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Best cheap homeowners insurance in Colorado Springs

Rooftops in suburban development, Colorado Springs, Colorado, United States
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Rooftops in suburban development, Colorado Springs, Colorado, United States
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Just over 60% of Colorado Springs residents own their homes, and homes in this city clocked in at a median price of $450,000 as of mid-2021. The average cost of Colorado Springs home insurance is $1,840 per year for $250,000 of dwelling coverage. It may be higher than the national average due to the risk of wildfire, snow and freezing temperatures. To find cheap home insurance rates in Colorado Springs, start by taking a closer look at the most affordable carriers. Bankrate found the best cheap home insurers in Colorado Springs are Grange, Auto-Owners, USAA, American Family and Chubb.

Best home insurance companies in Colorado Springs

To find the best homeowners insurance providers in Colorado Springs, Bankrate reviewed and analyzed several factors, including rate data from Quadrant Information Services, as well as coverage options, discounts, financial strength, third-party rankings and customer satisfaction scores from J.D. Power and AM Best. These factors were also used to issue a Bankrate Score with a maximum of 5 out of 5 for each provider. These same factors can be useful to help determine which carrier to get a home insurance quote from as well as the companies that offer features most important to you.

Home insurance company Bankrate Score Average annual premium for $250K dwelling coverage J.D. Power score
Grange 3 $1,187 N/A
Auto-Owners 4.3 $1,216 831/1,000
USAA 4.8 $1,342 882/1,000
American Family 4.1 $1,349 831/1,000
Chubb 4.4 $1,654 801/1,000

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

Grange

Grange provides a list of home insurance options that help you expand coverage based on your unique needs. Some of the add-ons available are service line insurance for underground utility systems such as water, electric, cable, internet and more, equipment breakdown insurance and jewelry and collectible coverage. Grange only offers home insurance in 13 states, which may explain why it was excluded from the 2021 J.D. Power Home Insurance Study for customer satisfaction.

Learn more: Grange Insurance Review

Auto-Owners

A policy from Auto-Owners Insurance can provide first-time homebuyers with peace of mind knowing they can add coverage for unforeseen issues such as getting your home up to code if it doesn’t meet local ordinance requirements. The Homeowners Plus package adds insurance for food spoilage and household appliance leaks to an HO-3. Auto-Owners also tied with American Family for 6th place in the 2021 J.D. Power Home Insurance Study, but did not rank in the 2022 Property Claims Satisfaction Study.

Learn more: Auto-Owners Insurance Review

USAA

USAA’s is a great choice for Colorado Springs home insurance but is only available for members who served in the military or who are related to someone who did. Coverage includes guaranteed replacement cost, which reimburses you for an equivalent new item. USAA is one of the few insurance companies to offer flood insurance, which is not included in a basic home insurance policy. However, the discounts options from this insurer appear to be limited compared to its competitors.

Learn more: USAA Insurance Review

American Family

American Family’s most unique coverage feature may be Matching Siding Protection that reimburses you for up to $20,000 to replace undamaged siding to match the new section when damaged in a covered claim. The provider also offers equipment breakdown that repairs or replaces appliances, smart home devices and home systems. It’s worth noting, though, that of the insurance companies on this list, American Family has the second-highest average home insurance rates in Colorado Springs.

Learn more: American Family Insurance Review

Chubb

Chubb offers homeowners and auto insurance policies to Colorado Springs residents, and it is geared primarily toward those who have high-value cars and homes. Though its average rates are the most expensive on our list, Chubb caters to a niche demographic, offers up to $100 million in personal liability coverage and gives customers the options of numerous add-ons, like cash settlements, extended replacement costs, lock replacements and more. However, Chubb received below average scores in both J.D. Power home studies.

Learn more: Chubb Insurance Review

Home insurance considerations in Colorado Springs

The state of Colorado does not mandate homeowners to have home insurance but your lender will most likely require home insurance as long as you have a loan on the property. Nevertheless, home insurance is worth the small investment. After all, paying for repairs out of pocket if your home’s water pipes burst after a freeze will cost you far more than the annual premium. The following coverages could compliment a standard HO-3 policy:

  • Flood insurance: Flash floods are Colorado Springs’ most common hazard. Flood insurance should cover you in case of flooding, mudslides and damage due to water overflow.
  • Guaranteed replacement cost: Most home insurance policies come with actual cash value, which only reimburses you for the cost of the property minus depreciation, based on age and condition. If you have to rebuild or replace an item, replacement cost reimburses you for a new version of the lost or damaged property.
  • Personal property endorsement: If you own rare or high-value items such as guns, collectible watches, jewelry or musical equipment, their value may exceed your home insurance’s property limits. A personal property endorsement covers the items for their full value and only costs a nominal fee.

Home insurance discounts in Colorado Springs

To get the biggest savings on a Colorado Springs, CO home insurance policy, ask your carrier for discounts, such as:

  • Payment: You may be able to earn discounts for scheduling automatic payments or paying your annual premium in full.
  • Disappearing deductible: You may be able to receive a reduction on your deductible amount for each year without a claim.
  • Bundling: Buying home and auto insurance with the same carrier may get you a discount on both.
  • Home upgrades: Update an old boiler or furnace or replace older appliances with energy-efficient versions to receive a discount.

Frequently asked questions

Methodology

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.

Bankrate Score

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 more than 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.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a former personal finance contributor at Bankrate. She is a finance and business journalist who has been featured in Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com.
Edited by
Insurance Editor