Colorado Homeowners Insurance

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Homeowners Insurance in Colorado: Complete Consumer Guide

Thinking about moving to Colorado? Here are some interesting facts about your new home state. Colorado is the 38th state in the union. Colorado is nicknamed the Centennial State because it became a state in 1876, 100 years after the signing of the Declaration of Independence. The capital city of Colorado is Denver. The state bird is the lark bunting. The name Colorado is taken from Spanish for the color red and refers to the banks of the Colorado River. Colorado is home to more mountains 14,000 feet or higher than any other state. So if you love the mountains there may be a home for you in Colorado.

Types of policy for Homeowners Insurance in Colorado

What type of homeowners insurance policy is best for your home? Here is a look at the different types of policies.

HO-1 This “basic form” policy covers the 10 most common covered perils. But you won’t find this type of policy everywhere. Some insurance companies do not offer HO-1 forms.

HO-2 This type of policy is called a “broad form” and provides more limited coverage. But even with limited coverage, it still provides more coverage than a HO-1 basic form.

HO-3 This type of insurance policy is the most widely purchased type of home insurance. It provides coverage for both named perils and for personal property. With a HO-3 form, your insurance company will pay to repair or replace damages to belongings caused by covered perils, 16 of which are covered by this type of policy. These covered perils include smoke, lightning, fire, hail, windstorms, explosions, vandalism, falling objects, the weight of ice, snow and sleet on your home and water damage.

HO-6 This policy form is for condominium units. This type of coverage usually means “walls-in” coverage that would protect the walls, floors and ceilings of the condo unit against 16 covered perils. This form also includes coverage for the condo owner’s personal belongings.

HO-8 This type of policy form is for older houses and covers 10 perils. This form is paid on an actual cash value, which is the cost of the home items minus depreciation.

What factors affect rates on homeowners insurance in Colorado?

There are a number of factors that come into play when you are rated for homeowners insurance. Let’s look at a few. For example, your home’s construction materials are a big factor. So are other things such as how much it will cost to rebuild the house and replace all your belongings. Whether you have a swimming pool or a trampoline will affect your homeowners insurance rate as well. Do you have pets such as dogs? As the homeowner, you are liable for dog bites and injuries. Your credit also plays a factor on your homeowners insurance rate, with homeowners with good or excellent credit getting lower insurance rates.

Top 5 disasters in the State of Colorado

Colorado federally declared Fire disasters the most with 71 counts since 1953, followed by Flood, Severe Storms, Snow, and Biological disasters. Fire or Lightning disasters is one of 16 perils covered on standard homeowners policies. Here are the top 5 federally declared disasters in the state of Colorado:

Rank Declaration Title Disaster Number
1 Fire 71
2 Flood 13
3 Severe Storms 3
4 Snow 3
5 Biological 2

Source: Federal Emergency Management Agency (FEMA)

How much is homeowners insurance in Colorado?

The average cost of homeowners insurance in Colorado is $994.

Source: The average cost of homeowners insurance by state, Business Insider.

Crime Rate: Is Colorado a safe state?

2019 Crime in Colorado Crime Number Crime Rate*
Property Crime 149,189 2,590.7
Burglary 20,064 348.4
Larceny-Theft 107,012 1,858.3

*Rate per 100,000 inhabitants

Safest Cities in Colorado by Property Crime*

  • Frederick, CO has a population of 14,238 with a Property Crime rate of 1 per 1k. The city average home value is approximately $440,000.
  • Firestone, CO has a population of 15,558 with a Property Crime rate of 8.2 per 1k. The average home value there is about $441,000.
  • Erie, CO came in third as the safest city in the state of Colorado and has a population of 26,523 with a Property Crime rate of 9 per 1k. Its home value averaged at about $530,000.
  • Louisville, CO has a population of 21,532 with a Property Crime rate of 14 per 1k. Its average home value is $639,000.
  • Castle Rock, CO has a population of 67,208 with a Property Crime rate of 14.3 per 1k. The city home value averaged $540,000.

*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.

Compare Home Insurance Rates in Colorado

Top homeowners insurance companies in Colorado

Allstate is the best homeowners insurance in Colorado for new home buyers. The reason? Allstate offers an array of discounts, good customer service and an informative website. The discounts in particular will come in handy for new homeowners who are on a budget.

American Family’s website makes it easy to find what type of policy you need with policy comparisons and calculators. American Family has a 24-hour, seven days a week claims center. American Family offers a smart home discount, generational discounts if your parents are policyholders and a renovated home discount.

Grange Insurance is the best insurance for homeowners on a budget. Grange Insurance has one of the lowest homeowners insurance premiums in Colorado. You can make claims online and you’ll receive discounts for having multiple policies and for having smoke, fire and burglar alarms in your home.

Colorado Home Insurance FAQs

How to lower homeowners insurance in CO?

Choosing a higher deductible will help to lower the premium on your homeowners insurance. Paying once a year instead of making monthly payments will also bring down the cost of your premium. Another money-saving strategy is to bundle your homeowners insurance with another insurance policy such as an auto insurance policy. Doing so will lower your home insurance premium.

Is homeowners insurance required in Colorado State?

In the state of Colorado, homeowners insurance is not required. But if you have a mortgage on your home, your lender will require you carry homeowners insurance for the length of the loan.

Is a $1,000 deductible good home insurance?

A $1,000 deductible is a good deductible amount for home insurance. Remember, the higher the deductible the lower your insurance premium. So $1,000 is a good solid choice for a deductible amount for your home insurance. Want an even lower premium? Choose a $1,500 or $2,000 deductible.

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