The ongoing problem for residents of The Centennial State continues to be that Colorado homeowners insurance rates increase. For a while, it was easy to point to one or two core reasons for higher homeowners insurance in Colorado. But this is no longer the case.
Several factors are affecting Colorado home insurance premiums and the end result means higher rates for homeowners. In many ways, it’s out of the hands of homeowners, but there are still ways to save money and keep costs low as you navigate a changing market.
Freedom Insurance Group works with several top-rated insurance carriers, allowing our clients more options for saving on premiums. Learn more about the reasons Colorado homeowners insurance rates are increasing and what you can do about it to save more money.
Are Homeowners Insurance Rates Going Up in Colorado?
Yes, Colorado homeowners insurance rates are continuing to increase and the trend should continue in the future. For a state that already falls on the higher side of things when it comes to home insurance premiums, this isn’t exactly welcome news for anyone, but especially, homeowners.
It’s easy to point to one reason for the Colorado homeowners insurance rate increase we have seen over the last several years, but there are actually several causes. Sadly, these factors are often determined by issues that go far beyond the control of individuals or even Coloradans as a whole.
The Reasons for Continuing Colorado Homeowners Insurance Rate Increase
We continue to witness the average cost of homeowners insurance in Colorado rise higher and while there are things homeowners can do to curtail these costs, it’s still worth noting the underlying factors that are causing these increases, along with the fact, that much of it is out of our hands:
Wildfires Are a Persisting Threat
There have been reports of wildfires raising the cost of home insurance for Colorado residents to astronomical levels. This is a sad reality for some and across the board, helping raise costs as well.
But wildfires aren’t the only reason for the increase in premiums. However, it’s worth noting that not only are wildfires causing increased risk and increased premiums as a result due to fires, but the lack of vegetation is also increasing the risk of flooding.
Additional Unusual Weather Patterns
Beyond the increased wildfire threat, there have been shifting weather patterns for The Centennial State, including periods of unusual rainfall, that are adding to the weather-related threats in the area. Sadly, this is also a concern for home insurance companies and a variable raising premiums for homeowners.
Population Increase Has Slowed (But Still Exists)
Moving to Colorado isn’t as popular as it once was. There are many reasons for this and as we continue to move out of the pandemic years, it’ll be interesting to see what this looks like long term. But there are still people moving into the state and this only adds to the cost of premiums.
Premiums can increase for many reasons and a population increase can help drive costs up as there is a higher likelihood for liability claims or damage to your property in general with more people around.
It’s also worth noting that an increase in population the need for more infrastructure and construction. This is a bad combination for a state already dealing with evolving flooding issues as the lack of vegetation is made that much worse due to the increase of concrete in the area because of a higher population.
General Inflationary Increases
Inflation may be calming down from its peak, but the effects are still lingering. Furthermore, inflation is somewhat of a natural part of even a healthy economy. So, premiums for property insurance in Colorado continue to trend upward for many reasons, and one of them is simply that the cost of goods and services trend higher over time naturally.
How To Lower Costs as Colorado Homeowners Insurance Rates Increase
It doesn’t make much sense to overpay for anything, especially for homeowners insurance. Your coverage is financial safekeeping at its core and if you are paying too much for your coverage, the purpose of its security is lost. This is why we love to empower homeowners with the knowledge they need to save more.
While you can’t change the weather, you do have options available to you to keep costs down. The most powerful of them all is to simply shop around and compare premium costs from a variety of companies. Here’s why this time-consuming option is the best for saving you money:
Each home insurance company offers its own coverage and although they are often similar in how they protect you, the costs are not.
Of course, you’ll still want to review your coverage, but the costs aren’t necessarily all that different just because of the policy itself. Instead, premiums change from company to company because of how each brand views you as a client.
You’re going to be assessed based on the amount of risk you possess as a client when enrolling in coverage for your home. If you have more risk factors that could make you more susceptible to filing a claim, expect higher premiums, and conversely, if you are deemed to have fewer risks, expect a cheaper rate.
However, no two home insurance companies do this the same way. Each brand has its own method and algorithms for doing so. This is why you’ll see so many different premiums when quoting your coverage.
By comparing different companies, you gain insight into a greater range of your available options, discounts, and more. But it is an admittedly time-consuming process, which is how we can help.
Our team of experts works together with our many insurance partners and can help you compare premiums and coverage in a fraction of the time. We’ll also help you find better bundles for flood insurance and car insurance for more savings and better protection.
Contact us or get a homeowners insurance quote online for free to help save amid the Colorado homeowners insurance rates increase property owners are facing today.