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Best homeowners insurance in Colorado for 2023

Based on our extensive research, the best home insurance in Colorado is underwritten by USAA, State Farm, American Family, Allstate and California Casualty.
Updated Jun 06, 2023
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Compare the best homeowners insurance companies in Colorado

Using data sourced from Quadrant Information Services, our insurance editorial team compared average premiums from dozens of carriers writing home insurance policies in Colorado. We also looked at available discounts and endorsement opportunities, as well as the ease of use for each carrier's website and mobile app. Finally, we took into account third-party financial strength ratings from AM Best and customer satisfaction scores from J.D. Power. As a point of reference, the average cost of a home insurance policy with $250,000 in dwelling coverage in Colorado is $2,152.

USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
AM Best
A++
J.D. Power
884
/1,000
Average monthly premium
$121
Average annual premium*
$1,450
Get a quote
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
AM Best
A+
J.D. Power
815
/1,000
Average monthly premium
$155
Average annual premium*
$1,858
Get a quote
State Farm
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
AM Best
A++
J.D. Power
829
/1,000
Average monthly premium
$261
Average annual premium*
$3,126
Read review
American Family
Rating: 3.1 stars out of 5
3.1
Bankrate Score
Info
AM Best
A
J.D. Power
842
/1,000
Average monthly premium
$197
Average annual premium*
$2,369
Get a quote
AM Best
B+
J.D. Power
Not rated
Average monthly premium
$185
Average annual premium*
$2,217
Get a quote
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

*Premiums are for $250K in dwelling coverage

The top five home insurance companies in Colorado

USAA

Best for military-focused coverage

Rating: 3.7 stars out of 5
3.7 Bankrate Score
JD Power: 884 AM Best: A++

Average annual premium

$ 1,450 for $250k dwelling
USAA Review Get a personalized quote

Why USAA made our list: USAA consistently earns high scores across J.D. Power consumer satisfaction studies, as well as strong financial strength ratings from AM Best. However, membership and coverage is only extended to active-duty or retired U.S. military service members and their families. Colorado residents who are either members of the military or eligible relatives may be able to take advantage of USAA’s many coverage options, including those specific to military uniforms and home sharing, among other standard coverage types.

Who USAA may be good for: Military service personnel stationed at the Air Force Academy in Colorado Springs, Fort Carson Army Base or any of Colorado's other military installations may choose USAA as their carrier of choice.

Allstate

Best for numerous discount and reward opportunities

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 815 AM Best: A+

Average annual premium

$ 1,858 for $250k dwelling
Allstate Review Get a personalized quote

Why Allstate made our list: Colorado homeowners looking for coverage that comes with additional rewards may find Allstate to be an excellent choice. For example, you may earn a 5 percent discount on your premium each year you go without filing a claim. Adding Allstate’s Rateguard option to your policy may protect you from rate increases with an allowance of one claim per five years. Allstate also offers a home-sharing endorsement, which may appeal to homeowners who occasionally rent out their property.

Who Allstate may be good for: Homeowners looking for a long list of potential endorsements and discounts may be satisfied with Allstate's policy options.

State Farm

Best for local offices

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 829 AM Best: A++

Average annual premium

$ 3,126 for $250k dwelling
State Farm Review Get a personalized quote

Why State Farm made our list: In addition to being the largest homeowners insurance company by market share in the nation, State Farm has a strong J.D. Power customer satisfaction rating and highly-rated mobile app. If you prefer to conduct business in person, you may be able to explore coverage through one of the carrier's agents located across nearly 100 cities in Colorado. However, State Farm’s average premium is one of the most expensive on this list, and it doesn’t offer as many discount opportunities as some competitors.

Who State Farm may be good for: If personalized customer service is more important to you than saving money, you might consider asking State Farm for a quote.

American Family

Best for add-on coverage options

Rating: 3.1 stars out of 5
3.1 Bankrate Score
JD Power: 842 AM Best: A

Average annual premium

$ 2,369 for $250k dwelling
American Family Review Get a personalized quote

Why American Family made our list: American Family, also known as AmFam, is a smaller carrier with a long list of potential endorsements. Policyholders may be able to choose from numerous coverage options like hidden water damage protection, equipment breakdown coverage and matching siding protection. Discounts may also be available for customer loyalty, renovated homes and having a parent who is also an AmFam policyholder. AmFam has a very high customer satisfaction score from J.D. Power, but its digital tools are not as robust as some larger carriers.'

Who American Family may be good for: American Family may be a good choice if your parents are already AmFam policyholders and you value in-person and over-the-phone service over digital tools.

California Casualty

Best for public safety-focused coverage

JD Power: Not rated AM Best: B+

Average annual premium

$ 2,217 for $250k dwelling
California Casualty Review Get a personalized quote

Why California Casualty made our list: California Casualty is a more unique carrier catering to homeowners in fields of public safety and education, including firefighters, nurses and teachers. Despite its name, California Casualty writes home insurance policies in most states with coverage options and discounts tailored towards its unique customer base. Potential endorsements include off-duty weapons theft coverage, personal property used in teaching coverage and school violence death survivor benefits. However, California Casualty received the lowest financial strength rating of all companies on this list from AM Best, and its customer satisfaction was not scored by J.D. Power.

Who California Casualty may be good for: This regional carrier may be worth looking at if you are in one of the professions that it services, such as teachers, public safety officers and health care providers.

How Bankrate chose the best home insurance companies in Colorado

To narrow down our list of top home carriers in Colorado, we assigned each company a Bankrate Score. This Score takes into account average rates, coverage options, discounts, customer service, financial strength and more to create a holistic comparison metric. The better a company performed in each of these categories, the higher its overall Bankrate Score for a maximum score of 5 out of 5. As you read through our picks for the best home insurance companies in Colorado, we hope these Bankrate Scores will allow you to easily compare companies based on the factors that matter most to you.
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carriers reviewed
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ZIP codes examined
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quotes analyzed

How much is home insurance in Colorado?

The average cost of Colorado homeowners insurance is $2,152 per year for a dwelling coverage limit of $250,000. That is significantly higher than the annual national average cost of home insurance, which is $1,428 per year. Colorado’s average cost of home insurance is higher than the neighboring states of Utah and Wyoming, where homeowners pay an average of $696 and $1,631 per year, respectively, for the same dwelling coverage. Colorado’s volatile weather conditions, including snow and hail storms, are likely partially responsible for the state’s higher premiums.

$150K
$1,079
$250K
$1,450
$350K
$1,749
$450K
$2,009
$750K
$2,743
$150K
$1,385
$250K
$1,858
$350K
$2,208
$450K
$2,444
$750K
$3,070
$150K
$2,212
$250K
$3,126
$350K
$3,818
$450K
$4,723
$750K
$7,373
$150K
$1,921
$250K
$2,369
$350K
$2,775
$450K
$3,132
$750K
$4,041
$150K
$1,604
$250K
$2,217
$350K
$2,729
$450K
$3,164
$750K
$4,147
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Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Your ZIP code plays a role in determining the price of Colorado homeowners insurance. Areas with more mild weather patterns and low crime rates may see lower average home insurance rates. Here are some of the cheapest Colorado cities for homeowners insurance:

  • Divide: $1,833 — 15 percent below the state average
  • Florissant: $1,852 — 14 percent below the state average
  • Wetmore:$1,857 — 14 percent below the state average
  • La Veta: $1,891 — 12 percent below the state average
  • Victor: $1,899 — 12 percent below the state average

Insurers are in the business of managing risk, so residents are likely to pay more for coverage in regions where there are a higher number of claims. Homeowners in these areas may need to shop around a bit more to find competitive rates for home coverage. 

  • Rush: $2,345 — 9 percent above the state average
  • Ramah: $2,335 — 9 percent above the state average
  • Strasburg: $2,335 — 9 percent above the state average
  • Peyton: $2,333 — 8 percent above the state average
  • Calhan: $2,323 — 8 percent above the state average

How to find the best cheap home insurance in Colorado

Although home insurance is not required by law in Colorado, most insurance experts recommend having a policy in place to protect you financially from covered perils. Fortunately, a few strategies may help you find the coverage you need at a price you can afford.

  1. Shop around: Requesting quotes from a few different carriers that meet your requirements may help you find the coverage you need at the lowest price.
  2. Work on your credit score: Home insurance companies in Colorado can consider your credit history when determining your premium. Improving your credit score may help you save.
  3. Maintain your roof: Many insurers reward new or updated roofs with lower rates. Some carriers even have specific roof-related discounts.
  4. Avoid unnecessary claims: Filing a home insurance claim will likely increase your rates when your policy renews. Avoiding claims for small repairs that you can afford to fix out-of-pocket may keep your rates lower over time.

Common home insurance discounts in Colorado

Another way to potentially save money on your policy is to take advantage of any discounts you are eligible for. Most insurance carriers offer at least a few discounts. Here are a few that are commonly seen with many carriers:

Home insurance coverage options in Colorado

Home insurance policies typically include a long list of covered perils, but some causes of damage may not be covered. To better protect your financial investment in your Colorado home, it may be worth considering adding coverage that extends past your standard policy. Some of your options may include:

  • Flood insurance: Flood coverage is not included in a standard home insurance policy. You may be able to purchase coverage through a private insurer or the National Flood Insurance Program (NFIP).
  • Mine subsidence coverage: Mine subsidence is ground movement caused by the collapse or shift of underground mines. Some areas of Colorado are vulnerable to subsidence, but this is not covered under a standard home insurance policy. There may be public maps available to indicate if your home is in a subsidence area.
  • Water backup coverage: Sewer and sump pump backups are not covered by a standard home policy. This endorsement may cover the cost of repairing the sewer line and addressing any water damage from the backup. 
Info
News that affects Colorado homeowners

Climate change is having an impact on Colorado weather patterns, which may have an impact on homeowners in the state and their home insurance rates. The U.S. Environmental Protection Agency published a fact sheet titled "What Climate Change Means for Colorado" that outlines the changes homeowners can expect to see in the coming decades. Here are some key takeaways:

  • Colorado's average temperatures have warmed by one to two degrees in the last century. This means heat waves are becoming more common.
  • Increased heat waves cause snowpacks to melt sooner in spring, leading to the potential for flooding.
  • Droughts are becoming more common in some parts of the state, which can lead to an increased chance of wildfires. 
  • Increased evaporation of snow melt means higher humidity, but also contributes to drought-like conditions. 

With changing climate conditions, homeowners in the state may want to reevaluate their coverage types and limits. Speaking with a licensed insurance agent may help you understand how risk factors are evolving in your region.

Frequently asked questions

Written by
Mary Van Keuren
Insurance Contributor

Mary Van Keuren has written for insurance domains such as Bankrate, Coverage.com, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including Reviews.com and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.

Edited by Editor, Insurance