Home insurance costs in Colorado 2021

Home insurance costs in Colorado

 

Whether you just move to Colorado or ever lived here, owning a home in this State can be satisfying from many points of view. You have a varied landscape featuring majestic mountains (including the world-famous Rocking dudes), rivers, forests, and even the desert; big cities with lots of recreational activities and possibilities of employment, an overall tranquil style of life at a relatively low cost.

To get the most out of living in Colorado, you must be aware of keeping your house safe in the long term: home insurance will do this job if you have the right knowledge about it. In fact, like in any other place, there are some perils more likely to happen, due to the peculiar features of the State.

The most insidious hazards in Colorado are wildfires, floods, hail, snow/ice melting, and tornadoes. All these pose a risk that will necessarily impact the numbers of your insurance policy.

From our research, the average insurance premium in Colorado is $1,716*, which refers to a dwelling coverage of $300,000, adequate for most of the houses for their median worth. If you came to know that your house can be insured for $200,000 you could expect a substantial $500 fewer. Below you can see details for nine of the most populous cities of Colorado, with rates obtained from the latest data of the Department of Insurance website.

City ZIP Home median value AllState Amica Farmers Liberty Safeco Statefarm USAA
Denver
80249
$230,000
$1,586
$3,251
$1,806
$2,814
$2,021
$2,360
$2,029
Colorado Springs
80922
$205
$1,901
$3,241
$2,059
$3,174
$1,898
$2,081
$1,910
Aurora
80010
230
$1,997
$2,700
$1,881
$2,824
$1,976
$2,348
$2,022
Arvada
80003
260
$1,815
$2,665
$1,752
$2,556
$1,731
$2,060
$1,708
Westminster
80031
245
$2,012
$2,655
$1,735
$2,529
$1,731
$2,050
$1,805
Pueblo
81005
240
$2,372
$3,611
$2,086
$3,152
$2,115
$4,012
$2,075
Boulder
80301
155
$1,427
$2,220
$1,752
$2,373
$1,519
$2,122
$1,706
Grand Junction
81503
180
$716
$1,630
$583
$1,424
825
$804
$1,254
Sterling
80751
215
$2,824
$2,812
$2,073
$3,204
$2,150
$4,017
$2,579

Due to missing data, we have determined an apart analyisis for Fort Collins and Thornton, where we find average premiums of respectively $1,995 and $2,149. Deductible applied for all houses is $500. Consider these prices as just reference points (they are “basic premiums”): there are several factors that will modify your premium, such as the age of house, crime rate in the neighborhood, proximity to a fire station and some others that will be covered.

Other companies to consider in Colorado are: American Family, Chubb, Nationwide, Progressive, and Travelers. These and the ones in the table are the top-rated companies as for customer satisfaction, market share, and financial strength: they have been assessed by leading institutions specialized in the insurance industry: JD Power, AM Best, Better Business Bureau, and NAIC, which shows low complaint ratios for the number of written policies.

Which coverage do you need in Colorado?

 

Exposure to a specific hazard rather than another depends on the location of your house in the geographical context. If, for instance, you reside in the Western counties, you are in the Tornado Alley zone, a part of the Nation greatly prone to tornadoes; instead, in Eastern Colorado, hail can be an issue.

Through the State, wildfires are a cause of worry for their potential severity: the likelihood to occur is relatively high since summers are dry and hot ad there have been some big fires in the recent past. On one side, fire is a covered peril on a standard homeowners policy; on the other side, if you live in a high-risk area for wildfires then some insurers may deny to provide you the specific coverage. Being the case, you could turn to private fire insurance companies at the cost of higher than normal premiums.

Another concern is frequent rainstorms, especially hail: this is one of the named peril in a homeowners policy, as well as thunder. These phenomenons can be harmful on the roof of your house, causing extensive damage to its contents. However, they also cause indirect effects: hail may cause rivers overflow then floods, while thunders can provoke big fires if they hit electric cables. When you are exposed to all such perils, expect your premium to be considerably higher than normal.

Snow and the ice in the winter have also their consequences: particularly dangerous for your roof integrity, and the melting of ice can also cause minor floods. They are covered hazards.

Floodings can happen for houses in proximities of major rivers like the Colorado River, Arkansas River, Canadian, or the Rio Grande, to mention just a few among the several. Heavy rains can cause the periodic overflow of some of them: sadly, floods are not covered on a basis by most if not all insurance companies, thus you are recommended to buy flood insurance. You can then proceed either by asking private specialized insurance companies or relying on the NFIP (National Flood Insurance Program): the first choice is certainly better if you want to get faster assistance and more flexibility about prices and coverage limits, but if facing a very high risk they can decline your request. The advantage of NFIP is to grant insurance regardless of risk, but this comes with substantial premiums, some limits for coverage, and a waiting time till the insurance becomes active.

Tornadoes are frequent in Eastern counties: they fall under the ‘wind’ category (not to be confused with hurricanes), so you are insured just subscribing to the regular standard policy.

A short mention of earthquakes: they can happen, but despite the mountain territory, they don’t represent an active menace, so dedicated insurance would be just an optional in Colorado.

How can you save on home insurance in Colorado?

 

Any measures that result in a less likely to file a claim will make you save on your homeowner’s policy: you may want to take action making your house safer.

Through checking different real estate websites, we found that more than 40% of houses in Colorado are older than forty years: if it’s your home, it may not meet the requirements to get a standard policy like H0-3, because being built in old and obsolete materials would mean greater costs for a replacement in the case of damages or loss. However, if for instance, you have one founded in the 70’s you can always consider retrofitting some components, so you will get better coverage at policy renewals (and stay safer in the long run).

  • Double check your roof: it can’t be stressed enough that a roof is a critical component for the wholeness of your house. Age of the roof is important in itself; moreover, some materials are better than others, depending on your location they must be suitable to bear the different hits of hail, thunders, the weight of ice, wind, or fire. A better roof equals a cheaper premium.
  • Strengthening the windows to resist hail and storms, reinforcing doors to prevent floods, having a modern masonry rather than brick architecture to resist fire, equipping yourself with a fire-alarm and extinguisher.
  • You may want also to protect your property from burglary, theft of precious, motor vehicle theft: that’s not a special issue in Colorado, but installing a dedicated alarm, having a vault, theft-proof locks, and strong doors are seen in the best light by insurers.

A good credit score is a relevant factor for f your insurance premium: are you in financial shape? If yes, you will get comfortable rates. In Colorado, the average score is 718, but, if you can hit more than 740 (a “very good” score), insurers can allow you cheaper policies, for example in the form of a discount.

It is not recommendable to have aggressive pets, since they can configure a liability matter, and can likely force a foreigner to make a claim against you, then insurance would be called into play. Some companies are so inflexible about this, that might even refuse to grant you a policy unless you get rid of the animals.

Finally, the general actions to have the lowest costs, without compromising the quality and quantity of coverages, are: shopping around for quotes comparison, choosing a high deductible, bundling your homeowner insurance with car insurance, and renewing the policy with the same company.

Get the right coverages for your condition through the use of our home insurance estimator, which will also give you a preview of what your annual premium will be based on deductibles. Only then, you will be ready to get quotes from the most trustworthy and reviewed insurance companies on the market.

* Methodology: we aggregated and averaged multiple quotes for every city of the State, assuming a 35 years old individual, married, with a good credit score. Our effort is to keep data always updated and the most accurate possible, so as to satisfy at best the consumer’s expectations.