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Best homeowners insurance in Colorado

Your guide to the cost of homeowners insurance by company and city, the state’s best insurance companies, and coverage considerations for Colorado homeowners.

Pat Howard 1600

Pat Howard

Published April 7, 2020

KEY TAKEAWAYS

  • Colorado is the 8th most expensive state in the country for homeowners insurance, with a $1,495 average annual premium, according to the Insurance Information Institute

  • Insurance premiums in the cities of Denver and Colorado Springs cost around $2,500 for $500,000 in coverage, according to Policygenius data

From the endless outdoor playground that is the Rocky Mountains to the vibrant cities and adventurous spirit of its residents — it’s no wonder Colorado is one of the fastest growing states in the country. Colorado is also home to some nasty blizzards, hailstorms, and wildfires, so if you own a home in Colorado, you should make sure you have good home insurance coverage in place.

In dry, forested areas of the state, Colorado homes are often at risk of catastrophic loss — particularly to wildfires. In fact, the state ranks third in the country in percentage of homes at risk of wildfire loss (17% as of 2017, according to the Insurance Information Institute), ahead of California, and trailing only behind Montana and Idaho. If you live in a fire-prone area of Colorado, you should have comprehensive replacement cost coverage for your home and personal property.

If you live in a brushfire area of Colorado, or a region that was recently affected by a natural disaster, your insurer may drop or “non-renew” your policy. If that happens, be sure to contact your insurance agent to talk about next steps. If you feel that your policy was canceled unfairly, you can file a complaint through the Colorado Division of Regulatory Agencies (DORA).

IN THIS ARTICLE

Best homeowners insurance companies in Colorado

When selecting a homeowners insurance policy, Colorado homeowners will want to look at far more than simply the cost of coverage. Consider the insurer’s financial standing with credit agencies like A.M. Best, customer service and claims ratings with J.D. Power, and the price for the level of coverage you’re getting, amongst other factors. A company that offers flexible policy options and numerous discounts to keep those premiums low should be a top priority for Colorado homeowners.

The table below looks at the 10 most popular insurers (companies with the highest market share) in the Centennial State, along with respective A.M. Best ratings, J.D. Power ratings, and Policygenius full-scale company ratings.

Here’s more information about the Policygenius home insurance reviews methodology:

CompanyA.M. Best RatingJ.D. Power ScorePolicygenius rating
AllstateA+3/57.4
American FamilyA3/5N/A
ChubbA++2/58
FarmersA3/57.5
NationwideA+2/57.7
ProgressiveA+2/56.6
SafecoA+2/57.3
State FarmA++4/58
TravelersA+2/57.7
USAAA++5/58.7

➞ And be sure to check out our guide on the best homeowners insurance companies in the country.

Best Colorado home insurance company for:


Coverage and claims: USAA

Despite only servicing active and retired U.S. military members and their families, USAA still manages to insure the second most homes in Colorado, behind just State Farm. If you’re fortunate enough to get a USAA policy, you can expect top-notch coverage, evidenced by their 5 out of 5 policy offerings rating with consumer insights leader J.D. Power. USAA also earned perfect marks from J.D. Power in their property claims satisfaction study, so you can rest assured that when it comes time to file a claim, you’ll get what you’re owed.

Low rates: Allstate

When it comes to rates, Allstate policies are among the cheapest in Colorado. Allstate also has a number of discount opportunities to keep your premiums even lower. For example, if you bundle your home and auto insurance, you can save up to 30% on your policies and up to 20% if you’ve never filed an insurance claim.

Digital tools: Travelers

If you plan on modernizing your home and you want discounts for doing so, Travelers is the insurer to go with. Apply for a policy with Travelers through Amazon and you get a free Amazon Echo Dot. And not only that, but you can take further advantage of their Amazon affiliation by purchasing certain smart-home devices at a discounted rate. These devices, which include everything from water leak sensors to security cameras, can also get you a loss-prevention discount of up to 20%.

Discounts: Farmers

Farmers offers a number of discounts to Colorado residents to keep rates down. Discounts include affinity discounts if you’re a member of certain business or professional groups, multi-line discounts if you have multiple policies with Farmers, and a number of home upkeep and home safety discounts.

New homebuyers: State Farm

If you’re a first-time homeowner who’s never dealt with an insurance company before, State Farm is one of the better options out there. With a helpful website complete with educational tools, a seamless application process, and an excellent app where you can pay your bill and file claims, State Farm offers the easiest home insurance experience in the Colorado market.

How much does homeowners insurance cost in Colorado?

As of 2016, homeowners in Colorado paid an average of $1,495 for homeowners insurance — making it the 8th most expensive state to insure your home in the U.S.

If you own a home in Colorado, the amount you pay for insurance will be impacted by the following:

  • Your insurance score
  • Your home’s age, size, and build
  • How old your roof is
  • Your basement type (and whether or not it’s finished)
  • How many credits or discounts you’re eligible for
  • If your home has certain hail or wildfire resistant structural or cosmetic features, like impact resistant shingles for your roof, or nonflammable exterior walls and windows
  • How much coverage you have, and whether you need additional coverage for wildfires, floods, and earthquakes
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How much does homeowners insurance cost in Denver?

The average annual cost of homeowners insurance in the Denver is $2,369 for a home with around $500,000 in dwelling coverage, according to Policygenius quoting data. While that’s higher than the state average premium of $1,495, keep in mind that the average policy cost for a Colorado home quoted at $500,000 or more in coverage is $2,468, according to the National Association of Insurance Commissioners.

The cheapest area to insure your home is the 80219 ZIP code in Athmar Park with a $1,554 average annual premium, while the $3,078 average rate in University Hills make it the most expensive area for homeowners insurance in the Mile High City.

Popular residential neighborhood (ZIP Code)Average annual premium
Auraria (80204)$1,580
Congress Park (80206)$2,546
North Park Hill (80207)$2,145
Washington Park (80209)$2,821
Platt Park (80210)$2,580
Sunnyside (80211)$2,343
West Highland (80212)$1,852
Globeville (80216)$2,178
Athmar Park (80219)$1,554
East Colfax (80220)$3,072
University Hills (80222)$3,078
Athmar Park (80223)$2,092
Stapleton (80238)$2,953

➞ Check out our guide to the best homeowners insurance in Denver.

How much does homeowners insurance cost in Colorado Springs?

The average annual cost of homeowners insurance in Colorado Springs is $2,534 for a home with $500,000 in coverage, according to Policygenius quotes. While that may seem high, keep in mind that much of Colorado Springs is at high risk of wildfire damage, and several of the homes quoted are in that designated “extreme risk” wildlands area. Additionally, the average insured value of quoted properties is around $500,000 — properties with that much coverage are more costly to insure.

As you can see, the cheapest area to insure your home is Stratton Meadows with a $1,111 average annual premium, while Southeast Colorado Springs has the highest rates averaging at $3,500, according to our quotes.

Popular residential neighborhood (ZIP code)Average annual premium
Stratton Meadows (80905)$1,111
Southeast Colorado Springs(80906)$3,500
Northeast Colorado Springs (80907)$2,334
Briargate (80908)$3,437
East Colorado Springs (80909)$1,873
Security-Widefield (80911)$1,705
East Colorado Springs (80917)$1,477
Northeast Colorado Springs (80918)$2,053
Northwest Colorado Springs (80919)$2,018
Briargate (80920)$3,082
Stetson Hills (80923)$1,903
Briargate (80924)$2,283
Security-Widefield (80925)$2,607

➞ Check out our guide to the best homeowners insurance in Colorado Springs.

Colorado homeowners insurance guide

Homeowners insurance isn’t required by law in Colorado, but if you have a mortgage, your lender will require you to get at least some form of coverage.

Generally, your lender will require that you get a minimum amount of “hazard” insurance, which is another way of saying a homeowners insurance policy.

If you live in an area of Colorado that’s prone to flooding or in a FEMA-designated flood plain, your mortgage company may require you to get flood insurance as well. Flood insurance is typically available as both a standalone policy (through the National Flood Insurance Program) or as an endorsement to your homeowners insurance policy.

Wind and hail coverage

Colorado residents usually have to pay a separate wind and hail deductible to be covered for windstorm, hail, or tornado damage. Your wind and hail deductible will be listed as a percentage of your home’s insured value. That means if your home is insured for $300,000, and your wind and hail deductible is 3%, you need to pay the first $9,000 for wind or hail loss before your insurance company covers the remaining loss amount.

When setting your coverage limits and deductibles for your policy, be mindful of what you’ll be able to afford if a loss occurs. Setting your deductible at 5% may keep your insurance premiums down, but if a weather catastrophe wipes out your home, you don’t want to be stuck paying exorbitantly high out-of-pocket expenses before your insurance kicks in.

Wildfire coverage

Colorado was outside of the top 10 in the U.S. in terms of the number of wildfires and the number of acres burned in 2018, according to the III. But as we went over earlier, Colorado has the third most households at high or extreme risk of wildfire losses, and was second among states for insured catastrophe losses in 2016 — most of that because of tornado and wildfire damage.

As wildfire frequency continues to be on the uptick in the Western U.S., it’s especially important for Colorado residents to take preventative measures to mitigate losses. If you live in a wildfire prone area, your insurance company may also require that you take the following mitigation efforts in order to be covered for wildfire losses:

  • Creating a “defensible space” around your home by removing flammable vegetation
  • Pruning trees around your home
  • Raking or removing any dead leaves or brush from your roof, gutter, or yard
  • Installing a fire-resistant “Class A” roof
  • Installing dual- or triple-paned windows

Keep in mind that your insurance company can’t cancel your policy if it’s been in -force for more than 60 days, but they can choose to not renew your policy. If that’s the case and you can’t find adequate coverage through a standard insurer, you may need to find coverage through specialized surplus lines.

Flood coverage

Homeowners insurance doesn’t cover flooding, so if you live in a flood zone established by FEMA and you receive FHA or VA loans, you’re required to get flood insurance.

Although Colorado might not be the first place you think of catastrophic floods happening, recent history suggests you’ll want flood insurance in certain areas. In fact, it was only five years ago that Colorado endured one of the worst flood events in the state’s history, engulfing 200 miles and affecting 17 counties.

Most insurance companies offer flood insurance through the National Flood Insurance Program (NFIP), but NFIP policies have coverage limitations. Government policies only insure your home up to $250,000, and your personal property is only covered up to $100,000. For more robust flood coverage, see if your insurance company offers a private flood policy or a flood endorsement to your home insurance policy. Certain surplus lines, a group of highly specialized insurance companies, may also offer flood protection.

Earthquake insurance

Colorado residents should also be mindful that homeowners insurance doesn’t cover earthquake damage, so you’ll need a separate policy or endorsement if you want coverage for seismic events.

Water backup coverage

Your home insurance policy typically covers certain types of water damage, but only if the damage was sudden and unexpected. Water damage claim reimbursements are also usually limited to around $1,000 in a standard policy.

For more comprehensive coverage for water damage — such as coverage for frozen pipes or sewage overflow, along with higher coverage limits, you’ll need water backup coverage.

Considering Colorado’s propensity for frigid temperatures, water backup coverage should be a no-brainer.

Additional resources for Colorado homeowners

Not where you live? We've got you covered, check out our guide to homeowners insurance in your state

About the author

Insurance Expert

Pat Howard

Insurance Expert

Pat Howard is an Insurance Editor at Policygenius in New York City, specializing in homeowners insurance. He has been featured on Property Casualty 360, MSN, and more. Pat has a B.A. in journalism from Michigan State University.

Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.

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