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By Talullah Blanco
Updated on Jun 27, 2022
Reviewed by Melanie Reiff, Staff Editor.
Illinois renters insurance costs on average between $124 and $168 per year to cover personal property, loss of use, liability protection, and medical payments if anyone is injured in your rental home.
Whether you are living in Hyde Park, Chicago, or in downtown Mount Caroll, you’ll want renters insurance to protect your belongings in case of an accident or natural disaster.
That's why the price comparison and car insurance broker app Jerry will break down everything you need to know about renters insurance in Illinois–what it is, what it covers, and how to save money by bundling with an auto policy.
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What is renters insurance?
A renters insurance policy provides financial protection in the event your personal belongings are stolen, damaged, or destroyed, as well as legal and medical protection.
The standard renters’ insurance policy includes the following coverage:
- Personal property (Coverage C): This covers the cost of replacement or actual cash value of your personal belongings if they’re damaged or lost by a covered peril.
- Loss of use (Coverage D): If your rental home becomes unlivable due to covered perils, this part of your insurance can help you pay for temporary living expenses. Think about basic expenses like hotel rooms, takeout food, and laundry.
- Liability protection (Coverage E): This coverage pays for any legal fees if someone is injured or their property is damaged in your home.
- Medical protection (Coverage F): If someone is injured on your rental property and requires medical attention, this part of your insurance will cover the cost of medical expenses.
Your coverage amount will be determined by the value of your personal belongings after you do an inventory. Your liability protection will be a minimum of $100,000 if your landlord did not set liability coverage requirements.
What does renters insurance cover?
Your renters insurance only covers the perils named in the policy. These perils will vary depending on where you live, but the standard renters insurance policy will include these perils:
- Fire or lightning
- Windstorm or hail
- Falling objects
- Volcanic eruption
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water steam
- Sudden and accidental tearing, cracking, burning, or bulging
Before signing, it’s important to read your policy and understand what is and is not covered. There may be perils in your state that cause damage but aren’t included in your policy. Floods account for 90% of declared disasters in Illinois, but they are not covered by your renters’ insurance policy.
What does renters insurance not cover?
While your standard renters’ insurance covers a lot, make note of the events and items it does not cover:
- Property damage. Your landlord’s property insurance will cover damage to the building, roof, and siding.
- Natural disasters. While renters insurance covers many acts of God, it does not cover floods, sinkholes, or earthquakes.
Key Takeaway: Your renters’ insurance covers you and your personal property inside your rental home.
Is renters insurance required in Illinois?
The state of Illinois does not legally require renters insurance, but your landlord might require you to purchase a renters insurance policy as a term of your lease. If your landlord doesn’t require renters insurance, it’s a smart investment that’ll offer financial stability in the event of an accident.
Illinois renters can expect to pay between $10 and $14 per month for a policy that could save you thousands of dollars worth of damages. The cost of your renters’ insurance will depend on your location and how you build your policy.
How to build an Illinois renters insurance policy
Customizing your renters’ insurance policy to where you live and your lifestyle is critical to ensuring you have the coverage you need. But don’t worry; it’s easy!
Take inventory. Start by taking an inventory of everything you own in your home. While going through each room in your home and assessing your belongings it’s a good idea to photograph or digitally document the following information:
- Purchase date
- Purchase price
- Brand number
- Serial number
Set coverage and personal liability limits. Your coverage limits should be reflective of the actual cash value of your belongings. Liability limits will likely be set by your landlord at $300,000 to $500,000.
Add flood insurance. While flood insurance is not required as a renter, it’s the only way to protect your personal belongings from flood damage. With over 250,000 buildings located on floodplains in Illinois, floods cause 700 million dollars in damages annually.
Key Takeaway: Set your coverage amount based on the value of your personal belongings.
Actual cash value vs. replacement cost
When you purchase your renters insurance, you’ll have to choose between a policy that provides actual cash value or replacement cost coverage.
A policy that provides actual cash value protection will cover the current value of your personal property at the time of loss. This type of coverage accounts for marketplace depreciation of your belongings. If damaged by a named peril, you’ll receive $100 for a laptop that cost you $1,500 ten years ago.
If you choose to purchase a policy that covers replacement cost, you can claim your belongings for the full amount you originally paid for them and you’ll receive $1,500 to purchase a comparable laptop.
Carefully assess your needs and the potential risk in your area, from crime rates to natural disasters, and choose accordingly.
Key Takeaway: Both coverages will help you financially in the event of a loss, but you’ll pay more for replacement cost.
How to find cheap renters and car insurance
You can save money on renters insurance by bundling it with your auto policy. Most companies will offer bundling discounts between 5% and 25% on both policies.
Begin your search for renters insurance by getting a quote from your current car insurance company. If you aren’t satisfied with your initial quote, you’ll want to compare quotes from several companies and consider switching providers to get cheap renters and car insurance.
Jerry is the easiest and most effective way to find a car or renters insurance policy that is customized for you.
If you’re looking for a new insurance company, Jerry can provide you with competitive quotes in under a minute. Swapping is just as effortless. They’ll take care of all the paperwork and phone calls and can even assist you in canceling your old policy!
“Jerry got me the best price and provided a great service. I was able to switch my policy over to Progressive to get the same coverage for less!” —Miriam O.
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Is renters insurance worth it?
Yes, renters insurance is worth it. Not only is it the cheapest insurance, but it’s the only way to protect your personal property if it’s damaged.
What is the average cost of renters insurance in Illinois?
Illinois renters can expect to pay between $124 and $168 per year for renters insurance. The cost of your renters’ insurance will depend on where you live and your policy coverage.