Average homeowners insurance cost in Colorado

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Whether you’re buying a new home or safeguarding the one you already own, it’s important to have comprehensive homeowners insurance. However, the amount you’ll pay depends on the insurance company and the coverage limits you choose.

Homeowners insurance in Colorado costs an average of $4,086 a year, according to Insure.com’s study.

Read this guide to learn more about the average homeowners insurance rates in Colorado by insurance company and ZIP code.

Key Takeaways

Homeowners insurance costs an average of $4,086 a year, based on our analysis.
Of all the ZIP codes in Colorado, 81504 has the most affordable home insurance rates at around $2,389 annually.
In Colorado, State Farm provides the most affordable home insurance at an average annual premium of $3,190.

Average home insurance cost in Colorado by coverage level

In Colorado, the annual homeowners insurance cost is $4,086, on average for the limits of $100,000 in liability, $300,000 in dwelling coverage and a $1000 deductible.

Increasing your dwelling coverage from $300,000 to $400,000 will raise your annual homeowners insurance premium to $4,976 in Colorado, with $100,000 in liability protection and a $1,000 deductible. Below are the average costs for homeowners insurance in Colorado based on dwelling coverage limits of $300,000, $400,000, and $500,000.

Coverage	Average annual rate	Average monthly rate
$200,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$3,158	$263
$200,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$3,169	$264
$300,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$4,086	$341
$300,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$4,099	$342
$400,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$4,976	$415
$400,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$4,976	$415
$600,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$6,874	$573
$600,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$6,890	$574
$1,000,000 with $1,000 Deductible and $100,000 Liability and None Deductible	$10,725	$894
$1,000,000 with $1,000 Deductible and $300,000 Liability and None Deductible	$10,745	$895

In Colorado, homeowners insurance companies set rates by assessing various risk factors. Your location, claims history, credit history and coverage limit all affect your premium.

If multiple claims have been filed in your neighborhood over the past few years, you’ll likely face higher home insurance rates than areas with fewer claims. Your credit score can also play a role in determining your home insurance costs.

According to S&P Global Market Intelligence’s RateWatch application, the average homeowners insurance premium for owner-occupied homes nationwide increased by over 11% in 2023.

Best homeowners insurance companies in Colorado

It’s always a good idea to shop around and compare prices before purchasing homeowners insurance. Several factors come into play when choosing the best homeowners insurance company.

We evaluated homeowners insurance providers in Colorado by comparing their NAIC scores and AM Best ratings and compiled a list of the top insurers in the state. Based on Insure.com’s analysis, American Family received the lowest NAIC score and an AM Best rating of A. A lower NAIC score signifies fewer complaints relative to the company’s size, indicating greater customer satisfaction.

Company	Average annual premium	AM Best rating	NAIC Complaint Index	Overall score
American Family	$3,472	A	0.37	5
Allstate	$3,224	A+	0.9	4.03
State Farm	$3,190	A++	0.95	4.02
Farmers	$4,782	A	0.54	3.82
Nationwide	$5,375	A+	0.87	2.81

Average homeowners insurance cost by company in Colorado

State Farm provides the most affordable homeowners insurance in Colorado, with an average annual premium of $3,190. Allstate and American Family also offer cheap home insurance rates.

Shopping around for homeowners insurance can help you save hundreds of dollars annually.

Here are the average annual and monthly insurance rates for homeowners in Colorado with a policy that provides $300,000 in dwelling coverage, $100,000 in liability protection, and a $1,000 deductible.

Company	Average annual rate	Average monthly rate
State Farm	$3,190	$266
Allstate	$3,224	$269
American Family	$3,472	$289
Nationwide	$5,375	$448
Farmers	$5,712	$476
USAA*	$3,891	$324

*USAA is only available to military community members and their families.

Colorado homeowners insurance rates by ZIP code

Insurance providers in Colorado factor in the risk of a given location when determining rates. ZIP codes with higher crime rates or frequent natural disasters are typically classified as high-risk, leading to increased premiums. Additionally, the cost of rebuilding or repairing homes in that area can affect your homeowners insurance costs.

To get the best deal on homeowners insurance rates in Colorado, take the time to shop around and compare quotes from multiple insurers. Additionally, don’t forget to ask about potential discounts, like bundling policies or a smart home discount.

Most affordable ZIP codes for home insurance rates in Colorado

Home insurance costs vary across different areas in Colorado. What you pay for homeowners insurance depends on several factors, including your ZIP code. According to our data, the 81504 ZIP code has the lowest home insurance rates in Colorado, at $2,389 annually or $199 per month.

Here are the homeowners insurance rates for some of the most affordable ZIP codes in Colorado.

ZIP code	Average annual rate	Average monthly rate
81504	$2,389	$199
81503	$2,404	$200
81521	$2,410	$201
81506	$2,421	$202
81505	$2,430	$203
81501	$2,439	$203
81527	$2,470	$206
81520	$2,480	$207
81610	$2,482	$207
81416	$2,499	$208

Most expensive ZIP codes for home insurance rates in Colorado

In Colorado, certain areas experience higher premiums because of higher crime rates, increased risk of natural disasters and the cost of living.

Homeowners in 81052 ZIP pay the highest insurance rates in Colorado, with an average annual premium of $6,624.

Below is a list of some of the most expensive ZIP codes in Colorado for homeowners insurance.

ZIP code	Average annual rate	Average monthly rate
81052	$6,624	$552
80805	$6,558	$547
80740	$6,555	$546
80807	$6,544	$545
80836	$6,528	$544
80812	$6,527	$544
80747	$6,524	$544
80802	$6,520	$543
80834	$6,512	$543
81045	$6,509	$542

Home insurance rates vary from one city to another. But with Insure.com, finding the right home insurance policy is easy. Learn more about homeowners insurance costs for different cities below.

Home insurance rates in Colorado by city

See rates in your city

Arvada

Colorado Springs

Mesa

Home insurance rate trend in Colorado

We analyzed home insurance rate trends in Colorado and found that homeowners insurance rates experienced an overall increase of 21% or $710, from 2022 to 2023.

The following data highlights the changes in homeowners insurance rates since 2019.

2019 rates	2022 rates	2023 rates
$3,123	$3,376	$4,086

Finding the right homeowners insurance requires thorough research and comparing rates from different insurers, as each has its own way of assessing risk. By gathering quotes from at least three companies, you can increase your chances of getting the most affordable coverage in Colorado.

Resources & methodology

Source

S&P Global. “US homeowners insurance rates jump by double digits in 2023.” Accessed September 2024.

Methodology

Insure.com worked with Quadrant Information Service to get homeowners insurance data. We analyzed 20,739,560 insurance quotes from 82 national and regional insurance companies across 34,588 ZIP codes to determine the average premiums.

The insurance rates are based on a sample profile of a homeowner with good credit and the following coverage level:

$300,000 dwelling coverage
$100,000 liability protection
$1000 deductible

We have taken into account 3 important factors such as average annual cost, NAIC score and AM Best rating, to determine the list of best homeowners insurance companies. The quoted insurance rates are for comparison purposes, and your individual rates may vary.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.