Home insurance in Colorado costs about $297 monthly or $3,559 annually on average. Residents pay $77 more per month, or $924 more annually, than the national average. This makes Colorado the ninth most expensive state for home insurance.
Average Home Insurance Cost in Colorado
Updated: November 12, 2025
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$220
High
$144
Average
$104
Low
Rates updated:
Nov 14, 2025
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Key Takeaways
Depending on your financial history, home details and other personal information, home insurance costs in Colorado can range from $2,288 to $42,487.
Colorado's home insurance premiums are the ninth most expensive in the country, at 35% above the national average.
To find the best home insurance in Colorado, determine what coverage you need beforehand, research costs and discounts in your area, and shop around.
How Much Is Home Insurance in Colorado?
| Colorado Average | $297 | $3,559 | 35% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250K Dwelling, $125K Personal Property and $200K Liability coverage with a $1,000 deductible.
Average Home Insurance Cost by City
Depending on your city, various risk factors (including your property’s age, weather-related factors and home valuations) vary drastically, affecting home insurance costs. For example, the average monthly home insurance cost in Arvada is around $323; in Pueblo, it’s much higher at $374.
| Arvada | $323 | $3,872 |
| Aurora | $339 | $4,067 |
| Boulder | $271 | $3,255 |
| Centennial | $347 | $4,165 |
| Colorado Springs | $342 | $4,098 |
| Denver | $343 | $4,116 |
| Fort Collins | $251 | $3,009 |
| Greeley | $327 | $3,927 |
| Highlands Ranch | $336 | $4,031 |
| Lakewood | $323 | $3,874 |
| Loveland | $248 | $2,979 |
| Pueblo | $374 | $4,482 |
| Thornton | $330 | $3,960 |
| Westminster | $319 | $3,829 |
*These rates represent a home built in 2000 out of frame with $250K Dwelling, $125K Personal Property and $200K Liability coverage with a $1,000 deductible.
Why Is Home Insurance So Expensive in Colorado?
Home insurance is expensive in Colorado mainly because of the increasing number of claims, the high risk of severe weather and natural disasters, rising material and labor costs, and state insurance laws. Below, we explain each factor in detail:
Rising Claims
Colorado homeowners make more claims than the average. The Insurance Information Institute reports that in 2023, the state recorded around the middle of the pack in total incurred insurance losses (claim value) in the country, at 15.23 billion dollars, which led insurers to charge more.
High Weather Risks
Due to Colorado's location along the Front Range and exposure to severe hailstorms, the likelihood of expensive claims is significantly higher. In 2024, weather-related risks were primarily driven by large hail events, flash flooding, and wildfire activity, with the Denver metro area and mountain communities particularly vulnerable to property damage from these natural disasters.
Rising Material and Labor Costs
Construction costs accounted for a record 64% of new home prices in 2024, up from around 61% in 2022, according to the National Association of Home Builders' (NAHB) latest survey. Wages for construction workers have risen by 35% since 2020, raising the cost of damages. These factors contribute to higher claims costs for insurers.
State Insurance Laws
Colorado operates under a file and use system, allowing insurers to notify state departments and raise insurance rates without full approval from the Colorado Division of Insurance. Additionally, properties in wildfire-prone areas face particularly high premiums, creating a challenging risk pool for insurers covering Colorado homeowners.
What Affects Colorado Home Insurance Costs?
Several factors affect what you pay for home insurance:
- Location
- Coverage chosen
- Home build details
- Provider chosen
- Credit
- Claims history
Each factor below shows how much it changes Colorado rates.
How Much Does Location Affect Home Insurance Costs?
Location affects Colorado home insurance rates more than any other factor, with premiums varying up to 48% between areas. Weather risks, home values and population density in your area drive these cost differences.
| Lowest | Colorado State Remnant Tier Aggregate | $169 | $2,032 |
| Highest | Pueblo | $393 | $4,718 |
How Much Does Coverage Affect Home Insurance Costs?
Coverage choices rank second in affecting Colorado rates, with annual premiums ranging from $1,876 to $10,536. Buy more coverage or choose a lower deductible and you'll pay more. Choose less coverage or a higher deductible and you'll pay less.
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | 2000 | $156 | $1,876 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | 500 | $878 | $10,536 |
How Much Do Home Details Affect Home Insurance Costs?
Your home's age, construction materials and roof type rank third in affecting Colorado rates, with monthly premiums ranging from $106 to $348. Insurers charge more when your home costs more to replace or faces higher damage risk.
| Lowest | New | Superior | Tile | $106 | $1,277 |
| Highest | Old | Frame | Shake-Treated | $348 | $4,179 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Which company you choose ranks fourth in affecting Colorado rates. Prices range from 53% below to 62% above the state average. Shop around because the right insurer saves you hundreds.
| Lowest | Auto-Owners Insurance | $139 | $1,673 |
| Highest | Farmers | $478 | $5,735 |
How Much Does Credit Affect Home Insurance Costs?
A higher credit score makes you appear more reliable, which can lower your home insurance costs. Premiums vary by up to 120%, with annual average rates ranging from $2,824 to $14,143.
| Lowest | Excellent | $235 | $2,824 |
| Highest | Poor | $1,179 | $14,143 |
How Much Does Claims History Affect Home Insurance Costs?
Filing more claims will increase your perceived risk for insurers, which can increase premiums. However, in Colorado, claims history has a smaller impact on cost than other factors. We found that depending on your claims history, rates can be affected by up to 8% or $572 annually.
| Lowest | Claim free for 5+ years | $295 | $3,536 |
| Highest | 2 claims in past 5 years | $342 | $4,108 |
Tips to Save on Colorado Home Insurance
With high home insurance costs in Colorado, it's important to find ways to save on premiums. Whether purchasing a new home or managing current expenses, securing the best and cheapest home insurance in Colorado is essential. Below are tips to help tailor your insurance to your needs.
- 1Find How Much Coverage You Need
Figure out how much home insurance you need before you start shopping. This frames your search and prevents agents from selling you coverage you don't need. Check standard coverage options, then decide if you need add-ons for valuable items you own.
- 2Research Costs and Discounts
Look up average costs for homeowners like you so you know whether quotes are fair. Ask agents about every available discount because some insurers only apply savings if you request them.
- 3Compare Multiple Providers Through Different Avenues
Get quotes from multiple insurers for identical coverage. Check online comparison sites, brokers, company websites and agents because rates differ across channels.
- 4Consider Bundling Policies
Bundle policies to cut costs. Bundling home and auto insurance in Colorado drops auto rates by 10% and home rates by 8%.
- 5Reduce Your Personal Risk Profile
To get cheaper premiums on your home, consider making improvements like adding storm shutters or home security systems. Also, improving your credit score can decrease premiums substantially. For example, moving from a fair to a good credit score can save you 28% on average.
- 6See if You're Eligible for State Programs
Traditional insurers won't cover everyone. Colorado offers the Colorado FAIR Plan if companies deny you. FAIR Plan policies cover less than traditional policies but meet mortgage requirements.
Colorado Home Insurance Calculator: Bottom Line
Home insurance costs vary, mainly by location and coverage level. Find affordable rates by researching your needs and comparing prices. Use our estimate tool for the best deal.
Homeowners Calculator Insurance Colorado: FAQ
The cost of homeowners insurance in Colorado varies due to different factors. MoneyGeek provides answers to common questions, helping you understand your potential expenses for home insurance in the state.
How much does homeowners insurance cost in Colorado?
Colorado's average monthly home insurance cost is $297 for dwelling coverage of $250K. However, your rate will depend on factors like your credit score, liability and property coverage limits, and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the cost to replace their home after damage, often with help from an appraiser. While this study uses a baseline coverage of $250K, you can use the MoneyGeek homeowners insurance calculator to find the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your location, chosen coverage level, and provider. Your credit score and home details also play a crucial role.
How We Determined Our Colorado Home Insurance Estimates
When determining the average cost of home insurance in Colorado, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.