Average homeowners insurance cost in Colorado

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The average cost of home insurance in Colorado is $4,086 per year for a standard policy.

Your premium is shaped by the dwelling coverage limit you select and the level of protection you need. Broader coverage generally means a higher cost. Higher coverage means higher premiums. State Farm stands out for its more affordable rates in the state, offering solid value as you weigh different levels of coverage.

Compare quotes from multiple insurers and ask each one what discounts they offer. Premiums can differ significantly from company to company because they weigh things like where your home is located, how old it is, what it’s built from, the shape your roof is in, and your past claims. Pulling several quotes tied to your specific address is the surest way to spot the best value.

Key Takeaways

Based on our data, homeowners insurance in Colorado costs an average of $4,086 per year.
Among all ZIP codes in Colorado, 81504 has the most affordable rates, averaging around $2,389 annually.
For the lowest insurer rates in Colorado, State Farm comes in at an average annual premium of $3,190.

What is the average cost of homeowners insurance in Colorado?

The average homeowners insurance premium in Colorado is $4,086 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

Homeowners insurance in Colorado costs $4,086 per year on average, based on a policy with $300,000 in dwelling coverage, $100,000 in liability, and a $1,000 deductible.

However, if you increase the dwelling coverage limit from $300,000 to $400,000, you will pay $4,976 per year for homeowners insurance in Colorado for $100,000 in liability protection and a $1,000 deductible.

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 $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

Average home insurance cost in Colorado by insurer

The most affordable homeowners insurance in Colorado comes from State Farm, which averages $3,190 per year. Allstate and American Family are also worth considering.

Shopping around can save you hundreds, or more, each year.

Below are average annual and monthly premiums for Colorado homeowners, based on a policy with $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.

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 is one of the biggest factors in your home insurance rate, because it tells the insurer how much risk comes with your location. Areas with higher crime rates, frequent natural disasters, or high rebuilding costs are treated as higher-risk-and that pushes premiums up.

Below are the most affordable and most expensive ZIP codes for home insurance in Colorado

Most affordable ZIP codes for home insurance rates in Colorado

The most affordable rates are in 81504, where homeowners pay $2,389 per year on average.

Not every area in Colorado has the same home insurance cost. How much you pay for homeowners insurance in Colorado depends on many factors, including your ZIP code.

Below you can find 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 in Colorado

81052 carries the highest average home insurance rates in Colorado, at $6,624 per year.

ZIP codes with higher premiums typically reflect a combination of elevated crime, greater natural disaster exposure, and higher local costs of living and construction.

Below are average rates for some of the most expensive ZIP codes in Colorado.

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

What are the best homeowners insurance companies in Colorado?

Based on our data, American Family 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
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

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?

Insurers price home insurance based on the level of risk your property and profile represent. They decide that based on:

Where you live. Local crime rates, weather exposure, and claims frequency in your neighborhood all influence your rate.
Your claims history. A history of past claims typically results in a higher premium.
Your credit-based insurance score. In most states, a lower credit score can mean a higher premium (Restricted in some states, like California and Massachusetts).
Your coverage limits and deductible. Higher coverage or a lower deductible will increase what you pay.

It’s also worth noting that home insurance costs have been rising broadly. According to S&P Global Market Intelligence’s RateWatch application, premiums for owner-occupied homes climbed more than 11% nationwide in 2023.

Resources and methodology

Source

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

Methodology

Insure.com worked with Quadrant Information Services to compile homeowners insurance data, analyzing 20,739,560 quotes from 82 national and regional insurers across 34,588 ZIP codes.

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

Company rankings factor in average annual cost, NAIC score, and AM Best rating. 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.