Colorado homeowners pay an average of $2,322 per year for a home insurance policy with $300,000 in dwelling coverage, according to our latest pricing analysis. With many insurance companies in Colorado pulling back from high-risk areas due to record wildfire losses in last year's Marshall Fire and overall inflation concerns, home insurance is getting both more expensive and scarce in certain parts of the state.
Colorado's insurance commissioner has recently suggest that the state adopt its own version of a FAIR Plan, which is a type of last-resort home insurance policy for those who can't find coverage. [1] Others have suggested passing legislation that would legally require Colorado insurers to offer coverages that prevent underinsurance in the wake of a natural disaster, like guaranteed replacement cost or inflation guard coverage. [2]
Given the current state of homeowners insurance in Colorado and other natural disaster-prone states, we put in extra research to ensure our picks for the best home insurance companies in Colorado were the best for the here and now. This means that carriers with even temporarily limited coverage were not considered for this guide.
Compare the best homeowners insurance companies in Colorado
Based on Policygenius' analysis of Colorado's 15 largest insurance companies by market share, State Farm, American Family, Farmers, Nationwide, and Allstate are Colorado's best homeowners insurance companies of 2023.
Company | Best for... | Average monthly cost | Policygenius rating |
|---|---|---|---|
Personalized customer service | $205 | 4.8 out of 5 | |
High quality and affordable coverage | $181 | 4.5 out of 5 | |
Discounts and policy perks | $293 | 4.5 out of 5 | |
Comprehensive wildfire protection | $254 | 4.5 out of 5 | |
Short-term rental coverage | $224 | 4.4 out of 5 |
Methodology & why you can trust our rates
At Policygenius, our educational guides are written and fact-checked by licensed home insurance experts and reviewed by our Financial Review Council to ensure autonomy, expertise, and accuracy.
To find the best home insurance companies in Colorado, we analyzed over 30,000 quotes from the 15 largest insurance companies in the state to find the average cost of homeowners insurance with each company in 2022.
When analyzing costs for different coverage levels and risk factors, we changed just one variable at a time to ensure the rates we’re comparing are fair and representative of the factor at hand.
We then looked at J.D. Power customer satisfaction scores, AM Best financial health ratings, quality of policy options, discounts, and compared that with the coverage needs of Colorado residents to find the best homeowners insurance in Colorado.
To get the average rate for each company in Colorado, we analyzed rates provided by Quadrant Information Services in March 2022 for 543 ZIP codes in Colorado for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs — your actual quotes may differ.
Best for personalized customer service: State Farm
2023 Policygenius award winner
State Farm
4.8
Bundle home & auto
Offers extended replacement cost
All 50 states
Why we chose it
State Farm is the best overall home insurance company in Colorado due to its statewide availability, wide range of policy options for homes of all shapes and sizes, high marks for customer service, and its industry-best financial stability ratings.
Pros and cons
Pros
High customer satisfaction and financial strength ratings
Top-tier coverage add-ons, including extended replacement cost coverage
Offers large discounts when you bundle your home and auto insurance
Cons
20% more complaints filed with the NAIC than other companies of its size
No discounts for first-time homebuyers
More details
Why we chose State Farm
As the largest home insurance provider in Colorado, State Farm is best known for its easy-to-reach and dependable customer service. And this goes for all steps of the the customer journey — from shopping and setting up your policy to making changes to your coverage to filing a claim.
What makes this possible is State Farm's extensive network of local agents who understand the weather risks and overall coverage needs of their community. This is an especially important consideration for Colorado residents given the state's worsening wildfires and the increasingly difficult process of getting approved for home insurance.
Plus, while many competitors don't have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.
How do State Farm home insurance rates compare to the Colorado average?
The average cost of State Farm home insurance in Colorado is $2,457 per year, which is about 6% more expensive than the average annual premium in Colorado of $2,322.
How to get a quote
Online through State Farm or by contacting your local State Farm agent.
Best for high quality and affordable coverage: American Family
2023 Policygenius award winner
American Family
4.6
Offers extended replacement cost
Offers flood insurance
Bundle home & auto
Why we chose it
American Family home insurance has industry-best coverage options, high customer service ratings, and several discounts to compliment its already affordable rates, making it a great option in the 19 states where it’s available.
Pros and cons
Pros
Lower than average rates
High customer satisfaction and digital shopping satisfaction scores with J.D. Power
Several one-of-its-kind coverage endorsements and policy perks
Cons
Requires you to work with an agent to purchase a policy
More details
Why we chose American Family
When it comes to home insurance coverage quality and affordability, there are few companies in Colorado in the same league as American Family.
Choose from three comprehensive policy tiers with various levels of protection offered through American Family, or customize a policy to suit your specific coverage needs. With up to 15 additional coverage options — including inland flood, equipment breakdown, and service line coverage — there is no shortage of ways to personalize your home insurance with American Family.
And the best part? American Family won't nickel and dime you for all of that coverage. Its rates are among the most affordable in Colorado, and it gives you even more ways to save with up to 11 available discounts.
How do American Family home insurance rates compare to the Colorado average?
The average annual cost of American Family home insurance in Colorado is $2,176 per year, which is about about 6% cheaper than the statewide average of $2,322 per year.
How to get a quote
Online with American Family or by contacting a local agent
Best for discounts and policy perks: Farmers
2023 Policygenius award winner
Farmers
4.6
Offers extended replacement cost
Bundle home & auto
Smart home discounts
Why we chose it
In addition to helping you save around 20% by bundling your home and car insurance, Farmers also gives you access to its extensive suite of discounts, policy credits, and incentives for not filing claims that can put even money back in your pocket.
Pros and cons
Pros
Over a dozen available discounts to help lower your bill
Optional extended or guaranteed replacement cost coverage to better protect your home
Declining deductibles features takes $50 off your deductible each year you’re a Farmers customer
Cons
Ranks low with J.D. Power for overall customer satisfaction and digital customer service experience
Average annual premium is among the highest in Colorado
More details
Why we chose Farmers
Farmers home insurance stands out against competitors thanks to its 17 available discounts and policy perks. For context, Farmers competitors offer an average of around seven discounts total.
Along with several discount offerings and affordable rates, Farmers also offers the following two key policy perks:
Declining deductibles: Earn $50 toward your home deductible each year you have a home insurance policy with Farmers.
Claim forgiveness: Once you’ve gone five years without filing a claim, Farmers won’t raise your rate after that if you end up filing one.
Even more, depending on your state of residence, you can save up to 45% on your auto insurance and up to 34% on your home insurance when you bundle policies, according to Farmers.
How do Farmers home insurance rates compare to the Colorado average?
The average cost of Farmers home insurance in Colorado is $3,510 per year, which is around 51% more expensive than the annual statewide average of $2,322.
How to get a quote
Online through Policygenius or Farmers, or by contacting a local Farmers agent.
Best for comprehensive wildfire protection: Nationwide
2023 Policygenius award winner
Nationwide
4.6
Bundle home & auto
Mobile app
New homebuyer discount
Offers extended replacement cost
Why we chose it
Nationwide offers an impressive selection of home insurance coverages for both standard and high-net worth Colorado homes, offering extended and guaranteed home replacement coverages and broad "all-risks" coverage for your home and personal belongings.
Pros and cons
Pros
Up to 14 additional coverage options, such as guaranteed and extended replacement cost, all-risk protection, and better roof replacement coverage
Among the highest-ranked companies for claims satisfaction with J.D. Power
A+ credit rating with AM Best
Cons
Customer satisfaction and digital shopping experience ratings are below the segment average with J.D. Power
Average annual premium is higher than average
More details
Why we chose Nationwide
Nationwide is best known for its robust home and personal property coverage add-ons — something Colorado homeowners should consider given the recent uptick in wildfires throughout the state.
Nationwide customers in Colorado can choose from extended or guaranteed replacement cost coverages to increase their home's structural protection and ensure they have enough dwelling coverage to rebuild after a major wildfire. If your home is damaged or destroyed by a covered event, Nationwide's signature "better roof replacement" coverage will replace your roof with stronger materials than what you had before.
Keep in mind that both of these additional coverages don't come standard with Nationwide — you need to pay extra for them — and with Nationwide's already somewhat high premiums in Colorado, the thought of paying for even more coverage may give some homeowners pause. But if you're looking for the best in comprehensive wildfire protection and claims satisfaction, Nationwide seems like a no-brainer.
How do Nationwide home insurance rates compare to the Colorado average?
The average cost of Nationwide home insurance in Colorado is $3,048 per year, which is around 31% more expensive than the annual statewide average of $2,322.
How to get a quote
Online through Policygenius or Nationwide
Best for short-term rental coverage: Allstate
2023 Policygenius award winner
Allstate
4.5
Bundle home & auto
Smart home discounts
Why we chose it
Whether you’re looking for basic or comprehensive home insurance coverage, Allstate is a standout option. Airbnb hosts may find a suitor in Allstate thanks HostAdvantage — its affordable short-term rental coverage that can be easily added to any policy.
Pros and cons
Pros
Offers HostAdvantage — an excellent short-term rental coverage add-on that can be seamlessly added to any policy
Extensive list of discounts and policy features to lower your bill and out-of-pocket costs
A+ credit rating with A.M. Best
Cons
Beginning to pull back coverage in high-risk areas
Customer experience scores with J.D. Power are below the segment average
More details
Why we chose Allstate
If you rent out your property through a short-term rental service like Airbnb and a guest destroys or steals your property, Allstate’s HostAdvantage will pay up to $10,000 per rental host period to replace or repair your property.
And the best part? This coverage can be seamlessly added onto your policy for just a small additional fee. Only around a third of the nearly 70 home insurance companies we reviewed offer any type of home-sharing coverage, making Allstate a great option for Airbnb hosts who also need home insurance of their own.
How do Allstate home insurance rates compare to the Colorado average?
The average annual cost of an Allstate home insurance policy in Colorado is $2,687, or around 16% more expensive than the statewide average of $2,322 per year.
How to get a quote
Online through Policygenius or Allstate, or by contacting a local Allstate agent.
Honorable mention: The best of the rest for Colorado homeowners insurance
While some companies weren't featured as top picks in this guide either because of eligibility restrictions — as was the case with USAA — or because they had a slightly lower overall Policygenius rating than the companies on our best list, there are several other great companies worth considering for home insurance in Colorado, including:
USAA: Best for military families. USAA is a great choice for military families looking to save money on homeowners insurance while getting great coverage and customer service in return. Read our USAA home insurance review.
Chubb: Best for high-net worth homeowners. While among the priciest policy options on the market, Chubb is likely the best option for Colorado homeowners with homes valued at $1 million or more along with millions of dollars in additional property and assets to insure. A base policy with Chubb includes enhanced coverage for both your home and your personal valuables, and you don’t need to pay a deductible on property damage greater than $50,000. That means if your home is destroyed in a storm or wildfire, you won't have to pay any repair or rebuild costs upfront. Read our Chubb home insurance review.
Travelers: Best for flexible coverage. Travelers is one of the most dependable insurance companies in the business, providing affordable home insurance coverage backed by A++ financial ratings with A.M. Best. One benefit of choosing Travelers is its underwriting flexibility, meaning its willingness to provide coverage for risks that other insurance companies won't cover. These risks include homes with no prior insurance coverage, coverage for short term rentals, and liability protection for trampoline injuries if it has protective netting. Read our Travelers home insurance review.
How much is homeowners insurance in Colorado?
The average cost of homeowners insurance in Colorado is $2,322 per year, or roughly $194 a month, for an insurance policy with $300,000 in dwelling coverage. This is around 32% higher than the nationwide average of $1,754.
On average, Colorado home insurance premiums are among the highest in the country in 2023. Inflation and worsening natural disasters have made it more expensive and risky for insurance companies to insure properties in certain high-risk areas of the state, and that's caused rates to skyrocket depending on where you live.
In general, your home's location has a significant impact on what you pay for homeowners insurance — especially if you live in a more high-risk state like Colorado or California. Homes located in areas prone to wildfires, tornadoes, or hailstorms will generally cost more to insure than homes in parts of the state with more mild weather.
Colorado homeowners insurance rates by city
Home insurance costs in Colorado can vary considerably from city to city. Cities with a high risk of wildfires or other natural disasters — like Pueblo and Colorado Springs — have the most expensive average home insurance premiums in Colorado, while places like Fort Collins and Loveland have the lowest rates.
Here’s a look at the average annual cost of home insurance in the 20 largest cities in Colorado.
City | Average monthly cost | Average annual cost | Difference from state average (%) |
|---|---|---|---|
Denver | $252 | $3,021 | 30% |
Colorado Springs | $249 | $2,984 | 29% |
Aurora | $247 | $2,963 | 28% |
Fort Collins | $186 | $2,232 | -4% |
Lakewood | $239 | $2,864 | 23% |
Thornton | $234 | $2,810 | 21% |
Arvada | $238 | $2,854 | 23% |
Westminster | $230 | $2,764 | 19% |
Pueblo | $257 | $3,079 | 33% |
Greeley | $225 | $2,702 | 16% |
Centennial | $252 | $3,024 | 30% |
Boulder | $200 | $2,396 | 3% |
Longmont | $200 | $2,402 | 3% |
Castle Rock | $233 | $2,799 | 21% |
Loveland | $185 | $2,225 | -4% |
Broomfield | $207 | $2,489 | 7% |
Grand Junction | $104 | $1,245 | -46% |
Commerce City | $240 | $2,878 | 24% |
Parker | $238 | $2,861 | 23% |
Littleton | $239 | $2,868 | 24% |
Colorado homeowners insurance rates by coverage amount
The amount you pay for homeowners insurance primarily depends on how much dwelling coverage is in your policy. This is the part of your home insurance that covers the cost of repairing or rebuilding your home after a covered disaster, like a fire or tornado.
The table below highlights the average annual premium in Colorado for five different levels of dwelling coverage. Generally speaking, more dwelling coverage means higher homeowners insurance rates, as shown in the table below.
Dwelling coverage limit | Average annual cost |
|---|---|
$100,000 | $1,104 |
$200,000 | $1,715 |
$300,000 | $2,322 |
$400,000 | $2,820 |
$500,000 | $3,342 |
Cheapest homeowners insurance companies in Colorado
Based on our analysis, State Auto, Auto-Owners Insurance, Chubb, Farm Bureau Insurance, and Shelter Insurance are the five cheapest home insurance companies in Colorado, with average statewide premiums ranging from $309 to $2,101 per year.
American Family, USAA, and Foremost also offer some of the most affordable home insurance policy options for Colorado residents in 2023, as detailed in the table below.
Company | Average annual cost |
|---|---|
$309 | |
$1,260 | |
$1,895 | |
$1,901 | |
$2,101 | |
$2,176 | |
$2,286 | |
$2,338 | |
$2,457 | |
$2,687 | |
California Casualty | $2,851 |
$3,048 | |
$3,223 | |
$3,453 | |
$3,510 |
Cheapest Colorado homeowners insurance if you have poor credit
If legal in your state of residence, insurance companies will take your credit score into consideration when determining your home insurance premium. Insurers consider customers with poor credit to be more likely to file claims for small losses or damages rather than cover the costs themselves out of pocket, so they'll often charge more in premiums as a hedge against the higher risk of claim payouts.
Here's the average home insurance premium from various companies in Colorado for a homeowner with poor credit. On average, home insurance with State Auto is the most affordable if you have a low credit score, while Auto-Owners Insurance is the priciest.
Company | Average annual cost |
|---|---|
State Auto | $932 |
Farm Bureau Insurance | $2,232 |
Shelter Insurance | $2,539 |
USAA | $3,157 |
Chubb | $3,162 |
Allstate | $3,322 |
Foremost | $3,545 |
American Family | $3,686 |
Nationwide | $3,960 |
California Casualty | $4,405 |
Acuity | $4,864 |
State Farm | $4,864 |
Country Financial | $5,568 |
Farmers | $6,196 |
Auto-Owners Insurance | $14,337 |
Cheapest Colorado homeowners insurance if you have an older home
Insurance carriers consider older homes to have a higher risk of damage or loss compared to newer homes since they're constructed with older and more difficult to replace materials. Additionally, certain structural components in older homes, like the roof or plumbing systems, may not be up to code.
Looking at average quotes for a 50-year-old home, State Auto is the cheapest home insurance option for Colorado homeowners, while Country Financial is the most expensive.
Company | Average annual cost |
|---|---|
State Auto | $551 |
Auto-Owners Insurance | $1,258 |
USAA | $1,863 |
Chubb | $1,895 |
Farm Bureau Insurance | $1,955 |
Foremost | $2,116 |
Shelter Insurance | $2,172 |
American Family | $2,493 |
Allstate | $2,658 |
State Farm | $2,828 |
California Casualty | $2,867 |
Nationwide | $2,907 |
Farmers | $3,230 |
Acuity | $3,595 |
Country Financial | $4,156 |
Cheapest Colorado homeowners insurance if you have a history of claims
Your claims history is one of the biggest factors that can impact your home insurance premiums. If you've filed one or more claims in the previous five years, you'll typically pay more for home insurance compared to if you hadn't.
Here's the cheapest home insurance companies in Colorado for a homeowner with three claims within a five-year period. According to our analysis, homeowners with multiple claims will likely find State Auto to be their cheapest option, while Acuity appears to be the most expensive.
Company | Average annual cost |
|---|---|
State Auto | $1,132 |
Auto-Owners Insurance | $1,352 |
Farm Bureau Insurance | $1,901 |
USAA | $2,698 |
State Farm | $2,828 |
Shelter Insurance | $3,246 |
Farmers | $3,575 |
Chubb | $3,579 |
Allstate | $4,179 |
American Family | $4,197 |
California Casualty | $4,941 |
Nationwide | $5,080 |
Country Financial | $6,214 |
Foremost | $6,298 |
Acuity | $6,854 |
Guide to Colorado homeowners insurance coverage & claims
Policy premiums are an important consideration when deciding on homeowners insurance, but they shouldn't be the only factor. You'll also want to consider companies' additional coverage options and reputation with handling claims given Colorado's high risk of wildfires, flooding, and other disasters.
Wildfires
As wildfire frequency and severity continues to increase in the West, it’s important for Colorado homeowners to take preventative measures to mitigate losses. If you live in a wildfire-prone area, your insurance company may require the following before agreeing to insure your home.
But even if they don't, taking the following steps could make your home insurance rates significantly more affordable.
Creating a defensible space around your home by removing flammable vegetation
Tree pruning
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 active 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 a last-resort option like a surplus lines insurance carrier or the Colorado FAIR Plan.
Flooding
While Colorado might not be the first place you think of when you imagine a catastrophic flood, recent history suggests flood events are becoming significantly more common in Colorado. In fact, it wasn't long ago that Colorado suffered one of the worst floods in the state’s history, engulfing 200 miles and affecting 17 counties. [3]
Homeowners insurance doesn’t cover flooding, so if you live in a FEMA-designated high-risk flood zone, you may need to purchase a separate flood insurance policy. Most insurers offer flood insurance through the National Flood Insurance Program. As of 2022, the average cost of flood insurance in Colorado is $805.
Wind/hail deductibles
Colorado homeowners in the eastern part of the state may have the option of adding a separate deductible to their policy that applies to damage caused by wind or hailstorms.
Also known as "wind/hail deductibles", these are generally listed as a percentage of your home’s insured value rather than your standard $500 or $1,000 dollar amount deductible. This means if you have a 3% wind/hail deductible on your policy and your home is insured for $300,000, you'll have to pay $9,000 out of pocket on wind and hail damage claims before your insurance company will cover the rest.
While percentage deductibles can be costly when it comes time to file a claim, insurance companies will often lower your rates substantially if you add one to your policy. If your home insurance rates recently went up and you're looking for ways to save, increasing your dollar amount deductible or opting for a separate one for wind and hail damage is an effective way to get your rates back down.
Frequently asked questions
How does the crime rate in my area affect my home insurance in Colorado?
Insurance companies take many factors into consideration when determining your insurance premium. The more likely you are to file a claim, the more expensive your rates will be. Areas of high crime are targets for theft or vandalism and will likely see higher insurance rates.
What is the cheapest homeowners insurance in Colorado?
While American Family is the best cheap home insurance option in Colorado, Auto-Owners statewide average annual premium of $1,260 is the cheapest in the Keystone State. In addition to cost, homeowners will want to consider other factors such as discount options to maximize savings, customer service ratings to ensure a smooth claims process, and coverage quality.
Where can I find more information about home insurance in Colorado?
Colorado homeowners can get more information about home insurance, including insurance laws, how to file a complaint, wildfire mitigation advice, and more through the Colorado Department of Regulatory Agencies, the Rocky Mountain Insurance Information Association, and the Colorado Division of Fire Prevention and Control.
Does Colorado require homeowners insurance?
While homeowners insurance isn't required by law in Colorado, you'll likely be required to purchase a policy if you have a mortgage on your home.
Did homeowners insurance go up in Colorado?
Homeowners insurance premiums in Colorado have increased 30% since last year — the third-highest increase in the U.S., according to the 2023 Policygenius Home Insurance Pricing Report. The increases are due largely to sustained inflation, severe natural disasters, record catastrophe losses, ongoing labor shortages, and other factors.
