Personal Finance

The Best Homeowners Insurance in Colorado for 2021

28 total views

If you’re a homeowner in Colorado, you’ll typically pay more than the national average for your home insurance. At $1,853 per year, the average home insurance policy in Colorado costs over $250 more than the national average of $1,585.

NerdWallet analyzed rates from 11 different insurers in the state to determine the best homeowners insurance in Colorado. Keep in mind that these rates are estimates and depend on many different factors, so yours may vary.

Best homeowners insurance companies in Colorado

NerdWallet rating

Average annual premium

5.0

NerdWallet rating 

State Farm

4.5

NerdWallet rating 

4.5

NerdWallet rating 

4.5

NerdWallet rating 

*USAA is available only to active military, veterans and their families.

You can customize your homeowners policy with numerous add-ons, but below are the types of coverage that generally come standard:

Type of coverage

What it does

Pays to repair or rebuild the structure of your home.

Other structures

Covers damage to unattached structures such as a shed or fence.

Personal property

Pays to repair or replace personal belongings such as furniture or clothing.

Additional living expenses

Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.

Covers legal expenses and damages if you’re responsible for injuries to other people or their property.

Medical payments

Covers injuries to guests in your home, regardless of fault.

Here’s a little bit more about each company and the extras they offer.

Chubb

Chubb’s standard policy includes coverage options for which others often charge extra. For example, homeowners who buy Chubb’s Masterpiece policy can receive the full amount it costs to replace damaged or destroyed personal items rather than the items’ depreciated value.

State Farm

State Farm’s standard “increased dwelling limit” coverage may appeal to homeowners because of the financial cushion it provides if you need to rebuild your home. As long as the home is insured for the amount State Farm estimates it will cost to replace it, State Farm provides up to an additional 20% of that amount should costs go up while rebuilding.

Travelers

Travelers’ standard policy does not come with some of the coverage options provided by other insurers. However, Travelers does offer unique add-ons such as green home coverage that can help cover the cost of using sustainable materials to rebuild or repair your home.

USAA

If you’re an active military member or a veteran, or are a family member of one, USAA offers several benefits that normally cost extra from other insurers. Identity theft coverage and replacement cost for damaged or stolen personal items are just two of the benefits available to policyholders in most states.

Cheapest homeowners insurance rates in Colorado

NerdWallet looked at the rates from each insurer in all 543 ZIP codes in Colorado to find the lowest home insurance premiums in the state. We found a statewide average annual premium of $1,853, but your rate may vary depending on where you live. The difference between the cheapest and most expensive rates in Colorado was over $1,700 per year.

Here are the five cheapest homeowners insurance rates in Colorado:

Average annual premium

State Auto

Auto-Owners

Grange Insurance Association

State Farm

And here’s a look at all the available rates:

What to know about homeowners insurance in Colorado

Here are a few things you’ll want to keep in mind as you evaluate your options for home insurance in Colorado:

  • You should consider flood insurance. Flood damage is not typically covered by homeowners insurance, so you’ll likely need a separate flood insurance policy in order to be covered. That can be a good idea especially if you live in an area prone to flooding, but your home might also be vulnerable to flooding without you knowing it. FEMA’s flood maps can help give you the flood risk at your specific address.

  • Consider your wildfire risk. Over 17% of Colorado homes are in areas with high or extreme wildfire risk, the third-highest rate in the U.S. Although wildfires are typically covered by standard home insurance policies, if you live in a high-risk area you may need to take additional precautions or shop with multiple insurers to make sure you’re covered.

  • Your rate will vary depending on where you live. Generally, the average cost of home insurance in Colorado gets higher as you move from west to east across the state. To see the average rate where you live, here’s a look at the county-by-county breakdown:

Share this Post

About Us

What started as a mission to share what's happening in the insurance world today has grown into your daily go-to for insurance, financial planning, and retirement planning news.

Logic Bar Text Click Here