State Farm is the cheapest company in Colorado for most customers and has excelant satisfaction ratings. Its rates average to $312 a month, which is 19% less than the state average of $386 a month.
USAA has the cheapest overall home insurance in Colorado at an average rate of $292 a month, but USAA is only available to the military community.
Find the Cheapest Home Insurance Quotes in Your Area It's free, simple and secure.State Farm has the cheapest homeowners insurance in Colorado for most customers. The company’s rates average $3,742 a year ($312 a month) for a typical Colorado home.
That’s 19% less than the state average of $4,630 a year.
USAA actually has Colorado’s cheapest overall home insurance company, at an average of $3,502 a year ($292 a month). However, USAA is only available to military members and their families.
| Company | Annual rate |
|---|---|
| State Farm | $3,742 |
| Allstate | $4,120 |
| American Family | $4,675 |
| Farmers | $4,744 |
| Travelers | $4,831 |
| Country Financial | $5,268 |
| Nationwide | $6,627 |
| USAA* | $3,502 |
The best home insurance companies in Colorado combine low rates with high customer service ratings.
| Company | LendingTree score | Satisfaction score | Complaint rating |
|---|---|---|---|
| Best overall: State Farm | | 829 (Good) | 1.0 (Average) |
| Best policy features: Allstate | | 809 (Below average) | 0.9 (Average) |
| Best discounts: American Family | | 813 (Average) | 0.4 (Excellent) |
| Best for military families: USAA | | 861 (Excellent) | 0.4 (Excellent) |
Satisfaction scores are based on J.D. Power’s overall customer satisfaction index rankings for 2023. The segment average is 819, and higher scores are better.
Complaint ratings are compiled by the National Association of Insurance Commissioners. A company with a 2.0 complaint rating has twice as many confirmed complaints as expected for its size, while one with a 0.5 rating has half as many.
Affordable rates and quality customer service have helped State Farm remain the state’s largest home insurance company. State Farm ranks second only to USAA in Colorado for price and customer satisfaction.
Cheapest average rate in Colorado for most homeowners
Complaint rating is just average
High satisfaction ratings
Agents widely available to provide personalized service
Generous discounts for bundling home and auto insurance
Although Allstate might not have the cheapest rates in Colorado, some of its policy features may save you money down the line.
Average home insurance rate 11% less than the state average
Must upgrade to an Enhanced Package to get Allstate RateGuard and Deductible Rewards benefits
Allstate’s Claim Rateguard protects against a potential rate increase after your first claim
Satisfaction score is lower than average
Deductible Rewards lowers your deductible when you avoid claims
Bundling home and auto saves an average of 25%
Additional discounts for newly constructed homes and recent homebuyers
American Family’s home insurance rates are close to the state average, but you may qualify for a lower rate if your home is relatively new or if you upgrade your home’s major systems.
Strong complaint rating
Average rate before discounts is slightly higher than the state average
Age discount lowers rates for homes less than 15 years old
Renovated home discount for replacing your plumbing, electrical or heating systems
In addition to low rates and high satisfaction scores, USAA also offers several other benefits to its home insurance customers.
Cheapest home insurance rates in Colorado
Only available to current and former military members and their families
Military equipment and uniform coverage included for active-duty service members
You may end up talking to a different call center representative each time you phone in for help
Replacement cost coverage is standard for your belongings
Discounts available on home security devices and services
The average cost of home insurance in Colorado is $4,630 a year ($386 a month).
The actual price you pay depends on factors such as:
Since insurance companies weigh these factors differently, one may offer you a significantly lower rate than the others. This is why you should compare quotes from multiple companies when you shop for home insurance.
The average price of home insurance with $450,000 in dwelling coverage will usually cost 10% more than a home insured for $400,000.
| Dwelling limit | Average annual rate |
|---|---|
| $350,000 | $4,164 |
| $400,000 | $4,630 |
| $450,000 | $5,083 |
Your policy’s dwelling coverage pays to repair damage from covered perils such as fire or windstorm, up to the limit you choose.
For mortgages, lenders require you to insure your home at its replacement value or the cost of rebuilding it. This is usually lower than your home’s purchase price, or market value.
You can choose a lower dwelling limit when your mortgage balance gets low enough or if you own your home outright. However, if your dwelling limit is too low, you may not get enough insurance money to rebuild after a disaster.
Among Colorado’s largest cities, average homeowners insurance rates range from $3,978 a year in Fort Collins to $6,124 in Pueblo.
The typical price of a home insurance policy in Denver is $5,496, which is 19% higher than the state average.
| City | Annual rate |
|---|---|
| Arvada | $5,165 |
| Aurora | $5,604 |
| Boulder | $4,327 |
| Centennial | $5,589 |
| Colorado Springs | $5,742 |
| Denver | $5,496 |
| Fort Collins | $3,978 |
| Greeley | $5,040 |
| Highlands Ranch | $5,524 |
| Lakewood | $5,244 |
| Longmont | $4,385 |
| Loveland | $4,040 |
| Pueblo | $6,124 |
| Thornton | $5,169 |
| Westminster | $5,053 |
Since standard home insurance does not cover floods, you would have to purchase flood insurance separately to protect your home from this risk.
Most flood insurance is purchased through the National Flood Insurance Program (NFIP), which is managed by the Federal Emergency Management Agency (FEMA). Several private companies also offer flood insurance in Colorado as an alternative to an NFIP policy.
The average cost of flood insurance in Colorado is $810 a year, or $68 a month, for NFIP insurance.
Flood insurance is required for a mortgage if your home is in a high-risk flood zone. Flood insurance is also often worth considering if you don’t have a mortgage and/or your home is in a low- or moderate-risk area.
You can find your home’s flood zone, or the flood zone of a home you want to buy, in the Flood Map Service Center on FEMA’s website.
Earthquakes, landslides and mudslides are among the other Colorado risks that homeowners insurance does not typically cover.
Some home insurance companies offer an endorsement that you can buy to add earthquake coverage to your home insurance. Earthquake insurance is also offered as a separate, standalone policy.
Landslides and mudslides are a little trickier to insure against. You usually have to purchase a “difference-in-conditions” (expanded) policy to protect against these risks.
Some difference-in-conditions policies protect against multiple risks, such as landslides, floods and earthquakes. Depending on the insurance company, these may be cheaper than getting separate policies for each of these dangers.
Massive wildfires and hailstorms in recent years, along with soaring construction costs, have led to high homeowners insurance rates throughout Colorado. Home insurance companies have increased their rates to keep up with their payments to repair and rebuild damaged homes.
Homeowners insurance is not required by state law, but you usually need it for a mortgage. Lenders typically require you to insure your home at its replacement value. If you live in a high-risk flood zone, your lender will probably make you get flood insurance, too.
Shopping around for the cheapest rate and bundling multiple policies with the same company can help you save money on homeowners insurance. Make sure to ask about additional discounts when you shop.
Share ArticleThe rates shown in this article are based on an analysis of non-binding quotes obtained from Quadrant Information Services for sample homes in every Colorado ZIP code. Unless otherwise noted, policies include:
*USAA is only available to current and former members of the military and their families.
Our team of insurance experts rated insurance companies based on several categories. These categories include average rates, discounts, coverage options, third party customer service ratings, and app / website experience. We weighted these categories based on what customers value in an insurance company.
For 3rd party customer service ratings, we included NAIC’s Complaint Index scores and financial strength ratings from A.M. Best. NAIC Complaint Index scores are used to determine how satisfied customers are with their claims, while financial strength ratings from A.M. Best reflect the ability to pay out claims.
The rates shown in this article are based on an analysis of non-binding quotes obtained from Quadrant Information Services for sample homes in every Colorado ZIP code. Unless otherwise noted, policies include:
*USAA is only available to current and former members of the military and their families.
Our team of insurance experts rated insurance companies based on several categories. These categories include average rates, discounts, coverage options, third party customer service ratings, and app / website experience. We weighted these categories based on what customers value in an insurance company.
For 3rd party customer service ratings, we included NAIC’s Complaint Index scores and financial strength ratings from A.M. Best. NAIC Complaint Index scores are used to determine how satisfied customers are with their claims, while financial strength ratings from A.M. Best reflect the ability to pay out claims.
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