Best homeowners insurance in Colorado for 2021

Colorado homeowners often have to deal with severe weather conditions like snow, hail, and wildfires. These can be very destructive. Colorado home insurance is a good option to help cover major expenses such as rebuilding a home and replacing personal property damaged by covered hazards. Bankrate’s study on the average cost of homeowners insurance found that Colorado residents pay $1,659 per year for $250,000 in dwelling coverage.

Colorado homeowners insurance costs an average of $138 per month. This is a significant cost. We compared top-rated insurance companies in Colorado based on average premiums, customer satisfaction scores, and current policy offerings to help homeowners choose the most affordable home insurance. To help jumpstart your insurance search, we selected five standouts representing some of the best Colorado homeowners insurance companies.

Colorado’s best home insurance companies

Based on the 2020 J.D. Power U.S. Home Insurance Study, Bankrate gathered the top five Colorado homeowners insurance companies (by market share). To choose these providers, we considered premium costs, coverage options and customer ratings.

Allstate

Allstate is a great choice for Colorado residents looking for additional benefits and coverage. For example, you could earn a 5% discount on your premium each year you go without filing a claim, or even get $100 off your deductible by the same criteria. Rate increases will not be possible if you file a claim. RateGuard can be added to your policy before you file a claim. Apart from standard homeowners insurance, you can also get special home-sharing options that will help protect you against damage or theft while renting your property.

American Family

Experts recommend that you create a home inventory in order to determine your coverage. American Family’s downloadable worksheet makes it easy. Once you have a better idea of the financial protections you might need for your home, you can choose from coverage options like water backup, service lines and credit theft to round out your coverage. American Family’s matching siding coverage is especially useful because it covers the siding that has not been damaged by hail (in the event the original siding was removed). There are discounts available for everything, from smart homes to home renovations to loyalty discounts to new homeowners discounts.

California Casualty

California Casualty offers policies that cater to people working in public safety and education. This includes firefighters, nurses, and teachers. The company offers specialized options that can insure luggage, money raised for charity, and credit card fraud. Turnout gear coverage is available to law enforcement officers and firefighters, as well as firefighters. California Casualty also makes preventing financial losses from other sorts of damage easy, such as allowing policyholders to purchase NFIP policies directly through them.

State Farm

State Farm is the most popular insurer across Colorado, with 19.5% of Colorado’s homeowners insurance market share. Strong customer satisfaction ratings and a mobile app that makes filing a claim simple, have helped to solidify the company’s popularity with homeowners. The company’s Simple Insights blog offers comprehensive articles on home maintenance, buying and selling your home and homeowners insurance — a great resource, especially if you are new to the world of insurance.

USAA

J.D. consistently awards USAA high marks in J.D. USAA consistently earns high scores in Power Studies and AM Best ratings. This is due to its customer service skills, and the simple claims process that can either be done by phone or via a mobile app. Membership and coverage are only available to U.S. military personnel and their families, who may be active or retired. Residents of Colorado who are members of the military, or their relatives, will be eligible to benefit from USAA’s coverage options. These include coverage for military uniforms and homesharing, as well as standard coverage. And even with these specialized coverages, USAA offers one of the cheapest homeowners insurance premiums in Colorado.

Colorado homeowners insurance average cost

The average cost of Colorado homeowners insurance annually is $1,659 for a dwelling coverage limit of $250,000, which is a few hundred dollars above the annual national average cost of home insurance of $1,312. The state’s high premiums are likely due to Colorado’s weather patterns, which include snow and hailstorms.

Although Colorado makes up one-fourth the United States’ Four Corners, the average annual home insurance premium in neighboring states with the remaining corners is lower than that of Colorado. These include Arizona at an average cost of $1,189 per annum and Utah at $647 per annum.

Your yearly cost will differ between providers depending on many factors such as the age of your house and your credit rating. Your premium costs can be affected by the distance your home is from a fire hydrant.

Colorado home insurance: What are your options?

Like any other state, your location will have an impact on the way you choose a Colorado home insurer. A person living in Snowmass might have different needs than someone who lives near Denver, due to the weather and cost-of-living. It is important to consider Colorado’s weather and associated risks when considering homeowners insurance options.

Common Loss Causes in Colorado

Colorado’s weather patterns are a major factor in choosing the best home insurance company. Other considerations include the likelihood of destructive wildfires, three of which made Colorado history in 2020 for being the largest to date. These are some of the concerns that need to be addressed.

  • Water damage: Water damage caused by flooding is particularly common in the spring months, when melting snow causes rivers and ponds to overflow. Experts recommend that you speak with your agent to discuss flood insurance. Flood insurance can be purchased through either government programs or through private insurers. You can find out if you live in a flood-prone area by checking out FEMA’s Flood Map Service Center, which allows you to input your address and find out your flood risk.
  • Hail damage: According to the Insurance Information Institute, Colorado ranks second in the nation for the number of hail claims on homeowners insurance. It is also fifth in the country for the number “major hail events,” which are hailstorms that have stones a minimum of one inch in diameter. Larger hailstones can cause severe damage to your roof, gutters, and windows. Hail damage may be excluded by some insurance companies. Check with your agent to verify what your policy covers.
  • Lightning and fire damage are expensive homeowners insurance claims. Wildfires can occur in Colorado. This puts homeowners at risk for fire damage, particularly if they live in rural areas or forested areas. As wildfires increase in the western United States, it is becoming harder for homeowners to find reasonably priced insurance. Some homes can be made more insurable by removing fire hazards and using other fire mitigation methods.
  • Theft: No matter where you live in the U.S. theft is something homeowners should be aware and prevent. You can protect your home with strong window and door locks, as well as other security measures that will reduce the chance of theft.

Colorado offers a variety of home insurance options

Most standard Colorado homeowners insurance policies cover theft, hail damage, and fires damage. Other possible causes of damage might not be covered and may require additional policies or endorsements. You may want to consider adding coverage beyond your standard policy in order to protect your Colorado home and financial investments. You have the following options:

  • Flood insurance: Coverage helps pay for resulting damage to your home’s interior structure or personal belongings due to flooding. This coverage is usually purchased separately from a private or government flood insurance provider.
  • Coverage for musical instruments: Colorado is well-known for its music scene, including Red Rocks and Denver. Colorado homeowners with an interest in music might find it beneficial to have additional coverage. This optional coverage is offered by many insurers like Allstate or Nationwide.
  • Water backup coverage: Sewer and sump pump backups can happen at any time. Water backup coverage is optional. However, it’s worth considering the potential out-of pocket expenses for water damage to your home and belongings.

Questions frequently asked

What is the best Colorado homeowners insurance?

The cheapest homeowners insurance for you will depend on a number of factors, including the value of your home, the area in which you live, your credit score, your deductible and what discounts you qualify for.

How can I obtain Colorado homeowners insurance?

Colorado property insurance providers can provide you with quotes. You can ask questions of licensed agents and discuss your options to ensure you have the right coverage for your investment.

What are the steps to get a quote on homeowners insurance?

Each insurance company will require different information. However, most companies require that you provide personal information such as your name, address, and the characteristics of your home to determine its value.

Is flood insurance included in my homeowners insurance policy

No, flood insurance is typically separate from homeowners insurance. This coverage can be purchased to protect your home.