Illinois Sees 50% Surge in Homeowners Insurance Rates

Homeowners insurance premiums in the U.S. have surged post-pandemic, with a national average increase of 24% over the last three years, driven by climate change and extreme weather events. In Illinois, premiums have reportedly escalated by 50%, only behind Utah's 59%. The Consumer Federation of America highlights that premiums have increased in 95% of U.S. ZIP codes due to factors like rising costs of building materials and political dynamics that allow for unchecked rate increases. Abe Scarr from Illinois PIRG argues for more regulation to protect consumers, especially as homeowners face steep rates without adequate justifications from insurers.

The situation is exacerbated by severe weather events leading to higher claims, particularly noted by Allstate, which reported significant losses due to wind, hail, and tornados. While Florida remains the most expensive state for homeowners insurance, Illinois finds itself facing significant hikes that raise concerns about affordability. Despite the looming crisis, state regulators are criticized for their lack of stringent oversight regarding rate increases, with calls for legislative action to impose fair assessments on insurance rates.