If you are in the market for homeowners insurance in Colorado, it can be challenging to figure out which company is right for you. Colorado homeowners pay an average of $1,659 per year for $200,000 in dwelling coverage, based on 2021 data from Bankrate.com. To simplify your shopping experience, Reviews.com did some research to find the best homeowners insurance in Colorado.
We determined that the top providers in Colorado are Auto-Owners, USAA, Allstate, American Family, Travelers, and State Farm. We chose these providers based on their average rates, coverage options, discounts, financial strength scores, and third-party ratings.
Reviews.com used 2021 rates provided by Bankrate.com for average home insurance premiums in Colorado, and a unique in-house methodology to compare discounts, coverage, and third-party evaluations to rank and review the best home insurance companies in the state. Comparing quotes from carriers that provide home insurance in Colorado might help get the best homeowners insurance rates and coverage types available.
The 6 Best Home Insurance Companies in Colorado
- Auto-Owners: Best Colorado Home Insurance for Affordable and Robust Coverage
- USAA: Best Colorado Home Insurance for Military-Centric Options
- Allstate: Best Colorado Home Insurance for Discounts
- American Family: Best Colorado Home Insurance for New Home Purchases
- Travelers: Best Colorado Home Insurance for Sustainable Homes
- State Farm: Best Colorado Home Insurance for Policy Bundling
Compare the Best Home Insurance Companies in Colorado
| AVERAGE ANNUAL PREMIUM* | AM Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. Power Customer Satisfaction** J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|
| Pin Auto-Owners | $1,060 | A++ | 831 | |
| Pin USAA | $1,310 | A++ | 831 | |
| Pin Allstate | $1,952 | A+ | 829 | |
| Pin American Family | $1,434 | A | 831 | |
| Pin Travelers | $1,330 | A++ | 800 | |
| Pin State Farm | $2,232 | A++ | 835 |
Information accurate as of September 2021
* Data provided by Bankrate.com for $250,000 in dwelling coverage
**J.D. Power 2021 Home Insurance Satisfaction Study. Based on a 1,000-point scale. USAA is not officially rated due to eligibility restrictions.
Best for Affordable and Robust Coverage
Why we chose it
Why we chose it
Pros
- Lower premiums on average
- Excellent financial strength
- Variety of discounts
Cons
- Must work with agent to buy policy
- No option to get a quote online
Add-on Coverage
- Guaranteed home replacement cost
- Special personal property
- Homeowners Plus package
- Identity theft expense
- Water backup/sump pump
- Ordinance/law
- Equipment breakdown
Discounts Available
- Multi-policy
- Life multi-policy
- Payment history
- Paperless
- Protective devices
- Automatic backup generator
- Pay in full
- Advance quote
- Water shut off system
- Mortgage-free
- Favorable loss history
Best for Military-Centric Options
Why we chose it
Why we chose it
Pros
- Outstanding customer service rating
- Policies tailored to military family needs
- Competitive pricing
- Replacement cost coverage is standard for personal items
Cons
- Only available to current and former military members and their families
- Limited coverage options and discounts
- Few branch locations
Add-on Coverage
- Home sharing
- Earthquake
Discounts Available
- Multi-policy
- Home security system
- Claim-free
Best for Discounts
why we chose it
Why we chose it
Pros
- Diverse discount opportunities
- Informative website and digital tools
- Good variety of endorsements for customized coverage
Cons
- More expensive premiums than competitors on average
- High number of National Association of Insurance Commissioners (NAIC) complaints
- Replacement cost coverage isn’t standard
Add-on Coverage
- HostAdvantage insurance
- Identity theft restoration
- Water backup
- Scheduled personal property
- Business property
- Sports equipment
- Green improvement reimbursement coverage
- Yard and garden
- Electronic data recovery coverage
- Musical instrument
Discounts Available
- Multi-policy
- Responsible payer
- Claim-free
- Welcome and loyalty
- Homebuyer
- Automatic payments
- Protective device
- Early signing
Best for New Home Purchases
why we chose it
Why we chose it
Pros
- Customizable coverage options
- Good customer satisfaction ratings and 24/7 claims center
- Helpful digital resources for new homebuyers
Cons
- Lower financial strength than others on our list
- Higher-than-average NAIC complaint index score
Add-on Coverage
- Equipment breakdown
- Water backup/sump pump
- Matching siding protection
- Credit theft protection
- Hidden water damage
Discounts Available
- Bundling
- Payment discounts
- Age of home
- Loyalty
- Generational
- Renovated home
Best for Sustainable Homes
why we chose it
Why we chose it
Pros
- Slightly lower premiums than competitors
- Specialty coverages and discounts for green homes
- High financial strength rating
Cons
- Low customer satisfaction score
- Not many discounts
- Higher number of complaints from the NAIC
Add-on Coverage
- Special personal property
- Contents replacement cost
- Additional replacement cost protection
- Jewelry and valuables
- Personal articles floater
- Water backup/sump pump
- Green home
- Identity fraud
Discounts Available
- Multi-policy
- Home buyer
- Loss-free
- Protective device
- Green home
Best for Policy Bundling
why we chose it
Why we chose it
Pros
- Excellent financial strength rating
- Great discounts and policy bundling opportunities
- Strong reputation in the industry
- Some helpful online tools and resources
Cons
- High number of complaints from the NAIC
- Higher average premiums than competitors
- Only a few endorsements available
Add-on Coverage
- Identity theft coverage
- Valuables coverages
Discounts Available
- Multi-policy
- Impact-resistant roof
- Home security system
* Data provided by Bankrate.com for $250,000 in dwelling coverage
**J.D. Power 2021 Home Insurance Satisfaction Study. Based on a 1,000-point scale. USAA is not officially rated due to eligibility restrictions.
Homeowners Insurance Companies in Colorado
| Company | Average Annual Premium* |
| State Auto Insurance | $589 |
| Grange | $998 |
| Auto-Owners | $1,060 |
| USAA | $1,310 |
| Travelers | $1,330 |
| American Family | $1,434 |
| Chubb | $1,466 |
| Shelter | $1,615 |
| Acuity | $1,670 |
| California Casualty | $1,706 |
| Allstate | $1,952 |
| State Farm | $2,232 |
| Farmers | $3,868 |
*Data provided by Bankrate.com for $250,000 in dwelling coverage
Top 3 Cheapest Homeowner Insurance Companies in Colorado
| Company | Average Annual Premium* |
| State Auto Insurance | $589 |
| Grange | $998 |
| Auto-Owners | $1,060 |
*Data provided by Bankrate.com for $250,000 in dwelling coverage
Top 3 Most Expensive Homeowner Insurance Companies in Colorado
| Company | Average Annual Premium* |
| Farmers | $3,868 |
| State Farm | $2,232 |
| Allstate | $1,952 |
*Data provided by Bankrate.com for $250,000 in dwelling coverage
Common Home Insurance Perils in Colorado
There are a handful of common home insurance perils that homeowners in Colorado should be aware of. Understanding these risks can help you decide what type of coverage you might need, and how much coverage is necessary for your home.
One of the most prevalent Colorado home insurance perils are wildfires, which are becoming more common due to climate change. According to the Triple-I, Colorado has the third highest risk of wildfires in the country, only behind California and Texas. An estimated 371,100 properties, or 17% of the properties in the state, could get damaged or destroyed by a wildfire.
Another common peril is flooding, which is often caused by heavy rain and snow melt. The last major flood in Colorado occurred in 2013, when 1,600 homes were destroyed after multiple heavy rain storms. However, Colorado officials say that every county in the state has at least a few areas that are prone to flooding year-round.
Add-on Home Insurance Coverage in Colorado
Standard Colorado home insurance policies are pretty comprehensive. You can check your policy’s declaration page to see exactly what your policy does and does not cover. However, Colorado homeowners can benefit from purchasing certain optional coverages for added protection.
Flood insurance may be one of the most important policies to have because standard Colorado homeowners insurance policies don’t cover flooding, although other types of water damage are typically covered. You may be able to purchase flood insurance through the federally-funded National Flood Insurance Program (NFIP). Along with that, many homeowners can benefit from purchasing replacement cost coverage for their dwelling or personal belongings, which can help you replace your home or items after a covered loss.
If you keep jewelry or other valuable items in your home, you should also consider getting valuables coverage or scheduled personal property coverage added to your home insurance in Colorado, which is available from all the providers we reviewed. This endorsement raises your coverage limits for certain items that might otherwise be covered at a very low limit.
For Colorado homeowners who need some extra help deciding how much or what type of coverage to get, check out these resources:
- Rocky Mountain Insurance Information Association: Colorado Wildfire and Insurance Guide
- Colorado Department of Insurance: Home Insurance Premiums Report
- Colorado Department of Insurance: My Homeowners Insurance Doesn’t Cover What?
Colorado Home Insurance Frequently Asked Questions
Methodology
We evaluated the companies based on their third-party agency ratings for customer experience, financial stability, and coverage options to determine which might be the best providers.
To compare home insurance companies across the board, we considered the following factors:
- Customer Ratings — Customer ratings are an indication of satisfaction with the overall experience with a company. We measured this using 2021 J.D. Power Home Insurance Study ratings.
- Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength ratings indicate a positive history of being able to pay out claims. We measured this using AM Best ratings.
- Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the National Association of Insurance Companies National Complaint Index.
Rates are based on quoted annual premiums from Bankrate.com. These are sample rates and should be used for comparative purposes only. Your quotes may be different.
The coverage limits for home insurance rates reflect the following coverage and limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
About the Authors
Elizabeth Rivelli is an insurance writer for Reviews.com. Over the last year, she has covered insurance providers, best policies, industry trends and more. Elizabeth has been featured in The Simple Dollar, Bankrate and Coverage.com, among others. She holds a bachelor's degree in Communication Studies from Northeastern University in Boston, MA. The Best Term Life Insurance Companies is Elizabeth’s favorite review on Reviews.com.
