Average homeowners insurance cost in Colorado

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Home insurance in Colorado costs an average of $4,950 per year for standard coverage.

Your actual cost depends on your dwelling coverage limit and the protection level you choose. Higher coverage means higher premiums. Allstate offers competitive rates in the state, making it a strong option to consider as you compare coverage levels.

Shop around and ask about discounts. Rates vary widely between insurers, and depend on factors like your home’s location, age, construction, roof condition, and claims history-so getting quotes specific to your address and comparing several companies helps you find the best deal.

Key Takeaways

Based on our data, homeowners insurance in Colorado costs an average of $4,950 per year.
Among all ZIP codes in Colorado, 81504 has the most affordable rates, averaging around $2,465 annually.
For the lowest insurer rates in Colorado, Allstate comes in at an average annual premium of $2,499.

What is the average cost of homeowners insurance in Colorado?

The average homeowners insurance premium in Colorado is $4,950 annually for a policy with $300,000 in dwelling coverage, $100,000 in liability protection, and a $1,000 deductible.

How much is home insurance in Colorado? Cost by coverage level

On average, homeowners in Colorado pay $4,950 a year for insurance – a figure based on $300,000 in dwelling coverage, $100,000 in liability, and a $1,000 deductible.

Raising your dwelling coverage from $300,000 to $400,000, with the same liability and deductible, brings the average annual cost to $6,157 in Colorado.

The table below shows average homeowners insurance costs in Colorado for dwelling coverage from $200,000 to $1 million.

Coverage	Average annual rate	Average monthly rate
$200,000 with $1,000 Deductible and $200,000 Liability and None Hurricane	$3,633	$303
$200,000 with $1,000 Deductible and $300,000 Liability and None Hurricane	$3,645	$304
$300,000 with $1,000 Deductible and $200,000 Liability and None Hurricane	$4,950	$413
$300,000 with $1,000 Deductible and $300,000 Liability and None Hurricane	$4,963	$414
$400,000 with $1,000 Deductible and $200,000 Liability and None Hurricane	$6,157	$513
$400,000 with $1,000 Deductible and $300,000 Liability and None Hurricane	$6,171	$514
$600,000 with $1,000 Deductible and $200,000 Liability and None Hurricane	$8,195	$683
$600,000 with $1,000 Deductible and $300,000 Liability and None Hurricane	$8,213	$684
$1,000,000 with $2,500 Deductible and $200,000 Liability and None Hurricane	$9,759	$813
$1,000,000 with $2,500 Deductible and $300,000 Liability and None Hurricane	$9,785	$815

Average home insurance cost in Colorado by insurer

Allstate offers the most affordable homeowners insurance in Colorado, at an average annual premium of $2,499, followed by State Farm and Nationwide.

You can save hundreds – if not thousands – of dollars each year by shopping around.

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

Company	Average annual rate	Average monthly rate
Allstate	$2,499	$208
State Farm	$2,537	$211
Nationwide	$5,930	$494
Farmers	$6,476	$540
American Family	$7,213	$601
USAA*	$4,315	$360

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

How to lower your home insurance rate

Shop around. The first quote you receive is rarely the best one. Getting estimates from at least three or four insurers gives you a clearer picture of what’s available in Colorado.
Bundle your policies. Combining home and auto insurance, or renters and auto, with the same provider is one of the most common ways to unlock multi-policy discounts.
Ask about smart home discounts. Security systems, smoke detectors, and leak sensors are the kinds of upgrades that can bring your premium down.
Check for other savings. Loyalty discounts, claims-free rewards, and home improvements like fire-resistant roofing are worth asking about at renewal.

How does your ZIP code affect home insurance rates in Colorado?

Your ZIP code shapes your home insurance rate by showing insurers the risk tied to your location. Higher crime, greater exposure to natural disasters, and steeper rebuilding costs all push an area into higher-risk territory-and premiums rise accordingly.

Below, see the most and least expensive ZIP codes for home insurance in Colorado.

Most affordable ZIP codes for home insurance in Colorado

The lowest rates in Colorado are found in 81504, where homeowners pay an average of $2,465 per year.

Where you live in Colorado has a real impact on what you’ll pay for home insurance – and your ZIP code is one of the largest drivers of that difference.

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

ZIP code	Average annual rate	Average monthly rate
81504	$2,465	$205
81501	$2,477	$206
81506	$2,505	$209
81401	$2,507	$209
81505	$2,509	$209
81416	$2,516	$210
81425	$2,522	$210
81520	$2,527	$211
81503	$2,528	$211
81521	$2,529	$211

Most expensive ZIP codes for home insurance rates in Colorado

80807 has the highest rates in Colorado at an average of $7,510 per year.

Home insurance costs more in certain ZIP codes due to higher crime rates, natural disaster risk, and living costs.

Below, we’ve highlighted some of the most expensive ZIP codes in Colorado for home insurance:

ZIP code	Average annual rate	Average monthly rate
80807	$7,510	$626
80805	$7,504	$625
80836	$7,503	$625
80824	$7,500	$625
80834	$7,464	$622
80735	$7,458	$621
80812	$7,451	$621
80861	$7,447	$621
80721	$7,415	$618
80749	$7,412	$618

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

What’s the trend in home insurance rates for Colorado?

From the span of 2023 to 2025, Colorado saw home insurance rates increase by 20%, in line with how the state’s insurance market has been trending overall.

The table below breaks down the year-over-year rate changes going back to 2022:

2022 rates	2023 rates	2025 rates
$3,304	$4,136	$4,950

What are the best homeowners insurance companies in Colorado?

Based on our data, Allstate stands out as the top choice in Colorado. It earns an AM Best rating of A+ and holds one of the lowest NAIC complaint scores statewide-a strong sign of both reliability and customer satisfaction.

To pinpoint the most trustworthy insurers, we measured each company against two benchmarks:

AM Best Ratings gauge a company’s financial strength and its ability to pay claims when you need it most.
NAIC Complaint Scores compare how often a company is the subject of complaints relative to its size, with lower scores pointing to fewer problems.

Looked at together, these benchmarks give a dependable picture of an insurer’s financial footing and the experience you can expect as a customer. The table below ranks the leading companies in Colorado by annual premium, financial rating, and complaint history.

Company	Average annual premium	Am Best Rating	NAIC Complaint Index	Overall score
Allstate	$2,499	A+	1.26	4.55
State Farm	$2,537	A+	1.15	4.55
Nationwide	$5,930	A	1.34	3.98
Farmers	$6,476	A	0.89	3.93
American Family	$7,213	A	1.07	3.82
USAA*	$4,315	A++	0.46	4.45

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

How to understand insurer ratings and complaint data

Picking an insurer really comes down to whether they pay when you file a claim, and whether they treat you well along the way. You don’t have to guess – independent rating agencies track this data so you can choose with confidence, whether you’re signing up or renewing.

These are the two ratings we’ve used:

AM Best is a global agency that scores insurers on their financial strength and ability to pay claims. The higher the rating, the more stable the company.
NAIC Complaint Index, run by the National Association of Insurance Commissioners, tracks consumer complaints. A score of 1.00 is the industry average; below 1.00 means fewer complaints than expected for the company’s size, and above 1.00 means more.

What factors affect your home insurance rate?

Home insurance is priced according to the risk an insurer associates with your property and personal profile. The factors that carry the most weight include:

Where you live. Crime levels, weather-related risks, and local claims activity all factor into your rate.
Your claims history. Having filed claims in the past generally leads to a higher premium going forward.
Your credit-based insurance score. Most states allow insurers to use credit as a pricing factor. A lower score can result in a higher rate, though states such as California and Massachusetts have restrictions on this practice.
Your coverage limits and deductible. Choosing higher coverage or a lower deductible will increase your annual cost.

Home insurance costs have also been rising nationally. S&P Global Market Intelligence’s RateWatch application found that premiums for owner-occupied homes increased by more than 11% in 2023.

Resources and Methodology

Sources:

S&P Global. “US homeowners insurance rates jump by double digits in 2023.” Accessed August 2026.

Methodology

Insure.com worked with Quadrant Information Services to compile homeowners insurance data, analyzing 37,973,840 quotes from 75 company groups (134 companies) across 34,595 ZIP codes in all 51 states.

Rates are based on a sample homeowner profile with good credit and the following coverage:

$300,000 dwelling coverage
$100,000 liability protection
$1,000 deductible

The national average annual premium (non-hurricane deductible) is $2,543.

Company rankings factor in:

AM Best rating: 30%
NAIC score: 35%
Annual premium: 35%

All quoted rates are for comparison purposes and individual premiums may vary.

Alisha Ambre

Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.