Colorado home insurance

A Colorado home insurance policy can cover the expenses that result from a wide variety of perils.
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Coverage for your home in Colorado

The average value of a home in Colorado surpassed $500,000 in 2021. The unique risks that winter weather and wildfires pose to homes in the Centennial State make homeowners insurance crucial to protect your investment. Learn more about Colorado home insurance policies, options for managing exposures to specific risks and how much you can expect to spend monthly and annually to insure your residence in Colorado.

Why Colorado homeowners need insurance

Colorado receives heavy snowfall. Each year, Boulder averages 89 inches of snow. Durango, in the San Juan Mountains of Southwestern Colorado, has an annual average of 71 inches of snow. In addition to the risks that snow accumulation poses to property, Colorado residents also have several unique exposures:

       There were 1,000 avalanches during the first half of March 2019.

       Blizzards can bring heavy snow and wind gusts up to 80 miles per hour.

       Bomb cyclones can create blizzard conditions with wind gusts up to 100 miles per hour. 

Winter weather is not the only major hazard to Colorado homes. The Marshall Fire near Boulder in 2021 destroyed more than 1,000 residences. The Cameron Peak Fire in 2020 destroyed 42 primary residences and is currently the largest wildfire in Colorado history. Flood risks also rise after wildfires.

Heavy rain in the fall of 2013 in the location of the 2012 Waldo Canyon Fire led to catastrophic flooding on Highway 24 and in Manitou Springs. Add-on coverage for flood damage, which most homeowners policies exclude, is available through a policy from the National Flood Insurance Program or private insurers.

Colorado home insurance requirements

The state of Colorado does not require property owners to have homeowners insurance, but mortgage lenders often require homebuyers to carry a specified level of coverage. Once you pay off your home loan, you can maintain any policy that provides you with financial security.

The most Basic form of home insurance only covers your Dwelling and has the option to add on Personal Property coverage. Broad form home insurance is the next level up and can cover damage due to the weight of ice, snow or sleet or the freezing of household systems.

Basic and Broad form policies typically only cover perils listed in policy documents. Special and Comprehensive forms are more likely to be open peril policies that cover all perils that the policy does not specifically exclude. VIU by HUB can help you determine the level of coverage you need and compare the costs of homeowner's policies from A-rated insurance carriers.

Get more coverage for your home

Homeowners in Colorado can choose from different policy options to protect their property and manage exposure to risk. The policy you choose will determine which perils your home insurance covers and whether you will receive Actual Cash Value or Replacement Value from approved claims. The following policy options and add-ons can increase your level of coverage.

Personal Property

A homeowners insurance policy can cover the costs of damage to or loss of personal belongings. Broad, Special and Comprehensive form policies often cover the Contents of a home in addition to the Dwelling or structure, but Broad and Special form policies may only cover specified perils to contents. Check your level of coverage and policy limits to decide whether to obtain additional coverage for valuables.

Liability Coverage

Liability Coverage can shield you from the legal consequences of injuries to other people or damages that occur on your property. Because the Basic form homeowners policies, and in some cases the Broad form homeowners polices, do not include Liability Coverage, you should consider the level of protection that is provided in Special and Comprehensive form homeowners policies. A personal umbrella insurance policy can provide additional limits for more protection from liability claims.

Replacement Cost

Colorado home insurance policies that cover Replacement Cost will pay out the full amount to repair or replace damaged property up to the policy limits. Comprehensive form home insurance policies are the most likely to cover Replacement Cost and tend to have higher premiums than other form policies that only cover Actual Vash Value with depreciation.

Policy add-ons

Owners of property in Colorado can obtain additional coverage for perils that most home insurance policies exclude. There were 319 earthquakes in Colorado in 2019, including one significant earthquake. Earthquake Insurance premiums are typically low, but these policies can have deductibles of 10-20% of your coverage limit. Flood insurance can protect against another common policy exclusion.

Colorado home insurance policy pricing

As of 2021, Colorado is in the top five states in the country for homeowners insurance. An average homeowners insurance quote of $190 per month adds up to an annual quote of $2,280 for coverage, which is $850 more than the national average. Here are a few factors that can affect the cost of insuring your home in Colorado:

       Value of home.

       Location and age of home.

       Homeowners policy form.

       Insurance history.

       Level of deductibles.

As the value of homes in Colorado has increased, the cost of homeowners insurance has also gone up. The average annual quote also varies based on the location of your home. Home values, crime rates, environmental factors and weather risks in various areas affect policy quotes. The average quotes range from a high of $2,850 to a low of $1,370.

The high cost of insuring Colorado residences is in part because the state saw a 54% increase in payments for catastrophe-related claims between 2009 and 2013. Depending on the location of your home, you may want to make sure that your policy covers damage from wildfires, floods or other relevant risks.

This information is intended for general informational purposes only and is not intended to constitute legal advice.


National Weather Service

Colorado Encyclopedia

Wildfire Today



Home insurance in Colorado by city

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