Choosing the right home insurance company is a big decision. You want to enjoy low rates and ensure your insurance provider will cover any claims that come up. Colorado home insurance is a bit more expensive than the national average due to the inclement weather and wildfires that homeowners in the state tend to face. But whether you’re looking for a national carrier or a local business, there are plenty of excellent options. When comparing the best homeowners insurance in Colorado, we used our SimpleScore Methodology to look at each carrier’s discounts, coverage options, support, customer satisfaction and accessibility.
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The best home insurance companies in Colorado
Best for coverage options and discounts: Allstate
Best for low rates: ASI Progressive
Best for military families: USAA
Best for customer satisfaction: Country Financial
Best local insurance company: Colorado Farm Bureau Mutual Insurance
Best for coverage options and discounts – Allstate
If you like having options, look no further than Allstate — no one matches up to their coverage and discount options.
Allstate is unmatched when it comes to the number of coverage options and discounts it offers. In addition to the typical home insurance coverages, you can get extra coverage for unique situations and belongings. Plus, there are plenty of ways to save, with discounts offering 10% to 25% savings. Allstate also stands out in customer satisfaction, ranking near the top in J.D. Power’s 2020 home insurance study.
Best for Low Rates – Progressive
Budget shoppers will love Progressive’s low-cost insurance policies — just beware of discount-quality customer service.
4.2 / 5.0
SimpleScore Progressive 4.2
Progressive is well-known for its low-cost insurance policies, and homeowners insurance is no different. Progressive doesn’t actually underwrite its own home insurance policies. Instead, it works primarily with a company called ASI. But customers still have access to Progressive’s wide variety of coverage options and discounts. Unfortunately, J.D. Power ranks ASI Progressive near the bottom of the list for customer satisfaction.
Best for Military Families – USAA
USAA is one of the best in home insurance, but it’s an exclusive club available only to military families.
USAA is one of the best in the industry for insurance and banking products, but it’s only available to military members and veterans and their families. USAA consistently gets the highest rankings in customer satisfaction at some of the lowest rates. The company specifically tailors its coverage to situations unique to military families. For example, their coverages apply when a loss is incurred on active duty and while members are deployed.
Best for Customer Satisfaction – Country Financial
Country Financial is like a really great part with a small guest list — the company has a lot to offer, but only in a few states.
3 / 5.0
SimpleScore Country Financial 3
If you want the personal touch that comes with working with a small company, Country Financial might be the right choice for you. The company is only available in a handful of states. And for the lucky few who have access to this company, customer satisfaction is at the top of the list. The company also happens to offer some of the best options when it comes to coverages and discounts. Unique discounts allow customers to save when they have new homes or updated heating systems, roofs, and wiring.
Best local insurance company – Colorado Farm Bureau Insurance
If you’re the type to shop at the Ma and Pop stores over the chains, then you’ll love Colorado Farm Bureau for home insurance.
3 / 5.0
SimpleScore Colorado Farm Bureau Insurance 3
Customer Satisfaction N/A
Colorado Farm Bureau offers insurance specifically for Colorado residents. Those looking to work with a local carrier will love this option. Despite being a small local business, the Colorado Farm Bureau has an impressive list of coverage options. Unfortunately, the company can’t compete when it comes to discounts. The only way to save is by bundling your home and auto insurance. We can’t really compare Colorado Farm Bureau based on customer satisfaction, as it isn’t ranked in national studies.
In Colorado, you have the choice between both local and national carriers for homeowners insurance. There’s no one right choice for everyone — both options have a lot to offer. Just be sure to do your homework before purchasing a policy.
A personalized relationship with your agent.
More familiar with the risks and needs of their community.
Fewer discount options.
Fewer digital tools and apps.
Slower claims process.
More ways to save.
Fast claims processes.
More money to invest in digital tools.
May not have an individual agent.
Less of a personal touch.
Colorado’s minimum insurance requirements
Homeowners insurance isn’t like auto insurance; there’s no minimum requirement for how much insurance you have to buy. Technically you could decide not to purchase homeowners insurance at all, but that wouldn’t be a wise choice.
You never know what type of disaster could strike, from a fire to a natural disaster. You want to make sure you have enough insurance that you could replace your home and your belongings in the event of a total loss.
At the very least, homeowners typically have policies that cover:
Dwelling: meaning any damage to your home.
Personal property: which covers your belongings inside the home.
Liability: protection against a lawsuit.
Medical protection: to cover the medical bills for guests injured in your home.
It’s also important to be aware of the damages that occur most often in Colorado so you can make sure your insurance policy covers them.
Colorado ranks second nationwide for insurance claims due to hail. This doesn’t come as a surprise, given Colorado’s extreme winter and spring weather. Hail can cause damage to your windows, gutters, roof and landscaping. Make sure any home insurance policy you purchase includes coverage for hail damage.
No one expects a fire, and yet it’s one of the most common insurance claims across the country. Fire can be a result of lightning damage, wildfire, or even a home accident. Colorado suffered major wildfires in 2020, meaning many homeowners suffered damage or total loss. Keep in mind that those in areas prone to wildfires may end up paying higher insurance rates.
Your likelihood of theft in your neighborhood can impact your insurance rates. Property crime rates are dropping nationwide and aren’t particularly high in Colorado. That being said, you never know when you might be the victim of a crime, and you want to make sure your policy covers theft. You’re more likely to be the victim of theft in highly-populated areas.
How much does home insurance cost in Colorado?
Colorado residents pay an average premium of $1,417 for homeowners insurance. Rates in Colorado are about 15% higher than the national average of $1,228. Location is an important factor in determining insurance rates. Companies are likely to charge more in areas where inclement weather and fire are more likely, as is the case in Colorado.
Location isn’t the only factor, though. The age and quality of your home, the value of your personal possessions, and the size of your home all play an important role. You can expect that the more expensive your home would be to replace, the higher your insurance rates will be.
Flood insurance is not generally included in a standard homeowners insurance policy. If you live in a high-risk flood area, your mortgage lender may require you to carry flood insurance. Even if you aren’t at high risk of flood, you may still want to consider it. Be sure to ask your home insurance provider if they offer a discount for bundling home and flood insurance.
Your home insurance premium is the result of many factors, including your location, the size and age of your home, the value of your personal possessions, and more. Ideally, you want to make sure you have enough coverage to fully replace everything. You can lower your rate by increasing your deductible, shopping around with different carriers, and seeing what discounts you may qualify for. Sometimes something as simple as adding extra smoke detectors or a home alarm can lower your rate.
Depending on the value of your belongings, you may want to purchase additional coverage in your homeowners insurance policy. Read the fine print of your contract — your policy may only cover certain valuables up to a particular dollar amount. Items like jewelry, professional equipment, or high-end electronics may not be covered.
Too long, didn’t read?
Homeowners in Colorado pay slightly higher home insurance rates than the rest of the nation, largely due to the increased risk of inclement weather and wildfires. But there are still plenty of great options when it comes to homeowners insurance. Whether you want a national carrier or prefer to support a local business, there’s a carrier for you.
We welcome your feedback on this article and would love to hear about your experience with the insurers we recommend. Contact us at email@example.com with comments or questions.