Best homeowners insurance in Colorado for 2024

Compare the best homeowners insurance companies in Colorado

Using data sourced from Quadrant Information Services, our insurance editorial team compared average premiums from dozens of carriers writing home insurance policies in Colorado. We also looked at coverage options and discount opportunities, as well as the ease of use of each carrier's website and mobile app. Finally, we considered third-party financial strength ratings from AM Best and customer satisfaction scores from J.D. Power. As a point of reference, the average cost of a home insurance policy with $300,000 in dwelling coverage in Colorado is $3,222.

The top 5 home insurance companies in Colorado

Additional Colorado home insurance companies to consider

State Auto

Encompass

How Bankrate chose the best home insurance companies in Colorado

To narrow down our list of top home carriers in Colorado, we assigned each company a Bankrate Score. This score takes into account average rates, coverage options, discount availability, customer service, financial strength and more to create a holistic comparison metric. The better a company performed in each of these categories, the higher its overall Bankrate Score for a maximum score of 5 out of 5. As you read through our picks for the best home insurance companies in Colorado, we hope these Bankrate Scores will allow you to easily compare companies based on the factors that matter most to you.

Cheapest home insurance companies in Colorado

When looking for cheap home insurance companies in Colorado, it can pay off to start with insurers that have a reputation for writing affordable policies in general. Bankrate used data from Quadrant Information Services to determine average rates for the companies that serve the Centennial State. Our top choices may be able to give you the best possible rates here.

How to get cheap Colorado home insurance

Although home insurance is not required by law in Colorado, most insurance experts recommend having a policy in place to protect you financially from covered perils. Fortunately, a few strategies may help you find the coverage you need at a price you can afford.

• Work on your credit: Home insurance companies in Colorado can consider your credit history when determining your premium. Improving your credit may help you save.
• Maintain your roof: Many insurers reward new or updated roofs with lower rates. Some carriers even have specific roof-related discounts.
• Avoid unnecessary claims: Filing a home insurance claim will likely increase your rates when your policy renews. Avoiding claims for small repairs that you can afford to fix out of pocket may keep your rates lower over time.

Best home insurance discounts in Colorado

Another way to potentially save money on your policy is to take advantage of any discounts you are eligible for. Most insurance carriers offer at least a few discounts. Here are a few that are commonly seen with many carriers:

How to save on home insurance policy renewals in Colorado

Finding the most affordable rates possible in Colorado is one thing, maintaining those low rates over the years is another thing entirely. Fortunately, there are strategies you can take to help you keep your rates low, and may even result in savings over your initial rate.

• Shop around: Requesting quotes from a few different carriers that meet your requirements may help you find the coverage you need at the lowest price.
• Increase your deductible: Increasing your deductible is likely to result in a lower premium. Just be careful that you don't increase it to a level that you would find difficult to pay in the event that you had to file a claim.
• Bundle insurance products: If you currently insure your vehicle(s) with another company, reconsider. Many insurers offer substantial savings to customers who purchase more than one insurance product like home and auto coverage.

How much is home insurance in Colorado?

The average cost of Colorado homeowners insurance is $3,222 per year for a dwelling coverage limit of $300,000. That is significantly higher than the national average cost of home insurance, which is $2,285 per year. Colorado’s average cost of home insurance is higher than the neighboring states of Utah and Wyoming, where homeowners pay an average of $1,246 and $1,352 per year, respectively, for the same dwelling coverage. It’s likely that Colorado’s volatile weather conditions, including heavy snow and hailstorms, are partially responsible for the state’s higher premiums.

Colorado homeowners insurance rates by city

Even within the same state, home insurance rates can vary depending on where you live. This is true for Colorado, since it is a large state that encompasses a range of weather patterns.

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in Colorado?

The most common type of Colorado homeowners insurance is called an HO-3 policy. This type of insurance protects your property and belongings, though it covers each in a slightly different manner. Your home and other structures are covered for "open perils," which means any disaster that is not excluded by your policy. Your belongings are covered on a "named peril" basis, meaning that they are covered from damage from a specific list of perils. Knowing what is and isn't covered is important so that you can add additional coverage options if needed. Here are some of the potential perils your policy protects you from:

• Hail damage: Colorado is prone to severe hailstorms, especially in the spring and summer months. Hail can cause extensive damage to roofs, siding, windows and vehicles, resulting in a high number of claims.
• Wildfire damage: Several areas of Colorado are at risk of wildfires due to the state's arid climate and abundant forests. Wildfires can result in devastating damage to homes, leading to claims for property loss and damage.
• Wind damage: Strong winds, often associated with severe storms, can cause damage to roofs, fences and other structures. Wind-related claims are relatively common in Colorado.
• Water damage: Water damage claims can result from various causes, such as burst pipes due to freezing temperatures, plumbing leaks or flooding, particularly in flood-prone areas.

Additional home insurance coverage types in Colorado

Home insurance policies typically include a long list of covered perils, but some causes of damage may not be covered. To better protect your financial investment in your Colorado home, it may be worth considering adding coverage that extends past your standard policy. Some of your options may include:

• Flood insurance: Flood coverage is not included in a standard home insurance policy. You may be able to purchase coverage through a private insurer or the National Flood Insurance Program (NFIP).
• Mine subsidence coverage: Mine subsidence is ground movement caused by the collapse or shift of underground mines. Some areas of Colorado are vulnerable to subsidence, but this is not covered under a standard home insurance policy. There may be public maps available to indicate if your home is in a subsidence area.
• Water backup coverage: Sewer and sump pump backups are not covered by a standard home policy. This endorsement may cover the cost of repairing the sewer line and addressing any water damage from the backup.

Common Colorado home insurance problems

Although it's undoubtedly best when you have no problems with your home insurance, occasionally a policyholder may experience challenges, some of which can be widespread. Here are a few situations you may face, even if you have a policy from one of the best Colorado homeowners insurance companies.

• Supply chain issues: Managing the complex supply chains that brought building materials to homeowners was a challenge even before COVID-19. The pandemic made these supply chains even more fragile, making it harder and more costly for homeowners to repair or rebuild their homes after a loss. The increased costs of claims also meant that insurers had to raise their rates to account for them when paying out on claims.
• Climate change challenges: Many parts of the country are seeing more violent weather patterns that seem to be increasing as climate patterns impact the planet as a whole. Those in low-lying or flood-prone areas, for example, may have an increased risk of flooding, which could mean the need to purchase additional flood insurance to mitigate the risk. Wildfires are an increasingly common issue as well for many parts of the state.

Frequently asked questions

Bankrate Scores

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.