If you're a renter in Colorado, you can expect to pay about $13 a month for a renters insurance policy. Renters insurance covers the repair or replacement of your belongings if they're damaged or destroyed. It also covers liability costs that can occur if you are responsible for damages or injuries to another. If you need to relocate while damages to your rental home are completed, renters insurance can help with that, too.
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How much is renters insurance in Colorado?
Colorado renters pay an average of $159 a year, or $13 a month, for a standard renters insurance policy. This is 27% cheaper than the national average rate of $18 a month.
Your final renters insurance rate will depend on multiple factors. These include:
- Your ZIP code
- Your insurance history
- Your policy deductible
- How much personal property coverage you choose
Below is a table showing the average annual rates for renters insurance depending on the personal property coverage amount you choose:
| Coverage amount | Annual cost |
|---|---|
| $13,999 and under | $132 |
| $14,000 - $19,999 | $145 |
| $20,000 - $25,999 | $163 |
| $26,000 - $31,999 | $178 |
| $32,000 - $37,999 | $171 |
| $38,000 - $43,999 | $199 |
| $44,000 - $49,999 | $194 |
| $50,000 - $74,999 | $230 |
| $75,000 - $99,999 | $290 |
| $100,000 and over | $437 |
| Source: National Association of Insurance Commissioners (2019) | |
The best renters insurance companies in Colorado
Renters insurance rates can vary little between providers, meaning that you'll have other factors to look at when purchasing a policy. A key one to consider is customer satisfaction.
J.D. Power compiles an annual property claims satisfaction study based on various insurance companies' trends for claims resolution, policy offerings and price points. Its most recent study in 2022 put the average satisfaction ranking at 871. The higher a provider's ranking, the better its overall customer satisfaction.
Another resource to look at is the National Association of Insurance Commissioners (NAIC). The NAIC Complaint Index compiles how many claims-related complaints insurance companies receive relative to their size. The average complaint rating is 1.0. The lower a company's index rating, the better.
Following is a table that shows both the J.D. Power and NAIC rankings of companies providing renters insurance in Colorado.
| Company | J.D. Power | NAIC |
|---|---|---|
| Allstate | 870 | 0.76 |
| Farmers | 884 | 0.04 |
| Liberty Mutual | 876 | 0.23 |
| Nationwide | 878 | 0.03 |
| Progressive | 874 | 0.2 |
| State Farm | 876 | 2.67 |
| Travelers | 852 | 0.02 |
| USAA | 893 | 0.6 |
| Sources: 2022 J.D. Power U.S. Property Claims Satisfaction Study and NAIC Complaint Index | ||
What to look for in a renters insurance policy
There are different parts of a renters insurance policy to consider when putting together your coverage. These include:
Personal property coverage
The core part of a renters insurance policy is personal property coverage. Your rental dwelling is covered by the owner's insurance, but your belongings are your responsibility. Personal property coverage takes care of the repair or replacement of your possessions that are damaged, destroyed or stolen.
When buying a renters insurance policy, you'll want to have a good estimate of your belongings' total value. A good way to calculate this is to compile an inventory list. This list should include details of the property, as well as its replacement price. This not only makes sure you don't underpay or overpay for coverage, it can also help speed up the process when you file a claim.
Personal liability coverage
If you are responsible for injuring someone else or damaging their property, personal liability coverage can take care of related repair, replacement or medical costs. Most renters insurance policies have a default limit of $100,000, but it's recommended that you raise it.
While $100,000 may seem like a sizable sum, it can be easily met and exceeded if a long hospital stay or legal case results. To avoid having to pay out of pocket, we recommend raising your liability to at least $300,000.
Additional living expenses (ALE) coverage
Also known as "loss of use," ALE coverage pays for the difference in living costs that can arise if you need to temporarily relocate while damages to your rental are repaired. ALE covers extra expenses including:
- Rent
- Meals
- Laundry
- Furniture rental
- Extra commute costs
Medical payments coverage
This coverage works similarly to personal liability, except it only covers medical costs that accrue from a guest who is injured at your rental home. Medical payments coverage usually has a maximum limit of $5,000.
Do I need renters insurance in Colorado?
Colorado law does not require you to have renters insurance, but your landlord will probably require it as part of the lease agreement. Even if you aren't required to have a renters insurance policy, you should get one. The monthly cost of a policy is far less than what it would cost to replace your belongings after a fire, or if someone is injured at your place.
Some insurers allow you to share renters insurance with roommates. While on the surface this may seem like a good way to save money, the cons far outweigh the pros. You would be sharing your policy limits with your roommates. If you have $50,000 in personal property coverage, you would have to split that with your roommates if you all lose your belongings in a fire. Same with ALE coverage. It is much better to have your own policy.
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