Key Takeaways
- Chubb has the cheapest insurance rates in Colorado for most homeowners.
- USAA is a great option, too, if you or a family member have military ties.
- The average cost of home insurance in Colorado is higher than the national average.
In this article
The cheapest home insurance providers in Colorado
Chubb is the cheapest home insurance company in Colorado, charging an average rate of $1,436 a year.
State Farm and USAA also offer cheap home insurance to Colorado homeowners, but you must be current or former military, or a close relative of someone who is, to buy insurance from USAA.
| Insurance company | Annual premium |
|---|---|
| Chubb | $1,436 |
| USAA* | $1,991 |
| State Farm | $2,144 |
| American Family | $3,348 |
| Country Financial | $3,440 |
| Travelers | $3,486 |
| Farmers | $3,703 |
| Allstate | $3,924 |
| Average | $2,934 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Only available to current/former military and their families. | |
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How much is home insurance in Colorado?
The average cost of home insurance in Colorado is $2,934 a year, or $245 a month.
This is 54% higher than the average cost of home insurance in the U.S., which is $1,903 a year, or $159 a month.
What you pay for home insurance in Colorado depends on several factors, including:
- Your ZIP code
- The age of your home
- The materials used to build it
- Your insurance claim history
The deductible you choose for your home insurance policy also plays a key role in how much you pay. In general, the lower your deductible, the higher your premium, as you can see in the following table.
| Deductible amount | Annual premium |
|---|---|
| $500 | $3,156 |
| $1,000 | $2,934 |
| $1,500 | $2,802 |
| $2,000 | $2,674 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
The amount you choose for your home insurance policy’s dwelling coverage impacts how much you pay, too. In this case, a lower dwelling coverage amount usually means a lower premium as well.
| Dwelling coverage amount | Annual premium |
|---|---|
| $200,000 | $2,395 |
| $275,000 | $2,934 |
| $350,000 | $3,438 |
| $425,000 | $3,995 |
| $500,000 | $4,544 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Given everything that goes into the cost of a home insurance policy, the best way to find the one that offers the cheapest premium for the coverage you need is to compare home insurance quotes from several companies.
Colorado's best home insurance companies
Colorado homeowners looking for the lowest home insurance rate should start by getting a quote from Chubb. We found Chubb to have an average annual premium that’s over $500 lower than its next-cheapest competitor.
American Family and Country Financial are good options, too, thanks to their stellar customer satisfaction ratings.
Best overall: Chubb
Chubb is the best homeowners insurance company in Colorado overall due to offering the cheapest premiums and the best customer complaint rating.
Chubb’s average annual premium of $1,436 is by far the lowest of the home insurance companies we surveyed in Colorado. It’s also 25% lower than the U.S. average home insurance cost.
Chubb has the state’s best complaint rating from the National Association of Insurance Commissioners (NAIC), too. Its 0.04 Complaint Index rating is the lowest of the home insurance companies we researched. This means it receives far fewer complaints from customers than expected for its size.
| Insurance company | Complaint Index rating |
|---|---|
| Allstate | 0.33 |
| American Family | 0.13 |
| Chubb | 0.04 |
| Country Financial | 0.06 |
| Farmers | 0.39 |
| State Farm | 0.35 |
| Travelers | 0.17 |
| USAA | 0.31 |
| Source: National Association of Insurance Commissioners (2022 data) | |
Best for customer service and satisfaction: American Family and Country Financial
American Family and Country Financial might be the best home insurance companies for you if customer satisfaction and service are more important to you than price.
American Family has the highest customer satisfaction score from J.D. Power – 842 out of a possible 1,000 – of the Colorado home insurance companies included in our survey.
J.D. Power’s customer service index rankings are based on customer surveys that rate home insurers on interaction, policy offerings, price, billing process, policy information and claims.
| Insurance company | Overall customer satisfaction score |
|---|---|
| Allstate | 815 |
| American Family | 842 |
| Chubb | 809 |
| Country Financial | 830 |
| Farmers | 792 |
| State Farm | 829 |
| Travelers | 794 |
| USAA | 884 |
| Segment average | 819 |
| Source: J.D. Power 2022 U.S. Home Insurance Study | |
Country Financial is close behind American Family in this category, though. It received an overall customer satisfaction score of 830 in J.D. Power’s latest study.
Country Financial also scores highly on the NAIC Complaint Index. Its 0.06 complaint rating is nearly as low as Chubb’s (0.04), which means it, too, receives few customer complaints.
Best for military: USAA
USAA may be the best home insurance company in Colorado for you if you have close ties to the military.
USAA’s home insurance rates are second only to those offered by Chubb, for starters. And at $1,991 a year, on average, its rates are well below the state average rate of $2,934 a year.
USAA also earned a top score from J.D. Power for customer satisfaction (884 out of 1,000). Combine that with the company’s affordable premiums, and it’s easy to see why currently serving members of the military, veterans and eligible family members have a high view of USAA.
Compare home insurance quotes from top providers
How much does home insurance cost in Colorado by city?
Homeowners living in Fort Collins pay the lowest home insurance premiums among Colorado’s 10 largest cities, averaging $2,414 a year.
Pueblo homeowners pay the highest home insurance premiums of the state’s largest cities, at an average $3,865 a year.
| City | Annual premium |
|---|---|
| Denver | $3,406 |
| Colorado Springs | $3,590 |
| Aurora | $3,509 |
| Fort Collins | $2,414 |
| Lakewood | $3,310 |
| Thornton | $3,131 |
| Arvada | $3,207 |
| Westminster | $3,095 |
| Pueblo | $3,865 |
| Centennial | $3,504 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance companies in Denver
To get cheap homeowners insurance in Denver, go to Chubb. It offers an average premium of $1,805 a year. USAA is a good option, too, for those who qualify.
| Insurance company | Annual premium |
|---|---|
| Chubb | $1,805 |
| USAA* | $2,055 |
| State Farm | $2,315 |
| American Family | $3,882 |
| Allstate | $4,249 |
| Country Financial | $4,253 |
| Farmers | $4,335 |
| Travelers | $4,353 |
| Average | $3,406 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Only available to current/former military and their families. | |
Cheapest home insurance companies in Colorado Springs
Homeowners in Colorado Springs can find the cheapest home insurance from Chubb, based on our data. Its average annual premium is $1,852.
| Insurance company | Annual premium |
|---|---|
| Chubb | $1,852 |
| State Farm | $2,181 |
| USAA* | $2,354 |
| American Family | $3,753 |
| Allstate | $4,435 |
| Travelers | $4,638 |
| Farmers | $4,704 |
| Country Financial | $4,805 |
| Average | $3,590 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Only available to current/former military and their families. | |
Cheapest home insurance companies in Aurora
Chubb has the cheapest home insurance for Aurora residents, too, with an average premium of $1,793 a year.
| Insurance company | Annual premium |
|---|---|
| Chubb | $1,793 |
| USAA | $2,316 |
| State Farm | $2,422 |
| American Family | $3,795 |
| Country Financial | $4,272 |
| Allstate | $4,369 |
| Travelers | $4,431 |
| Farmers | $4,672 |
| Average | $3,509 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Only available to current/former military and their families. | |
Colorado's cheapest home insurance by county
Among Colorado’s 10 largest counties, Larimer has the cheapest average home insurance rate of $2,408 a year.
Pueblo County’s average home insurance rate of $3,838 a year is the highest among Colorado’s biggest counties.
| County | Annual premium |
|---|---|
| El Paso | $3,579 |
| Denver | $3,440 |
| Arapahoe | $3,506 |
| Jefferson | $3,220 |
| Adams | $3,223 |
| Larimer | $2,408 |
| Douglas | $3,570 |
| Boulder | $2,638 |
| Weld | $3,137 |
| Pueblo | $3,838 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Does home insurance cover natural disasters in Colorado?
Colorado experiences many severe weather incidents and natural disasters each year, including wildfires, tornadoes, floods and earth movements like mudslides. Standard home insurance only covers some of these events.
The good news is that a standard homeowners insurance policy covers damage and destruction caused by fire and wind, including tornadoes. That said, you may need to reduce the fire risks on your property if you live in certain urban-wildland interface areas.
Flood insurance in Colorado
Although home insurance usually excludes flood damage in Colorado and elsewhere, you can buy flood insurance to protect your home and belongings from it.
Most lenders require flood insurance if you apply for a mortgage in a high-risk flood zone. Even if it’s not required, though, you can often still purchase it through the government-backed National Flood Insurance Program (NFIP) or certain private companies.
Average prices for NFIP flood insurance in Colorado range from $161 a month in high-risk flood zones to $57 a month in low- and moderate-risk areas. The average price for NFIP flood insurance statewide is $84 a month.
Flood insurance typically covers mudflows created by floods, but it does not cover landslides, mudslides or other earth movements.
Insurance for mudslides, earthquakes and other earth movements
You can buy extra insurance to protect your home from earth movements like landslides, mudslides and earthquakes.
Some companies offer earthquake insurance as an endorsement to a home insurance policy. Others offer it as a standalone policy.
For landslides and mudslides, you’ll likely need to get a difference in conditions (DIC) policy. DIC policies for homeowners tend to be expensive and require high deductibles. On the plus side, they generally include all-in-one coverage for landslides, mudslides, earthquakes and floods.
If you go this route and you need flood insurance for your mortgage, just make sure the DIC provider you choose meets your lender’s requirements.
Frequently asked questions
The average cost of home insurance in Colorado is $2,934 a year.
You might pay more or less than this amount due to the many factors that determine your rate. Among them are where you live, how old your home is and whether you’ve filed previous insurance claims.
Chubb has Colorado’s cheapest homeowners insurance rates at an average $120 a month. USAA’s average rate of $166 a month is fairly cheap, too, but you must be current or former military, or an eligible family member of someone who is, to qualify.
Colorado law does not require homeowners to buy insurance. If you have a mortgage, though, your lender probably will require it.
Home insurance usually is a good idea even if you don’t need to buy it considering how much it can cost to repair or replace a damaged or destroyed home. Without home insurance, you’d have to cover those costs out of your own pocket.
Methodology
We collected quotes from every ZIP code in Colorado for a standard HO-3 homeowners insurance policy using the following coverages:
- $275,000 dwelling coverage (unless otherwise noted)
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible (unless otherwise noted)
Sources:
Home insurance by city
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