There’s a saying that if you don’t like the weather where you’re at in Colorado, wait 10 minutes. The unpredictable nature of weather in the Centennial State means that having the best homeowners insurance in Colorado is essential — homeowners are vulnerable to wildfires, flooding, tornadoes, and more.
Choosing from more than a dozen home insurance companies in Colorado is a challenge. How will you know which home insurer is the best? We’ve got you covered.
We reviewed all the Colorado home insurance companies and compared customer satisfaction ratings, financial stability and types of coverages and discounts offered to bring you the best home insurance Colorado offers.
The 5 Best Homeowners Insurance Companies in Colorado
| Average Price | AM Best Financial Strength | J.D. Power Overall Customer Satisfaction | |
| Allstate | $1,905 | A+ | 882 |
| American Family | $1,745 | A | 881 |
| State Farm | $2,187 | A++ | 878 |
| Grange Insurance | $905 | A- | NR |
| USAA | $1,568 | A++ | 904 |
Allstate
Allstate’s strength is in the diversity of its offerings and discounts, which allow you to pick and choose the coverage that works best for your circumstances. It has a great website, with tons of useful information.
Best For New Homebuyers
Why we chose it
Why we chose it
Pros
- Diverse discount opportunities
- Informative website and digital tools
- Above-average customer service
Cons
- NAIC complaint index high
- Financial strength ratings good, but not great
Discounts available
- Early signing discount
- Home buyer discount
- Hail-resistant roof discount
Unique features
Allstate’s discount list is longer than most national insurers. You could save up to 10% on your premiums if you sign up for your new policy at least 7 days before the current one expires.
*J.D. Power 2020 U.S. Property Claims Customer Satisfaction Study, based on a 1,000-point scale
Further Reading on Allstate:
American Family Insurance
American Family Insurance is a good choice for any type of homeowner, but especially shines for new homebuyers. The insurer’s affordable premiums and a variety of online learning resources are ideal for someone just getting started with purchasing their first home.
Best For New Homebuyers
Why we chose it
Why we chose it
Pros
- Customizable coverage options
- Good customer satisfaction ratings and 24/7 claims center
- Strong financial ratings
- Helpful digital resources for new homebuyers
Cons
- Not BBB accredited
- Limited availability
Discounts available
- Smart home discount
- Generational discount if your parents are policy holders
- Renovated home discount
Unique features
American Family’s MyAmFam App was redesigned to make managing your homeowners insurance policy easier.
*J.D. Power 2020 U.S. Property Claims Customer Satisfaction Study, based on a 1,000-point scale
Further Reading on American Family:
- American Family homeowners insurance review
- American Family renters insurance review
- American Family auto insurance review
State Farm
State Farm offers above-average customer support along with competitive pricing and solid coverage options. For those new to home ownership, its Simple Insights blog can tell you everything you need to know about home ownership in general.
Best For Fast Claim Payments
Why we chose it
Why we chose it
Pros
- Financially strong
- Excellent web presence
- 19,000+ agents nationally
- Informative blog
Cons
- Limited discounts
- Higher premiums
Discounts available
- Multiple policy discount
- Fire, smoke, or burglar alarms discount
- Impact-resistant roof discount
Unique features
State Farm’s comprehensive website makes it easy to get a detailed quote in minutes. You can also pay your bill, file and manage a claim, and handle most maintenance tasks either online or via the company’s app.
*J.D. Power 2020 U.S. Property Claims Customer Satisfaction Study, based on a 1,000-point scale
Further Reading on State Farm:
Grange Insurance
Grange provides additional coverage options you won’t find with other homeowners insurance providers. Basic coverage is so well-priced you may be able to afford paying for a couple of add-ons.
Best For Homeowners on a Budget
Why we chose it
Why we chose it
Pros
- Affordable premiums
- Wide range of add-on coverages
- Online claims
Cons
- Customer service is only available by phone
- Not accredited by the BBB
Discounts available
- Multiple policy discount
- Fire, smoke, or burglar alarms discount
- Impact-resistant roof discount
Unique features
Grange Insurance’s optional coverages include assisted living, water backup, underground service lines and equipment breakdown.
*J.D. Power 2020 U.S. Property Claims Customer Satisfaction Study, based on a 1,000-point scale
USAA
Like Amica, USAA appears at the top of rating lists for its excellent customer service, comprehensive policies, and fair prices. The only catch is that you must be a current or former member of the military community to purchase a policy — but if you are, the company should be your first stop.
Best For Military Members and Families
Why we chose it
Why we chose it
Pros
- Outstanding customer service
- Policies tailored to military family needs
- Competitive pricing
Cons
- Only available to current and former military members and their families
- Limited discounts
Discounts available
- Save 10% if you bundle with auto
- Claims-free 10% discount
- Home security system discount
Unique features
USAA’s policies are written with service men and women in mind. This means they have details that anyone in the military can appreciate, such as full coverage for uniforms for active duty or deployed members.
*J.D. Power 2020 U.S. Property Claims Customer Satisfaction Study, based on a 1,000-point scale
Further Reading on USAA:
Average Cost of Homeowners Insurance in Colorado
Per the NAIC, the average cost of Colorado homeowners insurance is $1,539. It’s $328 higher than the national homeowners insurance average of $1,211. Your price may vary depending on factors such as credit score, home age and value, square footage and discounts from your insurer.
Home Insurance Add-Ons That Will Further Protect You
Colorado is known for its beautiful seasons, but it’s also prone to severe weather such as hail storms and wildfires. It’s essential to make sure your coverage is adequate. Many policies cover hailstorm damage, but you should check with your insurer and add any comprehensive coverage that may be needed. Like hail, fire damage is usually covered with standard policies.
Flooding is another widespread problem. Even if you live outside a designated flood zone, you may want to consider flood insurance. A quarter of the damages that occurred from flooding in Colorado happened in “high and dry” areas. Flood insurance isn’t included in your homeowners insurance policy. If your insurer doesn’t offer it, you can buy it through the National Flood Insurance Program.
The Cheapest Homeowners Insurance Companies in Colorado
| Largest Companies by Market Share in Colorado | Average Annual Premium |
| State Auto Prop & Cas Ins Co | $664 |
| Owners Ins Co | $814 |
| Grange Ins Assn | $905 |
| Chubb | $1,409 |
| USAA | $1,568 |
| Travelers | $1,613 |
| Garrison Prop & Cas Ins | $1,647 |
| American Family Insurance | $1,745 |
| Allstate | $1,905 |
| Shelter Mut Ins Co | $2,112 |
| State Farm | $2,187 |
| Encompass | $2,383 |
| First Liberty Ins Corp | $3,952 |
| Farmers Insurance | $4,406 |
Cost of Homeowners Insurance by Age of Home
| Age of Home (years) | Sample Annual Premium |
| 5 | $2,074 |
| 20 | $3,002 |
| 35 | $2,931 |
| 50 | $2,907 |
| Average Across Ages | $2,729 |
Top 3 Cheapest Homeowners Insurance Companies in Colorado
- State Auto Property & Casualty Insurance Co. – $664
- Owners Insurance Co. – $814
- Grange Insurance – $905
Top 3 Most Expensive Homeowners Insurance Companies in Colorado
- Farmers Insurance – $4,406
- First Liberty Insurance Corporation – $3,952
- Encompass – $2,383
Resources Helpful for Colorado Homeowners
The Colorado Department of Regulatory Agencies provides a variety of homeowners insurance reading material including a buyer’s guide, premium comparison and inventory checklist. United Policyholders also has a collection of resources for Colorado homeowners, which include advice on storm recovery, insurance claims rights, and much more. Colorado homeowners should also familiarize themselves with the Homeowners Insurance Reform Act. This act was signed in 2013, aiming to help communication and understanding between insurance companies and their customers.
Homeowners Insurance FAQ
Is homeowners insurance required in Colorado?
Homeowners insurance is not mandatory in Colorado, but your bank will require you to have homeowners insurance if you’re paying a mortgage. Even if you don’t need coverage because your home is paid off, you should still consider purchasing it to protect your home and belongings.
What is the cheapest homeowners insurance in Colorado?
Your personal policy cost varies based on things like the size and location of your house, your credit score, and your assets. Based on the average annual premiums we examined, State Auto Property & Casualty Insurance Co. offers the cheapest homeowners insurance Colorado.
Methodology
We evaluated the companies based on their customer rating and experience, financial stability, and coverage to determine the best providers. To compare home insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings — Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
About the Authors
Cynthia Paez Bowman is a contributing writer for Reviews.com. Over the last two years, she has covered insurance, home security and more. She has been featured in MSN, Bankrate, Coverage.com, The Simple Dollar and GOBankingRates. She has dual bachelors degrees in International Business and Journalism from American University in Washington, D.C. “Is It Getting Harder to Get Home Insurance in High-Risk Areas?” is Cynthia’s favorite story on Reviews.com.
