Colorado is known for its picturesque landscapes and popular cities like Denver and Colorado Springs. It’s also known for being the second highest-rated state in the nation for homeowners insurance catastrophe claims. Because of Colorado’s harsh weather,
including hail, snow and even wildfires, it’s imperative that homeowners protect their homes and belongings with the right coverage. While home insurance isn’t required in the state of Colorado, most mortgage lenders require some sort of insurance to protect the amount of money owed on the loan.
Here are a few things to keep in mind when looking for the best Colorado homeowners insurance company to provide your insurance:
- Decide how much coverage you need upfront. The better your coverage, the less you will have to pay out of pocket if a disaster strikes your home.
- Compare deductibles to find the right coverage for you, and make sure you’re comfortable paying that deductible if and when the time comes.
- Ask your insurance agent what discounts you qualify for. Many insurance agencies offer discounts that can lower your premium.
- Shop around and check out local insurance agencies, not just large, well-known companies. You may qualify for more discounts with a local agency.
Best home insurance companies in Colorado
Based on our methodology and information gathered from the J.D. Power 2019 U.S. Home Insurance Study, we gathered the top five homeowners insurance companies in Colorado. We took into account premium costs, coverage options, customer ratings and more to choose these providers.
- Amica Mutual: J.D. Power gave Amica Mutual the highest rating in their 2019 Homeowners Insurance Study with 5 out of 5 stars. You can customize coverage to meet your needs, qualify for an array of discounts and even have the opportunity to choose a policy that pays dividends. Amica Mutual also offers auto, life, renters, retirement, marine, motorcycle and umbrella insurance. J.D. Power isn’t the only one who thinks Amica just might be the best homeowners insurance in Colorado: Consumer Reports, which polls nearly 7,000 policy holders for its rankings, also gives Amica the number one spot.
- Allstate: If you’re looking for affordable coverage and a variety of discounts, Allstate Insurance is a great option for your Colorado home. You can earn up to a 25% discount for bundling insurance. Customers can qualify for some discounts like having a home with hail-proof roofs, which is perfect for Coloradans who experience intense weather year-round. Allstate also offers auto, renters, condo, motorcycle, business, life, roadside and identity insurance. There are also some good add-ons that you can use to customize your policy, including yard and garden coverage, water backup and electronic data recovery.
- American Family: American Family Insurance is known for its customizable homeowners insurance and options for additional coverage to make your insurance plan the perfect option for your home. This company offers many other types of insurance including vehicle, property, business and life insurance. Although American Family is better known for its auto insurance policies, it’s worth checking out for homeowners insurance as well. You can score discounts for everything from having a smart home to renovating your home, as well as a loyalty discount, bundling discount and new homeowner discount — by utilizing these discounts, you may find AmFam offers the lowest rate for homeowners insurance in Colorado.
- Colorado Farm Bureau Mutual Insurance: This homeowners insurance provider has local agents for Colorado residents, competitive rates and a convenient Mobile Agent App that gives customers access to their account 24/7. Colorado Farm Bureau Mutual Insurance also offers auto and life insurance. As a regional rather than a national company, Colorado Farm Bureau prides itself on a network of local agents who have feet-on-the-ground knowledge of Colorado and the potential perils facing homeowners in the state. In addition to home and car insurance, it also offers insurance for farms, businesses, life, condos, renters and more.
- State Farm: State Farm is ranked highly across J.D. Power, AM Best, and BBB. Customers also love SF and comment on ease of use in claims processing and fast customer service. State Farm also offers life, health, disability and liability insurance. One of the things we like best about State Farm is its informative and extensive website, which is worth a look even if you don’t go with the company. The company’s Simple Insights blog offers comprehensive articles on home maintenance, buying and selling your home and homeowners insurance — it’s a great resource, especially if you are new to the world of insurance.
|J.D. Power Rating||A.M. Best Rating||BBB Rating|
|Amica Mutual||5 out of 5 stars||A+||A+|
|Allstate||3 out of 5 stars||A+||A+|
|American Family||3 out of 5 stars||A||A|
|Farm Bureau||3 out of 5 stars||A||A+|
|State Farm||3 out of 5 stars||A++||A|
Average homeowners insurance cost in Colorado
The average cost of Colorado homeowners insurance annually is $1,495, several hundred dollars above the national average cost of home insurance, which is $1,211. However, your yearly cost will vary among providers depending on a number of factors, from the age of your home to your credit rating. Even the distance of your home from a fire hydrant can make a difference in your premium costs.
Here is an estimate of what your yearly home insurance premium could cost for a $300,000 house, with a $1,000 deductible and $300,000 liability:
- Denver: $3,672
- Springfield: $3,913
- Telluride: $2,294
- Rangely: $2,205
- Fort Collins: $3,071
Home insurance coverage options in Colorado
Here are some of the most common types of homeowners insurance coverage options in Colorado to help you find the right plan for your home:
- Dwelling coverage: This coverage protects the structure of your house, like the roof and walls.
- Personal property coverage: This coverage protects what’s inside your home, like furniture.
- Liability protection: This coverage protects you if someone sues you after being injured on your property or if you damage their property.
- Guest medical protection: This coverage pays for medical expenses for someone who is injured on your property.
You should also look for providers who offer optional coverage for things like other structures (buildings on your property that are detached from your home, like a farm building) and additional living expenses protection in the event that you are forced to stay somewhere else while your home is rebuilt.
Common causes of home insurance losses in Colorado
The best home insurance in Colorado takes into account the state’s weather patterns, which are the cause of many claims.
- Water damage: Water damage caused by flooding is particularly common in the spring months, when melting snow causes rivers and ponds to overflow. This is why it is wise to 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 available from the government. 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 if you’re at risk of flooding.
- Hail damage: Along with winter snow and spring thaw comes hail. Colorado ranks second in the nation for the number of hail loss claims on homeowner insurance, according to the Insurance Information Institute. It also ranks in fifth place for the number of “major hail events,” which refers to hail storms where the stones are one inch in diameter or larger. Hailstones of that size can cause significant damage to your roof, gutters and windows.
- Fire: Nationally, fire and lightning damage is the most expensive claim made to homeowners insurance policies. Since wildfires are not uncommon in Colorado, many homeowners are at risk of damage due to fires, especially those who live in rural or forested areas. In fact, as wildfires increase in the western United States, it is becoming harder for homeowners to find reasonably priced insurance. Removal of fire hazards and other fire mitigation techniques can help make some homes more insurable.
- Theft: Colorado is not a high-ranking state for home theft, and nationally, property crime rates have been slowly dropping, but theft is still 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 ensure that you do not need to make a claim on your policy related to theft.
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 credit score, your deductible and what discounts you qualify for.
How do I get homeowners insurance in Colorado?
Once you know how much your home is worth, you can obtain an online quote from an insurance provider. You can utilize the Department of Insurance Colorado as a reference guide to any homeowners insurance questions you have that are particular to the state of Colorado.
What do I need to do to obtain a quote for homeowners insurance?
The information that each insurance provider requires varies, but most companies require you to provide some personal information like the address and value of your home.
Does flood insurance come with my homeowners insurance policy?
No, flood insurance is typically separate from homeowners insurance. If this is something you’re interested in or if it is required, talk to your insurance agent about what flood insurance is, what it covers, and how you can purchase the coverage to protect your home.