Significant Rise in Home Insurance Rates - LendingTree Report

From 2020 to 2025, Illinois has experienced the seventh-highest increase in average home insurance rates in the United States. This rise was highlighted in a report by LendingTree titled "State of Home Insurance: 2026." The report revealed that Illinois' average home insurance rates surged by 68% during this period, with Colorado witnessing the most significant increase at over 100%.

This trend of escalating insurance costs is not confined to select states. Nationally, home insurance premiums climbed by 46.8% over five years, indicating a substantial rise in the insurance burden, as per LendingTree. In Illinois, the surge has been notably driven by increased tornado occurrences, prompting more claims related to wind, hail, and storm damage. Frank Manzo IV from the Illinois Economic Policy Institute emphasized that changing climate patterns have significantly contributed to this rise in claims.

Similar to Illinois, Florida is also grappling with weather-induced insurance rate hikes due to hurricanes and flooding. Manzo explained that widespread claims can indirectly elevate premiums for others in the area, as insurers distribute the risk across policyholders. Besides weather-related influences, the rise in home prices further contributes to climbing insurance rates. Real estate data shows a 5.6% increase in Illinois home prices from May 2025 to May 2026, with Madison County seeing a slightly higher increase at 5.9%.

Insurers' reduction or elimination of coverage in states frequently affected by natural disasters can diminish market competition, ultimately leading to higher premiums. Manzo noted that this trend results in fewer options for homeowners seeking new insurance policies. According to LendingTree's data, the ranking of states by the highest increases in home insurance rates from 2020 to 2025 is as follows:

• Colorado: 100.8%
• Iowa: 96%
• Minnesota: 88.2%
• Utah: 77.2%
• Nebraska: 72.2%
• Arizona: 71%
• Illinois: 68%
• South Dakota: 62.8%
• Oregon: 56.5% (tie)
• Montana: 56.5% (tie)