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9 Best Homeowners Insurance Companies in Colorado of 2022

Augustine Reyes Chan

Augustine Reyes Chan

Find out who the best renters insurance is in Colorado. Learn how they compare, and which one is right for you and your home. Discover how much it costs, what it covers, and why you need it.
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Your home is your most valuable asset, so why not cover it with a homeowners insurance policy?

Homeowners insurance can protect you from a financial crisis if your home is damaged or destroyed in a covered peril, such as a fire.

If you didn’t have homeowners insurance and your roof was damaged due to a hail storm, you’d be paying out of pocket to fix it.

Ask yourself this: can you afford to live without homeowners insurance?

In Colorado, it’s important to have homeowners insurance.

That’s because Colorado is one of the most unsafe places to live. The state is susceptible to wildfires, tornadoes, and heavy wind.

Many homeowners focus on finding the cheapest homeowners insurance policy.

While that may be a priority, you should also ensure that you have a solid understanding of what home insurance coverage you need and choose a policy that fits those needs.

You may be looking for the best insurer right now. But there are many companies out there and you have to do your research to find the one that has coverages to protect things that you can’t live without.

To make it easier, we’ve given you a list of the best homeowners insurance companies in the industry narrowed down by specific and important categories.

Best Homeowners Insurance in Colorado

  • Lemonade: Best Policy That Saves You Time
  • Liberty Mutual: Best for Discounts
  • Allstate: Best Policy Overall
  • Branch Financial: The Best Financially Stable Policy
  • State Farm: Best for Customer Service and Optional Coverages
  • Chubb: Cheapest Policy for Expensive Homes
  • Safeco: Best Cheapest Policy
  • Progressive: Best Policy for Tornadoes
  • Travelers: Best Policy for Add-Ons

Lemonade: Best Policy That Saves You Time

Lemonade homeowners insurance Colorado
Editors star rating review
Editor's Rating (4.5 Stars out of 5)

Lemonade trades live agents and accessible customer service for an all AI approach, which means you only deal with the company’s highly popular website and mobile app.

All that you can do can be handled electronically. You can purchase a policy, file a claim, purchase add-ons, and many more. And since you can accomplish all these things without having to wait on hold to get a question answered, for example, Lemonade saves you a lot of time.

We all need extra time in the day, and we also thrive on convenience.

That’s why you should choose Lemonade if you are busy. The insurer claims that it holds the world’s record for being the fastest insurance company to pay a claim.

That’s three seconds after you file the claim, which seems impossible but is true.

The AI bot runs anti-fraud algorithms to analyze the sincerity of the claim, process all details, then concludes with a quick answer on how much money you’re owed.

It’s also easy to buy extra coverage for your high-cost belongings. You can do that through the app or the site so that your high-cost belongings like jewelry, fine art, and collectible books due to accidental loss, theft, or covered peril, can be covered.

However, one drawback is that the basic policy only covers your personal property up to the policy’s limit, which is a low $1,500.

So it’s necessary to purchase add-ons so that your belongings will be covered in full.

How’s Lemonade Rated?

  • BBB: C
  • AM Best: A-
  • NAIC: .81

Read a full Lemonade home insurance review.

Lemonade Homeowners Insurance Pros & Cons
ProsCons
Handles 30% of claims instantly.Only available online.
Cheap rates in comparison to competitors.Coverage is not nationwide (but the company is working on it).
Intuitive website and app.Earthquake coverage only available in California and Arkansas.
Lemonade’s Giveback program donates unused premiums to charities that customers choose.Not the best insurer for people who do not do personal business online.
Pays extra if the cost to rebuild your home exceeds normal amounts due to circumstances such as high labor costs.Not recommended for those who aren’t tech-savvy.
Offers few discounts.

Liberty Mutual: Best for Discounts

Liberty Mutual Homeowners Insurance Colorado
Editors star rating review
Editor's Rating (4.5 Stars out of 5)

Liberty Mutual has been in business for more than 110 years, and it offers exceptional products like auto, renters, and home and business insurance.

In Colorado, residents are at risk from hail and hailstone damage more than other states.

In 2021, 374,435 properties in Colorado were affected by hail damage.

The percentage of properties affected was 22% for the entire year, making Colorado one of the most unsafe states in the US due to frequent hail.

The good news is that Liberty Mutual’s standard homeowners insurance policy covers hail damage.

Liberty is best for covering hail because it has a hail action plan in addition to the standard coverage for hail for areas like Colorado where hail occur more frequently.

Most insurers are more likely to limit their hail coverage because hailstorms can cause significant damage to your home, and if you make a hail claim, it can be catastrophic to the insurer.

Other insurers increase the cost of your policy due to frequent hail to reflect the higher risk.

Liberty Mutual’s hail coverage is more comprehensive than other insurers and will pay to replace damages to your roof, air conditioner and HVAC systems, vents, skylights, and heating units.

If you purchase additional coverage for hail, which is recommended in the industry, this may mean your premium will rise.

However, Liberty Mutual, which already offers the most affordable rates for homeowners insurance, can offset your costs due to the many discounts it makes available to policyholders.

Some of Liberty’s numerous discounts includes savings because you are claim-free for three years or get a quote from Liberty before your current insurer expires and then buy the homeowners policy from Liberty.

For your home, you can also get a discount if you bought a new home, or renovated your home, or if you’ve added a new roof, which will protect it from hailstorms.

Plus, if you insure up to 100% of the cost to replace your home, you’ll also get a discount.

How’s Liberty Mutual Rated?

  • BBB; A
  • A.M. Best: A
  • J.D. Power Overall Satisfaction Rating: 825/1,000
  • NAIC complaint index: 4.53

Read a full Liberty Mutual home insurance review.

Liberty Mutual Homeowners Insurance Pros & Cons
ProsCons
A variety of discounts can help you save.Relatively few extra coverage options.
Easy to use website and innovative app.Hard to find a local office and agent; service is centralized to national call centers.
Best for those looking for cheap rates.NAIC customer complaint ratio considerably worse than the median industry score.
Available in all 50 states and Washington, D.C.Two stars from JD Power Homeowners Insurance study, ranking it below average.
Partners with more than 14,000 groups, so there’s a good chance you’ll qualify for an “affinity” discount.Fewer add-ons than many other insurers.
You can file claim on smartphone.Large number of claims complaints.
Coverage and discounts vary by state.

Allstate: Best Policy Overall

Allstate homeowners insurance Colorado
Editors star rating review
Editor's Rating (5 Stars out of 5)

Allstate, the most influential insurance company in the nation, has many things to offer, which is why we chose it as “best overall.”

Allstate’s website is easy to use and offers a unique home value estimation tool to help you better understand how much coverage you need.

You can shave 5% off your premium each year you go without filing a claim.

Here’s what’s exclusive to Allstate:

  • Offers a unique discount to non-smoking Colorado residents.
  • Has an earthquake coverage add-on for either 10% or 25% of the dwelling limit.
  • You can get $100 off your deductible if you don’t file a claim each year.
  • If you do have to file a claim, you can keep your premium from increasing if you opt for Allstate “RateGuard.”
  • Allstate can help cover damage or theft when you rent out your home on a vacation rental company like Airbnb.
  • 24/7 customer service.

Some of the most unique and helpful discounts include:

  • Responsible payment
  • New home buyer
  • Early signing
  • Many add-on coverages, which include:
  • Identity theft restoration
  • Water backup
  • Scheduled personal property
  • Sports equipment
  • Green improvement reimbursement

How’s Allstate Rated?

  • AM Best: A+
  • JD Power: 829/1,000
  • BBB: A+

Read a full Allstate homeowners insurance review.

Allstate Homeowners Insurance Pros & Cons
ProsCons
Easy-to-use website.Has a low J.D. Power customer satisfaction score.
Optional Rate Guard feature locks in your premium.Premium is higher compared to insurers of the same size.
Easy to bundle policies, including life insurance, which can save you up to 25%.Policy features are limited.
Up to 20% off if you switch to Allstate with a claim-free history.Loss of use limited coverage.
Many add-ons for more coverage.

Branch Financial: The Best Financially Stable Policy

Branch homeowners insurance Colorado
Editors star rating review
Editor's Rating (4 Stars out of 5)

Branch Financial is new to the scene, and yet it has already established itself as one of the most financially stable homeowners insurance companies.

Branch, which is underwritten by General Security National Insurance (GSNIC), already has an A+ rating from AM Best.

In addition, Branch has an "A" rating from Demotech, which is considered "exceptional".

The ratings from AM Best and Demotech matter when it comes to the company’s ability to pay out claims after a major catastrophe.

Thus, financial stability is very important for an insurer to have if a tornado hits an area, and all at once homeowners are making claims after the fact.

Branch, which pioneered “instantly-bundled” home and auto insurance, continues to gain traction by rating companies.

The NAIC and BBB received no complaints from Branch.

General Security National also has not received any complaints in the last three years.

As for what Branch offers, it has many coverages that you can add to your policy as a rider.

Also, Branch covers you up to $50,000 in water backup damage coverage.

Here are a few more:

  • Roof surfaces extended coverage
  • Extra coverage for jewelry or sports equipment
  • Physical structure, with incremental coverage
  • Building code coverage

Finally, Branch prides itself on being able to bundle your home and auto insurance in as little as 30 seconds.

And it’s easy when making a claim because the insurer handles claims quickly and fairly.

How’s Branch Financial Rated?

  • AM Best: A+
Branch Financial Homeowners Insurance Pros & Cons
ProsCons
A community focus to help lower costs.Not available in many states, although insurer plans on covering the entire US in the years to come.
Relies on customer word of mouth to reel in new customers.Very few discounts.
For every friend you invite who signs up, policyholders get a 1% discount.If not interested in recruiting friends to Branch, only option to save is by bundling policies.
Easy quote system. Just enter name and address on website and the insurer compiles publicly available data to complete quote.Not an insurance company; insurer is technically an insurance agency.
Safety Nest program allows those who have experienced a tragedy or accident while uninsured or underinsured to apply for financial help.

State Farm: Best for Customer Service and Optional Coverages

State Farm homeowners insurance Colorado
Editors star rating review
Editor's Rating (4.5 Stars out of 5)

State Farm is one of the most respected and largest insurers in the nation. It offers competitive prices, a very useful website, and the best customer service.

Customer service is a priority for State Farm, which is why it’s highly ranked by customer reviews. In addition, it received a 4/5 on the JD Power homeowners insurance survey, which means that policyholders were generally enthusiastic about their customer service experience.

State Farm homeowners insurance also has excellent coverage options that can broaden the scope of your basic policy but will put a dent in your premium.

Most of the coverage options are important to have, and there are a few that are unique in the industry.

Sewer or drain backupOverflow due to sewers and drains can cause water damage. If you want to protect your property from this, you should consider this coverage.
Identity restoration coverageIf your identity is stolen or used fraudulently, State Farm will monitor your finances and reimburse you for any expenses incurred to clear your name.
Loss assessment coverageIf you're an HOA member, this coverage will cover losses that the HOA passes to its members.
Business pursuits coverageThis covers bodily injury and property damage liability for those in certain occupations.
Adult family homeIf you hire someone for adult care services in your home and the person is injured, the insurer will cover bodily injury as well as property damage.
Nurses' professional liability coverageThis provides liability coverage specifically for registered nurses, licensed practical nurses, and licensed vocational nurses.
Off-premises coverageThis coverage extends to structures located off-premises.
Increased limits for other structuresThis coverage will increase your limits to protect or repair detached structures on your property, such as a shed, fence, free-standing garage, and more.
Personal injury liability coverageIf you're legally obligated to pay for personal injury offenses, this coverage steps in to defend your liability.
Temporary rental coverageHomeowners who rent out their homes for special events like a wedding can add this coverage to increase the costs of theft and liability coverage.
Vacancy coverageIf your dwelling remains empty for over 30 days and all items inside have been removed—from furniture to appliances—this coverage protects against vandalism and glass breakage.
Service line coverage for damaged underground utility linesCoverage to replace a damaged water heater, air conditioner. or heating unit with a more energy-efficient model.

Reimbursement for certain costs related to building codes or zoning laws.

Various coverages for homes under construction, including theft of building materials and liability in a temporary home.

Coverage for the breakdown of home systems, such as furnaces and air conditioning units.

Incidental business coverage for people who work from home.

How Well Received is State Farm?

  • JD Power: 835/1,000
  • AM Best: A++
  • BBB: A+
  • NAIC: .02
State Farm Homeowners Insurance Pros & Cons
ProsCons
Powerful online tools make it easy to get a quote and make a claim.Not the cheapest option.
Best for those who want to work closely with an agent and feel most comfortable buying insurance from well-established company.Not many discounts compared to other insurers.
Has 20,000 agents across country dedicated to helping customers.Policies not available through independent agents.
Bundling home and auto can save you up to $965 a year.Replacement cost not covered in standard policy; you need an add-on to get it.
Has highest AM Best rating, which means insurer can pay out insurance claims, regardless of economic climate or high claim demand.
Low customer complaint ratio.

Chubb: Cheapest Policy for Expensive Homes

Editors star rating review
Editor's Rating (4.5 Stars out of 5)

If you own an expensive home, it can make sense to purchase the best home insurance in Colorado to cover all of your bases. On average, the most affordable coverage for $2 million homes in Colorado comes from Chubb, with an average annual premium of $8,630. Similar policies with other companies can be significantly more expensive, sometimes exceeding an average of $25,000 a year.

Chubb homeowners insurance targets wealthy people who live in expensive homes.

And yet it offers the best customer experience. Its customer service is unmatched, it offers a large number of discounts, and it has several features that other insurers charge extra for.

For example. With Chubb’s HomeScan, issues in your home that you suddenly discover and need immediate attention before they can cause damage are covered.

Another is that Chubb offers replacement cost coverage as standard in its basic policy, which you often have to pay extra for with other insurers.

This means you get the full cost of your items or belongings at today’s prices after a damaging event rather than the depreciated value, which is ACV, or actual cash value.

And if your home is destroyed by a covered disaster, and costs more to rebuild than anticipated, Chubb will apply your dwelling coverage and add more to that if needed to help cover the full cost of your home.

Also, if your home is destroyed and you don’t want to use the money for a rebuild, Chubb’s “cash-out” feature allows you to walk away and gives you a reimbursement for the same amount of what it would cost to repair your house.

How’s Chubb Rated?

  • BBB: A+
  • JD Power: 2/5
  • NAIC: 0.14
  • AM Best: A++
Chubb Homeowners Insurance Pros & Cons
ProsCons
Concierge service for wildfires and hurricanes.In certain case, insurer is more expensive than other insurers.
Offers flood insurance.Doesn’t offer online quotes for most consumers.
Deductibles waived if loss is greater than $50,000.You can only purchase policy with a local agent.
Unlimited loss-of-use coverage in most states.Only covers high-valued homes.
Tree removal after storm.App not helpful to some.
Restoration of electronic data destroyed by computer virus.
Lock replacement if keys are lost or stolen.

Safeco: Best Cheapest Policy

Editors star rating review
Editor's Rating (4 Stars out of 5)

The Safeco insurance company, a subsidiary of Liberty Mutual, is one of the most reputable insurance companies on the market. Safeco may not be the most well-known insurance provider, but in comparison to other insurers, it offers the cheapest premium.

On average, Safeco’s standard homeowners insurance policy only costs $100 per month or $1,180 per year.

The average cost of Colorado homeowners insurance is $140 per month or $1,660 per year.

The national average cost of homeowners insurance is $110 per month or $1,310 per year.

This means that Safeco is cheaper than the state average and the national average.

Safeco also excels in discounts to lower your premium, a wide range of coverage endorsements and coverage enhancements, and a straightforward claims process.

You can make a claim in many ways. You can do so online, over the phone, using the company’s 24/7 claims assistant hotline, or via video chat.

One option that stands out and is unique to the insurer is Safeco’s single loss insurance deductible option.

If you bundle your Safeco homeowners insurance with other Safeco products, you’ll only pay one deductible even if you have multiple types of claims for a single incident.

For example, if a tree on your property falls and damages both your garage and car, you’ll only need to cover the homeowners insurance deductible rather than both the home and auto deductibles.

This can save you a lot of money.

How’s Safeco Rated?

  • A.M. Best: A+
  • NAIC: 1.53
ProsCons
Offers the cheapest rate overall.No unique discounts, like making home greener.
Household and appliance equipment repairs due to electrical or mechanical problems.Not available in Delaware, Florida, Hawaii, or Washington, D.C.
Additional dwelling coverage in the event you exceed policy limit.Below average customer service ratings.
Reimbursement if you spend money to recover from identity theft.NAIC 1.53 score puts insurer below average for the industry.
Connections to prescreened contractors for any repairs, with Safeco providing a warranty for the work.

Progressive: Best Policy for Tornadoes

Colorado experiences a lot of tornadoes each year. So. It’s essential that residences have tornado coverage, which falls under the natural disaster term “high winds.”

Progressive is your best bet for adding additional coverage for high winds.

But isn’t wind covered in a standard homeowners insurance policy?

Standard homeowners insurance covers wind and hail.

However, the policy doesn’t cover high winds, which is different from winds.

Since Colorado is a state where tornadoes are common, you may need additional insurance.

Progressive offers insurance that covers high winds, which means if a tornado rips the roof off your home, you’ll be covered in full.

Progressive’s high winds coverage is available as a rider to your homeowners insurance.

But read the fine print. Some insurers will refuse you from having high wind and tornado coverage because damage from them can be catastrophic.

If the insurer doesn’t have a high financial rating, claims made after disaster strikes can be financially crippling for the insurer, especially if a tornado hits an area and residents are making claims all at once.

How’s Progressive Rated?

  • JD Power: 821/1,000
  • AM Best: A+
  • BBB: A+
  • NAIC: 1.70
ProsCons
Single deductible available for car insurance customers who purchase a homeowners policy through Progressive Home.Homeowners insurance offered by third-party companies.
Discounted price on covered repairs when hiring a contractor from Progressive’s contractor network after a claim.Doesn't underwrite its own policies.
Discounts for signing up early and getting documents by email.Discount for bundling home and auto is less than what competitors offer.
Online HomeQuote tool, which allows you to compare quotes from multiple providers of homeowners insurance.Need to supply birthdate and SS# to receive quote.
Bundling available for home and auto, home and motorcycle, and home and RV.

Travelers: Best Policy for Add-Ons

Editors star rating review
Editor's Rating (4 Stars out of 5)

Travelers home insurance is known in the industry for its stellar reputation.

In fact, according to three years’ worth of data from the National Association of Insurance Commissioners (NAIC), the company had fewer than the expected number of home insurance complaints to state regulators relative to its size.

It also has an impressive number of add-ons. The best ones include:

Special personal property coverageThe basic insurance plan often does not cover in full your personal belongings if they are lost or stolen or destroyed or damaged due to a covered peril. With this add-on, your coverage increases to help pay in full for your damaged belongings.
Contents replacement costWith Traveler’s replacement cost add-on, if your property is stolen or destroyed, the company will reimburse you so that you can replace in full, and at today’s prices, any of your items. This is unlike ACV (actual cash value), which will only cover the depreciated cost of your items.
Additional replacement cost coverageIf your home is destroyed by a covered peril and the cost to rebuild it is higher than your dwelling limit, this add-on gives you enough money so that your house can be paid in full.
Extra coverage for valuablesYou can raise your coverage limits or take out a separate policy for your valuables like jewelry if the standard or basic plan doesn’t offer sufficient coverage.
Water backup and sump pumpIf drains, sewer lines, or sump pumps in your home back up and cause water damage to your home, this add-on will pay for repairs.
Green home coverageUnique to the company, if your home was destroyed, this add-on pays for you to use environmentally friendly materials when repairing or rebuilding your home.

How’s Travelers Rated?

  • AM Best: A++
  • JD Power: 872/1,000
  • NAIC: 0.64
Travelers Homeowners Insurance Pros & Cons
ProsCons
User-friendly features on website and app.Doesn’t insure mobile or manufactured homes.
Discounts for eco-friendly homeowners.Expect long turnaround times and subpar customer service when filing a claim.
For those who need a wide range of extra coverage options.Low J.D. Power rating.
As a large, established company, Travelers has an advantage over smaller companies in absorbing the costs of a regional crisis.Does not provide coverage for all states.

How We Decided

To determine the best companies that provided homeowners insurance, we looked at several factors, including pricing, coverage options to increase your policy limits, as well as the discounts an insurer can offer that could lower your premium.

Discounts

We narrowed down our focus to those companies that had the most discounts. That was to ensure that a prospective policyholder could purchase a policy at the lowest possible rate.

We found that the multi-policy is the best discount to get because it lowered your premium in a significant way. So, we focused on companies that offered that. Most do.

Coverage

We looked at homeowners insurance policies based on how much coverage they offered.

A range of coverages is important for a company to have because it can customize a policy or tailor it to a customer’s need. Coverage can also offset policy limits so that when you make a claim, you will be reimbursed in full.

Technology

If a company’s website and app allowed you to manage most of your insurance needs electronically or if both were easy to use even for the technophobe, then that’s a company that we considered.

Customer Reviews

We looked at many sites that offered customer reviews to also narrow down our options. The ones with the most positive reviews were more favorable to us.

In particular, we looked at scores offered by JD Powers and AM Best to back up what consumers are saying about their insurers.

Price

A homeowners insurance policy shouldn’t break the bank. Pricing has to be fair, and a company should also have discounts to make a policy affordable to most people.

As such, we looked at companies that had affordable premiums. If the insurance company had a rate below the national average or below the state average, we put that company on our list.

Locations

We surveyed insurance coverage prices in Denver, Colorado Springs, Aurora, Fort Collins, and Lakewood.

Is It Mandatory to Buy Homeowners Insurance in Colorado?

Homeowners insurance isn't mandatory by law.

However, if you have a home mortgage, the lender will likely require it to protect its investment.

Even if you own your home outright, homeowners insurance can spare you from spending a lot of money on out-of-pocket costs to rebuild your home if it gets damaged due to a covered peril.

What is Covered in Homeowners Insurance?

For a basic insurance policy, here’s what it covers.

Dwelling

If your house is damaged or destroyed due to a fire or a natural disaster, or a covered event that you could not have predicted, your insurer will cover the cost of rebuilding your home.

Liability

If you cause bodily injury or property damage to another person unintentionally or through neglect, your insurance will pay for any medical bills the injured person needs, and legal fees and legal representation if you’re sued.

Medical

This policy pays if someone is injured on your property and needs medical treatment, regardless of who’s at fault. Also pays if you, a family member, or a pet like a dog injures someone elsewhere.

Personal Property

This pays to repair or replace personal belongings that are stolen or damaged in a covered peril whether that happens in your home or on a trip.

Loss of Use

If your home is destroyed and you can’t possibly live there due to health reasons or because it’s simply unhabitable, loss of use pays for hotel stays and having meals at restaurants.

How Much Does Homeowners Insurance Cost in Colorado?

The average cost of homeowners insurance in the nation is $1,310 per year or $110 per month.

The average cost of Colorado homeowners insurance is $140 per month or $1,660 per year.

What is the Cheapest Homeowners Insurance in Colorado?

The cheapest insurer is based on several factors.

These include the value of your home, the state and area in which you live, particularly if you live in a safe neighborhood, your neighborhood or city crime rate, your claims history, the amount of additional coverage you buy, the deductible you choose, and what discounts you qualify for that can lower the cost of your premium.

In addition, other factors that can affect how cheap your insurer is, or how low your premium will be, include:

  • Your ZIP code.
  • The age of your home.
  • The square footage of your home.
  • The features in your home, particularly if you have home security devices installed.
  • Your home’s replacement cost.
  • The age and condition of your roof.
  • The proximity of your house to a local fire station and fire hydrant.
  • The company you choose.

That said, Safeco is the cheapest overall and costs $98.25 per month or $1,179 per year.

As you can see, Safeco is cheaper than the state and national average.

Are There Ways to Reduce the Cost of Homeowners Insurance?

The biggest way to reduce the cost of your premium is to ask your insurer for discounts.

Discounts are things offered by an insurance company that can lower your premium.

Discounts are important to have if you want to save some money.

Some of the most common discounts that Colorado insurers offer include:

Multi-Policy

If you bundle your home insurance with your auto policy and both are covered by the same insurer, you’ll qualify for a discount.

Many homeowners insurance companies also sell other products like life insurance. The more you bundle, the less you will pay.

In fact, bundling is the most important discount you should get. It gives you the largest discount in comparison to other discounts. With some companies, you can save up to 15% off.

Being Claims-Free

If you don’t make a claim during a set period, you’re eligible for a discount.

Safety Features

If you live near a fire hydrant or a fire station, if your home is in a gated community, and if you have security details in your home such as alarms, security cameras, dead bolts, and fire extinguishers, you’ll get a discount.

Home Credit

If you purchase new and costly home equipment such as a refrigerator, an insurer will reduce your rate because that item will be less likely to break down.

Age

If you are 55 or older and are retired, you’ll also save.

Are There Other Ways to Lower Your Premium?

A homeowners insurance premium should not cripple you financially. It should be affordable or reasonably priced, and besides discounts, there are other ways to offset your premium cost.

Some of these include:

Shopping around

You should get insurance quotes from several insurers so you can compare rates, coverage, discounts, and additional features of each company to find the best insurance that suits your needs.

It’s recommended you should get at least 3 or 4 quotes. You can easily do that by using a company’s website.

Note that if you can’t get a quick quote online and the insurer needs to call you to give you a quote, you shouldn’t work with that company.

Having a digital interface where you can not only get a quick quote but also apply for coverages and make a claim means that you can save time.

Buying a homeowners insurance policy shouldn’t be hard to do.

It should be easy for anyone, which is why a company’s technology is an important feature for you to have.

Improve or maintain your credit score

Most homeowners insurance companies use your credit score to determine your rate.

If you have a high credit score, your premium will be lowered. This means the insurer knows you can pay on time and that you are financially stable and less likely to skip a payment.

But if you have a score lower than 679, you’ll be subject to a higher premium. This is because homeowners with lower credit are statistically more likely to file claims.

As such, the insurer will charge you a higher premium to compensate for this increased risk.

So, it’s wise to improve and maintain your credit score. You can do so by paying down credit cards, paying more than the monthly cost, and reducing your overall debt.

Remodel Your Home

If you remodel your home, you’ll get a discount.

The most popular remodels alter your home in a useful way, make it safe, and can increase the cost of your home. These include your bathroom or your kitchen.

Remodeling your bath means you will have new plumbing and that you are less likely to file a claim if it breaks down or has an overflow of water.

Increase your Deductible

The standard deductible in the home insurance industry is usually at least $500.

If you can afford to raise your deductible to $1,000, you may save as much as 25%.

The higher your deductible, the more money you can save on your premiums.

What You Should Consider Besides Cheap Premiums

Cheap homeowners insurance can save you money, but you also likely want to ensure you are purchasing adequate coverage.

Skimping on coverage to save money could leave you in a financial mess if your home is damaged or destroyed in a covered loss.

Because the standard insurance only pays up to the policy’s limit, you will most likely have to pay out-of-pocket if one of your belongings costs more than your limit.

Customer Service

You may want to factor a company’s customer service when you choose an insurer.

If you choose a home insurance company that’s known for making its customers happy, you can feel more confident that you will have a good experience.

And a friendly and helpful agent means you will have no problems if, say, you make a claim, or if you need assistance or have a question about your policy. You don’t want someone who is rushing you or talking to you using industry jargon.

To see whether previous customers have been satisfied, you can turn to JD Power, which surveys thousands of homeowners annually.

And to see how insurance companies have performed, such as how many complaints were filed against an insurer and the reasons for the complaints, check out the NAIC website, which we did when coming up with our list of top performers.

Financial Strength

Also consider a company’s financial strength ratings into your decision.

A financially stable insurer will have enough money to pay claims promptly.

What Does Homeowners Insurance Not Cover?

A standard homeowners policy will not cover damage due to flooding, earthquakes, landslides, or infestations like bed bugs. It will also not cover everyday wear and tear or items that need to be continually maintained and were not because of your negligence.

Why is Homeowners Insurance High in Colorado?

Colorado appears on many review sites as one of the most expensive states to insure.

Colorado’s catastrophic weather conditions, including windstorms, tornadoes, snow, and hail storms are likely responsible for high premiums.

In addition, the threat of wildfires, the price of homes, and the state’s dense population contribute to the expensive rates.

So, when choosing a Colorado homeowners policy, it’s important to consider weather conditions and their associated risks, among other factors.

How to Deal with Natural Disasters in Colorado

The best home insurance companies in Colorado go out of their way to offer their policyholders coverage in consideration of the state’s high level of natural disasters.

Tornadoes

Many homeowners think that because windstorms are covered in a basic policy, they don’t need more protection.

However, the standard policy does not cover high winds, which results in tornadoes. So, it’s a must that policyholders purchase an add-on to protect them from high winds.

Fire

In the past year, Colorado experienced many wildfires. Because of their frequency, homeowners face detrimental fire damage, especially those who live in rural areas or who reside near forests.

The good news is that fire and its damages are covered by the basic homeowners policy.

The bad news is that the frequency of wildfires may force you to make a claim, which will increase your premium and the insurer will consider you a risk.

A wildfire policy will defend your home from wildfires, as well as provide support after a fire and during the claims process.

But there are ways to make your home more insurable.

Some are hard to do. An insurer would like you to live near a fire hydrant or a fire department so that fire damage to your home can be more contained and cause less destruction.

It’s hard because you may not live near a fire hydrant, or your neighborhood may be far away from a fire station.

But if you have smoke detectors, burglar alarms, cameras, automatic sprinkler systems, and live in a gated community, the insurer will account for that and even give you a discount for these security details.

Water damage

Flooding causes water damage. It usually comes in the spring, when melting snow causes an overflow to waterborne areas like rivers, lakes, and ponds.

Flood insurance is never covered by a standard policy.

So, even if you don’t live near a large body of water, many insurers recommend that you purchase flood insurance as an add-on or as a separate policy on top of your basic policy because 90% of US natural disasters involve flooding.

Hail damage

Colorado ranks second in the US for hail claims filed by homeowners.

Hailstones, especially large ones, can significantly damage your roof, gutters, and windows.

While hail is a covered peril for most insurers, some insurers may exclude damage caused by hail.

If that’s the case, you should speak to a company’s rep or agent to see if hail damage is covered. If it’s not, you should consider taking out additional coverage for hail.

How Much Home Insurance Do You Need?

Before you start shopping for a policy, you should consider what matters to you most.

For personal property, can you live without your expensive RH sofa?

Once you know what you need from an insurer, you may be able to narrow down your choices and customize your policy so it only reflects the coverage that you absolutely must have to protect your high-priced jewelry, for example.

So how do you determine your needs?

You should do a home inventory.

What is a Home Inventory?

A home inventory is a list of your personal belongings and how much they’re worth.

If you don’t know how much additional coverage you need to protect your personal possessions, a home inventory will help determine the cost.

In fact, an inventory is the best way to determine how much it will cost to replace your items if you need to make a claim because your property was stolen, lost, or destroyed during a covered peril.

To do a home inventory, go around your house and see what you need to protect.

If you can’t recall the price of your belongings, use an estimate, see if you have receipts, or go online to see if the item is still being sold or made to find the price.

If you can’t find the exact match, an item that is similar to yours can be used.

Doing the home inventory also makes it easier for your insurer if you need to make a claim.

So, if there is damage in your home, the insurer will know exactly how much your belongings cost.

Once you do your home inventory, only then will you be able to choose wisely in terms of coverage.

Should You Purchase Additional Coverage?

Homeowners insurance protects us from many emergencies that we couldn’t have predicted.

These are covered perils.

A covered peril is an event that the insurer agrees to reimburse you after you file a claim.

Covered perils include fire, lightning strikes, windstorms and hail, the weight of snow and ice, theft, and vandalism.

However, homeowners insurance only pays up to the policy limit when it comes to insuring your personal effects.

So, the basic policy will most likely not cover the full value of your belongings.

For example, if you have $500 in property coverage and you make a claim for an item that costs $700, you’ll have to pay the difference.

That’s why you should schedule your items or purchase add-ons so that your valuables will be covered in full.

With add-ons, homeowners can include benefits to their coverage that were previously excluded from the standard policy.

You can also get additional protection for some of your high-priced belongings like artwork, jewelry, musical instruments, and collectibles to name a few, if you schedule them.

Scheduling ensures that you’ll have full coverage for your items, like those listed above. It will raise your payout limits and reduce or even eliminate the deductible.

Frequently Asked Questions

Do you need homeowners insurance in Colorado?

Homeowners insurance isn't mandatory by law. However, if you have a home mortgage, the lender will likely require it to protect its investment.

How much should I pay for homeowners insurance in Colorado?

The average cost of Colorado homeowners insurance is $140 per month or $1,660 per year.

Why is home insurance so expensive in Colorado?

Colorado’s catastrophic weather conditions, including windstorms, tornadoes, snow, and hail storms are likely responsible for high premiums. In addition, the threat of wildfires, the price of homes, and the state’s dense population contribute to the expensive rates.

What is a home inventory list and why is it important to have one ready?

A home inventory is a list of your personal belongings and how much they’re worth. An inventory is the best way to determine how much it will cost to replace your items if you need to make a claim because your property was stolen, lost, or destroyed during a covered peril.

What is not protected by most homeowners insurance?

A standard homeowners policy will not cover damage due to flooding, earthquakes, landslides, or infestations like bed bugs. It will also not cover everyday wear and tear or items that need to be continually maintained and were not because of your negligence.