Renters Insurance in Chicago

Unlike car insurance and homeowners insurance, you aren’t usually required to have renters insurance in Chicago to rent a home or apartment. However, maintaining at least some form of renters insurance helps protect your things from hazards like fires and break-ins.

Today, let’s learn a little more about how renters insurance in Chicago works and how you can get covered.

Best Renters Insurance Providers in Chicago

Now that you understand how renters insurance in Chicago works and what you’re likely to pay, it’s time to choose an insurance provider. Let’s take a look at some of our favorite insurance companies offering renters insurance policies in the Windy City.  

1. Best Overall in Chicago: State Farm

State Farm is one of the largest insurance providers in the country — and it offers some of the best renters insurance policies in Chicago. You can quickly get a quote by using its online estimation system. With State Farm, you can choose your own level of coverage, and policies are available from just $16 per month.

Deductibles start at just $500 and you can choose a deductible of up to $10,000 to save even more on your premiums. You can also save by installing deadbolt locks on your doors, smoke and burglar alarms in your home and bundling your car insurance. 

2. Cheapest Renters Insurance in Chicago: Lemonade

Did you know most of our readers prefer to work with Lemonade for their renters insurance needs?

If you’re looking for the most affordable renters insurance in Chicago, be sure to consider a policy from Lemonade. Lemonade is a renters insurance company that allows you to quickly enroll in a policy online — you can get a quote in as little as 3 minutes.

Just answer a few questions about who you are and where you live and you’ll see your insurance options clearly laid out. Policies from Lemonade are available from as little as $5 per month, making it one of your most affordable options for coverage. If you’re searching for an easy and low-cost way to protect yourself and your space, Lemonade is an excellent choice.

Get Protection Now

Lemonade offers fast, easy coverage through their seamless application and claims process. Get personal property and liability protection with Lemonade Renters Insurance.

3. Allstate

Have you taken time to make your home as safe as possible? Be rewarded for your eye toward safety with Allstate’s generous renters discount program. With Allstate, you can save by maintaining a working home security system or fire alarm, having your payments automatically withdrawn from your bank account each month and even staying claims-free.

If you’re retired, you can save a whopping 25% on your renters insurance cost. Allstate also offers generous multi-policy bundling discounts, allowing you to save more by combining your life, auto, business or motorcycle insurance with your insurance policy. 

4. Farmers Insurance

Finding the right renters insurance policy can be difficult. Farmers Insurance makes it easier for you to find affordable coverage and anticipate the specific perils you’re more likely to face. If you have tons of expensive electronics in your apartment that you need to protect, for example, you can buy specialized replacement cost coverage that will ensure that you’re able to fully replace your cameras or gaming equipment.

Farmers is also one of the only renters insurance companies that allows you to choose a separate deductible for different perils, which can help you balance costs and risks. Farmers also offers a host of discounts — you can save by installing a home security system and avoiding smoking in your home. 

5. Nationwide

If you have any single possession worth more than $500, you should get a rider to ensure that you’re fully protected. Nationwide is one of the largest insurance companies in the country — and they’re also one of the best renters insurance providers for optional coverages. Nationwide offers specialized riders for some of the most commonly owned valuables, including firearms, jewelry and fine art.

You can also enhance your theft coverage outside of your home with Nationwide’s theft extension add-on, which offers you additional coverage for thefts from your vehicle, trailer or watercraft. If you’re looking for a more personalized policy, Nationwide could be the renters insurance company for you. 

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Renters Insurance in Chicago: An Overview

Statistics suggest that Chicago will see a surge in rental potential in the coming years as home prices continue to rise. About 35.62% of Chicago residents rent their living space — that’s about 967,000 people. As of 2016, there are about 1.1 million rental properties and units in Chicago. 

There are many different types of rental units. If you rent a space, you might be living in one of these common property types.

• Apartments: An apartment is a small rented space in a common building. Most apartment buildings have at least 3 units and some may have hundreds.
• Single-family home: A single-family home is a house that generally fits between 4 to 6 occupants. In a single-family home, you have access to all space and appliances in the home, including the attic and basement if the home has either. You also have full access and control of any outdoor space (front and backyards) that’s included with the home.
• Duplex/double-family home: A duplex is a type of home that’s split in 2 to accommodate 2 families. Each unit in a duplex has its own private entrance, and you cannot access the other family’s side of the home.
• Condo: A condo (short for “condominium”) is a single unit within a larger complex. If you rent a condo, your landlord is renting out only the interior of the unit to you. The exterior of the home is owned by the condo association that controls the complex.   

Average Annual Renters Insurance Premium in Chicago

Chicago is one of the most expensive cities when it comes to renters insurance rates. The good news is that renters insurance is much more affordable than homeowners insurance and landlord insurance. On average, you can expect to pay about $450 per year for your renters insurance in Chicago, or about $38 per month. However, it’s possible to find insurance for as low as $196 per year or as high as $1,200 depending on the level of coverage you need and your ZIP code.

Renters insurance companies offer a number of discounts you can use to lower your risk of filing a claim and reduce your premium. Let’s take a look at some of the most common renters insurance discounts you might find.

• Home security system discount: If you install a home security system, you may be able to save on your insurance premiums.
• Fire alarm discount: You may be able to save on your renters insurance by installing working fire alarms or smoke detectors in your home.
• Adjustable deductible discount: A deductible is the set dollar amount you’ll need to pay toward your property loss when you file a claim. Some insurance providers allow you to lower your monthly premium by choosing a higher deductible.  

Renters Insurance Coverage Explained

Renters insurance is a type of protection that offers financial compensation in the event that your property is damaged or stolen during a covered peril. When you sign onto an insurance policy, your insurance company provides you with a list of covered perils, which are incidents that allow you to file a claim. Some of the most common covered perils include fires, burglaries and electrical outages. You’ll also receive a list of excluded perils that you aren’t covered under.

If you suffer a loss from a covered peril, you’ll first pay to replace your belongings out of pocket. Then, you’ll file a claim with your insurance company. If you’re covered, your insurance will reimburse you up to your policy limits once you’ve met your deductible.

Most renters insurance includes 3 types of coverage:

• Personal property: Personal property coverage helps to replace your belongings after a natural disaster or burglary. It helps to pay for things like electronics, furniture, clothing and more.
• Personal liability: Personal liability coverage helps you pay for legal representation and awarded judgments if you’re sued after someone is injured in your home or apartment.
• Loss-of-use coverage: If your home or apartment is destroyed to the point that it’s no longer habitable, additional living expense coverage can help you pay for things like a hotel room and meals you would normally eat at home.

Your renters insurance policy may include limits on the benefits you can claim for a single lost item. For example, your policy may include $40,000 worth of coverage — but it may also include a clause that states that you can only use $1,000 worth of this coverage for lost jewelry. You may be able to extend your policy with an add-on called a “rider.”

Inclement Weather and Nature-Related Risks in Chicago

Your local environment affects what you’ll pay for insurance. Chicago renters insurance rates are higher than neighboring states and cities due to the Windy City’s extreme temperature fluctuations.

Chicago is situated directly on Lake Michigan, which makes its residents more prone to feeling the effects of natural disasters. Its close proximity to the lake makes it more likely to experience flooding, heatwaves and extreme cold. All of these natural disasters can make it more likely that you’ll need to file a renters insurance claim, which ncreases the cost of your premium. 

Insuring Yourself Against the Future

Getting quotes from multiple insurance companies can help you rest with the peace of mind that comes with knowing your family has the best coverage possible. Most insurance companies now allow you to quickly claim a quote online in as little as 60 seconds. Compare your options from at least 3 companies before you choose a policy.

Frequently Asked Questions