Best Homeowners Insurance in Colorado (2024)

State Farm is the cheapest and best homeowners insurance company in Colorado for most customers. Its rates average $312, which is 19% less than the state average.

USAA has the cheapest overall home insurance in Colorado, but USAA is only available to the military community.

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Cheapest homeowners insurance in Colorado: State Farm

State Farm has the cheapest homeowners insurance in Colorado for most customers. The company’s rates average $3,742 a year ($312 a month) for a typical Colorado home.

That’s 19% less than the state average of $4,630 a year.

USAA actually has Colorado’s cheapest overall home insurance company, at an average of $3,502 a year ($292 a month). However, USAA is only available to military members and their families.

Best home insurance companies in Colorado

The best home insurance companies in Colorado combine low rates with high customer service ratings.

Satisfaction scores are based on J.D. Power’s overall customer satisfaction index rankings for 2023. The segment average is 819, and higher scores are better.

Complaint ratings are compiled by the National Association of Insurance Commissioners. A company with a 2.0 complaint rating has twice as many confirmed complaints as expected for its size, while one with a 0.5 rating has half as many.

Best overall: State Farm

Affordable rates and quality customer service have helped State Farm remain the state’s largest home insurance company. State Farm ranks second only to USAA in Colorado for price and customer satisfaction.

Pros

 Cheapest average rate in Colorado for most homeowners
 High satisfaction ratings
 Agents widely available to provide personalized service
 Generous discounts for bundling home and auto insurance

Cons

 Complaint rating is just average

Best policy features: Allstate

Although Allstate might not have the cheapest rates in Colorado, some of its policy features may save you money down the line.

Pros

 Average home insurance rate 11% less than the state average
 Allstate’s Claim Rateguard protects against a potential rate increase after your first claim
 Deductible Rewards lowers your deductible when you avoid claims
 Bundling home and auto saves an average of 25%
 Additional discounts for newly constructed homes and recent homebuyers

Cons

 Must upgrade to an Enhanced Package to get Allstate RateGuard and Deductible Rewards benefits
 Satisfaction score is lower than average

Best discounts: American Family

American Family’s home insurance rates are close to the state average, but you may qualify for a lower rate if your home is relatively new or if you upgrade your home’s major systems.

Pros

 Strong complaint rating
 Age discount lowers rates for homes less than 15 years old
 Renovated home discount for replacing your plumbing, electrical or heating systems

Cons

 Average rate before discounts is slightly higher than the state average

Best for military families: USAA

In addition to low rates and high satisfaction scores, USAA also offers several other benefits to its home insurance customers.

Pros

 Cheapest home insurance rates in Colorado
 Military equipment and uniform coverage included for active-duty service members
 Replacement cost coverage is standard for your belongings
 Discounts available on home security devices and services

Cons

 Only available to current and former military members and their families
 You may end up talking to a different call center representative each time you phone in for help

How much is home insurance in Colorado?

The average cost of home insurance in Colorado is $4,630 a year ($386 a month).

The actual price you pay depends on factors such as:

• The amount of coverage you need
• Your credit and insurance history
• Your neighborhood’s wildfire risks and exposure to severe weather
• Any discounts you may be eligible to receive

Since insurance companies weigh these factors differently, one may offer you a significantly lower rate than the others. This is why you should compare quotes from multiple companies when you shop for home insurance.

Home insurance rates by coverage amount

The average price of home insurance with $450,000 in dwelling coverage will usually cost 10% more than a home insured for $400,000.

Your policy’s dwelling coverage pays to repair damage from covered perils such as fire or windstorm, up to the limit you choose.

For mortgages, lenders require you to insure your home at its replacement value or the cost of rebuilding it. This is usually lower than your home’s purchase price, or market value.

You can choose a lower dwelling limit when your mortgage balance gets low enough or if you own your home outright. However, if your dwelling limit is too low, you may not get enough insurance money to rebuild after a disaster.

Colorado homeowners insurance rates by city

Among Colorado’s largest cities, average homeowners insurance rates range from $3,978 a year in Fort Collins to $6,124 in Pueblo.

The typical price of a home insurance policy in Denver is $5,496, which is 19% higher than the state average.

Flood insurance for Colorado homes

Since standard home insurance does not cover floods, you would have to purchase flood insurance separately to protect your home from this risk.

Most flood insurance is purchased through the National Flood Insurance Program (NFIP), which is managed by the Federal Emergency Management Agency (FEMA). Several private companies also offer flood insurance in Colorado as an alternative to an NFIP policy.

The average cost of flood insurance in Colorado is $810 a year, or $68 a month, for NFIP insurance.

Flood insurance is required for a mortgage if your home is in a high-risk flood zone. Flood insurance is also often worth considering if you don’t have a mortgage and/or your home is in a low- or moderate-risk area.

You can find your home’s flood zone, or the flood zone of a home you want to buy, in the Flood Map Service Center on FEMA’s website.

Other insurance protections for Colorado homeowners

Earthquakes, landslides and mudslides are among the other Colorado risks that homeowners insurance does not typically cover.

Some home insurance companies offer an endorsement that you can buy to add earthquake coverage to your home insurance. Earthquake insurance is also offered as a separate, standalone policy.

Landslides and mudslides are a little trickier to insure against. You usually have to purchase a “difference-in-conditions” (expanded) policy to protect against these risks.

Some difference-in-conditions policies protect against multiple risks, such as landslides, floods and earthquakes. Depending on the insurance company, these may be cheaper than getting separate policies for each of these dangers.