Homeowners in Illinois will see steep insurance rate increases throughout the fall as State Farm announced an average 8% increase for customers in the state.
The new rates took effect on Oct. 1 for new customers. Existing customers will see the increases on Dec. 1.
While California wildfires and coastal hurricanes are often on the news, the Midwest is facing an increase in extreme hailstorms, which are jacking up insurance premiums.
In 2025, the United States accumulated $52 billion in insured losses from severe convective storms, according to the Insurance Information Institute. Convective storms include severe thunderstorms and other weather capable of producing large hail.
A new study published by Nature in May shows that there could be a 42% increase in global hailstorm-induced damage potential by the late 21st century.
The cost to repair damages has increased as well, as building materials have become more expensive. Imported materials, as well as the fuel and oil needed to transport them, have all seen price increases, adding up to an average 6.7% increase in material costs.
These factors have contributed to State Farm’s decision, according to a statement shared with Realtor.com®.
“Insurance rates are future-focused, accounting for the likelihood and expected cost of covered losses. Across Illinois, more customers are experiencing firsthand the effects of severe weather trends that are more frequent and severe—and related repair costs continue to increase,” the statement reads.
“To remain financially prepared to pay claims as risks and costs change, State Farm is making rate adjustments.”
State Farm says it “has paid out $1.22 in claims and expenses for every $1 in premiums collected the past three years in Illinois.”
The statement went on to say that insurance costs are reviewed regularly due to factors constantly changing, and that “homeowners rates reflect current expectations for repair and rebuilding costs, severe weather, labor, materials, and other state-specific conditions.”
Just as insurance companies regularly review their costs, policyholders should review their policies often and be aware of available options to reduce expenses. Don’t automatically assume the policy you’re carrying is the best option.
Before an incident requires a claim, William Lemmon of Broadway Insurance Services recommends doing proactive maintenance and small repairs yourself to avoid filing a claim until necessary.
“The best route is to avoid claims altogether. Replace old supply lines under sinks and behind washers; they cost a few dollars each. Keep gutters clean, and make sure downspouts drain away from the foundation,” Lemmon tells Realtor.com.
“Get your roof inspected every few year and after every major hailstorm. Small damage you catch early is a repair. Damage you ignore becomes a leak, then a claim, then a surcharge.”
Tom Firestine, an insurance agent in the Chicago suburbs, says that opting for a higher deductible is an option for lowering your premium, but ensure you don’t choose a higher deductible than what you can comfortably pay after a loss.
Making certain improvements and upgrades to your home may also help lower premium costs, Firestine tells Realtor.com.
“Many insurers will give a credit for an impact-resistant roof, security systems, and leak-detection devices. Discounts vary by insurer, so make sure your agent has current information about improvements to your home,” says Firestine. “The goal is a manageable premium with coverage you can rely on when a storm hits.”
Shopping around for different options is a great idea, but policyholders have to shop smart.
“Do actively get quotes at renewal if you’re experiencing an increase, not after you’ve already paid,” says Lemmon. “An independent broker can check several carriers at once, and local ones have a strong understanding of how the market is leaning. A captive agent can only show you one company’s price.”
At the end of the day, maintaining a balance between affordability and thorough protection is key. While a low monthly premium seems ideal, making sure you’re covered when disaster strikes is still vital.
“Compare coverage, not just price. A cheaper quote that pays actual cash value on your roof instead of replacement cost isn’t cheaper. It just moves the bill to claim day,” says Lemmon.
