There’s no state quite like Colorado. It’s a state filled with beautiful landscapes, recreational havens, and modern amenities sprawling throughout a place that has mastered balancing nature and cityscapes. But there are still threats to your home in this western paradise, which is why homeowners insurance in Colorado is an imperative protection for anyone who owns a home.
If you take the time to look, you’ll notice that there are plenty of home insurance companies to choose from, coverages to select, costs to consider, and other factors. How do you know that you’re getting the best home insurance coverage for the lowest price?
Explore your Colorado homeowners insurance options, learn how to save money, and what affects your coverage in The Centennial State.
How Much Is Homeowners Insurance in Colorado?
The average cost of homeowners insurance Colorado homeowners pay per year is $1,584. This is compared to the national average of $1,428 per year that most Americans spend on coverage.
As you can see, this is a much higher figure than the national average meaning Coloradans are paying more to keep their home and personal property protected. Fortunately, there are options out there to help homeowners avoid overpaying for coverage.
Homeowners have options as there are many different home insurance companies available, and we’re here to help. If you’d like to receive a home insurance quote, please contact us today as our agents can shop your coverage to identify the lowest cost for your policy.
A key to finding the lowest price for your coverage is simply shopping around. But how and where you shop will make all the difference. Below, let’s explore some of the top carriers available in Colorado for your coverage.
Top Colorado Homeowners Insurance Companies Available
The best home insurance companies in Colorado are going to be different for each home. This is because the needs and risks of each property are different. Here at Freedom Insurance Group, we only work with top-rated carriers to protect our clients. Explore some of the great carriers we offer:
- Allstate Home and Auto Insurance
- Progressive Home Insurance
- Safeco / Liberty Mutual Home and Auto Insurance
- Travelers Home and Auto Insurance
- Foremost Home and Landlord Insurance
- Kemper Home Insurance
- Infinity Home Insurance
- Anchor Home and Property Insurance
- Stillwater Home and Auto Insurance
- National Summit Home Insurance
- Wellington Home and Investment Property Insurance
- Hippo Home Insurance
- National General Home Insurance
- Bristol West Home Insurance
- Weston Home Insurance
- And more
We only work with top-rated brands because it’s important to know that your home insurance provider is there for you when it matters the most. There are plenty of name brands out there, but it’s the important thing to focus on is how financially sound and viable a company is.
Home insurance companies need to be able to pay a claim after a loss in a timely manner. There have also been several instances throughout the United States in which companies end up leaving policyholders high and dry after suffering widespread losses in an area.
All of the insurance carriers we partner with to provide homeowners insurance in Colorado receive top ratings from independent entities such as A.M. Best or Moody’s. This ensures that when you enroll in coverage, your property insurance in Colorado is protection you can count on in your time of need.
Perils That Threaten Homes in Colorado
Home insurance in Colorado is here to protect your property and several risks are up against. In the insurance world, these threats are known as perils and a standard home insurance policy (HO-3) will help you restore losses that occur as a result of them. They include:
- Accidental escape of water or steam
- Aircrafts causing damage
- Breakage of glass
- Damage from wildfires, house fires, and lightning
- Damage caused by hail
- Falling objects
- Freezing and thawing causing water to back up under the roofing
- Freezing of plumbing, heating, and more
- Riots/civil commotion
- Smoke damage
- Vandalism/malicious mischief
- Weight of ice or snow/sleet
It’s important to note that the homeowners insurance Colorado residents typically enroll in, an HO-3 policy, won’t protect against everything. Virtually no form of home insurance will. For example, flooding in your area won’t be covered, but an accidental, sudden water leak will.
In the end, there are additional coverages available to help homeowners. Depending on your needs, these insurance riders or insurance endorsements may be able to help. Additionally, there are other forms of insurance that may help add an extra level of protection to your home.
Colorado Home Insurance Coverages Available
The home insurance Colorado residents rely on does a lot more than protect just the home itself. There are plenty of other areas which need protection and fortunately, a standard home insurance policy provides these coverages.
There are other structures that can become exposed to the elements, personal property that may be stolen, and liability concerns homeowners may be exposed to. Here’s a breakdown of how an HO-3 policy keeps you better protected against more:
Coverage A: Dwelling
Dwelling coverage is the main part of your home insurance policy. This component is the core and protects your home’s physical structure as well as attached structures, such as garages, from open perils. You’ll want to ensure that you have enough coverage to restore your home after a major or total loss. This includes rebuilding your home’s walls, attached garages, roof, foundation, and other structural areas of your home.
It’s important to note that you’re going to want enough coverage to rebuild your home, not simply the amount that your home is worth. Homeowners must take into consideration rising construction costs and inflation, just two of the reasons it’s important to review your policy yearly and ensure you have enough coverage.
Coverage B: Other Structures
Many properties have other structures that may suffer damage from time to time. This includes things such as a detached garage, shed, mailbox, or fence. Thankfully, your home insurance coverage protects against such losses just as it protects your home. For most policies, you’ll receive coverage against such losses equating up to 10% of your home’s value.
Coverage C: Personal Property
Damage to your home often includes damage to your personal belongings. This includes break-ins, fires, etc. Your personal property deserves protection and with the right home insurance policy, you’ll receive it. The amount of coverage you receive can vary but most coverages will provide around 25% to 50% of your home’s coverage limit.
There are a lot of things that can be covered by a home policy including clothing, furniture, electronics, etc., but it’s important to remember your policy limits. If you have valuables that are worth a bit more in value such as art, jewelry, collectibles, designer clothing, etc., you may need to increase your policy limits or purchase an insurance rider to stay covered.
Coverage D: Loss of Use
Losses that are so detrimental, such as severe damage from a wildfire, can create a situation in which your home is uninhabitable. But you’ll still need to have a place to live and spend money on food to eat.
This is a coverage that no one ever wishes to use but comes in handy during some of the darkest times a household can ever face. Your policy, typically with a policy limit of 20% of your home’s insured value, will cover expenses for your family, such as lodging and dining, as you wait to restore your home.
Coverage E: Personal Liability
When people visit your property, there is a risk of them becoming injured, in which the homeowner can be held liable. Without the right policy in place, this means you are leaving yourself open to lawsuits. Fortunately, to help pay for medical and potential legal expenses, your homeowners insurance coverage has you covered. Policy limits vary, but homeowners are recommended to have a minimum of $100,000 in coverage.
Coverage F: Medical Expenses
Again, visitors injured while on your property can hold you responsible. It’s an important thing to consider with rising medical costs. Unfortunately, Coverage F doesn’t apply to injuries that occur to members of your household, but by carrying the typical policy limit of $2,000 to $5,000, you’ll be able to cover small medical expenses.
Additional Coverages to Consider in The Centennial State
Homeowners insurance in Colorado is necessary coverage for everyone who owns a home. No matter if it’s paid off, brand new, or anywhere in between, your home insurance policy is there to help you avoid restoring losses to what is for most people, their biggest investments.
But home insurance isn’t blanket coverage. Your home is going to face a series of threats that aren’t protected by your policy. Furthermore, in some situations, you may be covered, but additional protection may be the best option for your needs.
Working with the right insurance agency means being protected from what comes your way. If you have too much protection, you’ll be paying premiums on the coverage you don’t need. On the other hand, not having all the coverage you need can mean facing a large financial hurdle after a loss.
The best course of action is auditing your home insurance needs, identifying the protections that mitigate your risks, and finding coverages at the lowest price possible. Here are some common threats, homeowners in Colorado should protect against that are not covered by a standard home insurance policy:
It’s a cruel irony. Colorado is susceptible to wildfires. In their wake lies a landscape that can be a breeding ground for flooding. Fire causing catastrophic water damage is a bit odd, but it’s an unfortunate reality for homeowners within the state.
Flood insurance coverage can help you protect against flood damage, an issue that as many as 9% of all properties within the state have a 26% chance of being severely affected by throughout the next 30 years, according to Colorado Flood Factor. Additionally, there are sewer backup endorsements there to help homes facing sump dump backup issues.
Windstorm and Hail Damage
While most home insurance policies protect against this peril in Colorado, you’re going to want to double-check that yours does. If it doesn’t you may need to consider either another type of home insurance or an endorsement. Hail damage is the most widespread threat to homes in the state.
Scheduled Personal Property Coverage
Remember, your personal belongings receive protection from your home policy, but limits apply. If you own items of excessive value or simply have plenty of things you need to be insured, this is a great endorsement to add to your coverages.
Home insurance provides coverage against liability threats, but when circumstances surpass your policy limits, you may still face legal repercussions to restore another party’s losses. Umbrella insurance in Colorado is an especially important consideration for anyone with a sizable amount of valuables and assets including a luxury home, sports vehicle, or various financial assets.
Extended Replacement Cost
As we’ve seen over the last few years, economic trends can drastically change the amount of money it takes to restore one’s home. If you are facing a loss so great that you must rebuild your home and restore a majority if not all of your possessions all while exceeding your home insurance’s policy limits, this endorsement can help.
Sewer Lines and Sump Pumps
Again, backed-up or burst sewer lines are a gross and expensive threat that can cost homeowners tens of thousands of dollars to repair. Fortunately, a water backup endorsement is an inexpensive insurance rider that can help you stay protected from such losses.
Additional Coverage Options
Above, we’ve looked at some of the most If utility lines that are connected to your home are damaged, the repairs fall under the responsibility of the homeowner. But there are still several other issues that may arise, including:
- Damage to your utility lines
- The government’s actions leading to loss
- Basic home maintenance tasks causing damage
- Damage to your home’s foundation or pavement caused by ice and water weight
- Damage caused by pets
- Damage from the weather that exacerbates an already excluded loss
- Defects in construction work
- Frozen pipes in an unoccupied home
- Mold (some policy forms may include a $5,000 limit)
- Pest and infestation problems
- Foundation settling
- Theft from a home while it is still being built
- Water damage that is not sudden and accidental
- Wear and tear on home appliances or fixtures
Some issues fall on the responsibility of the homeowner and others may have additional protection that can be added to suit your needs. Speak with an insurance agent to discuss the risks to your home and find suitable solutions at an affordable cost.
Different Types of Colorado Home Insurance
The most common type of homeowners insurance Colorado residents enroll in is an HO-3 policy. But there are actually eight different types of home insurance policies available. Different policies fit different types of homes and situations. Here are your options:
This is a bare-bones type of coverage. Offering the least amount of protection, this form of home insurance is not found often nor is it advised in most cases because of the lack of coverage it provides.
An HO-2 policy is a step up but still lacks coverage in many ways. You’ll receive protection against 10 named perils for your home’s dwelling and its contents. Again, this is not as common because it offers fewer protections.
The most common form of home insurance on the market. This is a great way to cover not only your home but also your personal property, other structures, and your household from potential losses. An HO-3 uses an open peril basis of coverage for your dwelling and a named peril basis for your belongings.
House insurance in Colorado is important for homeowners, but renters have needs too. That’s why HO-4 policies exist, to help renters protect themselves against many different perils through an open peril basis.
Because HO-5 policies have an open peril basis, they are the most comprehensive policy you can enjoy. This means more protection against perils unless it is explicitly excluded by your policy. It’s a great option for those looking to protect against as much as possible, but of course, this means higher monthly premiums.
Condos and townhomes have unique coverage needs and homeowners with such properties can rely on an HO-6 policy to keep them adequately protected.
Manufactured homes, trailers, and mobile homes require an HO-7 policy, which uses an open peril basis to protect their structure, as well as for detached structures on the property. Personal property, however, is protected on a named peril basis.
Older homes have specific risks that come along with them and for many, it also means they may be denied traditional coverage. Thankfully, there are policies available, known as HO-8 home insurance policies. These are usually reserved for homes more than 40 years old and act as a policy that is similar to standard home insurance.
Why Is Homeowners Insurance So Expensive in Colorado?
If you’re looking at home insurance coverage in Colorado, you’re going to notice that prices continue to rise. The Centennial State is consistently ranked as one of the top 10 states with the highest homeowners insurance cost in the nation.
There isn’t a singular reason for this but rather a collection of factors that keep costs high. To better understand these reasons, it’s important to understand how your homeowners insurance premiums are created:
- Insurance carriers are all doing the same thing when creating your premium. They are evaluating how much risk you pose as a client when they insure you.
- The riskier you are, the more you can expect to pay for coverage, and the fewer risks you carry as a policyholder, the cheaper your rates will be.
- There are several factors that each carrier will look at, which we touched on earlier, but each home insurance company is going to assess these risks differently.
- This means that you’re going to see several different prices, even for the same level of coverage, among different brands.
- Colorado ranks as one of the most expensive places to purchase real estate and is 34% higher than the national average.
- Furthermore, Colorado is also one of the states most affected by a variety of natural disasters. Above all, the fact that Colorado is ranked third in the nation for wildfire risk, the most expensive home insurance claim on average, raises rates throughout the state.
Location continues to be a huge factor in the amount you pay for coverage. Statewide and local trends are pushing the price of home insurance higher, creating an issue for homeowners. This is why it’s more important than ever to shop and compare coverage and ensure you receive the lowest rate possible for your protection.
Coverage for Homeowners Insurance Offered by the State of Colorado
The bad news is that the state of Colorado doesn’t offer home insurance, but that doesn’t mean you don’t have options. There are plenty of private insurance carriers available to help you protect your home and personal property.
It’s also not required by law in Colorado to carry house insurance of any kind, however, failing to do so puts you at risk of the following:
- Restoring your home after a minor or major loss.
- Having to restore or replace stolen/damaged personal property out of your own pocket.
- A financial risk involving personal liability from the members of your household or injuries that occur to visitors.
Overall, while the government isn’t dictating or providing coverage, it’s an important protection all homeowners should have. By working with the right provider, you can protect your finances, your home, and your property, and avoid overpaying in the process.
How To Find the Best Homeowners Insurance in Colorado
In order to find the best policy for your home, you’re going to need to compare and shop among different brands. Remember, you can receive the same coverage from two different brands at two completely different prices. Shopping around ensures that you don’t overpay.
At the same time, it’s important to not simply settle. You need to have the right amount of coverage for your home to survive a major loss and protect your finances. Ultimately, the best coverage will be an affordable policy that keeps you and your property secure.
Finding the best homeowners insurance company in Colorado doesn’t have to be a pain. Your home is unique and so too are your coverage needs. Searching among many different brands can be time-consuming, but that’s where Freedom Insurance Group comes in.
We understand that this can be a time-consuming endeavor, which is why we’re here to help. Our team of experts specializes in pinpointing the coverage you need at the lowest cost on the market.
We’ve partnered with 25 of the top-rated insurance brands in Colorado to consistently deliver you quality home insurance from companies you can rely on, and because we don’t work for a singular brand, our focus is completely on helping you find the lowest rate.
Our established relationships also provide you with a wider range of discounts to ensure you receive the lowest price possible. We’ll even bundle your home insurance with an auto insurance policy for a better form of protection at a discounted rate.
Since 2005, we’ve been helping homeowners save an average of 40% on their premiums when switching, but that’s not all we do. We’re here for you every step of the way as a resource and can even help you save in the future should another policy suit your needs better.
From Colorado Springs to Denver and more, find homeowners insurance Colorado residents rely on for peace of mind for less. Contact us today or use our free online tool for a homeowners insurance quote that is quick and accurate!