Important Illinois insurance requirements, landlord responsibilities, tenant protections, commercial property considerations, and official resources for property owners, investors, landlords, associations, and renters.
Is Property Insurance Mandatory in Illinois?
Illinois does not generally require every owner of a privately owned residential or commercial building to purchase property insurance simply because they own real estate.
However, insurance may effectively become mandatory when required by:
- A mortgage lender
- Commercial lender
- Lease agreement
- Investor agreement
- Condominium association
- Property management agreement
- Government contract
- Other contractual requirement
Mortgage lenders commonly require property insurance protecting their financial interest in the building.
Commercial leases may also require tenants and landlords to maintain specific liability and property insurance limits.
Important
What is required by law and what is required by contract or lender are not always the same.