Best Homeowners Insurance Colorado 2021

Last modified: December 30, 2020

Ever wondered why you should get your homeowners insurance in Colorado? Or what is the best way to get a quote on home insurance in Denver

In this article, we are going to answer these questions, and show you how and where you can get the best homeowners insurance in Colorado.

Property insurance policy can protect your dwelling in Colorado from a variety of perils, including wind damage, fire, theft, vandalism, and others. It also helps protect your belongings in the event your house gets damaged.

Is Homeowners Insurance Required in Colorado?

No. Homeowners in Colorado are not required by law to have insurance for their homes. If there is a mortgage on the property, the lender will require insurance on that property in order to protect the loan.

How do I get homeowners insurance in Colorado?

In order to get a quote for the best homeowners insurance in Colorado for condos or dwellings, most companies will require some personal information like address, the number of residents, and the value of your home.

Which factors should you consider?

Decide how much coverage you need upfront. The better your coverage the less money you’ll have to pay out of pocket if anything strikes your home. Choose the right deductible that you are comfortable paying in case of a claim.

What are the standard coverage options?

How much does homeowners insurance in Colorado for a townhouse cost will mainly depend on the coverage option you choose. Typically, the standard coverage options include:

Dwelling Coverage – protects your house, including the roof and walls. 

Personal Property – the stuff inside your home. 

Liability Protection – protects you if someone sues you after being injured on your property or you damage their property. 

Medical Protection – pays for the medical expenses when someone is injured on your property.

What are the main risks?

Because of the harsh weather conditions in Colorado, hail, snow, wildfires, and theft are among the main risks for homeowners in Colorado.

Common Losses for Homeowners in Colorado

The Colorado real estate insurance market is one of the largest in the U.S. The following are the common risks for homeowners in the state: 

  • Fire, smoke, windstorm, hail, and lightning damage
  • Freezing, rupturing, or accidental overflow of plumbing, heating, and air-conditioning
  • Identity and credit card theft
  • Trees and other falling objects

Whether it’s an HO3 or HO6 homeowners insurance, it is always a good practice to have the proper hazard insurance on your homeowners insurance policy in Colorado.

How Much Is Homeowners Insurance in Colorado

How much is homeowners insurance in Colorado per month? This is one of the questions that come up when deciding on an insurance policy. 

The average annual cost of a homeowners policy depends on a number of factors such as your credit score, rate, the age of the property, the state of the roof, and the distance from the nearest fire hydrant. All these factors affect the estimate for a homeowners insurance policy in Colorado.

The premiums in Colorado for an average estimate of a house costing $300,000 for a homeowners insurance in Colorado Springs have rates that can range anywhere from $3,000 to $3,800. 

You can lower those premiums by choosing a higher deductible, which can bring down another $150-$200. 

Opting out for a bundle discount and having home and auto insurance with the same company in Colorado can be another way out.

Cheapest Homeowners Insurance in Colorado

Cost of homeowners insurance by top cities:

City Cheapest Rate
Denver $1,192
Colorado Springs   $801
Pueblo $697
Fort Collins $1,022

 

In the table above we see the rates for the average homeowners insurance in Colorado Springs and the rest of the major cities in the State of Colorado. 

Even though the rates and prices can vary depending on the city, the prices shown above are for the average home value for the given location.

Denver and Boulder remain the most expensive cities for homeowners insurance in Colorado. Based on the average property value and the number of burglaries per 1,000 homes, Boulder has the most expensive real estate in Colorado.

Pueblo has the cheapest homeowners insurance in Colorado even though it averages around 16 burglaries per 1,000 homes.

Best Homeowners Companies in Colorado

State Farm

A financially strong company, with a wide network of agents, State Farm insurance in Colorado offers several additions to the standard homeowners policy. 

They have an “increased dwelling limit” add-on which does not cost extra and automatically extends the replacement cost coverage up to 20% if the home has been insured up to its estimated replacement cost.

Their comprehensive website offers an intuitive interface and easy access to file claims, get a quote, or access information about your policy.

They have a high-quality customer experience. The policy coverages come with a bundle of add-ons that allow you to customize your policy.

State Farm typically has higher premiums and a limited offer of discounts.

Amica

Amica holds the top spot in J.D. Power’s annual Property Claims Satisfaction Study in 2020, as it has already done for nine years in a row.

Amica insurance in Colorado offers the Home Repair Assistance Program, which helps to pair customers with licensed and insured contractors in the event of a covered claim. 

The company also has discounts if you stay with them for at least two years, insure a newly remodeled home or opt-out to receive and pay your bills electronically. 

Their prices are lower than the state average for homeowners insurance in Colorado.

AAA (American Automobile Association)

 AAA homeowners insurance in Colorado is a non-profit group best known for providing roadside assistance, but they also offer affordable insurance policies from the Interinsurance Exchange network. 

This means that the underwriting insurer can change with every policy, but premiums, claims, and customer service requests are all handled through AAA.

Members and non-members can buy homeowners insurance policies in Colorado, but special discounts and lower prices are available to AAA members (with an additional free towing bonus). 

They are well known for their high-quality and well-rated customer service department. The company has a guaranteed replacement cost coverage option and will pay 100% of your home’s value if it is destroyed.

Allstate

Allstate has a strong customer satisfaction rating and offers a wide range of coverage options. Some of the unique add-ons from Allstate homeowners insurance Colorado include medical expenses for guests, living expenses for the duration of a repair when a catastrophe makes your home uninhabitable, and protection for outbuildings.

Their RateGuard Program ensures that your premium won’t go up just because you file a claim. Customers can also benefit from Allstate’s discount programs like the Claim-Free Rewards. 

Allstate provides coverage for multiple dwellings, including coverage for older homes, which can be hard to find in the homeowners insurance market and are best for bundling home and auto insurance in Colorado.

USAA

USAA homeowners insurance in Colorado is at the top of the rating list for the best customer service and affordable rates. Unfortunately, the company provides insurance only to current or former members of the military.

If you fit this group, USAA should be on the top of your list in the search for homeowners insurance in Colorado.

They also have a home security system discount, a 10% discount if you combine homeowners and auto, and a 10% discount for a claims-free year.

Chubb

Chubb insurance in Colorado is great for owners of expensive homes. They offer a big variety of coverages, including atypical ones such as HomeScan, which helps find issues with your home that need attention before they can cause damage. 

Chubb also offers extended replacement cost for dwelling and replacement value for contents as part of its standard policy – another benefit for its customers.

Travelers

Travelers insurance in Colorado has one of the cheapest rates in the state and the affordable prices do not compromise the coverage quality. 

They offer standard industry coverage. The best thing is that you can easily find an agent that can assist you in placing coverage with them. They also offer 24/7 claims service.

That said, they don’t have the best rating when it comes to overall customer satisfaction for homeowners insurance in Colorado

Their optional Green Home Coverage helps cover extra costs if you are using environmentally friendly construction materials when rebuilding after a covered claim. You also get a discount if your home is certified as “green” by the LEED organization.

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

Does homeowners insurance cover flooding in Colorado?

Homeowners insurance in Colorado does not cover flooding. This insurance is sold separately. Due to the high flood risk during the runoff season, warm spring weather causes the snow to melt down the mountains. 

Elevating your home with a crawlspace foundation or using water-resistant building materials to protect against flooding can qualify you for a policy discount.

Does homeowners insurance cover lightning in Colorado?

Yes, a standard homeowners insurance policy will cover damage caused by lightning, including fire and power surges.

What if I can’t get homeowners insurance?

Colorado doesn’t offer a Fair Access to Insurance Requirements Plan (FAIR Plan). If you’re unable to get homeowners insurance with a standard carrier in Colorado, look into coverage with a surplus or excess lines insurer.

Is damage from tornadoes covered by home insurance?

Tornado damage can come primarily in the form of wind, so double-check if your homeowners policy has windstorm coverage, a standard feature of any average homeowners policy.