Best Cheap Home Insurance Companies in Colorado (2024)
Auto-Owners has the most affordable home insurance in Colorado. It charges $2,011 per year for $350,000 of coverage to repair your home.
Compare Home Insurance Quotes in Colorado
Best Cheap Home Insurance in CO
ValuePenguin editors gathered home insurance quotes from every ZIP code in Colorado for a dozen top companies. These companies were compared using factors such as cost data, customer satisfaction, coverage options and plan quality.
Cheapest homeowners insurance in Colorado
Auto-Owners has the most affordable homeowners insurance in Colorado.
You'll pay $2,011 per year for an Auto-Owners policy with $350,000 of dwelling coverage on average. That's a savings of 40% ($1,320 per year) over the Colorado state average of $3,331 per year.
Compare Home Insurance Quotes in Colorado
Auto-Owners is also a good choice if you have a high-value home. An Auto-Owners home insurance policy with $500,000 of coverage to repair your house, called dwelling coverage, costs $2,526 per year. That's 43% below the Colorado state average of $4,410.
Best cheap homeowners insurance in CO
$200,000
$350,000
$500,000
$1 million
Company | Annual rate | ||
|---|---|---|---|
| Farm Bureau | $1,499 | |
| Auto-Owners | $1,535 | |
| State Farm | $1,561 | |
| Shelter | $1,826 | |
| American Family | $2,324 | |
$200,000
Company | Annual rate | ||
|---|---|---|---|
|
| Farm Bureau | $1,499 | |
|
| Auto-Owners | $1,535 | |
|
| State Farm | $1,561 | |
|
| Shelter | $1,826 | |
|
| American Family | $2,324 | |
$350,000
Company | Annual rate | ||
|---|---|---|---|
|
| Auto-Owners | $2,011 | |
|
| State Farm | $2,080 | |
|
| Farm Bureau | $2,388 | |
|
| Shelter | $2,690 | |
| Farmers | $3,245 | |
$500,000
Company | Annual rate | ||
|---|---|---|---|
|
| Auto-Owners | $2,526 | |
|
| State Farm | $2,688 | |
|
| Farm Bureau | $3,407 | |
|
| Shelter | $3,681 | |
| Allstate | $3,945 | |
$1 million
Company | Annual rate | ||
|---|---|---|---|
|
| State Farm | $4,340 | |
|
| Auto-Owners | $4,619 | |
|
| Allstate | $5,676 | |
|
| Farmers | $6,052 | |
|
| Shelter | $6,273 | |
Common natural disasters to watch out for in Colorado
Wildfires are one of the most common and destructive hazards that affect Colorado homeowners. According to the Colorado State Forest Service, more than 1 million people in Colorado live in an area that's at a moderate to high risk of wildfires.
Many homeowners' policies automatically cover wildfires. However, some companies will exclude damage from wildfires, especially if you live in a high-risk area. It's a good idea to buy a standalone fire policy if you don't have coverage through your regular insurance.
Best home insurance in Colorado for most people: Auto-Owners
-
Editor's rating
- Cost: $2,011/yr
Auto-Owners has the cheapest home insurance quotes in Colorado.
Pros:
-
Cheapest rates in CO
-
Good customer service
-
Many discounts and extra coverage options
-
Many local agents available
Cons:
-
No online quotes available
Auto-Owners charges $2,011 per year for $350,000 of dwelling coverage on average. That's 40% below the Colorado state average. Auto-Owners also offers cheap rates for more expensive homes. It's the cheapest option for $500,000 of coverage and the second most affordable choice for $1 million.
Auto-Owners customers tend to be satisfied with their coverage. Auto-Owners gets significantly fewer complaints compared to an average company of the same size, according to the National Association of Insurance Commissioners (NAIC), an industry group. Auto-Owners also had the third-highest customer satisfaction score among large home insurance companies on a recent J.D. Power survey.
It's important to choose a company with a good customer service reputation to ensure a smooth claims process.
Auto-Owners offers a range of extra coverage options that you can add to your main policy.
- Guaranteed home replacement cost
- Water backup of sewers or drains
- Special personal property coverage
- Ordinance or law coverage
- Homeowners plus Home cyber protection
- Identity theft expense coverage
- Equipment breakdown
- Inland flood coverage
Auto-Owners doesn't offer online quotes. You'll have to call up a local agent to get a quote. That makes comparing prices more difficult. However, some people prefer the personalized experience of working with an agent.
Best national homeowners insurance in Colorado: State Farm
-
Editor's rating
- Cost: $2,080/yr
State Farm is a good choice if you want a trusted national brand with cheap rates and strong customer service.
Pros:
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Affordable rates
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Strong network of local agents
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Good customer satisfaction
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Cheap home-auto bundling discount
Cons:
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Few extra coverage and discount options
State Farm has the best home insurance in Colorado among national insurance companies. A State Farm homeowners policy costs $2,080 per year for $350,000 of dwelling coverage. That's 38% cheaper than the Colorado state average.
State Farm has a strong customer service reputation. It gets fewer complaints compared to an average company of the same size, according to the NAIC. State Farm also scored above average on J.D. Power's most recent customer survey.
State Farm has some of the cheapest car insurance rates in America. That makes it a good choice if you'd like to bundle your home and car insurance.
Unfortunately, State Farm doesn't offer a broad range of discounts. Colorado homeowners may take advantage of State Farm's home security insurance discount if they have a qualifying fire, smoke or burglar alarm system.
Best CO homeowners insurance for customer satisfaction: Farm Bureau
-
Editor's rating
- Cost: $2,388/yr
Farm Bureau gets very few complaints compared to an average insurance company of the same size.
Pros:
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Very few complaints
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Big network of local agents
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Cheap quotes
Cons:
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No online quotes
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Few extra coverage options
Farm Bureau gets the fewest complaints of any home insurance company in Colorado , according to the NAIC. That makes it an excellent choice if customer service is a high priority for you.
Farm Bureau has some of the cheapest rates of any home insurance company in Colorado. However, you must buy a Farm Bureau membership to take advantage of these low rates. Memberships usually cost less than $100 per year. That means you'll still save $843 per year over the Colorado state average with a Farm Bureau policy.
Farm Bureau doesn't offer online quotes. However, its agents have a reputation for being friendly and helpful. Customers usually meet with their agents once per year to review their coverage. During this process, your agent will look for new discounts for which you may qualify.
Farm Bureau doesn't offer as many extra coverage options as some of its competitors. However, you can take advantage of its umbrella policy, valuable items , equipment breakdown coverage for major appliances and replacement cost coverage .
Average home insurance cost in Colorado
Colorado has some of the highest home insurance costs in the U.S.
The average Colorado homeowners insurance policy costs $3,331 per year for $350,000 of dwelling coverage . That's 55% more expensive than the national average of $2,151 per year.
Average cost of home insurance in CO
Dwelling coverage | Annual cost |
|---|---|
| $200,000 | $2,339 |
| $350,000 | $3,331 |
| $500,000 | $4,410 |
| $1,000,000 | $7,587 |
Colorado has higher home insurance rates compared to most neighboring states. Home insurance is much cheaper in Arizona, where it costs $1,993, and Nevada, where coverage costs $1,350 per year. However, rates in nearby Nebraska are more expensive, at $4,370 per year.
Homeowners insurance quotes in Colorado by city
The difference between the average home insurance rates in Colorado's most and least expensive city is $3,314.
Where you live in Colorado will have a big impact on how much you pay for home insurance. The most expensive city in Colorado, Lamar, has an average home insurance cost of $4,864 per year, while the cheapest city, Fruitvale, has an average rate of $1,550 per year.
The high frequency of tornadoes in the Eastern part of Colorado may contribute to high rates in communities such as Lamar and nearby states including Nebraska, Oklahoma and Kansas.
Cost of CO home insurance by city
City | Annual rate | % from avg |
|---|---|---|
| Acres Green | $4,198 | 26% |
| Agate | $4,270 | 28% |
| Aguilar | $3,473 | 4% |
| Air Force Academy | $4,030 | 21% |
| Akron | $4,532 | 36% |
Rates are for a policy with $350,000 of dwelling coverage.
In Denver, Colorado's largest city, home insurance costs $4,002 per year, or 20% above the state average. In Colorado Springs, the state's second-largest city, you'll pay $4,248 per year on average.
Best-rated Colorado home insurance companies
Auto-Owners, Farm Bureau and State Farm have the best-rated home insurance in Colorado.
These three companies earned high ratings from ValuePenguin editors for combining cheap rates, good customer service and quality coverage.
Colorado home insurance company reviews
Company |
Rating
|
Complaints
|
|---|---|---|
| Auto-Owners | Low | |
| State Farm | Average | |
| Farm Bureau | Low | |
| Shelter | Average | |
| American Family | Low |
Common natural disasters to watch out for in Colorado
Common risks for Colorado homeowners include wildfires, tornadoes, flooding and snowstorms.
Wildfires are the most widespread hazard in the state. Fortunately, most home insurance policies automatically protect you against wildfires. However, this coverage isn't guaranteed. Read through your policy carefully to make sure your home is protected.
If your homeowner's insurance doesn't include wildfire coverage, consider buying a separate wildfire insurance policy
Does Colorado home insurance cover floods?
You need to buy a separate flood insurance policy to protect your house from flood damage. Mortgage companies typically require homeowners to buy flood insurance if they live in a high-risk area.
Keep in mind that flood insurance protects against water that comes into your house because of flooding. It will not protect against water that enters your house through a backed-up pipe or drain. You'll need coverage through your home insurance policy for that.
Wind and tornado coverage
Most standard home insurance policies cover damage caused by heavy winds and tornadoes.
However, if you live in a tornado-prone area, you may have a separate deductible for wind damage. This may apply to residents who live in the Eastern part of the state known as Tornado Alley.
Heavy snowfall
Home insurance policies typically pay for damage caused by snow.
Colorado's mountainous landscape means that many residents will face a snowstorm at some point in their lives. Fortunately, a standard home insurance policy will cover most types of damage caused by snow, including roof repairs and damage caused by falling trees.
Insurance companies may refuse to cover preventable damage. For example, your policy likely won't pay out if you leave a window open and snow melt damages your carpet.
Tips for getting cheaper home insurance in Colorado
You can lower your Colorado home insurance rates by shopping around, finding discounts and raising your deductible.
It's important to compare rates when shopping for home insurance. For example, you could save $2,761 per year by switching from the most expensive home insurance in Colorado, Country Financial, to the cheapest home insurance, Auto-Owners.
Keep in mind that higher prices don't mean better coverage or service. Auto-Owners offers significantly better customer service compared to Country Financial, even though Auto-Owners costs less than half as much.
Many companies offer discounts that can lower your monthly home insurance rate. The number and type of discounts will differ from company to company, but common discounts include home-auto bundling, discounts for installing safety systems such as burglar and fire alarms, and paperless billing discounts when you pay online.
Before your home insurance coverage starts, you'll need to pay a certain amount of money toward your home repairs, called a deductible. You can adjust your deductible up or down when you buy a policy. If you set a higher deductible, you'll pay a lower monthly rate.
Keep in mind that you're responsible for paying your entire deductible. You should never set your deductible beyond what you can easily afford to pay from your savings account.
Frequently asked questions
Who has the most affordable homeowners insurance in Colorado?
Auto-Owners has the most affordable homeowners insurance in Colorado. You'll pay $2,011 per year for $350,000 of coverage that will pay to repair your home after a covered accident, called dwelling coverage.
What are the best home insurance companies in Colorado?
Auto-Owners, State Farm and Farm Bureau are the best home insurance companies in Colorado because of their cheap rates, strong customer service and quality coverage.
The best company for you will depend on your priorities. For example, you should consider Auto-Owners if you want the best rate, while Farm Bureau is a better choice if customer service tops your list of must-haves.
Why is Colorado homeowners insurance so expensive?
Colorado suffers from a variety of natural disasters including tornadoes, wildfires and snowstorms. In addition, the rising cost of labor and materials in recent years has increased the cost of home repairs.
How much does the average homeowner's insurance policy cost in Colorado?
The average homeowner's policy in Colorado costs $3,331 per year. That's 55% above the national average of $2,151 per year.
Methodology
To find the best homeowners insurance in Colorado, ValuePenguin collected quotes from the top companies across every residential ZIP code in the state. Rates are for a 45-year-old married man with no prior insurance claims.
Quotes include the following coverage limits:
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $5,000
- Deductible: $1,000
Insurance rate data from Quadrant Information Services was used in this analysis. Quadrant's rates were taken from public filings and should be used for comparative purposes only.
The National Association of Insurance Commissioners (NAIC), the J.D. Power customer satisfaction survey and ValuePenguin's ratings were used when creating home insurance company ratings.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.