Illinois Landlord Insurance

Find the Best Landlord Insurance Rates & Companies in Illinois 

Illinois is one of the most heavily populated states in the US and draws tons of tourists every year. As such, Illinois is a prime location to profit from rental properties. But whenever you let someone else reside in a building you own, you need protection for your personal property and against any liabilities. That's where landlord insurance comes in.

An independent insurance agent in Illinois can help you find all the landlord insurance you need for your unique rental properties. They'll ensure you get matched to the ideal amount of coverage. But first, here's a closer look at Illinois landlord insurance requirements and more.

Best Landlord Insurance Companies in Illinois

Many different carriers sell landlord insurance in Illinois. But when you're looking for top-quality coverage, it's helpful to have a starting point. Here are some of our top recommendations for the best landlord insurance companies in Illinois for your convenience.

1. Safeco Insurance: This insurance company sells landlord insurance and many other forms of personal insurance. Safeco is highly rated by AM Best and the Better Business Bureau (BBB) and offers 24/7 claims reporting
2. Stillwater Insurance Group: This insurance company sells landlord insurance and many other types of personal and business insurance. Stillwater has excellent ratings from AM Best and the Better Business Bureau (BBB), offers 24/7 claims reporting, and offers nationwide coverage.
3. REinsure Pro: This insurance company sells landlord insurance and many other forms of property insurance. REInsure Pro is highly rated by the BBB and offers a fast claims response time.

An Illinois independent insurance agent can help you shop and compare landlord insurance quotes from these carriers and others to help you find the best policy.

What Is Landlord Insurance?

Landlord insurance is designed quite a bit like homeowners insurance in that it includes coverage for property. Landlord insurance can protect the dwelling or structure of a building as well as its contents. You can file a landlord insurance claim in case of a covered incident like a fire, vandalism, or tenant damage. If the insurance company approves your claim, they can provide reimbursement to repair or replace the damaged, stolen, lost, or destroyed property up to the limits in your policy.

How Is Landlord Insurance Different from Home Insurance?

Landlord insurance also includes certain aspects of business insurance since the landlord generates a profit from renting out all or part of their space. These policies include protection for lost income during temporary suspensions in operations due to covered perils as well as other increased protection not included in home insurance. Landlord insurance also considers the fact that tenant damage is more common and likely than homeowner damage to their own property.

Is Landlord Insurance Required in Illinois?

Landlord insurance isn't mandatory by law in Illinois. However, it can still be wise to get a policy. If you rely on the income from your rental properties, it's critical to have protection in case an incident temporarily prevents you from collecting rent. Further, landlord insurance provides critical liability protection in case a tenant sues you for injuries or property damage. Without landlord insurance, you could have to cover these potentially hefty expenses yourself.

What Landlord Insurance in Illinois Can Cover

You can design your landlord insurance policy however you wish. But in Illinois, these are some of the most common coverage options you can select:

• Liability insurance: This can reimburse you for expenses related to tenant or other third-party lawsuits for claims of bodily injury or personal property damage.
• Dwelling coverage: This can help pay for repairs to your rental property's dwelling and attached structures like decks and garages in case of damage or destruction by fire, smoke, vandalism, windstorms, hail, falling objects, or your tenants.  
• Loss of income coverage: This can reimburse you for lost income in case a rental property becomes temporarily uninhabitable due to a covered loss, such as a storm or apartment fire. 
• Premises medical protection coverage: This covers medical treatment expenses if one of your tenants gets injured in a covered event, such as an accident while staying at your rental property. 
• Other structures coverage: This covers detached structures (e.g., sheds, fences, etc.) against the same perils as dwelling coverage.
• Optional coverage: Additional coverages are also available for landlords, such as rent guarantee insurance, natural disaster insurance, vandalism coverage, burglary coverage, rental property under construction coverage, building code coverage, employer liability insurance, and landlord contents insurance.

Your Illinois independent insurance agent can help you build your landlord insurance policy with each type of coverage you need.

What Landlord Insurance in Illinois Will Not Cover

Your landlord insurance policy won't cover just anything. Here are some of the most common Illinois landlord insurance exclusions:

• Flood damage
• Your personal property stored at the premises
• Earthquake damage
• Rental property wear and tear
• Routine maintenance costs
• Water or sewer backups

You can often purchase endorsements or other coverage add-ons for your landlord insurance policy that can include coverage for some or all of these incidents.

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Average Cost of Landlord Insurance in Illinois

Landlord insurance in Illinois costs about $1,379 per year. However, the cost of your specific policy can vary depending on the following factors:

• Age and condition of the property: Older buildings with outdated electrical systems often face higher coverage rates than new units with up-to-code heating and energy systems.
• Your location: Rental properties in high-crime areas often face higher coverage rates than those in neighborhoods with fewer property crimes.
• How many rental units you own: The more rental properties you own, the more expensive your rates are likely to be.
• Security measures on the property: If your rental property has a gated entry, antiburglary systems, and smoke alarms, your coverage rates are likely to be lower than those without these security measures.
• Size and value of the structure: Larger, more expensive buildings often face higher coverage rates than smaller, less valuable homes or complexes.
• Risk factors on the property: If you allow smoking in your units or your complex has a fitness center or swimming pool, you're likely to have higher landlord insurance rates.

An Illinois independent insurance agent can help you find cheap landlord insurance near you.

Popular Questions about Illinois Landlord Insurance