Best Homeowners Insurance in Colorado (2022)

State Farm's rate of $146 a month is cheapest for most customers, but military members may pay less with USAA.

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State Farm offers the cheapest homeowners insurance for most Colorado customers, charging an average $169 a month for standard coverage. However, if you’re in the military community, you may score a better rate with USAA. Price is important, but it’s not the only factor to consider for insuring your home. Read on for more on the best homeowners insurance in Colorado.

In this article

What is the average cost of homeowners insurance in Colorado?

The average cost of homeowners insurance in Colorado is $2,832 a year, or $236 a month. This is 61% higher than the national average. Among all states, Coloradans pay the sixth highest rate on home insurance in the nation.

Insurance companies evaluate several factors about you and your home to determine your rate. These usually include your insurance claims and credit history, as well as your home’s age, location and construction features.

Since each company weighs these factors differently and offers different discounts, you may qualify for a significantly lower rate with one company than you do with others. This is why it’s best to compare quotes from multiple companies when you shop.

Who offers the cheapest home insurance in Colorado?

Our in-depth analysis of homeowners insurance quotes shows that USAA and State Farm offer the cheapest home insurance in Colorado.

USAA’s average rate of $146 a month for a typical Colorado home is the lowest in our analysis, followed by State Farm, $169 a month. USAA is only available to current and former members of the military and their families, but we have included them in our analysis to accommodate Colorado’s military households.

The next-cheapest home insurance companies in Colorado are Chubb, which charges $175 a month, and American Family, $202 a month.

Cheapest homeowners insurance in Colorado
Company Average annual rate Average monthly rate
USAA $1,753 $146
State Farm $2,027 $169
Chubb $2,103 $175
American Family $2,419 $202
State average $2,832 $236
Travelers $2,889 $241
Country Financial $3,332 $278
Nationwide $3,541 $295
Farmers $3,639 $303
Allstate $3,786 $315
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

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Best homeowners insurance companies in Colorado

The best homeowners insurance companies in Colorado combine reasonable prices with responsive customer service. Everyone wants a low rate. However, your insurance company also needs to provide coverage that matches your needs and, if necessary, settle claims in a prompt, convenient manner.

Best customer service scores: USAA and Chubb

Of the nine home insurance companies in our analysis, USAA has the highest overall satisfaction ranking from J.D. Power, while Chubb has the best rating on the National Association of Insurance Commissioners’ (NAIC) Complaint Index.

J.D. Power’s overall satisfaction index uses customer surveys to rate insurance companies on interaction, policy offerings, price, billing process, policy information and claims.

On a 1,000-point scale, USAA has an industry-leading ranking of 882. Of the companies in our analysis, State Farm has the next-best score, 835, followed by American Family, 831.

The NAIC compares insurance companies by confirmed complaints, which is a complaint that leads to a finding of fault. The National Complaint Index is 1.0. A 2.0 Complaint Index reflects twice as many complaints as expected for a company of its size, while 0.5 reflects half as many.

Chubb has the lowest, or best, Complaint Index among the companies in our analysis, 0.09, followed by Country Financial, 0.29, and USAA, 0.42.

Overall satisfaction rankings and Complaint Index for Colorado home insurers
Company Satisfaction index ranking Complaint Index
Allstate 829 1.12
American Family 831 0.65
Chubb 801 0.09
Country Financial 830 0.29
Farmers 813 0.55
Nationwide 812 0.45
State Farm 835 1.01
Travelers 800 0.42
USAA 882 0.42
Segment average/National Complaint Index 825 1.0
Sources: J.D. Power 2021 U.S. Home Insurance Study, National Association of Insurance Commissioners (2021 data)

Best overall: State Farm

In addition to low rates, State Farm’s high overall satisfaction score gives it the edge as the best overall insurance company in Colorado.

One of State Farm’s particularly nice policy features is replacement cost coverage for roof repairs. Many other companies only cover roof damage at actual cash value, which deducts depreciation from your claim.

State Farm also offers generous discounts for bundling your home and car insurance. A home security system and/or a wind- and impact-resistant roof can help you save more.

Best for military: USAA

USAA’s strong customer service scores show that it does not cut corners to keep its rates low. 

The organization’s home insurance policies include replacement cost coverage on your personal property as a standard feature. With replacement cost coverage on personal property, which many other companies only offer as an upgrade, the insurance company pays to replace damaged or stolen belongings with new ones, with no deduction for depreciation.

USAA also offers a generous discount for bundling your car insurance with your homeowners policy, and you can get an additional discount for going claims-free for at least five years.

Best for high-value homes: Chubb

Chubb's Masterpiece homeowners coverage caters to high net worth individuals with a package of home insurance features that other companies usually only offer by endorsement.

For example, in the event of a total loss, Chubb Masterpiece covers the entire cost of rebuilding your home, even if the amount exceeds your policy’s coverage limit. The package also includes complimentary home appraisals, as well as security and fire prevention advice.

As one of a relatively small number of companies willing to insure homes with up to $3 million in replacement cost value, Chubb is a natural choice for those with high-value homes. However, its rates in Colorado show that it may be a good choice for standard homes, too.

Average home insurance costs in Colorado’s largest cities

Among Colorado’s largest cities, the average cost of home insurance ranges from $193 a month in Fort Collins to $287 a month in Colorado Springs.

Home insurance rates in Colorado’s largest cities
City by population rank Annual Monthly
Denver $3,346 $279
Colorado Springs $3,445 $287
Aurora $3,434 $286
Fort Collins $2,313 $193
Lakewood $3,150 $262
State average $2,832 $236
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

USAA offers the cheapest homeowners insurance in Denver, Colorado Springs, Aurora and Lakewood. State Farm and Chubb are second- and third-cheapest, respectively, in each of these cities.

In Fort Collins, State Farm offers the cheapest rate, followed by USAA, Travelers and Chubb.

Cheapest monthly home insurance rates by Colorado city
City by population rank USAA State Farm Chubb
Denver $151 $180 $203
Colorado Springs $164 $172 $196
Aurora $168 $183 $204
Fort Collins $139 $109 $154*
Lakewood $146 $169 $184
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Travelers’ average monthly rate in Fort Collins is $152.

How does home insurance cover natural disasters in Colorado?

Wildland fires, tornadoes, floods and earth movements such as mudslides are among the major natural disasters that can occur in Colorado, and not all of these are covered by standard homeowners insurance.

The good news is that fire and wind, including wildland fires and tornadoes, are among the covered perils in a standard homeowners insurance policy.

However, if you live in an urban-wildland interface area, your insurance company may require you to reduce the fire risks on your property.

Whether your insurance company requires them or not, you can reduce your fire risks by clearing defensible space around your home and building or renovating with fire-resistant materials. You can learn more online from the Rocky Mountain Insurance Information Association (RMIIA) and Colorado Division of Insurance.

Flood insurance in Colorado

Homeowners insurance typically excludes flood damage, but you can purchase flood insurance to protect your home and belongings from this specific risk.

If you apply for a mortgage for a home in a high-risk flood zone, your lender will require flood insurance. You can usually also purchase it on an optional basis if you don’t have a mortgage and/or your home is outside a high-risk area.

Most flood insurance is purchased through the government-backed National Flood Insurance Program, but private companies also offer it.

Average prices for NFIP flood insurance in Colorado range from $161 a month in high-risk flood zones to $57 a month in low- and moderate-risk areas. The average price statewide works out to $84 a month.

If you’re not sure about your property’s flood risk, or the flood risk of a property you want to buy, you can look it up online in the Flood Map Service Center on the Federal Emergency Management Agency (FEMA) website. Any zone identified with the letter A or V is high risk. Zones labeled with a B, C or X are considered low or moderate risk.

Flood insurance typically covers mudflows created by floods, but it does not cover landslides, mudslides or other earth movements.

Insurance for mudslides, earthquakes and other earth movements

Earth movements such as landslides, mudslides and earthquakes are also excluded by standard homeowners insurance, but there are different ways to protect your home from these perils.

Some insurance companies offer earthquake insurance as an endorsement to a home insurance policy. As an alternative, you can buy standalone earthquake insurance.

A difference in conditions (DIC) policy is usually the only insurance option for landslides and mudslides. DIC policies for homeowners tend to be expensive and require high deductibles. On the plus side, they generally include all-in-one coverage for landslides, mudslides, earthquakes and floods.

If you need to protect your home from more than one of these perils, a DIC policy may provide better value than separate policies for each one. However, if you need flood insurance for your mortgage, you should make sure the DIC provider you choose meets your lender’s requirements.

You can begin shopping for flood, earthquake and/or DIC insurance by contacting your existing homeowners insurance agent or a licensed agent serving your community. If your agent is not authorized to sell these types of policies, they can usually refer you to a licensed agent or broker who is.

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Frequently asked questions about Colorado home insurance

How much is home insurance in Colorado?

The average cost of home insurance for a typical house in Colorado is $236 a month.

Why is homeowners insurance so expensive in Colorado?

Increases in the number and costs of claims are blamed for making homeowners insurance so expensive in Colorado. Widespread hailstorms, devastating wildfires and rising construction costs have increased expenses for Colorado’s insurance companies. These costs get passed along to customers in the form of higher rates.

How much is flood insurance in Colorado?

The average cost of flood insurance in Colorado is $1,004 a year, or $84 a month, for policies issued through the government-backed National Flood Insurance Program. Private flood insurance rates vary by carrier.

Methodology

We obtained quotes for a standard HO-3 homeowners insurance policy on a typical home in every ZIP code in Colorado. Unless otherwise noted, standard policies included the following limits and deductibles:

  • Dwelling coverage: $275,000
  • Other structures: $27,500
  • Personal property: $137,500
  • Loss of use: $55,000
  • Liability: $100,000
  • Medical payments: $5,000
  • Deductible: $1,000

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