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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With enough parks and hiking trails to keep even the most active outdoor enthusiast busy, Lakewood is a Colorado gem. If you’re looking to settle down in this attractive Denver suburb, know that the cost of living, including housing expenses and homeowners insurance, are above the national average. [1]

The average cost of homeowners insurance in Lakewood is $2,864 per year or $239 a month. This is around 15% higher than the statewide average of $2,496 per year, and about 51% 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 Lakewood.  

Best homeowners insurance companies in Lakewood

Of the companies we looked at, USAA has the lowest rate with an average yearly cost of $2,300 — over $500 less than the city average. Since USAA is only available to military families, the next cheapest rates are with American Family, just slightly more than USAA at $2,369 per year. 

USAA also has a great rating with J.D. Power. While affordable rates are key, it’s also important to work with a company that offers excellent customer and claim satisfaction.

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

Company

Average yearly cost

J.D. Power Rating

State Farm

$2,764

835

USAA

$2,300

882

Allstate

$2,395

829

American Family

$2,369

831

Farmers

$4,224

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

While State Farm may not be the cheapest home insurance option in Lakewood, it’s worth the extra cost for exceptional customer service and a multitude of tools at your disposal. Not only does State Farm have a high J.D. Power score, but their online and mobile resources are a big plus if you care about easy access to your policy and claims. State Farm also has tools and advice available for first-time home buyers, including what to look for in a new home, how to get a mortgage, and tips for moving.  

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

On top of USAA’s low cost and high customer satisfaction ratings, they also have a valuable partnership with ADT. Through USAA, you can get discounted security systems, installation, and monitoring on ADT products. Not only do you save on your home security, but having an ADT system will also earn you a discount on your home insurance premium.

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 yearly costs may fall in the middle of the pack of the companies we analyzed, but their 25% off bundling discount can make up the difference if you buy both home and auto insurance. At an average annual rate of $2,395, 25% off brings the price tag down to $1,796. Combined with additional eligible discounts, you can see significant savings on your Allstate policy.  

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

American Family’s “diminishing deductible” policy feature is a great way to keep your out-of-pocket expenses down. As soon as you add the program to your policy, American Family will give you a $100 credit towards your deductible for each year you’re a customer. That means if you start with a $1,000 deductible, over a few years you can bring that expense down to $700, $600, even $500 dollars, just for being a loyal customer.  

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

Most insurance companies offer discounts for bundling or not filing claims, but Farmers also offers additional savings to professionals like teachers, police officers, fire fighters, and medical staff.

How to get a quote

Online through Farmers

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Cheapest homeowners insurance companies by ZIP code in Lakewood

Looking at average home insurance costs for 15 of the most popular companies in Lakewood, we found that the cheapest home insurance in the city can be found in the 80215 ZIP code with State Auto. The average State Auto rate in this area is $284 per year — $2,580 less than the city average of $2,864 per year. 

As the table shows, State Auto has the cheapest rate in all of Lakewood’s ZIP codes, making it the most affordable option in the area. 

ZIP code

Company

Average yearly cost

80214

State Auto

$321

80215

State Auto

$284

80226

State Auto

$318

80227

State Auto

$303

80228

State Auto

$288

80232

State Auto

$319

The most affordable areas for homeowners insurance in Lakewood

With an average home insurance rate of $2,846 per year, the 80226 and 80232 ZIP codes are the most affordable areas for home insurance in Lakewood. Since these neighborhoods are on the eastern edge of the city, further away from the forests and parks to the west, the lower rates could be due to less risk of wildfires.   

ZIP code

Average yearly cost

80226

$2,846

80232

$2,846

80228

$2,851

80214

$2,874

80227

$2,878

The most expensive areas for homeowners insurance in Lakewood

With an average home insurance rate of $2,888, the 80215 ZIP code is the most expensive area for home insurance in Lakewood. Houses in this area have a median price of $635,700 and these larger, more expensive homes could require higher limits and more costly insurance policies. [2]   

ZIP code

Average yearly cost

80215

$2,888

80227

$2,878

80214

$2,874

80228

$2,851

80226

$2,846

Shopping for homeowners insurance in Lakewood

When shopping for homeowners insurance in Lakewood, it’s important to consider your home’s risk of wildfire or severe winter weather damage, as well as the crime rate in your area. 

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

Lakewood home insurance costs by coverage amounts

One of the most important aspects of your home insurance policy 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 Lakewood, a policy with $100,000 in dwelling coverage will cost an annual average of $1,375 per year. That amount goes up to $4,201 if you have a policy with $500,000 in dwelling coverage. 

Dwelling coverage amount

Average yearly cost

$100,000

$1,375

$200,000

$2,058

$300,000

$2,864

$400,000

$3,535

$500,000

$4,201

Liability coverage protects your assets if you are found responsible for an injury or you damage someone’s property. This coverage pays the bills so you don’t have to cover their medical expenses or repairs out of pocket. Your liability coverage limit should be based on the total value of everything you own, including your house, cars, and liquid assets. 

Liability coverage amount

Average yearly cost

$100,000

$2,871

$200,000

$2,817

$300,000

$2,864

$400,000

$2,242

$500,000

$2,952

Lakewood home insurance costs by deductible amount

Yourhomeowners insurance deductible is the amount you’re responsible for paying out on each claim. Just like with medical expenses, you have to meet your deductible before your insurance kicks in. Unlike with medical insurance, however, you have to pay this deductible on every claim. 

The lower your deductible, the higher your rate will be, so consider the likelihood of needing to make a claim throughout the year. As wildfires become more of a threat in Colorado, you might see a greater need for a lower deductible in case you have to file multiple claims.

As seen in the table below, Lakewood residents can save around $327 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$3,124

$1,000

$2,864

$2,000

$2,797

Home insurance discounts in Lakewood

The safer you make your home, the less likely you are to file a home insurance claim, which is why most companies offer discounts for home security systems like burglar alarms, smoke detectors, and deadbolt locks. Not only do these systems save you money on your insurance, they also protect you and your home.

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 Lakewood with deadbolts, smoke alarms, or burglar alarms. 

Discount

Average yearly cost

Dead bolt

$2,864

Smoke alarm

$2,860

Burglar alarm

$2,802

Home insurance companies in Lakewood for dog owners

Since dog-related damage and injuries can lead to expensive liability claims, insurance companies may charge more for homes with certain dog breeds that are regarded as dangerous or aggressive.

With an average rate of $2,300 per year, USAA has the cheapest home insurance rates in Lakewood for a home with a dangerous dog breed, while Farmer’s average yearly premium of $4,224 is the highest. 

Company

Average yearly cost

USAA

$2,300

American Family

$2,379

Allstate

$2,395

State Farm

$2,764

Farmers

$4,224

Home insurance companies in Lakewood for poor credit

Insurance companies use a version of your credit score to determine how likely you are to pay your bills and file a claim. Your credit-based insurance score looks at your payment and credit history as well as your outstanding debt, and it often factors into your home insurance rate. 

Not all companies use this score as a determining factor to set your premium, however, so if you have poor credit, it pays to shop around. 

With an average rate of $2,967 per year, Allstate has the cheapest home insurance rates in Lakewood for a homeowner with poor credit, while Farmers’ average yearly premium of $6,774 is the highest. 

Company

Average yearly cost

Allstate

$2,967

USAA

$3,088

American Family

$3,909

State Farm

$4,752

Farmers

$6,774

Home insurance companies in Lakewood for pool owners

Swimming pools are known as “attractive nuisances” as they may attract neighbors or trespassers onto your property and lead to injury. Due to this added liability risk, you’ll often see higher rates if you have a pool in your backyard.

With an average rate of $2,300 per year, USAA has the cheapest home insurance rates for Lakewood homes that have a swimming pool, while Farmers’ average yearly premium of $4,224 is the most expensive.

Company

Average yearly cost

USAA

$2,300

American Family

$2,377

Allstate

$2,395

State Farm

$2,764

Farmers

$4,224

How to buy homeowners insurance in Lakewood

There are several factors to consider when purchasing home insurance in Lakewood. From the crime rate in your neighborhood to your home’s proximity from brushfire areas, it’s important to have the right amount coverage. 

Here are some tips to ensure you buy the policy that’s right for you:

  1. Reach out to a licensed Policygenius agent. Our team of experts can help you find a home insurance policy that has the coverage you need at a price that works for your budget. Our services are free and will not impact your credit score.

  2. Consider purchasing additional fire insurance. Wildfires are becoming more of an issue in Colorado after hundreds of homes were destroyed in the 2021-2022 Marshall fire. A Policygenius agent can discuss options to make sure your house is fully covered.

  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. Since not all insurers base your rate on the same factors, a Policygenius agent can help you compare quotes to make sure you're getting the best rate for the coverage that suits your needs. 

  5. Choose your policy, sign it, and pay your first premium. Once you’ve decided on the right policy, our agents can prepare the paperwork for you to sign. Once you pay your first premium, you’re all set.

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Frequently asked questions

What can I do to improve my low credit score?

If bad credit is driving up your home or car insurance rates, paying your bills on time, lowering your overall debt, and paying off your credit card can help to improve it. Over time, you will see an improvement, but in the meantime, be sure to shop around for a company that doesn’t penalize low credit scores.

Is my shed covered under my dwelling coverage?

Detached structures such as sheds, fences, and separate garages are covered under the other structures coverage of your homeowners insurance. Although keep in mind that your other structures coverage limit is, by default, significantly lower than your dwelling coverage limit. If you have several structures on your property, ask your insurer if they have an option for higher other structures coverage limits.

How can I lower the cost of homeowners insurance?

Many insurers offer discounts that can bring down your home insurance premium. You may be able to save money by bundling your home and auto insurance, signing up for e-billing, or paying your entire premium for the year upfront.

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.