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Last updated on Sep 28, 2020

The Best Homeowners Insurance Companies in Colorado

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    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 StrengthJ.D. Power Overall Customer Satisfaction
    Allstate$1,905A+882
    American Family$1,745A881
    State Farm$2,187A++878
    Grange Insurance$905A-NR
    USAA$1,568A++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.

    Allstate

    Best For New Homebuyers

    Why we chose it

    Allstate’s discounts add up to lower premiums, making the company a good choice for anyone who’s looking to save a few dollars on their premium costs. Allstate is also generous in their coverage, providing up to $10,000 for accidental damage.
    • 4 Reviews Score
    • A+ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 882* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Allstate’s discounts add up to lower premiums, making the company a good choice for anyone who’s looking to save a few dollars on their premium costs. Allstate is also generous in their coverage, providing up to $10,000 for accidental damage.

    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
    Read More

    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.

    American Family

    Best For New Homebuyers

    Why we chose it

    American Family Insurance makes it easy to decide on what type of homeowners insurance you need. The website provides home insurance Arizona policy comparisons, calculators and inventory worksheets to help you get the right coverage.
    • 3.75 Reviews Score
    • A AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 881* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    American Family Insurance makes it easy to decide on what type of homeowners insurance you need. The website provides home insurance Arizona policy comparisons, calculators and inventory worksheets to help you get the right coverage.

    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
    Read More

    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:

    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.

    State Farm

    Best For Fast Claim Payments

    Why we chose it

    Providing a high-quality customer experience is only one of State Farm’s strengths. It also offers good policy coverages with add-ons to allow you to customize your policy.
    • 3.75 Reviews Score
    • A++ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 878* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • NR BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Providing a high-quality customer experience is only one of State Farm’s strengths. It also offers good policy coverages with add-ons to allow you to customize your policy.

    Pros

    • Financially strong
    • Excellent web presence
    • 19,000+ agents nationally
    • Informative blog

    Cons

    • Limited discounts
    • Higher premiums
    Read More

    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.

    Grange Insurance

    Best For Homeowners on a Budget

    Why we chose it

    Grange has one of the lowest average Colorado homeowners insurance premiums. However, you won’t be giving up on value and coverage to save money — Grange provides good coverage options and plenty of add-ons that protect your investment against a variety of situations.
    • 4 Reviews Score
    • A AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • NR J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    Grange has one of the lowest average Colorado homeowners insurance premiums. However, you won’t be giving up on value and coverage to save money — Grange provides good coverage options and plenty of add-ons that protect your investment against a variety of situations.

    Pros

    • Affordable premiums
    • Wide range of add-on coverages
    • Online claims

    Cons

    • Customer service is only available by phone
    • Not accredited by the BBB
    Read More

    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.

    USAA

    Best For Military Members and Families

    Why we chose it

    USAA has earned a high reputation for quality and service within the military community. If you fit the demographic, getting a quote from USAA should be the first step in your search for great homeowners insurance.
    • 4 Reviews Score
    • A++ AM Best Rate AM Best rates car insurance provider’s creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 904* J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • B+ BBB Rating The BBB rates companies based on trustworthiness and performance. The company uses a variety of factors, including how the company handles customer complaints.

    Why we chose it

    USAA has earned a high reputation for quality and service within the military community. If you fit the demographic, getting a quote from USAA should be the first step in your search for great homeowners insurance.

    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
    Read More

    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 ColoradoAverage 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 home and personal finance writer with a degree in International Business and Journalism from American University. She’s written about internet and TV for MYMOVE, Freshome and Safety.com.

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