The Best Cheap Home Insurance in Colorado for 2023

Auto-Owners is the cheapest home insurance company in Colorado, with an average annual rate of $1,193.
Ben Moore
By Ben Moore 
Edited by Caitlin Constantine

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If you're a homeowner in Colorado, you'll likely pay more than the national average for home insurance. The average cost of home insurance in Colorado is $2,340, which is more than 30% higher than the national average of $1,784.

NerdWallet analyzed policy rates from 15 different insurers for a home built in 1997 with $300,000 in dwelling coverage and a $1,000 deductible to determine the best and cheapest homeowners insurance in Colorado. But these rates are just estimates, and yours may be different.

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data, and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

The best cheap homeowners insurance in Colorado

The following table lists companies with an average annual homeowners rate below Colorado’s state average of $2,340 per year. We’ve included the NerdWallet star rating for companies we’ve reviewed.

Company

Average annual rate

NerdWallet star rating

$1,193

4.0

NerdWallet rating 

Grange Insurance Association

$1,429

Not rated

Colorado Farm Bureau

$1,722

Not rated

$1,846

5.0

NerdWallet rating 

$2,051

4.0

NerdWallet rating 

$2,279

4.5

NerdWallet rating 

Acuity

$2,305

Not rated

Armed Forces Insurance*

$2,126

Not rated

*Armed Forces Insurance generally serves the military community. Its homeowners insurance policies are not available to everyone.

Your own coverage needs may differ from the sample policy above and these companies may not be the cheapest for you. You should shop around and compare quotes from multiple companies to be sure you’re getting the best rate.

Here’s more information on a few of the companies from the table above.

The cheapest home insurance company: Auto-Owners

Auto-Owners’ average annual rate of $1,193 is almost half the state average, making it the cheapest home insurer in Colorado.

The company offers several optional coverage types, including guaranteed home replacement cost, ordinance or law coverage, equipment breakdown and identity theft protection of up to $15,000. Homeowners can save with a variety of discounts, including a discount for buying multiple insurance policies from Auto-Owners, paying your bill on time for the last three years, paying your premium in full, enrolling in paperless billing and having protective devices like smoke detectors and deadbolts installed in your home.

Policies can be purchased and claims filed by contacting a local agent using the company’s online portal.

Learn more about the company with our Auto-Owners home insurance review.

The most affordable 5-star option: Chubb

Chubb’s average annual rate of $1,846 is almost $500 below the state average and the company received a NerdWallet 5-star rating. Chubb caters to high-value homes and has strong customer satisfaction and a variety of optional coverage types and discounts.

Its home insurance policies come with some great perks, including extended replacement cost, additional living expense coverage, coverage to rebuild your home up to current building codes in the event of a claim, plus replacement cost value for your belongings. The company also offers a wide range of liability limits, from $1 million to $100 million.

Policies must be purchased directly from an agent. Claims can be filed online or by phone.

Learn more about the company with our Chubb home insurance review.

Worth considering: Shelter

Shelter’s average rate of $2,051 per year — almost $300 less than the Colorado state average — and its strong NerdWallet rating make it a worthwhile option. It also boasts good financial strength and fewer than expected complaints to state regulators than other insurers of similar size.

The company offers additional coverage types, including debris removal after a covered loss, up to $500 in reimbursement for fire department charges, coverage for trees, shrubs, plants and lawns, plus up to $1,000 in coverage for fraudulent credit card charges or check forgeries.

Discounts may be available for bundling your home and auto insurance, owning a home equipped with protective devices like fire alarms or deadbolts, going at least six years without filing a claim and insuring a home still under construction.

Learn more about the company with our Shelter home insurance review.

The cheapest Colorado homeowners insurance for different scenarios

We looked at rates for a few scenarios that can affect home insurance costs. For example, new homes typically cost less to insure, while a recently filed claim in your history may increase your premium. Here are the cheapest home insurance companies in Colorado for some of these common situations.

The cheapest homeowners insurance in Colorado for those with poor credit

Insurers in Colorado use credit-based insurance scores to price rates, and having poor credit will typically result in a higher premium. Here are some of the cheapest companies, on average, for homeowners with poor credit.

Company

Average annual rate

NerdWallet star rating

Grange Insurance Association

$2,876

Not rated

Colorado Farm Bureau

$3,010

Not rated

Acuity

$3,320

Not rated

USAA*

$3,685

5.0

NerdWallet rating 

Armed Forces Insurance*

$3,815

Not rated

*Armed Forces Insurance and USAA generally serve the military community. Their homeowners insurance policies are not available to everyone.

The cheapest homeowners insurance in Colorado for those with a claims history

You’ll pay more if you’ve filed a claim within the last few years, so we analyzed rates for homeowners who’ve filed a recent water claim in Colorado. Below are the cheapest companies, on average.

Company

Average annual rate

NerdWallet star rating

Auto-Owners

$1,193

4.0

NerdWallet rating 

Grange Insurance Association

$1,429

Not rated

Colorado Farm Bureau

$1,722

Not rated

Shelter

$2,355

4.0

NerdWallet rating 

Armed Forces Insurance*

$2,298

Not rated

*Armed Forces Insurance generally serves the military community. Its homeowners insurance policies are not available to everyone.

The best homeowners insurance in Colorado for newer homes

You’re more likely to pay less than the state average for home insurance if you’ve purchased a new home. Below are Colorado’s cheapest companies on average for a home built in 2021.

Company

Average annual rate

NerdWallet star rating

Auto-Owners

$783

4.0

NerdWallet rating 

Nationwide

$851

4.5

NerdWallet rating 

Grange Insurance Association

$1,031

Not rated

USAA*

$909

5.0

NerdWallet rating 

Armed Forces Insurance*

$1,050

Not rated

*Armed Forces Insurance and USAA generally serve the military community. Their homeowners insurance policies are not available to everyone.

The best homeowners insurance in Colorado for higher deductibles

Increasing your deductible — how much you pay if you file a claim — is a guaranteed way to lower your home insurance costs. Below are the cheapest companies in Colorado, on average, for a policy with a $2,500 deductible.

Company

Average annual rate

NerdWallet star rating

Auto-Owners

$1,167

4.0

NerdWallet rating 

Grange Insurance Association

$1,199

Not rated

Colorado Farm Bureau

$1,466

Not rated

Chubb

$1,576

5.0

NerdWallet rating 

Shelter

$1,673

4.0

NerdWallet rating 

Average homeowners insurance cost in Colorado by city

How much you pay for home insurance in Colorado will depend on your ZIP code. For example, homeowners in Denver pay an average of more than $2,800 a year for coverage while those in Grand Junction pay closer to $1,300 on average.

Below are the average home insurance rates in some of Colorado’s largest cities.

City

Average annual rate

Average monthly rate

Arvada

$2,687

$224

Aurora

$2,809

$234

Boulder

$2,206

$184

Broomfield

$2,342

$195

Centennial

$2,843

$237

Colorado Springs

$2,837

$236

Commerce City

$2,631

$219

Dakota Ridge

$2,701

$225

Denver

$2,832

$236

Fort Collins

$2,134

$178

Grand Junction

$1,306

$109

Greeley

$2,474

$206

Highlands Ranch

$2,748

$229

Lakewood

$2,688

$224

Longmont

$2,219

$185

Loveland

$2,079

$173

Parker

$2,772

$231

Pueblo

$3,207

$267

Thornton

$2,615

$218

Westminster

$2,551

$213

What to know about Colorado homeowners insurance

Here are a few things to keep in mind when evaluating home insurance options in Colorado.

Wildfires

Colorado ranks third in the country for the number of homes at a high risk for wildfire damage. Most home insurance policies cover fire and smoke damage, but homeowners in high-risk areas may have difficulty securing coverage from certain insurers. Read more on what to know about wildfires and insurance.

Recently, Colorado lawmakers introduced a bill that, if passed, would require home insurers to provide increased property coverage and extended timeframes for rebuilding after a fire to at least three years.

Hail

Colorado is part of Hail Alley and experiences severe hailstorms between April and September. Most home insurance policies will pay for damage from hail, including damage to your roof, minus your deductible.

Flooding

Colorado can experience flooding, and flood damage isn’t typically covered by homeowners insurance. If you live in a high-risk zone for flooding, such as along a lake or river, you’ll likely be required by your mortgage lender to purchase flood insurance. But you could be at risk no matter where you live, so it may still be worth considering. You can use the Federal Emergency Management Agency's flood maps to see the likelihood of flooding in your area.

How to get cheaper Colorado home insurance

Here are some tips to help you save on home insurance in Colorado.

  • Secure your home. Insurers usually offer discounts for installing protective devices like smoke and burglar alarms smart-home devices, sprinkler systems and deadbolts.

  • Bundle insurance policies. You can typically save if you buy more than one policy from the same company. Learn more about how you can save by bundling home and auto insurance.

  • Shop around. NerdWallet recommends homeowners shop for home insurance quotes once a year to get the best rate. Compare quotes from at least three companies, and be sure you’re looking at equal coverage limits and deductibles.

For more ideas, read our article on how to lower homeowners insurance rates.

Colorado Division of Insurance

You can file a complaint against your insurance company or learn more about how home insurance works from Colorado’s Division of Insurance. Its website lets homeowners compare insurance premiums and submit a complaint electronically, plus offers information about home insurance laws and how to shop for a policy. Assistance is available by calling 303-894-7499.

Looking for more insurance in Colorado?

Frequently asked questions

Colorado home insurance costs an average of $195 per month, or $2,340 per year, for homeowners with $300,000 in dwelling and liability coverage, no recent claims and a $1,000 deductible.

Home insurance isn’t required by law in Colorado. But if your home is financed, your mortgage lender will likely require that you carry it. Home insurance can be a good idea even if you don’t have a mortgage since a disaster could result in damage that is expensive to repair.

Your home insurance policy may cover mold if the damage is from a repair that was covered by your insurer or was the fault of a contractor. However, if the mold is due to water damage from your own negligence, you’re likely responsible for its removal. Learn more about if homeowners insurance covers mold.

Methodology

NerdWallet averaged rates for 40-year-old homeowners from a variety of insurance companies in every ZIP code across the state. Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1997. They had a $1,000 deductible and the following coverage limits:

  • $300,000 in dwelling coverage.

  • $30,000 in other structures coverage.

  • $150,000 in personal property coverage.

  • $60,000 in loss of use coverage.

  • $300,000 in liability coverage.

  • $1,000 in medical payments coverage.

We used the same assumptions for all other homeowner profiles, with the following exceptions:

  • For homeowners with a claims history, we added a single water damage claim.

  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for homeowners with poor credit.

  • To see the effect of changing your deductible, we raised the deductible from $1,000 to $2,500.

  • For homeowners with newer homes, we changed the year the house was built to 2021.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

Star rating methodology

NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts and online experience. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our full homeowners insurance rating methodology.

Complaint methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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