Insurance in Chicago & the suburbs, explained.
Street parking in winter, car theft, condo associations and basement sewer backups: what's different about insuring a car and a home in Chicagoland.
Cook, DuPage, Lake, Will, Kane and McHenry counties
In Chicago and the suburbs, the insurance questions that come up most aren’t about hurricanes. They’re about a car parked on the street through the winter, and water coming up through the basement floor drain after a heavy storm. Both have answers that aren’t in a basic policy.
Winter, and your car on the street
Chicago runs a Winter Overnight Parking Ban from December 1 to April 1, from 3 a.m. to 7 a.m., on 107 miles of main streets. It’s enforced whether or not it snows, and cars left there are towed. A second ban covers about 500 more miles of main streets once there are at least two inches of snow on the road. Tickets and towing aren’t insurance claims, so check the signs on your block.
What insurance is for is what happens out there: sliding on ice, a plow-season fender-bender, or coming back to find your car damaged. Collision covers your car when you hit something. Comprehensive covers things like theft, vandalism and a falling branch. Neither is part of the Illinois minimum.
Car theft is a real local issue
In August 2023, the City of Chicago sued Kia and Hyundai. The city said many of their models sold from 2011 to 2022 were missing engine immobilizers, standard anti-theft technology, and that this drove a surge in thefts. The city also said those two brands made up more than half of the vehicles stolen in Chicago in 2023.
Whatever you drive, theft is a comprehensive claim. If your car would be hard to replace, that’s the coverage to check first.
Condos and older buildings
If you own a condo, especially in an older building, the split between the association and you is worth understanding. Under the Illinois Condominium Property Act, the association has to insure the common elements and the units. But the association doesn’t have to insure improvements owners have made, like upgraded cabinets or fixtures, and the board can decide that the owners of the damaged units pay the deductible. The board can also require owners to carry their own personal liability insurance.
So your own condo policy, an HO-6, matters. Ask your association for its master policy summary and its deductible, then let’s look at yours alongside it.
Basement water: sewer backup vs flood
This is the big one. The Metropolitan Water Reclamation District says basements can back up even when the region’s Deep Tunnel has room, because local sewers fill up, clog or break. Many neighborhood sewers are decades old and weren’t sized for today’s storms. After the July 2025 storms, Chicago and Cook County both issued disaster proclamations for flooding.
For insurance, it matters where the water came from:
- Sewer or drain backup. Usually excluded from a standard home, condo or renters policy unless you add sewer and drain backup coverage.
- Flood. Water rising from outside is a flood policy. An NFIP policy covers sewer backup only when there’s a general flood in the area, and it limits what it covers in a basement.
MWRD also points homeowners to check valves or overhead sewers, which keep sewer water from backing up into the basement.
Good to know
- Ask whether you have sewer and drain backup coverage, and how much. It’s the coverage most Chicago basements are missing.
- Condo owners: know your association’s deductible and whether you’d have to pay it.
- Look at comprehensive if your car lives on the street.
- Sign up for Notify Chicago for weather and emergency alerts.
Helpful local links
Questions people ask
Does home insurance cover a sewer backup in my basement?
Usually not on its own. Water backing up through a floor drain or sewer line is typically covered only if you've added sewer and drain backup coverage to your home, condo or renters policy. The Metropolitan Water Reclamation District suggests asking your agent about that rider and about flood insurance.
Does flood insurance cover sewer backup?
Only in some cases. A National Flood Insurance Program policy can cover a sewer backup when there's a general flood in the area, but not one caused by a clogged pipe. Basement coverage under a flood policy is also limited, so it isn't a substitute for a backup rider.
My condo association has insurance. Do I still need my own?
Usually, yes. Under Illinois law the association's policy covers the common elements and the units, but it doesn't have to cover improvements owners have added, and the board can make the owners of affected units pay the deductible. Your own HO-6 policy fills those gaps.
Can Elona help me if she's based in Florida?
Yes. Elona is licensed in Illinois and works with clients there by phone, text and email.