Colorado Homeowners Insurance

Colorado Homeowners Insurance

Residents in Colorado pay an average of $115 per month or $1,383 per year in home insurance premiums. 


There are almost 2.4 million homes in The Centennial State, sixty-four percent of which are owner-occupied.

The average monthly cost for a homeowner with a mortgage in Colorado is $1,585.

Residents in Colorado pay an average of $115 per month or $1,383 per year in home insurance premiums.


There are almost 2.4 million homes in The Centennial State, sixty-four percent of which are owner-occupied.


The average monthly cost for a homeowner with a mortgage in Colorado is $1,585.

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Compare insurers to find the cheapest rates around.

 

Colorado Statistics

 5,607,154

Population

$264,600

Average value of owner-occupied housing units

2,051,616

Households

$62,520

Average household income

91%

Highschool grad or higher, percent of people age 25 years +

25 min

Average travel time to work


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Colorado enjoys sunshine year round. Although there's more to the weather in CO than just sunshine. The hail storms impact home insurance premiums and deductibles negatively in the region. In the last few years, insurance claims have been on the rise, landing Colorado in the top 10 most expensive states for average annual home insurance premiums in the country.

Colorado home insurance rates are on the rise

A new report published in April 2018 puts Colorado as one of the fastest growing, in terms of insurance rates. The National Association of Insurance Commissioners (NAIC) ranked Colorado at number three, given the increasing insurance rates. The research found that between 2007 to 2015 the premium costs of home insurance had increased by $557 per household. In addition, in the last three years the rates have risen by 10 percent.


Colorado experiences a number of hailstorms, tornadoes and wildfires. Homeowners insurance companies therefore foresee a higher risk in covering a consumer from Colorado compared to other areas where such natural disasters are not so prevalent.  An independent insurance agent, Shawn Padalecki, reported that as long as the natural disasters keep hitting Colorado, then there will be an increase in the rates year after year. Another factor that can be blamed on the rise of insurance rates is lack of construction workers and contractors in the region. 

Nationwide home insurance average premiums vs CO average premiums


Compared to the nationwide premium of $1,173, Colorado’s average premium is on the high side. Homeowners insurance average premium in Colorado is $1,383 per year. The average premium rates are a good indication of what to expect when looking around for quotes. Although, premiums are highly individualized and also depends on the size of your home ,your address and assets, and other variables. 


Consumers in Colorado pay an average of $115  for an HO-3 every month. Depending on your individual situation, you may fall below or above this mean premium amount. If you live in Denver, for instance, you might get quoted an average of $1,729 every year on premiums. On the other hand, individuals in more tornado prone areas may pay up to an average of $1,934 every year for insuring their home.

Average Colorado home insurance premiums

 20142015
Monthly average$106$115
Annual average$1,273$1,383
National annual average$1,132$1,173
Rank119
Source: Insurance Information Institute

The best homeowners insurance companies in CO


We've listed the top 3 home insurance companies in terms of market share holdings in the state. The companies' financial stability also contributes to their high ratings across the board. Other factors that are considered to contribute to a high rating includes: consumer satisfaction, discounts offered, coverage options and claims payout abilities. The following are the top three homeowners insurance companies in Colorado that hold the highest percentage in market share.


USAA


Texas based USAA, is a financial and insurance business for members of the ​​​​military and their dependents. USAA is 100 in Fortune 500, standing financially strong. The company has an approximate $155 million in total assets, with their profits jumping 36 percent from 2016 - 2017 to $2.4 billion. 


​Serving the military community since 1922, USAA is the fifth-largest US home insurer and was one of the five top-rated home insurers in the country. According to Consumer Reports, USAA earned high scores for: how easy it is to reach an agent, simplicity of the claims process, prompt response and attentiveness, damage estimate, professional and courteous agents, and timely payouts.


AM Best rated USAA with A++ (Superior) showing financial strength and their ability to guarantee their policies. To find out if a  company can pay their claims you need to gain insight into the company’s credit worthiness. Standard and Poor’s review companies based on their ability to pay their creditors and claims, management style, capital and earnings along with other factors. USAA was given the rating of AA+(Highest possible) from S&P, highlighting its strong financial performance and claims payout. According to Consumers Advocate, USAA has the highest rated financials of any major home insurance company in the country.


State Farm 


State Farm holds 20 percent of the market share in CO. It is the largest homeowners insurance company in Colorado. JD Power rated State Farm 3 (About average) power circles for overall customer satisfaction. The study looked very closely at the different types of policies offered and to what extent they meet consumer needs, the claims process, affordability, how billing is handled and interaction with the provider. State Farm landed with a 3 (About average) on all the categories just mentioned. 


State Farm is unique in that it offers a flat rate 1% coverage of the total damage lost. The minimum amount is $1,000, despite the type pf damages the house incurs. Moreover, State Farm is the only homeowner insurance company without a wind and hail deductible being separate. According to Rocky Mountain Insurance Information Association, 40 percent of homeowners insurance claims constituted wind and hail claims between the years 2010 and 2014 nationwide, Colorado coming in second for highest number of claims in the country. Therefore, most homeowners insurance companies try to make wind and hail a separate deductible.


State Farm offering the 1% flat right make things simple,but not necessarily better for the consumer. Finally, State Farm has good educational materials readily available on their site. They offer practical videos, calculators and forms to help execute a plan on insuring your home and valued possessions.



Farmers


Farmers has been in operation for almost a century. Offering homeowners insurance in CO, Farmers' standard policies go well with their optional protection. One of the great things about Farmers is the  wide variety of discounts they offer. Currently, up to 13 discounts are available to consumers, compared to State Farm's 6 discounts and USAA's  7 discounts.


Farmers let homeowners choose their Premier option for guaranteed replacement costs (GRC). This option is more expensive than the standard policies they offer. A good option to consider though, if you live in high-risk areas, as Farmers will cover the entire cost to replace a destroyed home.


Negatively speaking, Farmers has an outdated online quote comparison tool. After filling out an extensive form, we were forwarded to an agent instead of giving us an upfront quote. This may be frustrating for those shopping around. The annual membership fee of $25 is also worth noting before making your choice.


Colorado home insurance companies: Market share and summary of ratings

RankCompanyMarket Share %AM BestS&PJD Power
1State Farm20A++AA3
2USAA11.2A++AA+5
3Farmers10.1AA3
4Liberty Mutual10.0AA3
5American Family9.9ANR3
6Allstate9.6A+AA3
7Travelers4.8AA3
8Chubb3.0A++AA3
9Nationwide Mutual2.3A+A+3
10Hartford1.7AA3

NR: Not rated
Source: Insurance Information Institute

4 things to consider when looking for a reliable and affordable insurer

Colorado is the home to 2,385,359 housing units. The owner-occupied housing unit rate in CO is 64.4 percent. Owning your home in CO may mean purchasing homeowners insurance as protection against high costs due to unforeseen calamities. Although the state premium is on the high side when compared to the national average. However, your home is probably your biggest investment. It’s the legacy that you wish to pass on your children and grandchildren. Purchasing the correct coverage is the safe way to go. The trick is in finding an affordable and reliable homeowners insurance company. We've compiled a list of tips to help you find the best for your home.


Search around


The premium rates will vary from one homeowners insurance company to another in Colorado. Thus, it’s suggested to get a survey on at least 5-6 homeowners insurance companies to find out competitive rates. You can use our free online comparison tool to help get you started. Asking family, friends, neighbors, and colleagues for references will help get your list of insurers grow.


There are a few famous review channels that highlight a company's financial strength, claims payout abilities and customer satisfaction. AM Best, for example reviews a companies financial strength. To find out how claims are handled, JD Power is a great source, as they study consumer satisfaction around: claims process and payout, communication with insurer/agent, billing, etc.


The bottom-line is – don’t just settle with the first company you come across or with the insurer you already have. Another company may offer a lower rate. It's always a good idea to search around, find and compare to get the best coverage and the most affordable rate around.


Look for discounts


Look for homeowners insurance companies that are flexible and offer a variety of discounts for you to choose from. Discounts currently being offered in Colorado are:

  • 5-20% discount if you upgrade your home with high-end security and accident prevention systems such as burglar alarm that can notify the police station, smoke detector and so on.
  • 5% off to long-time members.
  • Discounts for maintain an excellent credit score.
  • circle
    Comprehensive insurance package where the policy holder takes other insurance policies from the same company, added to homeowners insurance

Look for market reputation and credibility


In today's internet age, it's easy to do a quick search on the internet about potential insurers. Once you've gotten to know the companies, doing deeper research to find out how the company will hold up and pay claims is very important. As mentioned above, there are reputable and popular reviews and ratings organizations that's helpful to consumers.


It can be assumed that the larger and older firms provide stability first hand. Just don't count out the smaller, local companies as they may provide better rates or better coverage. Again, before making a choice, look up the company and have a good idea of how they handle claims, how flexible are their coverage and what are they really offering. Having sound knowledge about your insurer will prepare you with what to expect in the event of a claim.


Transparent and friendly insurer


A reliable company always offers a transparent breakup of the policy coverage offered to customers to prevent nasty surprises.  You will know you are in a trustworthy company if the insurer takes time out to listen to your coverage needs to suggest the most compatible insurance policy that can meet them.

What home insurance covers 


Those who purchase a home in the state of Colorado may be required by their mortgage-lender to acquire homeowners insurance. By getting Colorado homeowners insurance, individuals who buy a home will have the means to get financial compensation in case their home sustains damage or losses. Whenever one is looking to get Colorado home insurance, they will need to consider a few things. These include what the policy covers, the average premium paid, how it compares to national average, and also how to save money and get the most affordable policy. By considering these things, individuals who buy a home will be in position to get a homeowner’s insurance policy that is both affordable and that meets all of their needs in terms of coverage.


One of the most important things you will need to consider when getting homeowners insurance in Colorado is being aware of what the policy covers. Fortunately, for home buyers, homeowners insurance covers a number of things that will ensure full protection of the home. The first thing that homeowners insurance covers is the house itself, The policy will provide full coverage of both the interior and exterior of the actual home. It will also provide coverage for a number of other property structures such as the garage, the shed, the deck and also any fence structures.


Another thing that homeowners insurance will cover is personal belongings. In the event things such as jewelry, collectibles, furniture or electronics are lost or stolen, the homeowners insurance policy will provide coverage for replace these items. Therefore, a homeowner’s insurance policy is beneficial in terms of providing coverage for anything that the homeowner has.


When getting a home insurance policy, one of the main things that you will seek coverage for is natural disasters. In the state of Colorado, things such as flooding, tornadoes, and avalanches can cause damage to a home. Therefore, it is important to have a policy that will cover the costs of any damage incurred. For homeowners in Colorado, their home policy will provide full coverage in case a home is damaged due to a natural disaster.


As well as providing protection for the property itself and any personal belongings, homeowners insurance policies provide liability coverage. This means that you will have protection in case someone gets injured on your property. Whenever a person suffers an injury on your property, the policy will compensate for this at any given time and save you from a financial burden.

For more assistance, please contact your local state department of insurance:

Colorado Division of Insurance (DOI)

  • 303-894-7499
  • dora_insurance@state.co.us

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