Known as "The Lilac Village" for its stunning 8.5-acre Lilacia Park showcasing over 200 varieties of lilacs, Lombard offers a rare combination of small-town charm and big-city access just 20 miles west of Chicago. But if you own a home in this DuPage County community—whether it's a Victorian near the historic district or a modern single-family in one of Lombard's established neighborhoods—you're probably noticing something less pleasant than the spring blooms: your home insurance premiums are climbing fast.
Illinois home insurance rates have jumped 50% since 2021, making it the second-highest increase in the country. With State Farm hiking rates by 27.2% in 2025 and Allstate adding up to 10.4% more in 2026, Lombard homeowners need to understand what's driving these costs and how to protect both their investment and their budget.
Why Lombard Home Insurance Costs Are Rising
The short answer? Severe weather and inflation. Illinois sits squarely in Tornado Alley, and the state has experienced repeated damaging storms over the past few years. Nearly 15% of Illinois' total land area is flood-prone, and floods account for over 90% of the state's declared disasters. When insurance companies pay out more in claims, they pass those costs to policyholders.
Repair costs have also skyrocketed. Labor shortages, supply chain disruptions, and inflation mean that rebuilding a home costs significantly more than it did just a few years ago. For Lombard's Victorian homes with their ornate woodwork and period details, replacement costs can be especially high since you're not just rebuilding with standard materials—you're restoring architectural character.
The average cost of homeowners insurance in Illinois is now around $2,400 annually for $300,000 in dwelling coverage, though your actual premium depends on your home's age, size, condition, and location within Lombard. With the median home price in Lombard at $348,833 and homes selling in just 10 days, buyers need to budget carefully for insurance from day one.
Coverage You Need for Your Lombard Home
Illinois doesn't require homeowners insurance by law, but if you have a mortgage, your lender almost certainly does. Most mortgage contracts require a policy covering at least 80% of your home's replacement cost. Here's what that policy typically includes:
Dwelling coverage protects the structure of your home. This is where replacement cost matters most. If your Victorian home has custom millwork, leaded glass windows, or a wraparound porch, make sure your policy covers replacement on a full replacement cost basis—not actual cash value, which deducts depreciation. Some Illinois insurers now cover roofs on an actual cash value basis due to hail claims, so verify your roof coverage specifically.
Personal property coverage protects your belongings—furniture, electronics, clothing, and everything else inside your home. Standard policies typically cover 50-70% of your dwelling coverage amount, but you can adjust this based on what you own.
Liability coverage is the part most people underestimate. If someone gets hurt on your property—say, a guest slips on your icy front steps in winter or a child gets injured in your yard—you could face a lawsuit. Liability coverage handles legal defense costs and any settlement or judgment. Standard policies offer $100,000 to $300,000, but many experts recommend at least $300,000 or more.
Additional living expenses (ALE) coverage pays for hotel bills, restaurant meals, and other costs if your home becomes uninhabitable after a covered loss. With Lombard's tight housing market, you might be displaced for months during repairs, making adequate ALE coverage essential.
The Critical Coverage Gap: Flood Insurance
Here's what catches many Lombard homeowners off guard: standard homeowners insurance does not cover flood damage. Your policy will cover tornado damage, hail, windstorms, and fire, but if water from heavy rain, snowmelt, or a nearby creek enters your home, you're on your own without separate flood insurance.
Given that floods are by far the most common natural disaster in Illinois, this isn't a small risk. Even if you're not in a designated floodplain, you can still purchase flood insurance through the National Flood Insurance Program (NFIP) or private insurers. Policies typically have a 30-day waiting period, so don't wait until severe weather is in the forecast.
For Lombard homeowners in older neighborhoods where drainage systems may not have been designed for modern storm intensity, flood insurance is worth serious consideration. The cost is often more affordable than people expect, especially if you're in a low-to-moderate risk area.
Special Considerations for Lombard's Historic Homes
If you own one of Lombard's beautiful Victorian homes or a property near Lilacia Park in the historic downtown area, you may need specialized coverage. Standard replacement cost calculations assume modern construction methods and materials. Older homes with plaster walls, original hardwood floors, decorative trim, or unique features like turrets and bay windows can't be rebuilt with basic materials from a big-box store.
Ask your insurance agent about extended replacement cost or guaranteed replacement cost coverage, which provides extra funds beyond your dwelling limit if rebuilding costs exceed estimates. Some insurers offer specific historic home policies that account for the higher costs of period-appropriate restoration.
Older homes may also have outdated electrical, plumbing, or heating systems that increase your insurance costs or limit your coverage options. Upgrading these systems not only improves safety and efficiency but can also qualify you for insurance discounts. Insurers look favorably on updated roofs, modern electrical panels, and newer HVAC systems.
How to Save Money on Lombard Home Insurance
With rates climbing, every discount matters. Start by bundling your home and auto insurance with the same company—most insurers offer 10-25% off when you do. Installing a monitored security system, smoke detectors, and fire alarms can also earn you discounts.
Raising your deductible from $500 to $1,000 or even $2,500 can significantly lower your premium. Just make sure you have enough savings to cover the deductible if you need to file a claim. Given Illinois' severe weather risk, you might see separate wind and hail deductibles on your policy—often 1-2% of your dwelling coverage rather than a flat dollar amount.
Shop around. With rate increases varying widely by insurer—State Farm's 27.2% hike versus Allstate's 8.8% average increase—the company you've been with for years might not still be your best deal. Get quotes from at least three insurers and compare not just price but coverage limits, deductibles, and exclusions.
Maintain good credit. Illinois insurers can use credit-based insurance scores to set rates, so keeping your credit in good shape can help keep your premiums down. Also ask about loyalty discounts, especially if you've been with your insurer for several years without claims.
Getting Started with Your Lombard Home Insurance
Whether you're buying your first home in Lombard or reviewing your existing coverage, start with an accurate assessment of your home's replacement cost. Consider hiring a professional appraiser, especially for older or unique properties. Underinsuring to save on premiums can leave you financially devastated after a major loss.
Work with an independent insurance agent who can compare policies from multiple carriers and help you understand the trade-offs between coverage options and costs. Ask specifically about flood insurance, replacement cost coverage for your roof, and any discounts you might qualify for based on your home's features or your personal circumstances.
Living in Lombard means enjoying tree-lined streets, excellent schools served by Glenbard Township High School District 87 and Lombard School District 44, and easy Metra access to Chicago—all while staying rooted in a community that celebrates its history and natural beauty. Protecting your home with the right insurance coverage ensures that you can weather any storm, literal or financial, and keep enjoying everything The Lilac Village has to offer.
