The Best and Cheapest Renters Insurance in Colorado for 2022: Rankings, Reviews and Rates
We recommend renters insurance in Colorado as it helps you protect your belongings from unexpected disasters. And our data shows there is a $47 difference in the average annual rates of the cheapest and costliest carriers in Colorado, meaning you can save about $4 per month by opting for the most affordable provider, so it’s essential to shop around for quotes.
And quality is important too. To make it easier to find a plan that best fits your needs, MoneyGeek ranked the leading renters insurance firms across Colorado. MoneyGeek considered the main factors of customer service quality, affordability and financial strength of carriers across the state to make these rankings and help you make an informed decision.
Cost is a deciding factor for most people in picking their renters insurance policy. Colorado’s two most affordable providers are Allstate and State Farm. Allstate’s renters insurance policy is priced at $9 per month, or $103 a year on average. State Farm’s average rates are only slightly more expensive at $10 per month or $125 per year.
The average premiums of all renters insurance providers are based on rates across multiple ZIP codes in Colorado. The costs listed above are for a plan with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
Personal Property Coverage:
$20,000
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Best Renters Insurance Companies in Colorado
Saving on renters insurance is great, but you should also consider the quality of your provider.
MoneyGeek tracked the best renters insurance providers in Colorado by comparing leading providers on three criteria: AM Best’s financial stability ratings, J.D. Power’s customer service scores and overall affordability. Based on MoneyGeek’s calculations, the best renters insurance firm in Colorado is Allstate, with a score of 95 out of 100. The next best is USAA, but its services are offered only to people with a military background. State Farm ranks third with a score of 84.
1
Allstate
Score:94.6
5/5
Affordability
4.2/5
User Satisfaction
4.5/5
Financial Stability
More About Allstate
Allstate provides great service and your rates can be even cheaper if you take advantage of discounts for multiple policies, safe homes, claims-free customers, auto-pay and retirees.
2
USAA
Score:85.4
3.8/5
Affordability
5/5
User Satisfaction
5/5
Financial Stability
More About USAA
USAA stands out because its standard coverage includes payouts for damages caused by floods and earthquakes. Its policy promises to repair or replace damaged or stolen items with new ones. Belongings covered include valuables like jewelry, furs, china, crystal and silverware.
You can also save money with USAA by obtaining claims-free and multiproduct discounts. A special rebate is also offered for renters with a monitored security alarm.
3
State Farm
Score:8
4.1/5
Affordability
4.1/5
User Satisfaction
5/5
Financial Stability
More About State Farm
State Farm offers a strong balance of affordability and customer service. Its online quote tool makes it easy to add coverage for particularly valuable items, like jewelry or electronics.
4
Travelers
Score:8
4.1/5
Affordability
3.9/5
User Satisfaction
5/5
Financial Stability
More About Travelers
Travelers offers some unique add-ons such as equipment breakdown coverage, which covers damages to expensive in-home equipment like air conditioners, kitchen appliances, computers and more. The company has also been around for more than 160 years, so you can be assured of its financial stability.
5
American Family
Score:81.2
4/5
Affordability
4.2/5
User Satisfaction
4/5
Financial Stability
More About American Family
If you're looking to get a cheaper quote from American Family renters insurance, it offers a variety of ways to save including multiproduct, smart home, claims-free, billing, loyalty and generational discounts.
Largest Renters Insurance Companies in Colorado
In Colorado, the insurance companies with the largest market share are State Farm (20%), USAA (12%), Liberty Mutual (11%), Allstate (10%) and American Family (10%). A large carrier is more likely to be financially stable, which means you’ll be more likely to receive a proper and timely payout for any claim you file.
Company
Market Share
1.
State Farm
19.5%
2.
USAA
11.6%
3.
Liberty Mutual
11.0%
4.
Allstate
9.6%
5.
American Family
9.6%
6.
Farmers
8.7%
7.
Travelers
6.5%
8.
Chubb
3.2%
9.
Nationwide
3.0%
10.
Progressive
1.7%
Average Cost of Renters Insurance in Colorado
0
0
renters insurance is equal to the average.
In Colorado, the average cost of renters insurance is $128 per year, which is $31 less than the national average of $159. A renter in the state pays about $11 per month, or $3 less than the monthly U.S. average. These prices are for a policy that includes personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
To find the cheapest rate and save money, compare renters insurance quotes from multiple providers. Doing so can save renters a considerable amount of money. For example, a renter who purchased the most affordable policy in Colorado, Allstate, could save $47 per year as compared to the most expensive policy, Farmers.
What Factors Impact Renters Insurance Cost in Colorado
Several factors can influence your renters insurance premium. Keep the following points in mind while buying renters insurance in Colorado:
Credit Score: People with lower credit scores tend to file a higher number of claims. Therefore, renters insurance companies charge these individuals a higher premium. If you wish to get discounts, you should aim to maintain a good credit score.
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV): Insurance companies use the ACV or RCV of an item while paying out your claim. ACV payouts consider the loss of value of a product over time, so these policies pay out less for older items. An RCV package reimburses for a new item of the same quality and type. ACV plans typically pay less for claims, so they tend to be cheaper. RCV packages offer higher payouts and are more expensive.
Deductible: The provider charges a deductible to process your claim and replace your goods. If you want to pay a lower premium, select a plan with a higher deductible. Policies with a lower deductible have a higher premium because the carrier needs to pay more to reimburse your claim.
Coverage Amount: The more coverage and add-ons you buy, the higher your renters insurance cost will be.
Location: If you live in a secure neighborhood, your premium is likely to be lower. Localities with higher crime rates and risks of natural disasters generally have higher premiums.
Renters Insurance in Colorado: What You Need to Know
While renters insurance isn’t required in Colorado, it offers security at an affordable rate. In cases of unexpected damage caused by natural disasters or burglary, renters insurance helps ensure that your belongings are protected.
In Colorado, the average monthly rent price is $1,369, and renters make up about 31% of the population. The average monthly renters insurance premium is $11, or 0.78% of the average monthly rental rate. This cost is for a standard plan with $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible.
What Renters Insurance Typically Covers in Colorado
You should be aware of the range of coverage offered by your policy before you buy renters insurance in Colorado.
Standard coverage typically includes personal property, medical payments, additional living expenses and liability insurance. Some plans also include features like identity theft insurance.
Personal property insurance In Colorado covers the cost of damages due to extreme weather events like wildfires and tornadoes.
What Renters Insurance Typically Does Not Cover in Colorado
Keep in mind that renters insurance policies may not cover common issues faced by people, such as the ones given below:
Expensive Goods: You need to purchase extra coverage for valuable items, as they are generally not covered.
Roommate Property: Your roommate’s belongings are not covered. They will need to purchase their own renters insurance plan.
Structural Damage: Damage to the house’s frame and structure is excluded in most renters insurance policies.
Earthquake Damage: Earthquakes are excluded from standard coverage.
Flooding: Flooding due to natural disasters usually is not covered by standard renters insurance policies. Floods are common in Colorado, so many people choose to protect their belongings from these natural disasters by buying additional flood insurance via the National Flood Insurance Program (NFIP).
Read all policy details carefully to learn more about what is covered and excluded in your renters insurance plan. This can help improve the chances that your claim is accepted and reimbursed.
FAQs About Renters Insurance in Colorado
There is presently no law mandating renters insurance in Colorado.
As a tenant, you are responsible for paying for property damage or bodily injury you may cause to another person. Therefore, MoneyGeek recommends that you buy renters insurance, especially as the cost is relatively affordable.
Your landlord in Colorado has the right to make renters insurance compulsory as a condition of the lease.
In Colorado, the average monthly cost for a standard renters insurance package is $11. This package includes $20,000 in personal property coverage and $100,000 of liability coverage.
Allstate is the cheapest provider in the state of Colorado, with average costs of $9 per month, or $103 per year.
Renters Insurance in Colorado Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from seven of the top insurance companies in Colorado that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Colorado. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000, liability coverage of $100,000 and a deductible of $500.
About the Author
The MoneyGeek editorial team has decades of combined experience in writing and publishing information about how people should manage money and credit. Our editors have worked with numerous publications including The Washington Post, The Daily Business Review, HealthDay, and Time, Inc., and have won numerous journalism awards. Our talented team of contributing writers include mortgage experts, veteran financial reporters, and award-winning journalists. Learn more about the MoneyGeek team.
