The average cost of homeowners insurance in Colorado is $2,829 for $300,000 in dwelling coverage with a $1,000 deductible. That price increases to $3,570 with $400,000 in dwelling coverage and $4,200 with $500,000 in dwelling coverage.

Regular wildfires have driven up the price of home insurance in Colorado, making it difficult for some homeowners to find insurance. In 2023, the governor of Colorado implemented the FAIR Plan to ensure eligible Colorado homeowners have access to up to $750,000 in property insurance, which offers financial protection against covered perils, including wildfires, even in high-risk areas.1

Here’s what you should know about comparing home insurance quotes and finding affordable coverage in the Centennial State.

Best home insurance companies in Colorado

You have plenty of quality home insurance companies to choose from in Colorado. The best company for you will depend on your individual needs and budget. Start your search with the insurers listed below.

Best insurer for cheapest rates: Grange

Best insurer for guaranteed replacement cost coverage: Auto-Owners

Best insurer for optional coverage: Allstate

Best insurer for roofing discount: State Farm

Cheapest home insurance in Colorado

Allstate provides the cheapest homeowners insurance coverage in Colorado. The average cost for $300,000 in dwelling coverage with a $1,000 deductible is $2,829 per month, or $236 per month.

If you’re looking for affordable home insurance in Colorado, make sure you compare multiple insurance companies to find the best rate. The table below highlights the average monthly rates for some of the cheapest insurers in Colorado.

Cost of homeowners insurance in Colorado

The average cost of home insurance for $400,000 in dwelling coverage in Colorado is $3,468, according to Insurify data. Several factors affect homeowner insurance premiums, such as:2

Cost of homeowners insurance by dwelling coverage amount

Dwelling coverage, also called dwelling insurance, covers the physical structure of your home. It can also include any structures that are permanently attached to your house, such as your garage or deck.

Dwelling insurance generally covers damage to your home resulting from a covered peril. It doesn’t cover damage to your personal belongings inside your home. The amount of dwelling coverage you need is often based on how much it’ll cost to replace your home. The higher the cost to replace your home, the more dwelling insurance you’ll need, and the higher your insurance premium will be.

The table below shows average monthly home insurance premiums in Colorado by dwelling coverage amount, with a $1,000 deductible.

Cost of homeowners insurance by deductible

A homeowners insurance deductible is the amount of money you have to pay out of pocket before your insurance company will cover a claim. When you purchase insurance, you typically get to choose the deductible amount. How low or high a deductible you choose can affect your total home insurance premium.

Generally, a low deductible will result in higher premiums, and a more substantial deductible will result in lower premiums. So, if your goal is to get the cheapest monthly premium, consider a higher deductible.

In the table below, see how annual home insurance premiums for $300,000 in coverage can change based on the deductible amount you choose.

How to get cheap homeowners insurance in Colorado

If you’re looking to secure cheap homeowners insurance in Colorado, you can do several things to keep your monthly premiums down, including:

• Increase your deductible. Raising your deductible to $1,000 can allow you to save as much as 25%, according to the Insurance Information Institute.3 But make sure you can afford to pay your deductible if you need to file a claim.

• Bundle your policies. Purchasing your home and auto insurance policies from the same company can reduce your premium.

• Install home security devices. Many insurers offer discounts of at least 5% if you have smoke alarms, security alarms, or deadbolt locks in your home. Some companies offer additional savings if you have sprinklers installed or security alarms that alert the police.

• Boost your credit score. It’s common for home insurers to use your credit history when determining your premiums. A higher credit score may help you secure a lower premium. To boost your credit, focus on paying your bills on time and only apply for credit when you really need it.

• Compare insurance quotes. Different insurers offer different rates and discounts. To find the cheapest home insurance, compare multiple insurers. Once you’ve narrowed it down to your top three, ask for quotes.

How much homeowners insurance do you need in Colorado?

When you take out a mortgage on your home, your mortgage company will require you to purchase a homeowners insurance policy. It’s important you understand what your home insurance policy covers when you buy it so you know if you’re properly covered.

Standard home insurance covers damage to your home and its contents. This usually includes coverage of the structure of the home, your personal possessions, belongings, liability protection, and additional living expenses for living somewhere else temporarily due to damages.

Most standard policies also provide disaster coverage, but there are exceptions. Standard policies typically don’t cover damage from flooding, earthquakes, and poor maintenance. You can often purchase additional coverage for flooding and earthquakes. Different types of homeowners insurance policies provide different coverage. It’s important to review and understand your policy so you know you have the protection you need.

What are some of the biggest risks when owning a home in Colorado?

For the past two decades, Colorado has seen the second-largest increase in natural disasters, second only to Kansas.4 The biggest risks to homeowners in Colorado are wildfires and hailstorms. Due to these risks, some homeowners and businesses have found it more difficult to get insurance coverage.

In response to this issue, the governor of Colorado signed the FAIR Plan law in 2023. This law helps homeowners and businesses get property insurance coverage when they can’t find it through traditional means.