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Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
Colorado homeowners pay a pretty penny for home insurance. But it's possible to score a below-average rate by choosing the best Colorado home insurance provider. Here's a look at which companies offer the best homeowners insurance in Colorado for several common scenarios.
The average Colorado home insurance policy costs about $2,179 per year. But homeowners who choose State Auto Insurance can get coverage for just over a quarter of that. Its average annual premium is $655.
These insurance companies also offer cheap homeowners insurance in Colorado:
New homes only cost about $1,151 per year to insure in Colorado. But once again, State Auto Insurance offers a much more competitive rate. New homeowners only pay about $413 per year.
These insurers are also some of the best homeowners insurance companies in Colorado for new construction:
State Auto Insurance also offers competitive rates on older homes in Colorado. Its average annual premium for a 50-year-old home was just $577 -- well below the state average of $1,975 per year.
These companies also offer some of the best homeowners insurance in Colorado for older homes:
Filing a home insurance claim raises the average annual Colorado home insurance premium to $2,271. But those who choose State Auto Insurance barely see their prices change. Its average annual premium for homeowners who have filed one claim is just $646.
These companies also offer cheap Colorado home insurance to homeowners who have filed a claim:
Colorado home insurance rates are well above the national average for all home types. Here's a look at how its average annual premiums stack up to the national average for the categories listed above.
| Average Rate Category | Colorado | National Average |
|---|---|---|
| Overall | $2,179 | $1,725 |
| New home construction | $1,151 | $943 |
| Older homes | $1,975 | $1,658 |
| When making a claim | $2,271 | $1,803 |
Here are a few things Colorado homeowners ought to know when shopping for homeowners insurance:
The typical home in Colorado costs about $490,944, according to The Ascent's research on average home prices by state. This is quite a bit above the national average of $293,349. It may help explain why insurance rates are above average in the state.
More expensive homes typically cost more to insure, so it stands to reason that higher average home prices would translate to higher Colorado home insurance prices as well.
But it's important to note that home cost isn't the only significant factor. The quality of the home's fixtures, its claims history, and its location within the state also affect how much it costs to insure.
Cities close to Colorado's eastern border tend to pay higher average rates than cities further to the west. Some of these towns even pay more than Denver residents, who have average annual premiums of $2,670 per year.
Residents of eastern Colorado will have to spend some more time comparing rates from several companies in order to find a competitive offer.
Here's a look at some of the most common home insurance claims in Colorado:
Colorado has the second-highest number of hail damage claims of any state in the nation, according to the Insurance Information Institute. Severe hailstorms can cause damage to roofs, windows, and personal property. Recent years have seen record-breaking storms, which have only driven Colorado home insurance costs higher.
Many insurance companies now charge customers a separate wind and hail deductible that's often higher than the standard home insurance deductible. If a customer plans to file a claim for hail damage, they must pay the higher hail deductible before their insurer will pay out.
Like many states out west, wildfires are common in Colorado. In fact, it has the third-highest risk of wildfires in the nation, according to the Insurance Information Institute. Wildfires can easily burn an entire home to the ground, resulting in costly losses. That's why it's crucial for homeowners who live in areas prone to wildfires to ensure they purchase adequate insurance. This way, they'll have the money they need if they ever have to rebuild from scratch.
Floods occur in all states and Colorado is no exception. Floods can damage foundations and destroy property, and this damage actually isn't covered under a traditional home insurance policy. Homeowners who live in an area prone to floods should invest in a separate flood insurance policy.
Here's a look at how some popular home insurance discounts can affect Colorado premiums:
Unsurprisingly, in a state plagued by hail damage, insurers are eager to reward customers with new roofs. Having a roof replaced drops the average Colorado home insurance premium to $1,694 per year. Homeowners who get a new roof should definitely notify their insurance company or shop around to see if they can find a better rate than what they're currently paying.
Many insurers give homeowners discounts for upgrading older homes. But not all system upgrades are created equal. While a new heating or plumbing system dropped the average annual Colorado home insurance premium down to $2,027 and $2,026, respectively, a new electrical system only dropped the price to $2,125 per year.
There are many ways to save on Colorado home insurance, but the largest single discount comes from bundling home and auto insurance. Colorado homeowners who are also looking to insure their vehicles should look for a single company that can insure them both. Not only does bundling car insurance make the policies easier to manage, but it also cuts the average Colorado home insurance premium to $1,675 per year.
The following five cities have the cheapest average Colorado home insurance rates:
| City Name | Average Home Insurance Rate |
|---|---|
| Orchard Mesa | $1,127 |
| Redlands | $1,139 |
| Fruita | $1,139 |
| Grand Junction | $1,144 |
| Loma | $1,172 |
These five cities have the most expensive average Colorado home insurance rates:
| City Name | Average Home Insurance Rate |
|---|---|
| Burlington | $3,259 |
| Arapahoe | $3,226 |
| Ovid | $3,222 |
| Bethune | $3,215 |
| Stratton | $3,213 |
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.
