The national guide covers the homeowners forms (HO-2, HO-3, HO-4, HO-5, HO-6, HO-8), Coverages A through F, and the common exclusions. Illinois's state questions on homeowners focus on the rules for fire and extended coverage policies in 215 ILCS 5/143.13 and following, which include homeowners policies. They also draw on the Department's consumer definitions.

Laws changing January 1, 2027:

• P.A. 104-534 lengthens personal lines nonrenewal notice and adds a flood notice requirement.
• P.A. 104-645 restructures the FAIR Plan.

National concepts in brief

• The forms:
  • HO-3 insures the dwelling on an open-perils basis.
  • HO-4 covers a renter's property and liability.
  • HO-6 is for condominium unit owners.
• The coverages:
  • Coverage B is other structures, such as a detached garage, shed or fence.
  • Coverage D pays additional living expense while the home is repaired.
  • Coverage E is personal liability.
  • Coverage F pays medical expenses of others, regardless of fault.
• Insuring to value: the Department advises insuring the home for at least 80% of its replacement value to get full replacement cost.
• Market value includes land and generally isn't used to settle claims.
• Excluded perils:
  • Flood and earthquake are excluded but available separately.
  • Sewer backup is a typical exclusion, but sewer and sump pump coverage can be bought.
• An inflation guard endorsement raises limits regularly to keep up with construction costs.

What these Illinois rules cover

Fire and extended coverage policies cover residential property up to and including a 4-family dwelling, plus household and personal property (215 ILCS 5/143.13(b)).

Cancellation and nonrenewal

• First 60 days: an insurer may cancel for almost any reason. Written binders of 60 days or less are exempt from the nonrenewal rules (215 ILCS 5/143.13(f)).
• After 60 days, or on a renewal, cancellation is limited to (215 ILCS 5/143.21):
  • nonpayment;
  • misrepresentation or fraud;
  • acts that measurably increase the risk.
• Banned nonrenewal reasons (215 ILCS 5/143.21a): the age or location of the property, or the occupants' age, sex, race, color, ancestry, marital status or occupation.
• Other banned reasons to cancel or nonrenew:
  • the agent's contract with the company was terminated (215 ILCS 5/141.01);
  • the insured runs a licensed early care and education home (215 ILCS 5/155.31);
  • hate crime losses in the past 60 months (215 ILCS 5/143.24c);
  • a prior refusal or cancellation by another insurer (215 ILCS 5/143.10).
• Location alone is not a valid reason to refuse insurance without a genuine business purpose (215 ILCS 5/155.22).
• Notices:
  • Notices are mailed with proof of mailing and give a specific explanation (215 ILCS 5/143.14, 143.15).
  • Nonpayment notices go out at least 10 days ahead.
  • Notices must mention FAIR Plan eligibility, except for nonpayment or incendiarism (215 ILCS 5/143.22).
  • Insurers can't be sued over reasons they state in a notice (215 ILCS 5/143.18).
• Repairing defects: an insured gets a reasonable time, never more than 90 days, to repair defects (215 ILCS 5/143.27).
• Hearings (215 ILCS 5/143.23):
  • The insured may ask the Director for a hearing at least 20 days before the effective date.
  • Coverage continues until the Director's findings.
  • The losing party may be charged up to $100 in hearing costs.
• Short-rate refunds: the producer must tell the insured in writing about any extra short-rate cost before the insured cancels midterm (215 ILCS 5/143.12).
• Flood notice (from January 1, 2027): a plain-language flood notice must be given, and the insured signs to confirm flood options were offered and declined (215 ILCS 5/143.21e).

Mine subsidence

• Residential policies in covered counties must include mine subsidence coverage at a separately stated premium, unless the insured waives it in writing (215 ILCS 5/805.1).
• Exempt counties: counties with 1,000,000 or more people (and the counties next to them) are exempt.
• More detail is in the Other Personal Lines guide.

Common exam traps

• After 60 days, a homeowners policy can be cancelled only for nonpayment, fraud or misrepresentation, or a measurable increase in risk.
• Illinois bans nonrenewal based on the age or location of the home.
• A hearing request must be made 20 days before the effective date.
• Defects can be repaired within up to 90 days.
• Cancellation and nonrenewal notices must point to the FAIR Plan.