Colorado homeowners pay an average cost of $1,659 per year for $250,000 in dwelling coverage, based on Bankrate’s study on the average cost of homeowners insurance. At a little over $138 per month, a homeowners policy could be a crucial part of any financial plan to protect what might be one of your largest investments.
In a state that faces extreme weather conditions all year, the right homeowners insurance can keep you from paying the full cost of repairs out-of-pocket after a covered loss. To help you find the best homeowners insurance for your needs, Bankrate analyzed the top insurance companies in the state based on average premiums, policy options, customer satisfaction ratings and ongoing financial strength.
Best home insurance companies in Colorado
Based on our methodology and information gathered from the 2020 J.D. Power U.S. Home Insurance Study, Bankrate assessed the top five Colorado homeowners insurance companies (by market share). We took into account premium costs, coverage options, customer ratings and more to choose these property insurers.
|Home insurance company||Average annual premium for $250K dwelling coverage||J.D. Power score|
*Due to its membership eligibility restriction, USAA is considered rank-ineligible by J.D. Power.
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.
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). You may also qualify for discounts for everything from having a smart home to renovating your home, to loyalty discounts, bundling discounts and new homeowner discounts.
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.
State Farm is the most popular insurer across Colorado, with 19.5% of Colorado’s homeowners insurance market share. The company’s strong customer satisfaction rating and mobile app, which make filing a claim easy, help solidify its popularity among homeowners. 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.
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.
Average cost of homeowners insurance in Colorado
The average cost of Colorado homeowners insurance annually is $1,659 for a dwelling coverage limit of $250,000, which is a few hundred dollars higher than the annual national average cost of home insurance of $1,312. Colorado’s volatile weather conditions, including snow and hail storms, are likely responsible for the state’s higher premiums.
While Colorado is one of the Four Corners area of the U.S., its neighboring states that make up the remaining corners have lower annual home insurance premiums on average. This includes Utah, with one of the lowest averages in the country at $647 per year, and Arizona, at an average of $1,189 per year.
However, 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 considerations 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 a Colorado home 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.
Colorado common causes of loss
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
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 homeowners quote online on their website. If you’re not sure what home insurance coverage options or amounts you need, it can 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?
The information that each home insurer requires varies, but most companies require you to provide some personal information like your name and date of birth, as well as the property address and home’s characteristics to determine the value of your home.
Does flood insurance come with my homeowners insurance policy?
Flood insurance is excluded from the standard homeowners insurance policy. To have coverage from floods, you can purchase flood insurance through the National Flood Insurance Program (NFIP) or another private insurance carrier. If you have a mortgage and are located in or near a flood zone, your lender may require purchasing flood insurance.
Bankrate utilizes Quadrant Information Services to analyze 2021 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.
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