By the Lapera Insurance Team · Reviewed by Joe Lapera, Licensed Illinois Insurance Agent (IL Lic #100722394)
Your home insurance quote came back higher than you expected, and the first instinct is to start cutting. Hold that thought. There are two ways to bring an Illinois home premium down: claim the discounts you already qualify for, or quietly remove coverage you will badly need later. Here is the first list in detail, and the second flagged plainly.
The discounts worth asking about on an Illinois home policy are bundling, protective devices (monitored alarms, smoke detection, leak sensors, automatic water shutoff), a newer roof and updated systems, a claims-free record, loyalty, and how you pay. Illinois also lets carriers use a credit-based insurance score, within limits set by 215 ILCS 157. What you should never cut: water backup coverage on a home with a basement, dwelling coverage below rebuild cost, or liability.
Most homeowners we sit down with are missing at least one discount they already qualify for: a monitored alarm nobody told the carrier about, or a roof replaced three years ago that never made it onto the policy. Meanwhile, the fastest way to a lower number is often a coverage cut that looks harmless on a quote and becomes a five-figure problem in a March storm. Below, we go category by category. Discount names and availability vary by carrier, so treat this as a checklist to bring to your agent, not a promise of any particular price.
Why Are Discounts Worth Chasing on an Illinois Home Policy Right Now?
TL;DR: Because Illinois premiums have climbed quickly, and discounts are one of the few parts of your price you can actually influence without giving up protection.
If your premium feels like it has jumped every year lately, you are not imagining it. The reasons are mostly outside your control: storm losses, rebuild costs and what carriers pay to insure themselves. We break those down in Why Are Illinois Home Insurance Rates Going Up?, so we will not repeat them here.
That is a statewide average, not a quote for your house. The baseline has moved for everyone. What you can influence sits on top of it: which discounts you receive, how the carrier sees your roof and systems, and your deductible. The rule this guide follows: the goal is a lower quote on the right coverage, not a lower quote on less coverage. A discount changes the price of the same protection. A coverage cut changes what you are protected against.
Lapera Insurance Agency is a Farmers Insurance agency at 530 Barron Blvd in Grayslake, Illinois. Our team has been reviewing Illinois home policies line by line with clients since 1993, with over 40 years of combined experience, and finding missed discounts is one of the most common things that conversation turns up. Every guide on this site is reviewed by a licensed Illinois agent before it publishes.
What Separates a Smart Home Insurance Discount From a Dangerous Cut?
TL;DR: A smart saving keeps your protection intact and lowers the price; a dangerous one lowers the price by removing the coverage your most likely claim depends on.
Before the list of discounts, here is the full picture: what we actively look for, and what we talk people out of, even when they ask for it.
| Move | What it does | Our view |
|---|---|---|
| Bundling home and auto | Same coverage on both policies, priced as one household | Smart Ask first |
| Claiming device and home-feature credits | Rewards alarms, leak sensors, a newer roof and updated systems you already have | Smart Often missed |
| Paid-in-full, auto-pay, paperless | Lowers the carrier's cost of servicing the policy | Smart Easy win |
| Raising the deductible | Trades a lower premium for a larger check you write at claim time | Depends Only with cash in reserve |
| Dropping water and sewer backup | Removes coverage for the most common basement claim we see | Dangerous Never on a basement home |
| Lowering dwelling below rebuild cost | Leaves you personally paying the gap after a major loss | Dangerous Never |
| Cutting liability to the minimum | Shrinks the one coverage that protects your savings from a lawsuit | Dangerous Never |
The dwelling limit deserves its own warning. Coverage A should match what it would cost to rebuild your house today, not the purchase price or a real estate estimate. Trimming it is one of the most expensive mistakes a homeowner can make, because it only shows up after a fire or a tornado. Our guide to replacement cost vs. market value in Illinois explains how to find the right number. Liability works the same way: if you have assets worth protecting, add a personal umbrella above home and auto rather than trimming what is underneath.
Sewer and sump backup is typically excluded from an Illinois homeowners policy unless you add it by endorsement. The Illinois Department of Insurance lists sewer backup and sump pump failure among typical homeowners exclusions and describes the coverage as available for an additional premium (IDOI homeowners definitions), and the Insurance Information Institute notes flood insurance does not cover it either (Triple-I). In Lake County, it is the most common basement gap we find. Removing it to lower the quote is exactly the wrong kind of savings.
Should Bundling Be the First Home Insurance Discount You Ask About?
TL;DR: Usually yes, because a multi-policy discount typically applies to both the home and the auto policy, but it only helps if both policies are right for you.
Bundling means placing your home and auto (and sometimes umbrella or life) with the same carrier. It is the first thing we check because it touches both policies, and the Insurance Information Institute lists it among its ways to lower homeowners costs (Triple-I). Farmers lists a bundling discount for home plus at least one other qualifying Farmers policy (Farmers).
A bundle is not automatically the right answer, though. If one carrier fits your car but not your house, the discount does not fix the mismatch. We cover that decision in Should You Bundle Home and Auto Insurance in Illinois?, and the auto side has its own list in the Illinois auto insurance discounts guide.
Which Home Safety Devices Can Earn a Discount in Illinois?
TL;DR: Monitored alarms, smoke and fire detection, sprinklers, water leak sensors and automatic shutoff valves are the devices carriers most commonly credit, and connected smart-home systems increasingly count too.
This is where people leave the most on the table, because the device is already installed and nobody told the carrier. Availability and the size of any credit vary by carrier and by state.
Monitored security
A central-station burglar alarm is the classic protective device credit. Carriers often ask for the monitoring certificate.
Smoke and fire detection
Smoke detectors, monitored fire alarms and interior sprinklers. Monitoring usually matters more than the detector alone.
Water leak sensors
Sensors by the water heater, washer and sump catch a leak before it becomes a ruined ceiling or basement.
Automatic water shutoff
A valve that closes the main supply when a leak is detected. Some carriers credit it more than sensors alone.
Connected home
Smart systems you can monitor and control remotely, such as cameras, locks and leak alerts, may qualify.
Backup sump pump
A battery or water-powered backup keeps pumping during an outage. Ask if it earns a credit; it prevents claims either way.
Farmers, our primary carrier, names several of these on its homeowners discounts page: a protective devices discount for fire alarms, security systems and internal sprinklers; a home safety discount for features such as plumbing leak detection and automatic gas shutoff; and a connected home discount for smart systems with remote monitoring and control. Farmers notes that discounts vary by state and policy, so we confirm what applies in Illinois on your quote.
An alarm certificate, a receipt for the shutoff valve or a screenshot of the leak-sensor app turns "I think we have that" into proof the carrier can evaluate for a credit. Send it with your quote request and our Grayslake office will submit it to the carrier and confirm whether a credit applies.
Do a Newer Roof and Updated Systems Lower Your Illinois Home Premium?
TL;DR: Yes, often, because carriers price the age and material of the roof and the age of the electrical, plumbing and heating systems as underwriting factors, and newer usually rates better.
Two similar homes on the same street can price very differently because one has a 2022 roof and a new electrical panel and the other has a 2005 roof and original wiring. When you update something, the carrier does not automatically know.
- Roof age and material. A recent replacement can improve both eligibility and rate. Farmers lists a discount for UL-approved roofing materials, meaning asphalt or fiberglass shingles approved by UL (Farmers). Some carriers also credit impact-resistant shingles, which matter in hail country. Availability varies by carrier.
- Electrical, plumbing and heating. Updated panels, supply lines and a newer furnace or water heater reduce fire and water risk, and the Insurance Information Institute lists modernizing these systems among its ways to lower costs (Triple-I). Tell us the year each was updated.
- New or renovated home. Newer construction typically rates better; Farmers lists a new home discount and says to ask an agent about options if your home is less than 14 years old (Farmers). A substantially renovated house can sometimes rate more like a newer one, if the updates are documented.
One caution runs the other way. As roofs age, some carriers change how they settle a roof loss or move older roofs to a different rating tier at renewal. That is a coverage question as much as a price question; our Illinois home insurance guide explains what to look for.
Roof year, furnace year, water heater year, electrical panel year and any major plumbing work, with a photo of each invoice. It takes twenty minutes once and makes every future quote and renewal review faster and more accurate.
Which Discounts Come From Your Record and How You Pay?
TL;DR: A claims-free history, staying with the same carrier, and paying in full, by automatic payment or on time can all earn credits, and paperless billing sometimes does too.
These discounts reward how you have handled the policy, not the house, and they are easy to overlook.
- Claims-free. Farmers, for example, lists a claim free discount for three consecutive years without a claim (Farmers). It is one reason we talk through small losses before you file: a claim barely above the deductible can cost you a credit worth more.
- Loyalty. Many carriers credit long-term customers, and the Insurance Information Institute lists staying with the same insurer among its ways to lower costs (Triple-I). It is worth something, but not a reason to keep a policy that no longer fits.
- How you pay. Farmers lists a preferred payment discount for paying in full, in two installments or by monthly automatic payment, a good payer discount for paying on time, and an ePolicy discount for going paperless (Farmers).
- Group, profession or first home. Farmers also lists affinity and GroupSelect discounts for qualifying professions, military service and employer programs, and a rent to own discount for renters policyholders of more than a year who buy a home (Farmers).
Whether each discount is available in Illinois, and on your policy form, is something we confirm on the actual quote.
How Does Your Credit Affect Home Insurance Rates in Illinois?
TL;DR: Illinois allows carriers to use a credit-based insurance score in home rating, but 215 ILCS 157 limits how it is used and gives you the right to ask for a re-rate at renewal in many cases.
This surprises a lot of people. Illinois permits insurers to use credit information in pricing personal insurance, including homeowners policies, under the Use of Credit Information in Personal Insurance Act (215 ILCS 157). A credit-based insurance score is not the same as a lending credit score, but it draws on the same credit report. Here is what the Act says, in plain English:
- Credit cannot be the only reason. Section 20 bars an insurer from denying, canceling or nonrenewing a policy, or setting your renewal rate, solely on credit information without considering other factors.
- Some things cannot go into the score. Section 20 prohibits scores that use income, gender, address, ethnic group, religion, marital status or nationality, and restricts how inquiries and medical collections count.
- You can ask for a re-rate. At annual renewal, on request by you or your agent, the insurer must re-rate on current credit information, with exceptions, such as when your score was already updated in the previous 12 months or you are already in the best-priced tier.
- Life events can count. Section 22 requires insurers to consider an exception on a written request when credit was hurt by an extraordinary life event, such as catastrophic illness or injury, the death of a spouse, child or parent, involuntary job loss of three months or more, identity theft, or divorce.
Practically: if your credit has improved since the policy was written, ask whether a re-rate at renewal is available, and we can make that request with you. If a hard stretch of life dented your credit, the Act gives you a way to ask the carrier to account for it. Neither happens automatically.
Should You Raise Your Home Insurance Deductible to Lower the Premium?
TL;DR: Only if you could comfortably pay the higher deductible tomorrow, from cash, without borrowing, and only after you understand any separate wind and hail deductible on the policy.
Raising the deductible is a real lever, and the Insurance Information Institute lists it among its ways to lower homeowners costs (Triple-I). But it is not a discount. It moves money from the premium to the claim: you pay less every year and more on the day something goes wrong. Our test: if a storm or a burst pipe hit tomorrow, could you write the deductible check from savings without touching a credit card? If not, a lower premium on paper becomes an emergency later.
Say moving from a $1,000 deductible to a $2,500 deductible lowers the annual premium by $150 (illustrative only; your actual quote will differ). You now carry up to $1,500 more on each claim, so it takes 10 years of that $150 saving just to break even on one claim that uses the full deductible. With a cash reserve and a history of rarely filing, that can be reasonable. If $2,500 would strain the household budget, the lower deductible is the better protection. We run both on the actual quote.
Also check for a separate wind and hail deductible. Some Illinois policies set it as a percentage of the dwelling limit rather than a flat dollar amount, which can make it much larger than the standard deductible.
How Often Should You Review Your Illinois Home Policy for Discounts?
TL;DR: Every year before renewal, and any time you update the house, pay off the mortgage, add a device or change carriers on another policy.
Discounts expire, houses change and carrier appetites shift. A policy built well five years ago can be missing credits today. A yearly review with our office costs nothing and usually takes about fifteen minutes. Here is what we go through:
- Discounts on the declarations page: applied, expired, and newly available.
- Home updates since last year: roof, systems, devices, renovation.
- Dwelling limit versus current rebuild cost, so you are neither overpaying nor underinsured.
- Water backup limit on any home with a basement.
- Deductibles, including wind and hail, against your cash reserve.
- Liability, umbrella and a credit re-rate where it makes sense.
If your carrier has sent a non-renewal, or you cannot find standard coverage at all, start with our guide on what to do after an Illinois home insurance non-renewal. For homes the standard market will not take, the Illinois FAIR Plan is the state's backstop; we look at additional markets first.
Ready to see which discounts your house qualifies for? Send us your declarations page through the quote form, or see how we build policies on our Illinois home insurance page. Near a river or creek? Flood is a separate policy from water backup; see the Illinois flood insurance guide.
The Bottom Line
The honest way to lower an Illinois home insurance quote is to claim every discount you already qualify for: bundling, protective and water devices, a newer roof and updated systems, a claims-free record, loyalty, and how you pay. Ask about a credit re-rate where it fits, and tune the deductible only as far as your cash reserve allows.
Do not buy a lower number by cutting the coverage your most likely claim depends on. Keep water backup on a basement home, the dwelling limit at rebuild cost, and liability where it protects what you own. Send us your dec page and our Grayslake office will go through it line by line.
Related Questions
What discounts are available on Illinois homeowners insurance?
The most common categories are multi-policy bundling, protective devices such as monitored alarms and smoke detection, water leak detection and automatic shutoff, a newer roof or updated electrical, plumbing and heating, new-home credits, claims-free and loyalty credits, and payment discounts for paying in full, auto-pay or paperless. Names and availability vary by carrier, so ask what applies on your specific policy.
Can Illinois insurers use my credit score for home insurance?
Yes. Illinois allows a credit-based insurance score as a rating factor under the Use of Credit Information in Personal Insurance Act (215 ILCS 157). The Act bars using credit as the sole reason to deny, cancel or nonrenew, bars scores that use factors like income or ethnic group, and generally lets you request a re-rate at annual renewal, with exceptions.
Does a water leak sensor lower home insurance in Illinois?
It can. Many carriers credit water leak detection or automatic water shutoff devices, and Farmers lists a home safety discount that includes plumbing leak detection. Availability varies by carrier and policy. Even without a credit, a sensor near the water heater, washer and sump can prevent the kind of water loss that affects your claims history.
Is it smart to drop sewer backup coverage to save money?
Not on a home with a basement. Sewer and sump backup is typically excluded from an Illinois homeowners policy unless you add it by endorsement, according to the Illinois Department of Insurance. In our experience in Lake County, it is the most common basement coverage gap we find, and the premium it saves is small compared with what a backed-up finished basement costs.
Does raising my deductible lower my home insurance premium?
Usually, yes, because you take on more of each claim yourself. It only makes sense if you could pay the higher deductible from savings without borrowing. Also check for a separate wind and hail deductible, which on some Illinois policies is a percentage of the dwelling limit and can be much larger than the standard deductible.
Does a new roof lower home insurance in Illinois?
Often it helps. Carriers treat roof age and material as underwriting factors, so a recent replacement can improve eligibility and rate, and some carriers credit certain roofing materials or impact-resistant shingles. Farmers lists a discount for UL-approved roofing materials. Tell your agent the installation year and material so the policy reflects it.
Last reviewed September 2026 by Joe Lapera, Licensed Illinois Insurance Agent (IL Lic #100722394). Figures verified against the sources linked above on that date.