Colorado Homeowners Insurance Quotes (2023)

One of the most beautiful states in the country, Colorado has an abundance of wide rolling plains, mountains, and forests. Yet features of this landscape also present dangers for Colorado residents. Colorado homeowners face some of the highest risks in the nation from wildfires, hail, and high winds — and due to climate change, these risks are only increasing.^[1]

Homeowners insurance provides the best way to protect your home and finances against these threats. The average cost for homeowners insurance in Colorado is $277 per month ($3,324 annually). You have many options to choose from, but State Farm, Amica, and American Family Insurance present the best home insurance options in Colorado.

Best home insurance companies in Colorado

You have many options when it comes to finding homeowners insurance in Colorado, but coverage specifics vary by insurer. The best insurer for you ultimately depends on your living situation and insurance needs, but quality home insurance options include American Family, Amica, Chubb, Hippo, and State Farm.

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Best large insurer: State Farm

State Farm is the largest homeowners insurer by market share in Colorado and in the U.S., with about 21% of the market in Colorado and 18% nationwide.^[2] And while it’s not the top-rated company by J.D. Power, it did rank above average for its overall customer satisfaction in the 2022 U.S. Home Insurance Study.^[3]

Best insurer for cheap rates: Hippo

Hippo offers some of the cheapest rates in Colorado. Hippo charges policyholders an average monthly premium of $158 ($1,896 annually), according to Insurify data. The company specializes in preventing claims by utilizing smart-home technology. By opting to install Hippo’s smart-home system, you’ll earn a sizable discount.

Best insurer for hail and wildfire coverage: Amica

Amica is a smaller insurance company that offers two different packages for homeowners insurance: a standard HO-3 plan similar to other insurers and a platinum HO-5 plan that includes higher coverage levels and more.^[6]

J.D. Power has ranked Amica within the top three for overall customer satisfaction, claims satisfaction, and ease of shopping.

Best insurer for high-value homes: Chubb

Chubb offers higher coverage amounts and works best for policyholders with high-end, luxury homes.^[7] Though it’s an international company, it offers homeowners insurance policies in Colorado.

Best regional insurance company: American Family

American Family Insurance offers homeowners insurance in 19 states — including Colorado, where it covers about 10% of homes.^[8] J.D. Power ranked it as the second-best insurer for overall customer satisfaction in 2022.

Methodology

Insurify’s team of data scientists analyze millions of home insurance quotes, and weigh publicly available reviews, claim payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.

Read More: How to Buy Homeowners Insurance in 7 Easy Steps

How much is homeowners insurance in Colorado?

It’s useful to see average insurance quotes, but your actual premium cost will depend on many different factors. Even if one insurer offers particularly high or low rates in general, the company may offer rates that surprise you based on your insurance needs and living situation.

Learn More: How Much Does Homeowners Insurance Cost?

How your policy choices affect home insurance rates in Colorado

The decisions you make when selecting your home insurance policy will affect your home insurance rates. Specifics regarding the policy form, coverage level, and set deductible all affect costs.

Your policy form

Homeowners insurance policies are sold under different forms, such as the most common policy: the special form, or HO-3.^[9] The forms mainly vary based on what perils — or causes of loss — are covered. Examples of perils include a hailstorm, fire and smoke, and vandalism.

The standard HO-3 policy, for example, covers your home for losses caused by any and all types of perils, unless they’re specifically excluded in your contract. Common exclusions include floods, earthquakes and other earth movement, war, and power outages.

An HO-5 policy, which generally excludes fewer things than an HO-3 policy, costs more. Other types of homes might be covered under different forms, such as an HO-6 policy for condominiums.

You shouldn’t wait until you need to file a claim to remember what perils your policy covers. Make sure you know this in advance before you buy to avoid coverage surprises later on.

Your coverage level

Similarly, the more expensive your home, the more coverage you’ll need to make sure it’s fully insured. As you increase your coverage levels, your insurance premium will most likely increase as well. Determine the amount of coverage you need before narrowing your options down by affordability.

Your deductible

A homeowners deductible is the amount you have to pay before insurance kicks in. As you increase your deductible, your premium will decrease. You’ll have to pay your deductible when you file a claim, so ensure you can pay it out of pocket. Consider whether you want higher possible costs and lower guaranteed costs, or vice versa.

How location affects home insurance rates in Colorado

Where you live has a big impact on the types of risks you face, the likelihood of those risks occurring, and how much it might cost if you need to file a claim.

“Wildfires are a serious problem in Colorado. We’ve seen that in recent years,” says Vincent Plymell, assistant commissioner for communications for the Colorado Division of Insurance. “However, hail has been, and continues to be, a major risk for Coloradans. High winds — a joint risk when it comes to both hailstorms and wildfires — also pose serious risks.”

What are the cheapest home insurance companies in Colorado?

Many different homeowners insurance companies offer policies in Colorado, so it can feel overwhelming to compare them all. Find average monthly quotes below for eight of the cheapest companies available in the state.

Learn More: Homeowners Insurance Companies with the Cheapest Rates

How much homeowners insurance do you need in Colorado?

If you have a mortgage on your home, your lender will generally require you to purchase homeowners insurance. It’s usually optional if you’ve paid off your mortgage, but you should still purchase homeowners coverage to protect your finances.^[10]

“There is no magic amount of coverage that is appropriate, but having the bare minimum (or the minimum required by your mortgage company) may not always be the best option,” says Plymell.

“In the wake of the Marshall Fire, underinsurance arose as an issue (a homeowner not having enough coverage to cover the cost of rebuilding). It made many Coloradans re-evaluate their coverage and start asking questions,” Plymell adds.

Make sure that you fully understand any homeowners insurance policy before you buy it, including what it covers, how much you’re covered for, what it doesn’t cover, how to file a claim, and whether you need any additional optional coverages.

Read More: How Much Homeowners Insurance Do You Need?

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What home insurance coverages should you buy in Colorado?

Homeowners insurance actually covers more than just your home itself. It usually covers four different categories:

• Structure: This pays to fix damage or replace the actual structures on your property, including your home, sheds, and garages.

• Personal belongings: This helps replace your personal property, like gardening tools, clothes, computers, appliances, and more.

• Personal liability: If anyone faces injury on your property or if you and your family accidentally injure others or damage their property, this pays to fix that or defend you in a lawsuit.

• Living expenses: If you can’t live in your home while it’s being repaired or rebuilt, this will pay for temporary lodging and meals.^[11]

These four options generally come standard with all homeowners insurance policies, so you need to decide how much of each type of coverage to buy.

What optional home insurance coverages should you buy in Colorado?

Unfortunately, standard HO-3 homeowners insurance policies exclude some perils that you might want coverage for. You should assess whether you need any additional types of coverages:

• Flood insurance: You might not think you need flood insurance, but about one-fifth of flood insurance claims actually come from homes outside of high-risk areas. Flood insurance is relatively affordable, starting at around $100 per year. You can purchase a policy through the National Flood Insurance Program or some private insurers.

• Earthquake insurance: Colorado isn’t known as having a lot of earthquakes, but fracking has been linked to several areas in the state. If you opt to purchase this coverage, make sure you know whether fracking-induced earthquakes are covered because they may be excluded.

• Sewer and water backup insurance: Homeowners insurance policies generally don’t cover water or sewage backing up into your home. You can purchase this as an optional add-on with some companies.

• Extended replacement cost coverage: This pays a certain amount above your policy limits to replace or repair your home. This can be helpful for two reasons: Most policies don’t adjust policy limits upward for inflation, and it might be more expensive than normal to hire contractors after a major event like a wildfire happens.

How much home insurance coverage should you have in Colorado?

Figuring out how much home insurance coverage to buy can be complicated. You’ll need to decide for yourself what insurance you need, as well as the level of desired coverage. Here are a few tips to aid in your decision-making:

• Chat with a financial advisor. A fee-only advisor isn’t paid on commission and can give you unbiased advice on what types of coverages — and how much — to buy for all types of insurance, including homeowners insurance.

• Consider your environmental hazards. You can check your location’s risk for wildfires on the Colorado Forest Atlas. FEMA also has useful maps for hail damage and flood risk.

• Inventory your belongings. Create an inventory of everything you own to nail down how much coverage you’ll need for personal belongings. You’ll need this anyway if you ever need to file a claim.

• Shop around. Homeowners insurance companies vary on pricing and options, and that’s why it’s important to shop around as much as you can. At a minimum, you should get quotes from three different homeowners insurance companies.

What are some of the biggest risks when owning a home in Colorado?

Colorado faces a few particularly formidable environmental risks that you should consider while shopping for homeowners insurance:

• Wildfires: Colorado ranks as one of the top five states for wildfire risk, according to a 2022 report from data analytics firm CoreLogic. It notes that people living in El Paso County, which includes Colorado Springs, face an extremely high risk for wildfires.^[12] Fortunately, typical homeowners insurance policies cover wildfires.

• Hailstorms: The Front Range in Colorado faces some of the most frequent and damaging hailstorms compared to any other place in the world, according to the Rocky Mountain Insurance Institute.^[13] Most policies cover hailstorms, although you may have a separate deductible for this damage.

• Windstorms: Generally covered under your regular policy, Colorado’s unique combination of high mountains next to flat plains creates some of the windiest conditions in the country. Windstorms can be especially risky when combined with wildfires, as Boulder recently experienced with the Marshall Fire that quickly burned more than 1,000 homes.

How can you save money on homeowners insurance in Colorado?

Homeowners insurance can be expensive, especially if you’re on a tight budget. Here are a few good options to help you save money on potentially costly premiums.

Bundle home and auto insurance

Most homeowners insurance companies also sell other products, like auto, life, or business insurance. Most of these companies offer a good discount if you bundle your policies by purchasing multiple insurance types together. Many policyholders bundle home and auto policies.

Choose a higher deductible

Most insurers offer a few choices for your deductible. Opting for a larger deductible means your premium costs will be lower. Only choose the highest deductible you can afford to pay with your own funds in case you ever need to file a claim.

Disaster-proof your home

Investing in things that make your home safer — like clearing back brush from your home in the event of wildfires, installing security cameras to deter theft, and using hail-resistant roofing materials — might score you a discount with many insurers. At the very least, it’ll lower the chances of having to make those claims in the first place.

Comparison shop

The best action you can take to find the cheapest homeowners insurance for you is to simply shop around. When you get quotes from multiple companies, you increase your likelihood of finding the most affordable option.

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Average home replacement cost in Colorado

If your home burns down, along with everything inside of it, your insurance company might use one of two different methods for paying out your claim: actual cash value or replacement cost.

With an actual cash value policy, your insurance company will pay the equivalent value of what your home and belongings were worth when they burned down. Note that this isn’t how much you’ll need to pay to replace them — those numbers can be very different. Generally, the actual cash value of your belongings is lower because of depreciation.

A replacement cost policy will pay the cost to replace your belongings, corresponding with what they’re currently worth. Since replacement costs are higher, these policies also tend to cost around 10% more, on average. It’s an expense that may be worth it, however, if you ever need to file a claim.

Here are the average replacement costs for Colorado homes in different cities:

Colorado home insurance FAQs