Best, Cheapest Colorado Home Insurance (2022)

Colorado homeowners pay an average of $211 a month for home insurance. We'll help you find your best quote.

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Best, Cheapest Colorado Home Insurance (2022)

The average home insurance rate in Colorado is $211 a month, a significant increase over the national average of $144.

With rates that high, it's important to do some research to find the best home insurance coverage at the best rate. We compared the average rates of the biggest home insurance companies in Colorado, along with their policy offerings and customer satisfaction trends.

We'll cover:

How much is home insurance in Colorado?

Homeowners insurance costs an average of $211 a month in Colorado. That's a 47% increase over the national average of $144.

State vs. national home insurance rates
Region Average monthly rate
Colorado $211
U.S. $144
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Colorado home insurance rates are expensive for multiple reasons. Colorado is at risk of wildfires, floods and hailstorms. All of these events can cause extensive damage to a home, and home insurance rates in Colorado reflect that. Furthermore, the price of construction materials and labor is increasing as well.

These factors also impact your home insurance costs:

  • Age of the home
  • Crime rate in your neighborhood
  • Your insurance claim history

Cheapest homeowners insurance companies in Colorado

Of the six major home insurance providers operating in Colorado, State Farm has the lowest average rate of $165 a month, followed by Great Northern, at $175 a month, and USAA, at $177 a month. Allstate has the highest average rate in Colorado, at $268 a month.

Cheapest home insurance rates by company
Company Average monthly rate
State Farm $165
Great Northern $175
USAA $177
American Family $191
Colorado average $211
Farmers $263
Allstate $268
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Colorado's best home insurance companies

In looking deeper into each home insurance company, we found State Farm, USAA and American Family to be the best home insurers in Colorado. Here's why:

State Farm: cheapest rates and most popular

State Farm has the lowest average home insurance rate in Colorado, at $165 a month, 22% lower than the state average rate of $211. State Farm also has the most home insurance policyholders of the major providers we surveyed. According to the NAIC 2020 Market Share Report, State Farm holds 11.35% of the property and casualty market share in Colorado. Liberty Mutual comes in second, with 8.01% of the market.

State Farm also does well with customer satisfaction. In the J.D. Power 2021 U.S. Home Insurance Study, State Farm received an overall customer satisfaction rating of 835 out of 1,000. That's well above J.D. Power's average rating of 825.

USAA: cheap rates and best for military

USAA's average monthly rate in Colorado is $177 a month, 16% lower than the state average. USAA differs from other insurance companies in that it only provides home insurance for military members and veterans, as well as their families.

According to Statista, Colorado has the 10th highest population of active-duty Armed Forces members in the country. If you're among them, USAA is highly recommended. USAA is often considered the best of the best for policyholder satisfaction. In J.D. Power's 2021 U.S. Property Claims Satisfaction Study, the company had the highest rating of 905 out of 1,000. This rating considers overall policyholder satisfaction based on claims-oriented factors, such as claim response time and settlement payment.

While J.D. Power rates USAA in the study, it is not part of the study's ranking due to its specialized customer base. Otherwise, USAA would be in the study's number one position.

American Family: cheap rates and best discounts

American Family home insurance costs an average $191 a month in Colorado, 9% lower than the state average. American Family also has a great set of discounts to reduce your premium even further, such as:

  • Bundle discount: If you bundle your auto insurance with a homeowners policy, you may save up to 29% on auto coverage and up to 20% on your home insurance.
  • Renovated home discount: If your plumbing, electrical and heating systems have been upgraded in the last 15 years, you might be eligible for a discount.
  • Loyalty discount: You could get a lower premium if you've been with American Family for a year or more.
  • Payment discount: If you pay your premium by autopay, you may get another discount.

These are just a few of the discounts you may qualify for. Talk to an American Family agent to find out about all of the discounts you're eligible to receive.

Methodology

We used Quadrant Information Services to generate thousands of home insurance quotes for every ZIP code in Colorado from the following providers:

  • Allstate
  • American Family
  • Farmers
  • Great Northern
  • State Farm
  • USAA

Our sample home used the following policy specifications:

  • Dwelling coverage: $275,000
  • Personal property coverage: 50% of dwelling ($137,500)
  • Other structures coverage: 10% of dwelling ($27,500)
  • Loss of use coverage: 20% of dwelling ($55,000)
  • Liability coverage: $100,000

Coverage sets were calculated using the following deductible limits:

  • $500
  • $1,000
  • $1,500
  • $2,000

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