Home insurance in Colorado costs about $297 monthly or $3,559 annually on average. Residents pay $77 more per month, or $924 more annually, than the national average. This makes Colorado the ninth most expensive state for home insurance.
Average Home Insurance Cost in Colorado
Updated: May 30, 2025
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Rates updated:
Jun 09, 2025
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Key Takeaways
Depending on your financial history, home details and other personal information, home insurance costs in Colorado can range from $2,288 to $42,487.
Colorado's home insurance premiums are the ninth most expensive in the country, at 35% above the national average.
To find the best home insurance in Colorado, determine what coverage you need beforehand, research costs and discounts in your area, and shop around.
How Much Is Home Insurance in Colorado?
| Colorado Average | $297 | $3,559 | 35% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250K Dwelling, $125K Personal Property and $200K Liability coverage with a $1,000 deductible.
Average Home Insurance Cost by City
Depending on your city, various risk factors (including your property’s age, weather-related factors and home valuations) vary drastically, affecting home insurance costs. For example, the average monthly home insurance cost in Arvada is around $323; in Pueblo, it’s much higher at $374.
| Arvada | $323 | $3,872 |
| Aurora | $339 | $4,067 |
| Boulder | $271 | $3,255 |
| Centennial | $347 | $4,165 |
| Colorado Springs | $342 | $4,098 |
| Denver | $343 | $4,116 |
| Fort Collins | $251 | $3,009 |
| Greeley | $327 | $3,927 |
| Highlands Ranch | $336 | $4,031 |
| Lakewood | $323 | $3,874 |
| Loveland | $248 | $2,979 |
| Pueblo | $374 | $4,482 |
| Thornton | $330 | $3,960 |
| Westminster | $319 | $3,829 |
*These rates represent a home built in 2000 out of frame with $250K Dwelling, $125K Personal Property and $200K Liability coverage with a $1,000 deductible.
Why Is Home Insurance So Expensive in Colorado?
Home insurance is expensive in Colorado mainly because of the increasing number of claims, the high risk of severe weather and natural disasters, rising material and labor costs, and state insurance laws. Below, we explain each factor in detail:
Rising Claims
Colorado homeowners make more claims than the average. The Insurance Information Institute reports that in 2023, the state recorded around the middle of the pack in total incurred insurance losses (claim value) in the country, at 15.23 billion dollars, which led insurers to charge more.
High Weather Risks
Due to Colorado's location along the Front Range and exposure to severe hailstorms, the likelihood of expensive claims is significantly higher. In 2024, weather-related risks were primarily driven by large hail events, flash flooding, and wildfire activity, with the Denver metro area and mountain communities particularly vulnerable to property damage from these natural disasters.
Rising Material and Labor Costs
Construction costs accounted for a record 64% of new home prices in 2024, up from around 61% in 2022, according to the National Association of Home Builders' (NAHB) latest survey. Wages for construction workers have risen by 35% since 2020, raising the cost of damages. These factors contribute to higher claims costs for insurers.
State Insurance Laws
Colorado operates under a file and use system, allowing insurers to notify state departments and raise insurance rates without full approval from the Colorado Division of Insurance. Additionally, properties in wildfire-prone areas face particularly high premiums, creating a challenging risk pool for insurers covering Colorado homeowners.
What Affects Colorado Home Insurance Costs?
Like with many home insurance providers, pricing is influenced by several key factors:
- Location
- Coverage chosen
- Home build details
- Provider chosen
- Credit
- Claims history
We'll explore how these factors specifically impact rates in Colorado.
How Much Does Location Affect Home Insurance Costs?
Location is the biggest factor affecting home insurance rates in Colorado, with rates varying by up to 48%. Weather risks, home value and population density in your area play major roles in determining costs.
| Lowest | Colorado State Remnant Tier Aggregate | $169 | $2,032 |
| Highest | Pueblo | $393 | $4,718 |
How Much Does Coverage Affect Home Insurance Costs?
Coverage choices are the second most influential factor in Colorado home insurance rates, with average costs ranging from $1,876 to $10,536 per year. Higher coverage limits and lower deductibles increase premiums, while lower limits and higher deductibles reduce costs.
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | 2000 | $156 | $1,876 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | 500 | $878 | $10,536 |
How Much Do Home Details Affect Home Insurance Costs?
Home details like age, construction materials and roof type are the third most influential factor in Colorado homeowners insurance rates, ranging from $106 to $348 per month. These factors affect replacement costs and the risk of damage or theft, leading to rate differences.
| Lowest | New | Superior | Tile | $106 | $1,277 |
| Highest | Old | Frame | Shake-Treated | $348 | $4,179 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Your choice of insurer is the fourth most influential factor in Colorado home insurance rates, with prices ranging from 53% below to 62% above the state average. Choosing wisely can lead to substantial savings, so consider your options carefully.
| Lowest | Auto-Owners Insurance | $139 | $1,673 |
| Highest | Farmers | $478 | $5,735 |
How Much Does Credit Affect Home Insurance Costs?
A higher credit score makes you appear more reliable, which can lower your home insurance costs. Premiums vary by up to 120%, with annual average rates ranging from $2,824 to $14,143.
| Lowest | Excellent | $235 | $2,824 |
| Highest | Poor | $1,179 | $14,143 |
How Much Does Claims History Affect Home Insurance Costs?
Filing more claims will increase your perceived risk for insurers, which can increase premiums. However, in Colorado, claims history has a smaller impact on cost than other factors. We found that depending on your claims history, rates can be affected by up to 8% or $572 annually.
| Lowest | Claim free for 5+ years | $295 | $3,536 |
| Highest | 2 claims in past 5 years | $342 | $4,108 |
Tips to Save on Colorado Home Insurance
With high home insurance costs in Colorado, it's important to find ways to save on premiums. Whether purchasing a new home or managing current expenses, securing the best and cheapest home insurance in Colorado is essential. Below are tips to help tailor your insurance to your needs.
- 1
Find How Much Coverage You Need Beforehand
Determining how much home insurance you need before buying allows you to frame how you search for coverage and avoid being oversold by agents. In addition to standard coverage options, consider if you need add-ons to protect any additional items you own.
- 2
Research Costs and Discounts Beforehand
To determine if you’re getting a good deal, understand the average costs for you and your home. Also, ask agents about all available home insurance discounts, as some insurers apply certain reductions only if requested.
- 3
Compare Multiple Providers Through Different Avenues
Compare multiple insurers apples to apples to find the best coverage for your needs. Use various methods, including online comparison sites, brokers, provider websites, and agents, as quotes vary across these channels.
- 4
Consider Bundling Policies
Bundling policies can lead to substantial savings. For example, bundling home and auto insurance in Colorado can reduce insurance by 10% on auto and 8% on home rates.
- 5
Reduce Your Personal Risk Profile
To get cheaper premiums on your home, consider making improvements like adding storm shutters or home security systems. Also, improving your credit score can decrease premiums substantially. For example, moving from a fair to a good credit score can save you 28% on average.
- 6
See if You Are Eligible for State Programs
If you are denied by traditional insurers, Colorado offers coverage through the Colorado FAIR Plan to insure you. While Colorado FAIR Plan policies don't offer the same amount of coverage you get with traditional policies, they do satisfy mortgage requirements.
Colorado Home Insurance Calculator: Bottom Line
Home insurance costs vary, mainly by location and coverage level. Find affordable rates by researching your needs and comparing prices. Use our estimate tool for the best deal.
Homeowners Calculator Insurance Colorado: FAQ
The cost of homeowners insurance in Colorado varies due to different factors. MoneyGeek provides answers to common questions, helping you understand your potential expenses for home insurance in the state.
How much does homeowners insurance cost in Colorado?
Colorado's average monthly home insurance cost is $297 for dwelling coverage of $250K. However, your rate will depend on factors like your credit score, liability and property coverage limits, and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the cost to replace their home after damage, often with help from an appraiser. While this study uses a baseline coverage of $250K, you can use the MoneyGeek homeowners insurance calculator to find the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your location, chosen coverage level, and provider. Your credit score and home details also play a crucial role.
How We Determined Our Colorado Home Insurance Estimates
When determining the average cost of home insurance in Colorado, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.