Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Best homeowners insurance in Colorado for 2024
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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.
Insurance company
|
J.D. Power
|
Average monthly premium
|
Average annual premium
|
|
---|---|---|---|---|
881
/1,000 |
$163
|
$1,960
|
||
809
/1,000 |
$231
|
$2,777
|
||
829
/1,000 |
$188
|
$2,255
|
||
813
/1,000 |
$230
|
$2,761
|
||
Not rated |
$249
|
$2,991
|
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Bankrate's trusted insurance industry expertise
Read our full methodologyThe home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.
46
years of industry expertise
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
The top 5 home insurance companies in Colorado
Best for military-focused coverage
4.7
4.7
Avg. premium for $300K dwelling
$163/mo
Avg. premium for $300K dwelling
$1,960/yr
Customer satisfaction
881/1,000
-
Why USAA made our list: USAA consistently earns high scores across J.D. Power customer satisfaction studies, as well as strong financial strength ratings from AM Best. For the third year in a row, USAA was named a 2024 Bankrate Awards winner (tie) for Best Home Insurance Company Overall. However, membership and coverage are only extended to active-duty or retired U.S. military service members and their eligible family members. Colorado residents who are either members of the military or qualifying relatives may be able to take advantage of USAA’s many coverage options, including those specific to military uniforms and home sharing, among other standard coverage types.
Who USAA may be good for: Military service personnel stationed at the Air Force Academy in Colorado Springs, Fort Carson Army Base or any of Colorado's other military installations may choose USAA as their carrier of choice.
Best for discounts and rewards
4.2
4.2
Avg. premium for $300K dwelling
$231/mo
Avg. premium for $300K dwelling
$2,777/yr
Customer satisfaction
809/1,000
-
Why Allstate made our list: Colorado homeowners looking for coverage that comes with additional rewards may find Allstate to be an excellent choice. For example, you may earn a 5 percent discount on your premium each year you go without filing a claim. Adding Allstate’s Rateguard option to your policy may protect you from rate increases with an allowance of one claim per five years. Allstate also offers a home-sharing endorsement, which may appeal to homeowners who occasionally rent out their property.
Who Allstate may be good for: Homeowners looking for a long list of potential endorsements and discounts may be satisfied with Allstate's policy options.
Best for local offices
4.2
4.2
Avg. premium for $300K dwelling
$188/mo
Avg. premium for $300K dwelling
$2,255/yr
Customer satisfaction
829/1,000
-
Why State Farm made our list: In addition to being the largest homeowners insurance company by market share in the nation, State Farm has a strong J.D. Power customer satisfaction rating and a highly rated mobile app. If you prefer to conduct business in person, you may be able to explore coverage through one of the carrier's agents located across nearly 100 cities in Colorado. However, State Farm’s average premiums tend to be higher than other companies, and it doesn’t advertise as many discount opportunities as some competitors.
Who State Farm may be good for: If personalized customer service is more important to you than saving money, you might consider asking State Farm for a quote.
Best for add-on coverage options
4.2
4.2
Avg. premium for $300K dwelling
$230/mo
Avg. premium for $300K dwelling
$2,761/yr
Customer satisfaction
813/1,000
-
Why American Family made our list: American Family, also known as AmFam, is a smaller carrier with a long list of potential endorsements. Policyholders may be able to choose from numerous coverage options like hidden water damage protection, equipment breakdown coverage and matching siding protection. Discounts may also be available for customer loyalty, renovated homes and having a parent who is also an AmFam policyholder. However, AmFam’s digital tools are not as robust as some larger carriers.
Who American Family may be good for: American Family may be a good choice if your parents are already AmFam policyholders and you value in-person and over-the-phone service over digital tools.
Best for public safety-focused coverage
Avg. premium for $300K dwelling
$249/mo
Avg. premium for $300K dwelling
$2,991/yr
Customer satisfaction
Not rated
-
Why California Casualty made our list: California Casualty caters to homeowners in fields of public safety and education, including firefighters, nurses and teachers. Despite its name, California Casualty writes home insurance policies in most states with coverage options and discounts tailored toward its specific customer base. Potential endorsements include off-duty weapons theft coverage, personal property used in teaching coverage and school violence death survivor benefits. However, California Casualty received the lowest financial strength rating of all companies on this list from AM Best — B (Fair) — and its customer satisfaction was not scored by J.D. Power.
Who California Casualty may be good for: This regional carrier may be worth looking at if you are in one of the professions that it services, such as teachers, public safety officers and health care providers.
Additional Colorado home insurance companies to consider
State Auto
Who this may be best for
Homeowners who want to bundle home and auto policies
Homeowners who purchase insurance online from Liberty Mutual can potentially save up to 10 percent on their policy, per the insurer’s website. And you may be able to save up to $950 for bundling home and auto insurance together. Moreover, Liberty Mutual offers discounts to those who qualify for getting a quote before their current policy expires, purchasing a new home, remaining claims-free for 5 years, installing a new roof and several other scenarios.
Encompass
Who this may be best for
Homeowners who want to customize their home insurance
Encompass offers a pre-packaged home, car and possessions policy called EncompassOne, as well as standalone home policies in three tiers: Elite, Deluxe or Special. Each tier has unique policy features, coverage limits and discount opportunities. Customizable options include water backup protection, mortgage rate protection (if your mortgage is affected due to a covered total loss) and computer and data recovery coverage. Encompass also allows you to customize your home policy with add-ons like enhanced replacement cost coverage, which will pay to rebuild your home after a covered loss.
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.
Carrier
|
Monthly premium for $300k coverage
|
Annual premium for $300k coverage
|
Savings vs state avg. for $300k coverage
|
---|---|---|---|
$137
|
$1,640
|
- $1,582 |
|
$163
|
$1,960
|
- $1,262 |
|
$188
|
$2,255
|
- $967 |
|
$230
|
$2,761
|
- $461 |
|
$231
|
$2,777
|
- $445 |
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.
- Grand Junction: $1,705 per year — 47 percent below state average
- Fruita: $1,715 per year — 47 percent below state average
- Whitewater: $1,722 per year — 47 percent below state average
- Mack: $1,728 per year — 46 percent below state average
- Gateway: $1,731 per year — 46 percent below state average
- Lamar: $4,360 per year — 35 percent above state average
- Sedgwick: $4,352 per year — 35 percent above state average
- Ovid: $4,352 per year — 35 percent above state average
- Fleming: $4,337 per year — 35 percent above state average
- Burlington: $4,306 per year — 34 percent above state average
*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.
Related content:
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.
News
Climate change is impacting Colorado weather patterns, as it is in many parts of the country. These changes can impact homeowners in the state and their home insurance rates. The Climate Center at Colorado State University, in cooperation with the Colorado Water Conservation Board and Denver Water, released a report titled Climate Change in Colorado. Here are some key takeaways:
- Since 2008, conditions have been increasingly drier in the state, leading to drought conditions and increased wildfire risk.
- The state is on track to see rising temperatures, projecting as much as a 5.5-degree increase on average by the year 2050.
- Warming temperatures will reduce streamflow and water supply.
Further, Colorado’s home insurance market is facing increasing climate-related challenges, with homeowners seeing their rates jump by 51 percent from 2019 to 2022. Second only to California for wildfire risk, Colorado sees similar challenges in getting insurance providers to cover Colorado homeowners. While insurers aren’t pulling out of the state as they are in California, Colorado homeowners may find it difficult to get the coverage they need at prices they can afford — particularly in the future if weather patterns worsen.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze September 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates for our base profile are based on the following characteristics and coverage levels:
![Logo for Brand name](https://www.bankrate.com/f/102997/360x293/1b37df5bc7/home-methodology-image.png)
Dwelling coverage
$300,000Other structures coverage
$30,000Personal property coverage
$150,000Loss of use coverage
$60,000Liability coverage
$500,000Medical payment coverage
$1,000The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Bankrate Scores
-
Cost & ratings 50%
-
Coverage & savings 30%
-
Support 20%
- 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.