What is the cheapest homeowners insurance in Colorado?

The cheapest homeowners insurance for you will depend on a number of factors, including the value of your home, the area in which you live, your claims history, your credit-based insurance score, the coverages and deductibles you choose and what discounts you qualify for, according to the Triple-I.

How do I get homeowners insurance in Colorado?

Most companies now have an option to start a Colorado home insurance quote online on their website. If you’re not sure what home insurance coverage options or amounts you need, it may be helpful to speak to a licensed insurance agent, who can guide you through the process and review your policy. The Triple-I recommends you get a minimum of three quotes to compare coverages and cost.

What do I need to do to obtain a quote for homeowners insurance?

Most Colorado homeowners insurance companies will ask for similar information during the quote process. Be prepared to offer personal information, like your name and birthday, as well as the address of the home. Colorado insurance companies may also ask questions about the characteristics of the home, like whether you have a swimming pool or have completed renovations, to determine its dwelling coverage value. If you have expensive items that might exceed the personal property limit, like jewelry or fine art, be sure to tell your agent, as they may be able to work on a personal articles floater to help insure these properly.

Does flood insurance come with my homeowners insurance policy?

A standard homeowner insurance policy does not cover floods. You’ll need to purchase flood insurance separately instead. Two options you have for purchasing a flood insurance policy are the National Flood Insurance Program (NFIP) or a private insurance carrier. If you live in a designated flood zone area and have a mortgage, buying flood insurance could be a requirement from your lender.

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Best homeowners insurance in Colorado for 2023

Written by

Carol Pope

Edited by

Maggie Kempken

Reviewed by

Mark Friedlander

Updated Jan 03, 2023

The Bankrate promise

At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation of . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our .

The Bankrate promise

At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation of . Our content is backed by Coverage.com LLC, a licensed entity (NPN: 19966249). For more information, please see our

What To Know First

Homeowners insurance in Colorado can be more expensive than the rest of the nation. On average, Colorado homeowners are paying about $480 more per year for $250,000 in dwelling coverage when compared to homeowners nationwide. And while homeowners insurance isn’t mandatory like car insurance may be, a homeowners insurance policy could still be critical to protecting what is likely one of your most valuable assets.

That’s because homeowners insurance provides coverage for rebuilding or repairing your home after a covered loss, along with personal liability and personal property coverage as well. It may also be possible to find the coverage you need at a price that fits your budget. You can get started by taking a look at Bankrate’s picks for the best homeowners insurance in Colorado based on average premiums, policy options, customer satisfaction ratings and ongoing financial strength.

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How Bankrate chose the best home insurance companies in Colorado

Choosing the best homeowners insurance in Colorado started with reviewing all the largest insurance carriers by market share. From there, Bankrate’s team of insurance experts used a series of key metrics to assess companies, including average premium data from Quadrant Information Services, policy options and discount opportunities, third-party ratings by rating agencies and more.

To help summarize our findings, we rated each company with our Bankrate Score. The better a company performed in each of these metrics, the higher its overall Bankrate Score for a maximum score of 5 out of 5. As you read through our picks for the best home insurance companies in Colorado, our Bankrate Score can help you quickly compare different carriers to see which might work best for you.

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required). These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our homeowners: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: California, Maryland, Massachusetts.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across nearly 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

Best home insurance companies in Colorado

With an average cost of $1,863 per year for a homeowners insurance policy with $250,000 in dwelling coverage, finding the best Colorado homeowners insurance at an affordable price point is an understandable priority. Based on Bankrate’s analysis of average home insurance premiums from Quadrant Information Services, we found that State Farm, American Family, Allstate and California Casualty offer some of the cheapest home insurance rates in the state. USAA offered the cheapest average rates overall, but its eligibility requirements are more strict compared to many other carriers. Additionally, we looked to third-party scoring studies such as the 2022 J.D. Power U.S. Home Insurance Study to ensure that the cheapest companies also rank highly in other important metrics, such as customer satisfaction.

Insurance Company	Average annual premium	J.D. Power	AM Best
USAA Rating: 3.7 stars out of 5 3.7 Bankrate Score	Average annual premium $1,365	J.D. Power 882 /1,000	AM Best A++ (Superior)
State Farm Rating: 3.2 stars out of 5 3.2 Bankrate Score	Average annual premium $2,555	J.D. Power 835 /1,000	AM Best A++ (Superior)
American Family Rating: 3.1 stars out of 5 3.1 Bankrate Score	Average annual premium $1,853	J.D. Power 831 /1,000	AM Best A (Excellent)
Allstate Rating: 3.5 stars out of 5 3.5 Bankrate Score	Average annual premium $1,612	J.D. Power 829 /1,000	AM Best A+ (Superior)
California Casualty	Average annual premium $1,933	J.D. Power Not rated	AM Best B+ (Good)

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*Not officially ranked by J.D. Power due to eligibility restrictions

Best for military-focused coverage

3.7 Bankrate Score

JD Power: 882 AM Best: A++

Average annual premium

^$ 1,365 for $250k dwelling

USAA Review

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Average annual premium

^$ 1,365 for $250k dwelling

USAA Review

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USAA consistently earns high scores across J.D. Power consumer satisfaction studies, as well as strong financial strength ratings from AM Best, in part due to its customer service skills and simple claims process that can be completed either by phone or mobile app. However, membership and coverage is only extended to active or retired U.S. military service members and their families. Colorado residents who are either members of the military or eligible relatives of someone who is active-duty or a veteran will be able to take advantage of USAA’s many coverage options, including those specific to military uniforms and home sharing, among other standard coverages. And even with these specialized coverages, USAA offers one of the cheapest homeowners insurance premiums in Colorado.

Best for local offices

3.2 Bankrate Score

JD Power: 835 AM Best: A++

Average annual premium

^$ 2,555 for $250k dwelling

State Farm Review

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Average annual premium

^$ 2,555 for $250k dwelling

State Farm Review

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In addition to being the largest homeowners insurance company by market share in the nation, State Farm has a strong J.D. Power customer satisfaction rating and mobile app, which make filing a claim easy. The company’s Simple Insights blog offers comprehensive articles on home maintenance, buying and selling your home and homeowners insurance — a great resource, especially if you are new to the world of insurance. Although it has a strong digital presence, State Farm also has at least one office in almost 100 cities throughout Colorado. However, State Farm’s average premium is the most expensive on this list, and it doesn’t offer as many discount opportunities as other companies.

Best for add-on coverage options

3.1 Bankrate Score

JD Power: 831 AM Best: A

Average annual premium

^$ 1,853 for $250k dwelling

American Family Insurance Review

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Average annual premium

^$ 1,853 for $250k dwelling

American Family Insurance Review

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Experts often recommend creating a home inventory to determine your coverage, which American Family makes easy with its downloadable worksheet. Once you have a better idea of the financial protections you might need for your home, you can choose from numerous coverage options like water backup, service lines and credit theft to round out your coverage. Because hail and resulting damage to vinyl or metal siding may be more common in Colorado, American Family’s matching siding coverage may be especially helpful as it replaces the undamaged siding as well (in case the original siding was discontinued). However, American Family policyholders have complained about the functionality of the company’s mobile app.

Best for numerous discount and reward opportunities

3.5 Bankrate Score

JD Power: 829 AM Best: A+

Average annual premium

^$ 1,612 for $250k dwelling

Allstate Review

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Average annual premium

^$ 1,612 for $250k dwelling

Allstate Review

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Colorado homeowners looking for coverage that comes with additional rewards may find Allstate to be an excellent choice. For example, you could earn a 5% discount on your premium each year you go without filing a claim, or even get $100 off your deductible by the same criteria. If you do file a claim, adding Allstate’s RateGuard option to your policy upfront will prevent rate increases for qualifying circumstances. Aside from standard homeowners insurance coverages, there are also special home-sharing options to help cover you from damage or theft when renting your property. However, compared to the other carriers on this list, Allstate received the lowest customer satisfaction scores from J.D. Power. Additionally, Allstate had almost twice as many complaints with the National Association of Insurance Commissioners (NAIC) compared to baseline.

Best for public safety-focused coverage

JD Power: Not rated AM Best: B+

Average annual premium

^$ 1,933 for $250k dwelling

California Casualty Review

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Average annual premium

^$ 1,933 for $250k dwelling

California Casualty Review

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California Casualty provides policies catering to those in fields of public safety and education, including firefighters, nurses and teachers. In addition to basic coverage, the regional insurer provides specialized options to insure luggage, fundraising money and credit card fraud. Firefighters and law enforcement officers can also benefit from its unique turnout gear coverage, while attending to one of the Centennial State’s seasonal wildfires. California Casualty also makes preventing financial losses from other sorts of damage easy, such as allowing policyholders to purchase FEMA’s National Flood Insurance Program policies directly through them. However, California Casualty received the lowest financial strength rating of all companies on this list from AM Best and its customer satisfaction was not rated by J.D. Power.

How much is homeowners insurance in Colorado?

The average cost of Colorado homeowners insurance is $1,863 per year for a dwelling coverage limit of $250,000. That is significantly higher than the annual national average cost of home insurance, which is $1,383 per year. Colorado’s average cost of home insurance is higher than the neighboring state of Utah, where homeowners pay $668 per year on average for $250,000 in dwelling coverage, and is also higher than the average annual cost of homeowners insurance in Wyoming, which is $902 per year for the same dwelling limit. Colorado’s volatile weather conditions, including snow and hail storms, are likely responsible for the state’s higher premiums.

COLORADO CITY	Avg. annual premium for $250K dwelling
Aurora, Colo.	$2,045
Colorado Springs, Colo.	$1,995
Denver, Colo.	$2,024
Fort Collins, Colo.	$1,436
Thornton, Colo.	$1,897

Your yearly cost for property insurance coverage will vary among home insurers depending on a number of factors, from the age of your home, your claims history and your credit-based insurance score. Even the distance of your home from a fire hydrant and fire station can make a significant difference in your premium costs, according to the Insurance Information Institute (Triple-I).

Home insurance in Colorado

As with any state or city, the unique aspects of where you live will likely have a large impact on how you go about choosing the best Colorado homeowners insurance company. For example, someone living near Snowmass may have very different considerations than someone living near Denver to account for weather and cost of living. When assessing Colorado homeowners insurance options, it is important to account for typical weather conditions and their associated risks, among other important variables.

Common causes of loss in Colorado

The best home insurance companies in Colorado take into account the state’s unpredictable weather hazards, which are the cause of many property claims. The state has also incurred a very active 2021 wildfire season. Here is how to account for some of the common perils that impact Colorado homeowners:

Water damage: Water damage caused by flooding is particularly common in the spring months, when melting snow causes rivers, lakes and ponds to overflow. This is why most experts recommend that you consult with your insurance agent about the advisability of flood insurance, even if you do not live near a large body of water. Flood insurance is underwritten by FEMA’s National Flood Insurance Program (NFIP) and is also offered by many private flood insurers. You can find out if you live in a flood-prone area by checking out FEMA’s Flood Map Service Center, which allows you to input your address and find out your flood risk. The Triple-I recommends all Colorado residents consider purchasing flood insurance as 90% of U.S. natural disasters involve flooding.
Hail damage: According to the Triple-I, Colorado ranks second in the U.S. for the highest volume of hail claims filed by homeowners. It also ranks fifth for the number of “major hail events,” which refers to hail storms where the stones are one inch in diameter or larger. Hailstones, especially larger ones, can cause significant damage to your home’s roof, gutters and windows. Some insurance companies may exclude damage caused by hail, so be sure to speak with your agent or insurer to confirm what your policy covers.
Fire: Fire and lightning damage generate expensive homeowners insurance claims. Since wildfires occur frequently in Colorado, homeowners are at risk of fire damage, especially those who live in rural or forested areas. As wildfires increase in the western U.S., it is becoming harder for homeowners in states like Colorado to find reasonably priced insurance. Removal of fire hazards and other fire mitigation techniques can help make some homes more insurable.
Theft: Regardless of where you live in the U.S., theft is something that homeowners, especially those in urban areas, should be aware of and ward against. Strong window and door locks and other security measures can help protect your home and reduce the risk of filing a theft claim.

Home insurance coverage options in Colorado

Fortunately, typical standard Colorado homeowners insurance policies include coverage for theft, hail damage and fire damage. However, other potential causes of damage may not be included and require an endorsement or additional policy. To better protect your financial investment in your Colorado home, it may be worth considering adding coverage that extends past your standard policy. Some of your options include:

Flood insurance: Coverage helps pay for resulting damage to your home’s interior structure or personal belongings due to flooding. This coverage must typically be purchased separately from NFIP or a private flood insurer.
Musical instrument coverage: Colorado is known for a few of its music scenes, such as in Denver and Red Rocks. Colorado homeowners who also take an interest in music may find it helpful to add increased coverage for their musical instruments. Many property insurers, including Allstate and Nationwide, offer this optional coverage.
Water backup coverage: Sewer and sump pump backups can happen at any time. Though water backup coverage is optional, you should weigh its additional premium cost against potential out-of-pocket expenses for water damage occurring within your home or to your belongings.

Frequently asked questions

The cheapest homeowners insurance for you will depend on a number of factors, including the value of your home, the area in which you live, your claims history, your credit-based insurance score, the coverages and deductibles you choose and what discounts you qualify for, according to the Triple-I.
Most companies now have an option to start a Colorado home insurance quote online on their website. If you’re not sure what home insurance coverage options or amounts you need, it may be helpful to speak to a licensed insurance agent, who can guide you through the process and review your policy. The Triple-I recommends you get a minimum of three quotes to compare coverages and cost.
Most Colorado homeowners insurance companies will ask for similar information during the quote process. Be prepared to offer personal information, like your name and birthday, as well as the address of the home. Colorado insurance companies may also ask questions about the characteristics of the home, like whether you have a swimming pool or have completed renovations, to determine its dwelling coverage value. If you have expensive items that might exceed the personal property limit, like jewelry or fine art, be sure to tell your agent, as they may be able to work on a personal articles floater to help insure these properly.
A standard homeowner insurance policy does not cover floods. You’ll need to purchase flood insurance separately instead. Two options you have for purchasing a flood insurance policy are the National Flood Insurance Program (NFIP) or a private insurance carrier. If you live in a designated flood zone area and have a mortgage, buying flood insurance could be a requirement from your lender.

Learn more:

Best homeowners insurance in nearby states

Written by

Carol Pope

Insurance Writer

Best homeowners insurance in Colorado for 2023

The Bankrate promise

What To Know First

On This Page

Compare home insurance rates

Leaving so soon? Your custom quotes are just minutes away.

How Bankrate chose the best home insurance companies in Colorado

Methodology

Bankrate Score

Best home insurance companies in Colorado

Best for military-focused coverage

Best for local offices

Best for add-on coverage options

Best for numerous discount and reward opportunities

Best for public safety-focused coverage

How much is homeowners insurance in Colorado?

Colorado homeowners insurance rates by city

Home insurance in Colorado

Common causes of loss in Colorado

Home insurance coverage options in Colorado

Frequently asked questions

What is the cheapest homeowners insurance in Colorado?

How do I get homeowners insurance in Colorado?

What do I need to do to obtain a quote for homeowners insurance?

Does flood insurance come with my homeowners insurance policy?

Learn more:

Best homeowners insurance in nearby states