives renters a user-friendly experience. Everything happens online, including quotes, purchasing a renters insurance policy, and filing a claim. Often, simple claims get processed instantly, so it's quick and painless.

However, customer service might be lacking here. There's no way to contact an agent if tenants have a problem. They must use the AI chat tool to get help.

2. State Farm Renters Insurance

Lemonade Renters Insurance

State Farm isn't the cheapest renters insurance company, but it's not far behind because policies often cost $11/month. Likewise, tenants can share policies with roommates, which most brands don't allow. If the tenant has a roommate, they could save money!

Tenants are generally happy with the customer service they get from State Farm. However, it doesn't have the best coverage options. Though it does include extras like extended liability and valuables coverage, it doesn't provide replacement cost coverage.

3. Amica Renters Insurance

Amica Renters Insurance

If tenants want the best renters insurance in Illinois, they should consider Amica. It has excellent customer service and rarely sees complaints.

However, the prices are a little higher at Amica ($16/month). It's over double the price of Lemonade. Still, tenants are allowed to customize their policies with identity theft coverage and replacement cost coverage, though there aren't the more common add-ons (water backup damage).

4. Liberty Mutual Renters Insurance

Liberty Mutual Renters Insurance

Liberty Mutual has over 100 years of experience in the industry, and it's a national provider. Most people say it has the best renters insurance in Illinois, and there are tons of discount options to help tenants save money.

However, the policy rates are generally higher than average. Still, the customization and coverage options are worth it when tenants have valuable or unique items they wish to protect.

5. Allstate Renters Insurance

Allstate Renters Insurance

When tenants want renters insurance in Illinois, Allstate is a top option. It has standard coverage, but there are countless policy add-ons, such as business-related items protection, identity theft restoration, and valuables coverage. Most brands don't offer such things, so it's great for renters with unique requirements.

However, if tenants want a cheap renters insurance company, this isn't it. They will pay a higher premium than any other brand, and there's no loss-of-use coverage.

What Is DoorLoop?

Requiring Illinois renters insurance is a great way to avoid extra costs from injuries and damages. However, you need a way to stay organized. DoorLoop is a property management software designed for landlords who have mixed-use, commercial, or residential portfolios. They can:

  • Collect rent automatically.
  • Manage their rental portfolios.
  • Manage maintenance requests with ease.
  • Offer a tenant portal.
  • Manage accounting tasks.
  • Get a free website for tenants to apply online and for landlords to market any vacancies.

It's easy to get set up. Learn more today or schedule your demo to start!

Why Work with DoorLoop

DoorLoop helps you require tenants to buy a renters insurance policy. They can submit a company themselves and apply directly on the tenant application or through the portal. Learn more about DoorLoop's renters insurance features.

David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!

Legal Disclaimer

The information on this website is from public sources, for informational purposes only and not intended for legal or accounting advice. DoorLoop does not guarantee its accuracy and is not liable for any damages or inaccuracies.

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