Updated April 13, 2022
Reading time: 4 minutes
Often referred to as “Colorful Colorado,” the Centennial State is an amazing place to live and deserves most of the hype it gets. There’s a reason it’s the second fastest-growing state in the U.S.—newcomers are rapidly planting roots in Colorado because of its high quality of life, from the gorgeous scenery to the abundant outdoor activities to the thriving craft beer scene.
Many of the people moving to Colorado are young families and millennials who will end up renting a home or apartment, especially in larger cities like Denver, Colorado Springs, and Aurora. Colorado landlords often require renters insurance as a condition of leasing a property and will want to see proof of coverage before you move in.
What is renters insurance? For one thing, it’s part of being a responsible tenant. The landlord’s rental policy only covers the building, not your personal belongings. A renters policy covers your personal property in case of a fire, an accident, theft, and certain natural disasters. That way, if disaster strikes, you can have the peace of mind of knowing you won’t be solely responsible for replacing your belongings. It covers tenants in rented properties just like homeowners insurance covers the property of people who own homes. In fact, renters insurance is structured a lot like home insurance, except that it doesn’t cover the building itself.
So what does renters insurance cover?
Liability coverage covers you in case someone hurts themselves at your home or certain kinds of property damage occur. The personal liability portion of your policy may also pay for legal fees and medical expenses of people who get hurt on your property.
Loss of use pays for additional living expenses that you incur when you suffer a large covered loss that makes your home or apartment temporarily uninhabitable. It will help defray the costs of living somewhere else while your home is being repaired or replaced.
Personal property coverage will pay to replace your belongings, like electronics and appliances, that are damaged by covered losses like fire, smoke, wind, theft, or vandalism.
The type and amount of coverage you choose and how much personal property and liability protection you need will have a major impact on your renters insurance rates.
How much money can you afford to pay out of pocket after a covered loss? The higher the deductible, the cheaper your renters insurance quote.
Predictably, higher-value properties will have a higher renters insurance premium. This is because an insurance provider will have to pay out more to repair or replace them than they would for a lower-cost property.
A high-value rental home will cost more to insure than a bare-bones apartment, and your renters insurance coverage will increase in cost accordingly.
People with lower credit scores are statistically more likely to file more claims, so renters insurance companies charge them higher premiums. Raising your credit score can result in discounts.
Pets may increase your liability risk—for example, if your dog bites someone—so your premiums are likely to go up if you own pets.
Colorado is known for long, cold winters with plenty of snow and ice. This can occasionally lead to burst or frozen pipes that result in water damage to your home or apartment. This will be factored into your premiums.
Insurance agents will also look at the specific location of your rental property—not just the state but the ZIP code, too. That’s because some things that affect your premiums, like theft, are higher in places like Denver than they are in the rest of the state.
The cost of renters insurance is relatively low in Colorado, but there are ways to find additional discounts. Consider these strategies for lowering your monthly bill.
Getting multiple quotes is the best place to start when you’re comparing coverage options. Different insurers may offer you vastly different quotes for the same property.
Need to insure a car, too? Many insurers will give policyholders a discount for bundling renters and auto insurance together.
Consider putting in safety devices that make your property less risky to insure, like central fire alarms or burglar alarms.
Some insurers will give you a lower rate if you set up automatic monthly payments. You’ll never forget to pay the bill, and the insurer knows they can rely on you. Ask your insurer if they offer any other ways to reduce your premiums.
The cheapest companies will vary depending on your specific risk profile and other factors. However, there are a few noteworthy trends in premium cost. Here’s what we found.
According to ValuePenguin, State Farm ’s prices tend to be much more affordable than other competitors—roughly 31 percent less than the state average. State Farm renters insurance costs about $10 per month, or $125 per year.
State Farm also has bundling discounts, making it cheaper to carry both an auto insurance policy and renters insurance policy with them. It also has highly rated service based on complaint data and consumer feedback. The company receives fewer complaints than its market share would suggest it should.
ValuePenguin recommends Lemonade as a top option for people who want convenience. The premiums are generally comparable to State Farm. The company doesn’t offer many discounts but will slightly lower your premium if you install safety or security devices in your home.
Water backup protection and extended coverage for valuable items are available for an additional charge.
The company is quick to process quotes, and its financial strength is highly rated by credit analysts, so you can be sure it will pay claims.
This renters insurance isn’t available to everyone, as it’s reserved for current and former military service members and their families, but USAA provides highly regarded renters insurance to anyone who’s able to buy its policies.
Its standard policy comes with the types of coverage typical for most renters insurance plans as well as a few premium features for free. For example, USAA renters insurance features replacement cost coverage, flood coverage, and earthquake coverage at no additional cost. Other insurers charge hundreds of dollars per year for that type of coverage.
|Coverage Type||What It (Usually!) Covers||What’s (Usually!) Not Covered|
|Liability||May cover medical payments or property bills if you accidentally damage someone else’s property or a guest hurts themselves in your residence||Any liability costs that exceed your coverage limit, damage to your personal property, additional living expenses|
|Personal Property||The cost to repair or replace your personal belongings should they be damaged or stolen||Damage to personal property over your coverage limit, liability damages, or additional living expenses|
|Additional Living Expense s||Additional coverage that pays for hotel bills or other living expenses if your current residence is damaged or otherwise not inhabitable||The cost of repairing damage to your rented residence (your landlord’s insurance policy may cover that)|
The average cost of renters insurance in Colorado is $185 per year or about $15 per month. This is almost identical to the national average.
The best and cheapest companies will vary by person, depending on your specific risk profile, but State Farm and Allstate tend to come up often as the cheapest renters insurance in Colorado. USAA typically has the most comprehensive coverage.
Many insurers offer discounts for bundling auto and renters insurance together. Need to insure a car, too? Ask insurers if they offer bundling discounts.
Insurify is an easy way to get quotes from top insurers quickly and easily.
Finding the cheapest insurance in Colorado starts with comparing insurance quotes. Get the comparisons you need with Insurify, which lets you compare policies with just a few clicks.
Jackie Cohen is an editorial manager at Insurify specializing in property & casualty insurance educational content. She has years of experience analyzing insurance trends and helping consumers better understand their insurance coverage to make informed decisions about their finances.
Jackie's work has been cited in USA Today, The Balance, and The Washington Times.Learn More