Best homeowners insurance in Colorado for 2022

We looked at policy cost, coverage quality, and unique policy offerings for Colorado residents to find the best homeowners insurance companies in Colorado.

Jessica Olivo

By

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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This article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.

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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 offers a natural playground for residents and visitors alike. From the majestic mountain ranges to the flowing rivers and everything in between, Colorado is known for year-round outdoor activities like skiing, hiking, and mountain biking. The natural landscape in Colorado can be just as dangerous as it is exciting, however, and homeowners need to be prepared for wildfires, high winds, and snow storms. A quality home insurance policy is a great way to protect your property from the elements. 

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The average cost of homeowners insurance in Colorado is $2,496 per year or $208 a month. This is about 31% higher than the national average of $1,899 per year, but there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Colorado.  

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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.

Best homeowners insurance companies in Colorado

Of the companies we evaluated, American Family has the lowest rate with an average yearly cost of $2,176, which is $320 less than the state average. USAA’s average cost is also below the state average, at $2,286 per year. 

It’s important to keep in mind that cost is just one factor when choosing which homeowners insurance company is right for you. For example, the companies with the highest customer service ratings may not offer the cheapest policies.  

Policygenius analyzed thousands of quotes from the 5 largest Colorado insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of Colorado residents to find the best homeowners insurance in Colorado.

Company

Average yearly cost

J.D. Power Rating

State Farm

$2,828

835

USAA

$2,286

882

Allstate

$2,687

829

American Family

$2,176

831

Farmers

$3,764

813

State Farm

State Farm logo

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

  • Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

  • Get up to $1 million in personal liability coverage

  • Score discounts for bundling, installing security devices, and choosing a high deductible

  • File and track claims online, over the phone, in person, or through its mobile app

  • High customer satisfaction and financial strength ratings

Cons

  • No discounts for first-time homebuyers or going a year without a claim

Why State Farm tops our best list

Along with having one of the highest J.D. Power ratings in Colorado, State Farm also has high financial strength ratings, which means customers can have confidence in the company’s ability to pay claims. Policyholders in Colorado can also take advantage of State Farm’s popular mobile app, which can be used not only to review your policy but also to file and track claims. 

How to get a quote

Online through State Farm

USAA

USAA logo

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

  • Score discounts for zero claims, being a loyal USAA member, opting into e-billing, and more

  • Base policy includes coverages that cost extra with most other companies

  • Offers earthquake coverage — which is hard to come by

  • Get discounted home security systems and a discount on premiums through its partnership with ADT

  • Industry-best customer service and claims satisfaction ratings

Cons

  • Only available to military families

  • Doesn’t offer extended or guaranteed replacement cost dwelling coverage

Why USAA tops our best list

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 

Allstate

Allstate logo

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 coverage add-ons, including ones for roof surfaces, water backup, green improvements, and mold protection

  • 8+ discounts, including autopay, bundling, zero claims, and new homebuyer

  • Get up to 25% off your premiums when you bundle home and auto insurance

  • Excellent customer service and claims satisfaction ratings

  • File and track claims online or through its mobile app

Cons

  • Rates are typically high compared to competitors

Why Allstate tops our best list

Allstate’s extensive policy options make it a sound choice 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 

American Family

American Family logo

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

  • Unique coverage add-ons, like matching siding insurance and hidden water damage coverage

  • Save up to 20% on home insurance and 29% on auto insurance for bundling the policies together

  • Earn a $100 credit toward your deductible for ever year you go without filing a claim

  • File claims online or on its mobile app — with 24/7 claims support

Cons

  • Doesn't offer extended or guaranteed replacement cost coverage

  • Above-average customer complaints according to the NAIC

Why American Family tops our best list

Not only does American Family offer the cheapest average rate of any Colorado company in our analysis, it’s also one of the largest and most popular home insurance carriers 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

Farmers

Farmers logo

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 and declining deductibles

  • 3 flexible coverage packages with varying levels of protection for most coverage and budget needs

  • Offers extended and guaranteed replacement cost coverage options

  • File claims online, via text, on its mobile app, or by calling its claims center

Cons

  • Rates are typically more expensive

  • Below-average customer satisfaction ratings

  • No repair network to help you find a certified contractor or repair professional after filing a claim

Why Farmers tops our best list

Customers love how easy it is to report claims with Farmers through text messaging, using their mobile app, online, or over the phone. Its website provides a variety of options for filing and tracking claims, including a 24/7 claims service and expedited catastrophe claims handling. Farmers’ website also provides industry-best resources and helpful tools to its customers, including a guide that outlines reasons for potential claims and advice on what action to take in different scenarios. 

How to get a quote

Online through Farmers

Cheapest homeowners insurance companies by city in Colorado

Looking at average home insurance costs for the 15 most popular insurers in Colorado, we found that the cheapest homeowners insurance company in the state is State Auto, with average premiums of under $300 per year in many cities.  

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. 

High insurance rates shouldn’t be a deterrent, however, since many companies offer discounts and other ways to bring down costs. 

City

Company

Average yearly cost

Agate

State Auto

$305

Aguilar

State Auto

$351

Air Force Academy

State Auto

$331

Akron

State Auto

$288

Alamosa

State Auto

$321

Allenspark

State Auto

$279

Alma

State Auto

$295

Almont

State Auto

$288

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Shopping for 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 policy, you should also be certain you have the best policy for your personal coverage needs. A Policygenius expert can help assist in determining what coverage is best for you. 

In Colorado, an increase in wildfires as well as rising construction costs could mean high repair costs if your house is destroyed and needs to be rebuilt. You’ll want to consider these costs when determining how much coverage you’ll need on your policy. 

In this section, we break down the average annual home insurance rates in Colorado for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with a poor credit score, dog owners, and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in Colorado.

Colorado home insurance costs by coverage amounts

One of the most important aspects of your home insurance policy is dwelling coverage, which covers the cost of repairing or rebuilding the structure of your home after a covered loss. The amount paid is based on what it costs to repair or rebuild your home. 

The more dwelling coverage your home requires, the higher the yearly costs will be. In Colorado, there is a difference of $2,416 in yearly costs between $100,000 in coverage and $500,000 in coverage, demonstrating how much more it costs to insure an expensive home. 

Dwelling coverage amount

Average yearly cost

$100,000

$1,218

$200,000

$1,813

$300,000

$2,496

$400,000

$3,068

$500,000

$3,634

Liability coverage is the part of your home insurance that  pays for medical or legal bills in the event you’re liable for someone else’s injury or property damage. When determining how much coverage you need, consider the total value of your assets, including your home. This is the amount a court may consider awarding the injured party if you are found legally responsible for the incident.

In Colorado, we found that having more liability coverage does not always translate into higher home insurance rates. The table below demonstrates how average costs may not be directly impacted by the amount of liability coverage you purchase. Be sure to compare rates before deciding on less coverage for your home.

Liability coverage amount

Average yearly cost

$100,000

$2,479

$200,000

$2,396

$300,000

$2,496

$400,000

$1,886

$500,000

$2,585

Colorado home insurance costs by deductible amount

Your policy deductible is the amount you’re responsible for paying on each claim before your insurance kicks in. The higher your deductible, the lower your insurance rates will be. Keep in mind that this amount applies to every claim you file, which means the more claims you have, the more money you will pay out of pocket. Because of this, it’s better to choose a lower deductible if you are in the path of wildfires or an area of high crime and may need to file multiple claims. 

As seen in the table below, Colorado residents can save around $171 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$2,641

$1,000

$2,496

$2,000

$2,470

Home insurance discounts in Colorado

Most insurance companies will offer you discounts if you choose to make your home safer, and therefore less likely to file a claim. From protecting your home against weather-related damage to securing your property from theft or vandalism, there are plenty of ways to save money on home insurance. Even having a fire alarm can add an additional discount to your overall costs. 

While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in Colorado with deadbolts, smoke alarms, or burglar alarms. 

Discount

Average yearly cost

Dead bolt

$2,496

Smoke alarm

$2,494

Burglar alarm

$2,451

Home insurance companies in Colorado for dog owners

Insurance companies can charge higher rates for homeowners who have pit bulls, German shepherds, rottweilers, and chow chows. These dog breeds are responsible for the majority of dog bite-related liability claims, which makes you a higher risk to insure. Some companies may not cover you at all if you own one of these breeds.  

With an average rate of $2,186 per year, American Family has the cheapest home insurance rates in Colorado for a home with a dangerous dog breed, while Farmers’ average yearly premium of $3,764 is the highest. 

Company

Average yearly cost

American Family

$2,186

USAA

$2,286

Allstate

$2,687

State Farm

$2,828

Farmers

$3,764

Home insurance companies in Colorado for 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. 

With an average rate of $3,157 per year, USAA has the cheapest home insurance rates in Colorado for a homeowner with poor credit, while Farmers’ average yearly premium of $6,196 is the highest. 

Company

Average yearly cost

USAA

$3,157

Allstate

$3,322

American Family

$3,686

State Farm

$4,864

Farmers

$6,196

Home insurance companies in Colorado for pool owners

Having a pool increases the risk of injury on your property and makes you more likely to file a claim, so insurance companies often charge higher rates if you have one. But not all companies increase costs for this reason, which is why it's important to compare rates before choosing a policy. 

With an average rate of $2,184 per year, American Family has the cheapest home insurance rates for Colorado homes that have a swimming pool, while Farmers’ average yearly premium of $3,764 is the most expensive.

Company

Average yearly cost

American Family

$2,184

USAA

$2,286

Allstate

$2,687

State Farm

$2,828

Farmers

$3,764

How to buy homeowners insurance in Colorado

Buying home insurance doesn’t have to be a complicated process. Here are a few steps to follow to make sure you’re getting the right policy at the lowest cost:

  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, and 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. 

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Frequently asked questions

What is personal property insurance?

Personalty property insurance covers the belongings inside your home. From your jewelry to your furniture, personal property insurance will pay for repairs or replacements in case of a break in or fire damage.

How does the crime rate in my area affect my home insurance?

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.

Which company has the best rates in Colorado?

American Family has the cheapest average rates in Colorado, but cheaper may not always be better for you or your home. When deciding on a home insurance policy, consider other factors such as customer service ratings, how easy it is to file a claim, and the coverage options offerings.

Why do pools, treehouses, and trampolines affect my insurance rate?

These items are considered “attractive nuisances” that increase the probability of an injury on your property. If you add anything to your property that increases the likelihood of liability claims, you will likely see higher insurance rates.

Methodology

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., 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.

Author

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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