The Best Home Insurance in Colorado for 2024

The average cost of home insurance in Colorado is $3,820. That's compared to the national average of $1,915.

NerdWallet analyzed data from numerous insurance companies to help you find the best home insurance in Colorado in the following categories:

• Best for affordability: Auto-Owners.

• Best for coverage: State Farm.

• Best for consumer experience: American Family and Nationwide.

The rates in our analysis are estimates based on many factors, so your rate may differ.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.

Best affordable homeowners insurance in Colorado: Auto-Owners

With an average annual rate of $2,175, Auto-Owners is less expensive than average in Colorado.

Auto-Owners’ homeowners policies include all the basics, but you can also add coverage for things like identity theft or the failure of major appliances. Guaranteed replacement cost coverage is another optional add-on, enabling you to rebuild your home after a total loss even if your dwelling coverage limit is too low.

Auto-Owners sells homeowners insurance through independent agents.

Learn more with our Auto-Owners home insurance review.

Best homeowners insurance in Colorado for coverage: State Farm

As America’s largest insurer, State Farm stands out for its long list of coverage options. Its policies generally include extra dwelling coverage in case it costs more than expected to rebuild your home after a covered disaster. You may also be able to add coverage for things like identity theft, damage from backed-up drains and personal injury liability.

State Farm offers a free Ting device as a perk for home insurance policyholders. Ting is a smart plug that monitors your home’s electrical network to help prevent fires.

To learn more, read our State Farm home insurance review.

Best homeowners insurance in Colorado for consumer experience: American Family and Nationwide

Founded in Madison, Wisconsin, American Family receives fewer consumer complaints than expected for a company of its size. Its user-friendly website offers features such as bill payments, claim reporting, online quotes and general insurance information.

Homeowners may be able to save on their premiums by installing smart-home devices, bundling multiple policies or setting up automatic payments.

Get more information in our American Family homeowners insurance review.

Nationwide offers a robust consumer experience for its customers, including a website that makes it easy to manage policies, file and track claims, and set up automatic billing. It also has a highly rated app for Android and iOS that allows customers to file and track claims, review policy documents and set up autopay.

In addition, Nationwide’s customers have several ways to get assistance, such as reaching out to their agent or calling the company’s customer service hotline. Outside of business hours, they can use the Nationwide website to get proof of insurance, pay bills and schedule callbacks. A chatbot is also available to answer basic questions.

Learn more with our Nationwide homeowners insurance review.

Full list of the best homeowners insurance in Colorado

NerdWallet analyzed home insurance companies across the state to find the best home insurance in Colorado. Here are all of the insurers that received a NerdWallet star rating of 4.5 or higher:

» MORE: The best homeowners insurance

How much does homeowners insurance cost in Colorado?

The average cost of homeowners insurance in Colorado is $3,820 per year, or about $318 per month, according to NerdWallet’s rate analysis. That’s nearly twice the national average of $1,915.

In most states, including Colorado, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score.

In Colorado, those with poor credit pay an average of $6,520 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 71% more than those with good credit.

» MORE: How your credit score affects homeowners insurance

Average cost of homeowners insurance 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 $4,235 a year for coverage, while those in Grand Junction pay $1,775, on average.

» MORE: What’s the average cost of homeowners insurance?

The cheapest home insurance in Colorado

Here are the insurers we found with average annual rates below the Colorado average of $3,820.

» MORE: Get the cheapest homeowners insurance

What to know about Colorado homeowners insurance

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

Wildfires

Most home insurance policies cover fire and smoke damage, but homeowners in high-risk areas may have difficulty finding coverage. Read more on what to know about wildfire insurance.

A 2022 state law^[0]

• Insurers must pay for at least two years of additional living expenses if you need to live somewhere else while your house is rebuilt.

• You have up to three years after your insurer’s initial claim payment to submit rebuilding invoices and receipts for replacement belongings.

• You may use your claim funds to rebuild in the same location, build a home in a different location or buy an existing home somewhere else.

• You may be entitled to a claim payout of at least 65% of your personal property limit without having to create a detailed inventory of all the belongings you lost. However, you can still get a full payout if you do submit a list. (Learn how to create a home inventory.)

Hail

Most home insurance policies will pay for damage from hail, including damage to your roof, minus your home insurance deductible. (A deductible is the part of a claim you’re responsible for paying.)

Flooding

Colorado can experience flooding, but homeowners insurance typically won’t cover flood damage. If you live in a high-risk zone for flooding, such as along a lake or river, your mortgage lender will likely require you 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 or check RiskFactor.com (a nonprofit resource) to see the likelihood of flooding in your area.

» MORE: How to choose the best flood insurance company

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 provides information about home insurance regulations and how to shop for a policy. Assistance is available by calling 303-894-7499.