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Colorado homeowners insurance: what you need to know

On average, homeowners insurance in Colorado costs $2,412 per year or $201 per month.  This is expensive relative to what the average American pays. The easiest way to get an affordable homeowners insurance policy in Colorado is to shop around and compare rates from as many homeowners insurance companies as you can. 

Home insurance costs in U.S. states vary depending on the total number and value of homeowners policy claims in the state, and also on the value of the dwelling and belongings being insured. Unlike car insurance, homeowner insurance isn't controlled by state legislation. Policy prices in states including Colorado may vary based on the total number and value of homeowners claims filed in that particular state, and depend on the value of the belongings and structures covered by the policy.

Learn more about home insurance rates in Colorado by referencing the below data.

 

Table of contents:
  1. Rates by company
  2. Rates by coverage amount
  3. Rates by deductible amount
  4. Rates by city
  5. Bundling savings
  6. Frequently asked questions
  7. Natural disaster coverage

 

The cheapest home insurance companies in Colorado

Homeowners insurance rates in Colorado vary depending on the insurance company you choose. Owners Insurance Company sells the cheapest home insurance in Colorado — $1,094 per year. This is less than the state average cost of $2,412, providing a $1,318 price break on the state's average rates.

Start searching for affordable coverage by reviewing the cheapest Colorado companies, listed below.

 

AFFORDABLE HOME INSURERS IN COLORADO
Insurance CompanyAverage Yearly Rate in Colorado
Owners Insurance Company$1,094
Safeco$1,179
Nationwide$1,290
Great Northern$1,452
Shelter$1,894

 

Colorado home insurance prices by coverage levels

Your chosen level of homeowners coverage determines the insurance premiums you pay. In Colorado, carrying $100K dwelling coverage costs an average of $1,333 per year, while carrying additional coverage up to $400K costs $3,100 per year.

 

POPULAR COVERAGE LIMITS IN COLORADO
Coverage LevelAverage Annual Cost
$100,000 Dwelling$1,333
$200,000 Dwelling$1,806
$250,000 Dwelling$2,277
$400,000 Dwelling$3,100

 

Homeowners insurance deductibles in Colorado

Homeowners have numerous choices to make when deciding on a policy, including how high or low to set their deductible. The deductible is the amount the insured is responsible for paying toward a covered loss. The deductible chosen can have a big impact on home insurance rates.

A good rule of thumb is the lower your deductible, the higher your premium. Therefore, if you are wanting lower home insurance rates, it pays to increase your deductible. Remember that your deductible should only be set as high as you can reasonably pay in the event of a covered loss.

The following chart shows the typical premiums associated with standard homeowners deductibles.

 

HOME INSURANCE PREMIUMS BY DEDUCTIBLE IN COLORADO
Deductible TierAverage Annual Homeowners Insurance Rate
$500$2,479
$1,000$2,277
$1,500$2,111
$2,000$2,024
$5,000$1,601

 

Colorado homeowners insurance costs by city

Not every city in Colorado has equal home insurance costs. Rates are determined based on city-specific variables, such as the number of claims filed in the immediate area, lending your ZIP code plenty of weight in deciding how much you pay.

The cheapest home insurance rates in Colorado are available in Grand Junction. A typical home insurance term in Grand Junction costs just $1,269 per year — $1,142 less than the average Colorado rate. The below table shows the best places to live in Colorado if you’re looking for a cheap homeowners insurance policy.

 

CHEAPEST CITIES FOR HOMEOWNERS INSURANCE IN COLORADO
CityAverage 12-Month Home Insurance Rate
Grand Junction$1,269
Fort Collins$1,979
Loveland$1,996
Boulder$2,120
Longmont$2,145

 

Looking for insights on homeowners insurance in a specific city? Check out our analysis of major cities in the Centennial State:

 

Home and auto insurance bundling in Colorado

If you're trying to save, consider purchasing your homeowners and car insurance policies from the same company. Bundling homeowners and auto insurance in Colorado can lead to substantial savings on auto insurance. Bundling home and auto policies in Colorado can generate a yearly discount of $160.

 

HOME AND AUTO BUNDLING DISCOUNTS IN COLORADO

Avg. Annual Rate (No Bundle)

Avg. Annual Rate (w/ Bundle)

Annual Savings ($)

Annual Savings (%)

$1,631$1,471$16011%

 


 

Colorado homeowners insurance FAQs

 

Why is homeowners insurance so expensive in Colorado?

Insurance premiums are reflective of risk. In Colorado, the threat of wildfires, price of homes, population, etc., all make home insurance premiums more expensive than average.

Is homeowners insurance mandatory in Colorado?

Home insurance will be required by your mortgage in Colorado. If you don't have a mortgage, it's still encouraged to insure your home and your personal contents to protect your assets.

 


 

Natural disaster coverage in Colorado

 

Does homeowners insurance cover tornadoes in Colorado?

A tornado can strike with precious little warning. There is little you can do to protect yourself and the outcomes can be catastrophic. As such, it's important to protect your home against tornado damage in Colorado, which suffers an average of 49 tornadoes each year.*

Tornado damage comes primarily in the form of wind, so verify your homeowners policy has windstorm coverage, a standard feature of any average homeowners policy.

The exterior and overall structure of the buildings are covered by wind protection. However, depending on the type of policy you have, damage to the building's interior may only be covered if it's caused by exterior damage, like a tree branch breaking a window. Detached structures are also covered, typically about 10% of the amount at which the home is insured. Keep in mind that other damages the storm causes may not be covered by insurance. For example, if your home is damaged from flooding that occurs from the same storm that produces the tornado, those damages won't be covered unless you've previously added flood insurance to your policy.

*Source: NOAA'S National Weather Service

 

Does homeowners insurance cover hail in Colorado?

Depending on your location, hail could be a common side effect of stormy weather conditions and can lead to varying degrees of destruction to your property. In Colorado, homeowners policies typically come with hail coverage to insure the structure of your home if it suffers damages in a hail event.

If your home is in an area that’s very prone to hail — such as Colorado, which underwent 332 incidents of hail in 2018* — it's smart to confirm the details of your homeowners policy to see exactly what's covered and what's not — some insurers charge steeper deductibles in hail-prone regions and won't cover cosmetic damage, so if your home is battered but still functionally sound despite aesthetic flaws caused by a hailstorm, your insurance company will probably refuse to pay for its repair.

*Source: Insurance Information Institute

 

Does homeowners insurance cover damage from fires in Colorado?

Homeowners insurance covers fire damage in ColoradoIf your home were destroyed or damaged by a fireyour insurance company would cover the damage to your property up to your policy limits. The prevalence of wildfires in Colorado underlines the importance of maintaining home insurance: 17% of houses in the state are at risk of sustaining wildfire damage, and 475, 803 of the state's acres fell victim to fires in the state in 2018.*

In addition to covering damages — up to your coverage limits — your homeowners insurance policy could pay for your additional living expenses if your home is uninhabitable. Fire-related damage that will not be covered by your home insurance provider is intentional damage (arson) or damage to a vacant home.

*Source: Insurance Information Institute

 

Does homeowners insurance cover flooding in Colorado?

Flood insurance is a necessity for many in Colorado. Flood damage, even from a torential downpour, is not covered by homeowners insurance policies. To insure your home against flood damage, acquire insurance through FEMA's National Flood Insurance Program (NFIP) or via a private insurer. 

Flood insurance coverage from private companies may vary, but NFIP flood insurance covers:

  • $250,000 for your home’s structure
  • $100,000 for your personal property

If the value of your personal property and home exceeds these limits, consider purchasing a flood insurance policy from our partners at Neptune for additional protection.

Find an affordable homeowners policy in Colorado today!

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Ross Martin
Ross MartinManager, Content Quality

As a licensed insurance agent, Ross researches and writes insurance content intended to help users make informed decisions.

Ross's background is in writing and education. He holds a master's degree from Royal Holloway, University of London.

Ross's work has been cited by The New York Times, Investopedia, The Simple DollarThe BalanceCar and Driver and Fox Business. He has been quoted by CNET, I Drive Safely and Kin Insurance

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

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