Best homeowners insurance in Colorado in 2022

Pat Howard 1600Jessica Olivo

By

Pat Howard

Pat Howard

Managing Editor & Licensed Home Insurance Expert

Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

&Jessica Olivo

Jessica Olivo

Freelance contributor

Jessica Olivo is a writer living in Connecticut. She specializes in web and blog content in a variety of topics such as parenting, business, and culture, as well as serialized and short fiction.

After working in publishing and book publicity for many years, she transitioned to freelance writing full time.

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By

Michael Reynolds, CSRIC®, AIF®, CFT-I™

Michael Reynolds, CSRIC®, AIF®, CFT-I™

Financial Advisor

Michael Reynolds, CSRIC®, AIF®, CFT-I™, is a financial advisor, principal and founder of Elevation Financial, host of the weekly personal finance podcast Wealth Redefined®, and a member of the Financial Review Council at Policygenius.

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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.

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UPDATE: Home insurance premiums up 17.5% in Colorado

Home insurance premiums in Colorado increased at almost double the rate of inflation (8.6%) from May 2021 to May 2022, according to our latest analysis of internal policyholder data. The state’s nearly 18% increase in premiums is likely due to a mix of rising inflation, labor shortages, and higher rebuild costs in the wake of natural disasters like wildfires and hailstorms in recent years.

You can find all of the details in our Policygenius Home Insurance Pricing Report.

December 2021's Marshall Fire (the most destructive in state history) combined with record-high inflation have caused home replacement costs and insurance premiums in Colorado to skyrocket.

This is because insurance rates are based on the cost to rebuild a home — not its market value. Most insurance companies automatically update policies each year to reflect current construction and labor costs, which likely explains why most Coloradans have seen their homeowners insurance go up since last year. But despite the recent increases, Colorado homeowners can still find affordable homeowners insurance by comparing quotes from multiple companies.

Compare home insurance rates in Colorado

We don't sell your information to third parties.

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.

Company

Best for...

Monthly rate

Policygenius rating

Allstate

Most people

$224

4.0 out of 5

Chubb

High-value homes

$232

3.4 out of 5

Farmers

Comprehensive dwelling coverage

$254

3.9 out of 5

American Family

Cheap rates

$181

3.6 out of 5

USAA

Military families

$190

4.1 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 overall for most Coloradans: Allstate

Allstate

4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Allstate logo

$2,687/year

$224/month

Allstate's mix of exceptional customer satisfaction ratings, personalized coverage options, and numerous discount opportunities make it one of the most popular homeowners insurance companies on the market.

Pros

  • Several additional coverage & policy options

  • 8 available discounts

  • Excellent customer service and claims satisfaction ratings

Cons

  • Scored below average in J.D. Power's digital experience study

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

Chubb

3.4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Chubb logo

$2,788/year

$232/month

Chubb is a top-tier insurer ideal for high-value homes that need more robust coverage that goes beyond the run-of-the-mill options offered by traditional insurance companies.

Pros

  • Base policies include extended replacement cost coverage for your home

  • No deductible on losses greater than $50,000

  • Cash-out claim settlement options after a loss

Cons

  • Will typically only insure high-value homes

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

American Family

3.6

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

American Family logo

$1,770/year

$181/month

American Family's status as the 7th largest home insurance provider in the U.S. speaks to its popularity and reputation. Our fave perk? Its diminishing deductible program that lets you earn credits for every year you go without filing a claim.

Pros

  • One of the cheapest home insurance options in Colorado

  • Unique coverage add-ons not offered by home insurers

  • Large multi-policy discount

Cons

  • Doesn't offer extended or guaranteed replacement cost coverage

  • Above-average customer complaints according to the NAIC

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

Farmers

3.9

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Farmers logo

$3,051/year

$254/month

Farmers is one of the largest and most reputable home insurance providers in the industry, offering special discounts for teachers, nurses, first responders, and non-smokers — plus the option to rebuild your home with green materials after a claim.

Pros

  • Several discounts and unique ways to save, including claim forgiveness

  • 3 comprehensive home insurance policy tiers

  • Offers extended and guaranteed replacement cost coverage

Cons

  • Farmers' rates are generally higher in Colorado

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

USAA

4.1

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

USAA logo

$2,286/year

$190/month

USAA's robust coverages and high marks for customer service and claims satisfaction make it a solid home insurance option for military members and their families.

Pros

  • Several discounts and perks for members of the armed forces

  • Comprehensive base policy

  • Industry-best customer service and claims satisfaction ratings

Cons

  • Only available to military families

  • Doesn’t offer extended dwelling coverage options

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. 

Values logo

Policygenius featured on The Denver Post

"'Colorado rate increases are more than double that of inflation. It is a huge, massive jump,' said Pat Howard, a licensed property and casualty insurance expert at Policygenius in New York City. [...] What should consumers do if they are hit with high premium increases? Howard said it is a good practice to see what competitors are offering at least once a year, even when rates are stable."

You can read the full feature on The Denver Post here.

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.

City

Average monthly rate

Average annual rate

% difference from state average

Arvada

$238

$2,854

14%

Aurora

$257

$3,081

23%

Boulder

$200

$2,396

-4%

Centennial

$256

$3,075

23%

Colorado Springs

$259

$3,104

24%

Denver

$259

$3,104

24%

Fort Collins

$186

$2,232

-11%

Greeley

$225

$2,702

8%

Highlands Ranch

$252

$3,023

21%

Lakewood

$239

$2,864

15%

Longmont

$200

$2,402

-4%

Loveland

$185

$2,225

-11%

Pueblo

$296

$3,557

43%

Thornton

$234

$2,810

13%

Westminster

$230

$2,764

11%

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Find home insurance in your city

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.

Company

$200,000 dwelling coverage

$300,000 dwelling coverage

$400,000 dwelling coverage

$500,000 dwelling coverage

Acuity

$2,372

$3,852

$5,229

$6,051

Allstate

$2,150

$2,687

$3,111

$3,466

American Family

$1,770

$2,176

$2,537

$2,868

Auto-Owners Insurance

$1,022

$1,260

$1,531

$1,760

California Casualty

$2,179

$2,851

$3,343

$3,789

Chubb

$1,368

$1,895

$2,338

$2,788

Colorado Farm Bureau Insurance

$1,293

$1,901

$2,524

$3,151

Country Financial

$2,830

$3,964

$4,744

$5,590

Farmers

$2,088

$3,051

$3,645

$4,450

Nationwide

$2,351

$3,234

$4,092

$4,905

Shelter Insurance

$1,424

$2,101

$2,800

$3,544

State Farm

$2,186

$2,828

$3,464

$4,288

USAA

$1,816

$2,286

$2,644

$2,973

Compare home insurance rates in Colorado

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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.

Average homeowners insurance cost in Colorado by risk scenario

Cheapest Colorado home insurance if you have poor credit

In some cases, insurance companies will take your credit score into account when determining your premium. Insurers often view customers with poor credit as riskier to insure, since data has shown they are more likely to file a claim rather than pay for small damages or repairs out of pocket. Not all companies take credit score into account, however, and some weigh this factor less heavily than others.

Here's the average home insurance premium in Colorado from various companies for a homeowner with poor credit, and how it compares to each company's base rate. Colorado Farm Bureau Insurance appears to put the least amount of weight on credit scores when determining rates, while Auto-Owners Insurance emphasizes this factor the most.

CompanyAverage annual rate% difference from base rate
Colorado Farm Bureau Insurance$2,23217%
Shelter Insurance$2,53921%
Nationwide$3,96022%
Allstate$3,32224%
Acuity$4,86426%
USAA$3,15738%
Country Financial$5,56840%
California Casualty$4,40554%
Chubb$3,16267%
American Family$3,68669%
State Farm$4,86472%
Farmers$6,196103%
Auto-Owners Insurance$14,3371038%
Cheapest Colorado home insurance for older homes

Older and historic homes are usually more expensive to insure than newer homes. This is because insurers consider them a higher risk than newer homes since they generally more prone to loss, they're constructed with obsolete (and more expensive) materials, and certain structural components like the roof or plumbing systems may not be up to code.

Here's the average home insurance premium from the most popular Colorado insurers for a home that's over 100 years old, and how it compares to each company's base rate.

CompanyAverage annual rate% difference from base rate
Chubb$1,8950%
Shelter Insurance$2,1720%
Country Financial$4,1560%
California Casualty$2,8671%
Allstate$2,7653%
American Family$2,5554%
Colorado Farm Bureau Insurance$1,9734%
Acuity$4,1718%
Farmers$3,65520%
USAA$2,82853%
Cheapest Colorado home insurance for a house with a 20+ year-old roof

Insurance companies place a good amount of importance on your roof's condition when determining your insurance premiums. In general, the older your roof, the more likely you are to file a claim and the higher your home insurance rates will be.

Below are the average annual premiums from 10 Colorado companies for a home with a 20-year-old roof, and how it compares to each company's base rate.

CompanyAverage annual rate% difference from base rate
Chubb$1,8950%
Colorado Farm Bureau Insurance$1,9010%
Shelter Insurance$2,1720%
State Farm$2,8280%
Country Financial$4,1561%
USAA$1,8049%
Farmers$3,37311%
Acuity$3,42614%
California Casualty$2,78215%
Nationwide$3,29255%

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.

5 tips for purchasing the best homeowners insurance in Colorado

  1. Reach out to a licensed Policygenius agent. The experts at Policygenius are available to assist in finding the right policy for your needs at no cost to you. Get in touch to see how we can help. 

  2. Ask about wildfire and other extreme weather coverage options. In states like Colorado, a wildfire can often be followed by a snow storm, so it’s important to make sure your insurance covers a wide range of potential damages. Colorado is known for unpredictable weather and homeowners need to be prepared for frequent claims. 

  3. Figure out how much you can afford to pay for your deductible. Increasing your deductible will lower your premium, so consider how much you can afford to pay out of pocket each time you have a claim, but also consider the possibility that you’ll need to file multiple claims each year. 

  4. Compare quotes from a Policygenius agent. After considering how much coverage you need and which optional add-ons you’d like in your policy, a Policygenius expert can help you compare different policies to find the best homeowners insurance for your needs.

  5. Choose your policy, sign it, and pay your first premium.  Let Policygenius do the heavy lifting. Once you’ve decided on the policy that’s best for you, our agents will complete the paperwork so all you have to do is sign on the dotted line and pay your first premium. We’ll even go the extra mile to cancel your old policy for you if need be. 

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

  • 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 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. [1]

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.

Compare home insurance rates in Colorado

We don't sell your information to third parties.

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 17.5% since last year — the third-highest increase in the U.S., according to the 2022 Policygenius Home Insurance Pricing Report. The increases are due largely to rising inflation, severe natural disasters, record catastrophe losses, ongoing labor shortages, and other factors.

References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of our

editorial standards.
  1. Denver Post

    . "

    “We’re about to wake up”: Victims of Colorado’s 2013 flood look to end of recovery

    ." Accessed August 12, 2022.

Authors

Managing Editor & Licensed Home Insurance Expert

Pat Howard

Managing Editor & Licensed Home Insurance Expert

gray twitter icon linkgray linkedin icon link

Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.

Freelance contributor

Jessica Olivo

Freelance contributor

Jessica Olivo is a writer living in Connecticut. She specializes in web and blog content in a variety of topics such as parenting, business, and culture, as well as serialized and short fiction.

After working in publishing and book publicity for many years, she transitioned to freelance writing full time.

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