What drives the risk for expensive homes in Illinois
- Catastrophe exposureIllinois homes face severe thunderstorms with hail and damaging wind, tornadoes, flooding and severe winter storms. Southern Illinois is also exposed to earthquakes from the New Madrid and Wabash Valley seismic zones. Source
- FloodFlood is excluded from homeowners policies and NFIP caps building coverage at $250,000. Expensive homes near Lake Michigan, the Des Plaines and Fox rivers or other mapped floodplains may need private or excess flood coverage, and sewer backup needs its own endorsement. Source
Illinois by the numbers
| Measure | Illinois | Rank among the states | Detail |
|---|---|---|---|
| Federal major disaster declarations since 2000 | 23 | #32 of 51 | Most often for severe storm (13), flood (6), tornado (2). Pike County has been in 9 of them. |
| National Flood Insurance Program claims, 2005–2025 | 21,860 | #15 of 51 | $385.9 million paid; 25% of claims with a known flood zone were outside FEMA’s high-risk zones. |
| Homes in high-risk flood zones with a federal flood policy | 22% | #28 of 50 | 12,648 policies for 57,540 homes in the counties FEMA can measure; US: 40%. |
| Hail reports, 2016–2025 | 2,878 | #10 of 51 | 196 of them 2 inches or larger. Largest stone 6.6 inches, Kankakee County, March 2026. |
| Tornadoes, 2016–2025 | 760 | #4 of 51 | 61 rated EF2 or stronger; 3,149 recorded since 1950. |
| Earthquakes of magnitude 4.0+, 2000–2025 | 4 | #19 of 51 | Largest: magnitude 5.2, 7 km NNE of Bellmont, Illinois, April 18, 2008. |
From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.
When the standard market says no, and what earns credits
- Insurer of last resort and wind poolsThe Illinois FAIR Plan Association sells basic property insurance on 1-4 family homes to owners who can't get coverage after diligent effort (three attempts) or whose coverage was nonrenewed. When an insurer cancels or nonrenews fire and extended coverage, it must tell the insured they may be eligible for the FAIR Plan. Source
Worth knowing in Illinois
Illinois law makes insurers tell every homeowners applicant whether sewer backup and sump pump overflow coverage is available, with its limits and cost (215 ILCS 5/143.21d). That matters for the large finished basements common in Chicago-area luxury homes. In New Madrid Seismic Zone counties, insurers must also tell applicants that earthquake coverage is available (215 ILCS 5/143.21c). Source
Where high-value homes are in Illinois
Winnetka and Kenilworth · Glencoe · Lake Forest · Hinsdale · Highland Park · Lincoln Park and the Gold Coast (Chicago)
Common questions
Where can an expensive home in Illinois get coverage if insurers decline it?
The Illinois FAIR Plan Association sells basic property insurance on 1-4 family homes to owners who can't get coverage after diligent effort (three attempts) or whose coverage was nonrenewed. When an insurer cancels or nonrenews fire and extended coverage, it must tell the insured they may be eligible for the FAIR Plan.
Is flood insurance enough for a high-value home in Illinois?
Flood is excluded from homeowners policies and NFIP caps building coverage at $250,000. Expensive homes near Lake Michigan, the Des Plaines and Fox rivers or other mapped floodplains may need private or excess flood coverage, and sewer backup needs its own endorsement.
Sources
- Illinois: Catastrophe exposure
- Illinois: Insurer of last resort and wind pools
- Illinois: Flood
- Illinois: Also worth knowing
General information as of October 2026, not legal advice; confirm current rules with the agency.