Colorado homeowners pay an average of $208 a month or $2,496 per year for home insurance for a policy with $300,000 in dwelling coverage, according to a Policygenius analysis of 2022 premiums. However, you could very well see an increase in rates this year due to many Colorado carriers no longer insuring homes in certain areas of the state at high risk of wildfire damage.
The Marshall fire that destroyed more than 1,000 homes in December 2021 combined with above-average inflation and ongoing supply chain issues has brought the property insurance crisis to its tipping point this year — making it difficult for Colorado homeowners to find the coverage they need.
Colorado's insurance commissioner Michael Conway has proposed the state create a Fair Access to Insurance Requirements (FAIR) Plan — a state-mandated program designed as a last-resort option for homeowners struggling to find coverage on the private market. 
And other state lawmakers have proposed a bill that would require insurers to offer more homeowners insurance protection, including extended replacement cost, inflation guard, and building code upgrade coverage, to ensure homeowners have enough insurance to fully rebuild their homes in the wake of a disaster. 
Until then, you can use our guide to the best home insurance companies in Colorado to compare quotes from multiple insurers to find the most affordable coverage available in your area.
Compare the best homeowners insurance companies in Colorado
According to Policygenius' analysis of the best homeowners insurance companies in Colorado, we found American Family offered the cheapest homeowners insurance while still scoring well for customer service and financial strength, while Allstate was the best company for most Colorado homeowners.
Hot tip: Click on each company name in the table to jump down to why they made our best list.
4.0 out of 5
3.4 out of 5
Comprehensive dwelling coverage
3.9 out of 5
3.6 out of 5
4.1 out of 5
Best overall for most Coloradans: Allstate
Why Allstate is the best company for most Coloradans
Allstate’s extensive policy options and excellent customer service and financial strength ratings make it the best overall option for Colorado homeowners. With tiered coverage ranging in price, potential customers can choose between the basic, standard, or enhanced coverage with many optional add-ons, including water backup, green improvements, and mold coverage. While Allstate may not be the cheapest option in Colorado, they offer a long list of discounts that can save homeowners money in the long run, including up to 25% off of premiums when bundle your home and auto insurance.
How to get a quote
Online through Policygenius or Allstate
Best for high-value Colorado homes: Chubb
Why Chubb is the best company for high-value Colorado homes
Chubb is an excellent home insurance option for Coloradans who own home's valued at $1 million or more or have multiple properties or cars to insure. A base policy with Chubb includes enhanced coverage for both your home and your personal property, and you don’t need to pay a deductible on property damage greater than $50,000. That means if your home is leveled in a storm or destroyed by a fire, you will not be financially responsible for any of the repair or rebuild costs.
How to get a quote
Online through Policygenius or Chubb
Best for cheap rates in Colorado: American Family
Why American Family is Colorado's best cheap home insurance company
Not only does American Family offer some of the most affordable home insurance rates of any Colorado company in our analysis, it’s also one of the largest and most popular home insurance providers in the country. On top of their already-low rates, customers can choose the Diminishing Deductible program and earn a $100 credit each year to reduce out-of-pocket expenses. American Family is a great option for homeowners looking to save money on their insurance policy.
How to get a quote
Online through American Family
Best for comprehensive dwelling coverage in Colorado: Farmers
Why Farmers is the best comprehensive coverage option for Colorado homeowners
Colorado residents living in high-risk wildfire areas should consider Farmers for it's comprehensive policy offerings and option to add extended or guaranteed replacement cost dwelling coverage to any policy. Farmers also provides a variety of options for filing and tracking claims, including a 24/7 claims service and expedited catastrophe claims handling.
How to get a quote
Online through Farmers or Policygenius
Best for Colorado military families: USAA
Why USAA is the best company for Colorado military families
With a multitude of discounts available for members, USAA is a great choice for military families looking to save money on insurance. USAA offers discounts for bundling policies, membership loyalty, good payment history, and more. USAA’s coverage also includes higher-than-average personal property coverage limits, providing you peace of mind knowing your belongings are fully covered.
How to get a quote
Online through USAA
How much is homeowners insurance in Colorado?
The average cost of homeowners insurance in Colorado is $2,496 per year, or roughly $208 a month, for an insurance policy with $300,000 in dwelling coverage. This is around 31% higher than the nationwide average of $1,899.
Home insurance costs in Colorado are among the highest in the country due to factors beyond your control, such as weather-related causes like wildfires and even hail. In general, your location is going to have a large impact on what you pay for homeowners insurance. Homes located in areas of extreme weather as well as high instances of crime will cost more to insure.
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 tornadoes — like Pueblo and Colorado Springs — have the most expensive average home insurance premiums in Colorado, while more temperate and cooler cities like Fort Collins and Loveland have the lowest rates.
Here's a look at the average cost of home insurance in the 15 largest cities in Colorado.
Average monthly rate
Average annual rate
% difference from state average
Colorado homeowners insurance rates by company
The amount you pay for homeowners insurance primarily depends on your home's replacement cost and how much dwelling coverage it requires. Certain companies, like Shelter Insurance, are among the most cheapest home insurance options for homes with low dwelling coverage amounts, however it's one of the pricier options for higher value Colorado homes.
Here's the average annual premium from 13 home insurance providers in Colorado for four different dwelling coverage levels.
$200,000 dwelling coverage
$300,000 dwelling coverage
$400,000 dwelling coverage
$500,000 dwelling coverage
Colorado Farm Bureau Insurance
The cheapest homeowners insurance in Colorado for high-risk homes
If you're a homeowner in Colorado with a more complex risk profile — like an 100+ year-old home or a low credit score — insurance companies may consider you higher risk and charge you higher premiums or refuse to cover your home. However, some companies have less strict standards than others when it comes to insuring high-risk homes and, as a result, may offer lower rates or better coverage.
Click on each section below to find out which Colorado companies offer the cheapest high-risk homeowners insurance for a homeowner with poor credit, an older home, and a roof that's 20+ years old.
How to buy homeowners insurance in Colorado
There are several factors that should be taken into account when shopping for home insurance. While it may be tempting to go with the cheapest option, you should also be certain the policy meets your coverage needs.
Here are a few steps to follow to make sure you’re getting the right policy at the lowest cost.
Homeowners insurance in Colorado: 3 things to know
In addition to comparing quotes from different companies and determining the best policy for your needs, here are three additional considerations for Colorado homeowners.
Your policy may have a separate wind & hail deductible
Colorado homeowners in the eastern part of the state may have to pay a separate wind/hail deductible to be covered for windstorm, hail, or tornado damage. Wind and hail deductibles are generally listed as a percentage of your home’s insured value, so if your wind/hail deductible is 3% and your home is insured for $300,000, you'll need to pay an out-of-pocket deductible of $9,000 before your insurance company will cover wind or hail damage to your home.
When setting your policy limits and deductibles, be mindful of what you’ll be able to afford if a loss occurs. Setting your deductible at 5% may lower your home insurance premiums, but if a tornado or wildfire wipes out your home, you could be stuck paying more out-of-pocket to get your home back to its pre-disaster condition.
Wildfire mitigation could be required in high-risk areas
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.
Creating a defensible space around your home by removing flammable vegetation
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 surplus carrier or the Colorado FAIR Plan.
Most home insurance policies don't cover flood damage
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 wasn't long ago that Colorado suffered one of the worst flood events in the state’s history, engulfing 200 miles and affecting 17 counties. 
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.