A fact of life for aspiring homeowners is insurance. You can’t get a mortgage without proof of a homeowners insurance policy, and you normally can’t buy a home without a mortgage. Even if you could, you probably would want to protect your major investment and main asset from liability and accidents. Homeowners in Illinois enjoy relatively reasonable property insurance rates. According to the National Association of Insurance Commissioners, the average 2006 basic homeowners insurance premium in Illinois was $764; Florida was $1386; Texas was $1409; California was $937; New York was $869.

Many things affect your rates, including your credit, your claim history, the age and condition of your property, coverages selected, discounts for which you may be eligible, and comparison shopping between insurance vendors. Rates may be higher in large cities such as Chicago and Springfield or in areas that are more subject to natural disasters, but can still be managed with competitive rate quotes, discount eligibility, and good property management.

Basic homeowners insurance coverages in Illinois are liability, medical payments, and property coverages. Liability covers bodily injury to others and property damage. Medical payments covers injury to others accidentally injured on your property, or by you or someone in your family. Property covers physical damage to your home and personal property including buildings, in case of fire, storm and theft, as well as living expenses when you must move because of a loss.

There are different forms of common homeowners policies, called broad, special, and comprehensive, for specific losses, property and liability for dwellings and buildings, and everything not specifically excluded. There is also tenant’s for renters, condominium for property inside the condo unit, and modified coverage for older homes that have lost market value. There are exclusions for normal wear and tear, aging, lack of maintenance, and intentional damage, auto and recreational vehicles, catastrophes such as earthquakes and floods, and some specific exclusions for trampoline or dog attack injuries. There are discounts available for protective devices such as fire extinguishers and smoke alarms, older homeowners over 55, non-smokers, multiple policies, and new homes.

Additional separate coverages available include earthquake insurance, flood insurance, and watercraft endorssement, to name a few. Different areasa in Illinois are subject to floods, tornadoes, and earthquakes, so if you are buying a home in Illinois, research the area to decide if you will need any of these additional coverages. For example, any property near a body of water would benefit from flood insurance. A little research, some comparison shopping, and perhaps a good professional recommendation will help you get a good rate on your Illinois homeowners insurance.