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Best homeowners insurance in Colorado for 2022

Updated Dec 02, 2022
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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.

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.

USAA
Rating: 4.8 stars out of 5
4.8
Bankrate Score
Info Hover for more
Average annual premium
$1,365
J.D. Power
882
/1,000
AM Best
A++
State Farm
Rating: 4.7 stars out of 5
4.7
Bankrate Score
Info Hover for more
Average annual premium
$2,555
J.D. Power
835
/1,000
AM Best
A++
American Family
Rating: 4.1 stars out of 5
4.1
Bankrate Score
Info Hover for more
Average annual premium
$1,853
J.D. Power
831
/1,000
AM Best
A
Allstate
Rating: 3.9 stars out of 5
3.9
Bankrate Score
Info Hover for more
Average annual premium
$1,612
J.D. Power
829
/1,000
AM Best
A+
Average annual premium
$1,933
J.D. Power
Not rated
AM Best
B+
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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

Best home insurance company for military-focused coverage

J.D. Power:
882 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 1,365
USAA Insurance review

Explore Bankrate's review

Best home insurance company for local offices

J.D. Power:
835 /1,000
AM Best:
A ++
Avg. annual premium for 250k dwelling
$ 2,555
State Farm Insurance review

Explore Bankrate's review

Best home insurance company for add-on coverage options

J.D. Power:
831 /1,000
AM Best:
A
Avg. annual premium for 250k dwelling
$ 1,853
American Family Insurance review

Explore Bankrate's review

Best home insurance company for numerous discount and reward opportunities

J.D. Power:
829 /1,000
AM Best:
A +
Avg. annual premium for 250k dwelling
$ 1,612
Allstate Insurance review

Explore Bankrate's review

Best home insurance company for public safety-focused coverage

California Casualty

J.D. Power:
Not rated
AM Best:
B +
Avg. annual premium for 250k dwelling
$ 1,933
California Casualty Insurance review

Explore Bankrate's review

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.

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

Written by
Carol Pope
Insurance Writer

Carol Pope is an insurance writer for Bankrate and prior to joining the team, she spent 12 years as an auto insurance agent. During this time, she sold, serviced and underwrote auto insurance for people across the country. She also has experience selling supplement coverage such as umbrella insurance.

Edited by Insurance Editor
Reviewed by Director of corporate communications, Insurance Information Institute