Insurance Lecturer — Illinois may seem like a Midwestern state without a large degree of threat for wildfires, tornados, earthquakes or hurricanes, but Illinoisans still need homeowners insurance.
No one can guarantee that their home will never fall victim to damage, so the best bet for insuring your home is to purchase a homeowner’s insurance policy that protects the dwelling and the interior belongings.
The state of Illinois enacted an insurance law in 1968 called the FAIR plan. This plan is supported by nearly 500 insurance companies in Illinois and allows for all homeowners to be eligible for insurance.
In order to qualify for coverage with the FAIR Plan, the homeowner must have had three unsuccessful attempts to buy property coverage from insurance companies and the owned property must meet basic fire and safety standards.
If this is the case, then notify the insurance company who you are trying to work with and they should be able to put you in connection with the Illinois FAIR plan program, a not-for-profit organization that provides homeowner’s insurance to those who have been turned down.
Basically, the program will hunt for a property insurance company that fits your needs and is willing to cover your home and will send you on your way to having an insured home.
If you are new to the state of Illinois, mine subsidence insurance may not be at the top of your list. Depending on the county and the part of Illinois you will be living in, though, this may be something you want to consider.
Mine subsidence insurance is usually excluded from a typical plan and needs to be purchased separated, but may be helpful if there is a working or deserted coal mine in your area.
Large, underground mines are common in many parts of Central and Southern Illinois, although there are mines located throughout the state. Be sure to check with the county you are moving to in order to find out if there is a mine in the area.
If so, insurance companies that cover those counties are required by Illinois state law to offer mine subsidence insurance. This insurance would pay if an underground mine shifts or explodes and would cause damage to your home.
Keep in mind that there are counties where mine subsidence insurance is required. If this is the case, the insurance company will automatically add this insurance to your coverage plan.
If you want to have the mine insurance removed, you will need to sign a rejection letter in case something does happen, the insurance company will have proof that they are not responsible for payment.
Another important exclusion insurance that you may want to consider in the state of Illinois is flood insurance. Most basic insurance policies do not cover flood insurance although many insurance companies in Illinois will recommend this extra coverage.
If you live in a flood hazardous area, which covers much of Illinois, your mortgage lender may require you to have flood insurance before you will be given a home loan.
In Illinois, flood insurance has to be purchased through the National Flood Insurance Program, a federal government organization. Most insurance companies will be able to set this up as a supplement to your standard policy and can put you in touch with the National Flood Insurance Program, but usually they will not do so without you first asking.
A good point regarding Illinois homeowners insurance is that Illinois state law allows for discounts in homeowners insurance.
The discounts are specific to individual insurance companies and can range from installing alarm systems, sprinkler system, smoke and carbon monoxide detectors to new roofs and new plumbing systems.
Be sure to ask your Illinois insurance agent before they arrive at your final quote.
