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.

Updated May 1, 2022

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The natural playground of mountain views and hiking trails may be a draw, but Colorado Springs is also subject to nature’s destructive side. Flash floods, high winds, and hail can cause damage to homes and property, which makes homeowners insurance so important. 

The average cost of homeowners insurance in Colorado Springs is $3,104 per year or $259 a month. This is around 24% higher than the statewide average of $2,496 per year, and about 63% higher than the national average of $1,899. 

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However, cost isn’t the only factor to consider when choosing a home insurance company. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in Colorado Springs.  

Best homeowners insurance companies in Colorado Springs

Of the companies we looked at, USAA has the lowest rate with an average yearly cost of $2,500, which is almost 20% lower than the city average. Allstate, State Farm, and American Family all have rates that are below the average in Colorado Springs, so if you’re worried about the high cost of insurance, you have options. 

Since cost isn’t the only factor in choosing a home insurance policy, it’s important to compare customer and claim satisfaction ratings through companies like J.D. Power. 

Policygenius analyzed thousands of quotes from the 5 largest Colorado Springs 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 Springs residents to find the best homeowners insurance in Colorado Springs.

Company

Average yearly cost

J.D. Power Rating

State Farm

$2,798

835

USAA

$2,500

882

Allstate

$2,509

829

American Family

$2,568

831

Farmers

$4,814

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

State Farm is often applauded for their customer service. Their dedication to their customers is particularly evident in their resources for new homeowners. The State Farm website has many informative articles for everything from tips on house hunting and what goes into a home inspection to how moving will affect your home insurance. They even offer moving insurance and explain why it’s good to have.

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

If you or a family member have served in the U.S. armed forces, USAA is an excellent option, not only for your home insurance, but auto and life insurance as well. In fact, you can save money off of their already low prices by bundling your policies. Not only does USAA offer the lowest average yearly rate in Colorado Springs, the company also has the highest J.D. Power rating and excellent customer reviews with Consumer Affairs and Consumer Advocate. 

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 already low rate in Colorado Springs makes it a smart choice for your budget, but you can save even more with its large array of available discounts. Not only can you save money on your premium with their multi-policy discount, responsible payment discount, and claim-free discount, Allstate also offers discounts for switching to Allstate, adding theft and fire alarms to your home, and setting up automatic payments. 

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

The American Family mobile app is just one reason to love this company. Customer service is available all day, every day, and you can use the app to view your proof of insurance, file and track a claim, make a payment, or connect with their emergency roadside assistance team.

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

No one wants to think about losing their home in a fire, but with Farmers, you can receive extra money to put towards replacing your home with environmentally-friendly materials and appliances. Farmers’ green rebuild coverage provides up to $25,000 for a eco-friendly rebuild of your house after a covered loss. 

How to get a quote

Online through Farmers

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Cheapest homeowners insurance companies by ZIP code in Colorado Springs

Looking at average home insurance costs for 15 of the most popular companies in Colorado Springs, we found that the cheapest home insurance in the city can be found in the 80907 ZIP code (Venetian Village) with State Auto. The average State Auto rate in this area is $290 per year, $2,814 less than the city average of $3,104 per year. 

State Auto has the cheapest average annual premiums across all of Colorado Springs, making them a good option if you don’t have a large budget. 

ZIP code

Company

Average yearly cost

80903

State Auto

$341

80904

State Auto

$324

80905

State Auto

$336

80906

State Auto

$347

80907

State Auto

$290

80909

State Auto

$351

80910

State Auto

$335

80912

State Auto

$317

The most affordable areas for homeowners insurance in Colorado Springs

With an average home insurance rate of $2,992 per year, the 80912 ZIP code (Schriever Air Force Base) is the most affordable area for home insurance in Colorado Springs, although unfortunately it does not have any houses outside of the air force base. 

ZIP code

Average yearly cost

80912

$2,992

80946

$3,001

80926

$3,042

80929

$3,062

80916

$3,066

The most expensive areas for homeowners insurance in Colorado Springs

With an average home insurance rate of $3,169, the 80904 ZIP code (Pleasant Valley) is the most expensive area for home insurance in Colorado Springs. This area of Colorado Springs is adjacent to the forests surrounding Pikes Peak and may be susceptible to wildfires and other weather-related hazards.  

ZIP code

Average yearly cost

80904

$3,169

80909

$3,164

80907

$3,162

80918

$3,158

80923

$3,150

Shopping for homeowners insurance in Colorado Springs

When shopping for homeowners insurance, it is prudent to know your actual coverage needs so you don’t overpay for your policy. Colorado Springs residents who make multiple claims each year may want to think twice before opting for a high home insurance deductible. And houses that would be expensive to rebuild should have a high dwelling coverage limit.  

In this section, we break down the average annual home insurance rates in Colorado Springs 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 Springs.

Colorado Springs home insurance costs by coverage amounts

One of the most important parts of home insurance is dwelling coverage, which is the part of your policy that pays to rebuild your home after a covered loss. This amount should equal the rebuild cost of your home — not its market value or sales price. 

Knowing how much, or how little, dwelling coverage you need can save you money on home insurance. In Colorado Springs, a policy with $100,000 in dwelling coverage costs an average of $1,494 per year, while a policy with $500,000 in dwelling coverage costs an average of $4,537 — a difference of over $3,000.

Dwelling coverage amount

Average yearly cost

$100,000

$1,494

$200,000

$2,235

$300,000

$3,104

$400,000

$3,820

$500,000

$4,537

Liability coverage protects you in case you are at fault for injuring another person or damaging their property. Your liability coverage limit should be based on the total value of everything you own, including your house, cars, and liquid assets. 

Unlike with dwelling coverage, the average cost of home insurance for a policy with $100,000 in liability coverage isn’t much different than a policy with $500,000 in protection. Because it has such a small impact on your premium, it’s worth opting for the largest amount of liability coverage available.

Liability coverage amount

Average yearly cost

$100,000

$3,114

$200,000

$3,055

$300,000

$3,104

$400,000

$2,522

$500,000

$3,188

Colorado Springs home insurance costs by deductible amount

Before your insurer will agree to pay out a claim, you first need to meet your homeowners insurance deductible. This is the out-of-pocket amount you are responsible for paying on each claim you file. 

As seen in the table below, Colorado Springs residents can save around $400 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$3,399

$1,000

$3,104

$2,000

$2,996

Home insurance discounts in Colorado Springs

Many insurance companies offer home safety discounts as an incentive for you to add an alarm system or smoke detector to your house. These safety measures not only protect you, they also reduce the risk of you having to file a claim, which saves the insurer money as well. 

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 Springs with deadbolts, smoke alarms, or burglar alarms. 

Discount

Average yearly cost

Dead bolt

$3,103

Smoke alarm

$3,099

Burglar alarm

$3,036

Home insurance companies in Colorado Springs for dog owners

Dog owners could potentially see higher rates if their dog is considered an “aggressive dog breed by insurance companies. Certain dog breeds are responsible for more injury-related liability claims, so many insurance companies will charge you higher rates if you have one. 

With an average rate of $2,500 per year, USAA has the cheapest home insurance rates in Colorado Springs for a home with a dangerous dog breed, while Farmers’ average yearly premium of $4,814 is the highest. 

Company

Average yearly cost

USAA

$2,500

Allstate

$2,509

American Family

$2,578

State Farm

$2,798

Farmers

$4,814

Home insurance companies in Colorado Springs for poor credit

Did you know your credit score can affect your insurance rate? Insurance companies use your credit score to determine if you're likely to pay your bills on time or file fewer claims. And studies have shown that people with high credit scores tend to pay for small repairs out of pocket, rather than file claims. 

Don’t worry if you have poor credit, though. Not all companies use this score to determine your premium and you can still find an affordable policy by shopping around. 

With an average rate of $3,026 per year, Allstate has the cheapest home insurance rates in Colorado Springs for a homeowner with poor credit, while Farmers’ average yearly premium of $7,501 is the highest. 

Company

Average yearly cost

Allstate

$3,026

USAA

$3,374

American Family

$4,199

State Farm

$4,811

Farmers

$7,501

Home insurance companies in Colorado Springs for pool owners

Insurance companies may charge a higher rate if you have a pool, since pools increase the risk of injury on your property. Not all companies take a pool into account when determining your premium, however, and a Policygenius expert can help you to compare rates to find the most affordable option. 

With an average rate of $2,500 per year, USAA has the cheapest home insurance rates for Colorado Springs homes that have a swimming pool, while Farmers’ average yearly premium of $4,814 is the most expensive.

Company

Average yearly cost

USAA

$2,500

Allstate

$2,509

American Family

$2,575

State Farm

$2,798

Farmers

$4,814

How to buy homeowners insurance in Colorado Springs

With rates in Colorado Spring high above the national average, it’s important to know what you need from a policy and shop around for the best rate. Shopping for homeowners insurance can feel like a daunting task, but it doesn’t have to be. Here are some tips to make it a little easier:

  1. Reach out to a licensed Policygenius agent. The experts at Policygenius are here to make sure you get the coverage you need without overpaying. Our agents can help you determine your coverage limits, compare quotes, and complete the paperwork — all at no cost to you. 

  2. Ask about coverage options. Talk to a Policygenius agent if you have questions about your options like “other structures” coverage for a detached garage or an umbrella policy to provide you with additional liability pr otection.

  3. Figure out how much deductible you can afford. Choosing a high deductible is a good way to lower rates, so if your home doesn’t face much in the way of natural disasters or property crime, you may want to consider this option.

  4. Compare quotes from a Policygenius agent. Insurance companies have different criteria for determining your home insurance rate, which is why it’s important to compare several quotes to see who has the best deal on coverage.

  5. Choose your policy, sign it, and pay your first premium. Once you’ve decided on a policy, one of our Policygenius agents will complete the paperwork for you. They will even cancel your old policy if it’s not up yet. All you need to do is sign and make your first payment. 

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Frequently asked questions

What is personal property insurance?

Personal property insurance will help pay to replace items that are damaged or destroyed in a covered event, like a fire. This includes your furniture, clothing, and electronics.

Will my low credit score prevent me from getting affordable home insurance?

While some companies factor your credit score into your insurance premium, not all do. If you have low credit, be sure to shop around and compare quotes. It’s still possible to find a rate you can afford.

What is the average cost of home insurance in Colorado Springs?

The average yearly insurance rate in Colorado Springs is $3,104, which is well above the national average. To save money on insurance, be sure to ask about discounts and compare quotes. Since your circumstances change, it can also help to shop around every few years to see if you can get a better rate later on.

Why should I use a Policygenius agent when shopping for home insurance?

Policygenius agents are experts in the field. They will be able to help you determine your coverage limits, shop for policies, and complete the required paperwork. Our services are free and will not affect your credit score.

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.