Colorado Homeowners Insurance

The average Colorado homeowners insurance rates are $71/mo. The easiest ways to lower your rates are to take a careful inventory of your home and personal belongings and take additional precautions if necessary. For example, installing additional home security systems or simply building a fence around your property can reduce your Colorado home insurance costs. Learn more in our guide below.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Nov 11, 2020

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The average Colorado homeowners insurance rates are $842/yr ($71/mo). The best way to keep your premiums below the Colorado average is to understand what your policy says and be aware of any gaps in your coverage.

It is far more common for someone to be underinsured than overinsured, so take a careful inventory of your home and property, looking for damages that could strike and what it would cost to repair or replace the damages.

Understand what your policy means when it talks about dwelling coverage or personal property, and make adjustments or additions to your coverage according to what your family needs.

The standard Colorado homeowners insurance covers:

  1. Dwelling
    The dwelling is the part of the insured property where people live. The dwelling includes the primary home on the property and any other constructions that are permanently connected or built into the primary home. An extra bedroom would be part of the welling, and so would a built-in entryway. Dwelling coverage pays for some or all of the replacement cost after a claim is approved. Dwelling insurance does not include other buildings on the same plot of real estate or any of your personal property.
  2. Other Structures
    Just as the name implies, “other structures” is talking about buildings or other constructions on the property that are not permanently connected to the dwelling. A brick fence falls into the category of other structures, along with a pool house, separate workshop or a greenhouse. If the garage is not permanently attached to the dwelling, it falls under an “other structure.”
  3. Personal Property
    A standard home insurance policy covers a limited amount of personal property, usually less than 10% of the home value. Personal property is anything you own that is located in the dwelling or other structures. Lawn equipment is covered even though it is kept in a shed near the edge of the property. The special silver and china dishware is part of your personal property as well as everything you have put inside, such as wall decorations, lamps, appliances and desktop computers. It is important to set the value of the your personal property high enough to cover the cost of replacing it, and that probably means adding a rider on top of the regular policy or buy coverage somewhere else.
  4. Loss of Use
    Money that you have to spend to maintain your accustomed standard of living can be claimed on your home insurance if the home was damaged or destroyed under one of the perils it is insured against. One example might be having to stay in a hotel and eat at restaurants while the roof is being replaced, but another valid example would be paying for your laundry after a tree fell on your washer-dryer combo in a shed away from the house. If you are inconvenienced monetarily because of the damages, save your receipts and claim them as a loss of use.

Average Colorado Homeowners Insurance Rates vs. US

Source: USCB

Cheaper Colorado Home Insurance

You can save money on your homeowners insurance without cutting corners. All insurance companies offer an array of discounts that you may be able to qualify for, and there are steps you can take in your life to make your home safer as well. And one step that many people miss is where you review your insurance policy periodically to find out what coverage need to be expanded and which ones you no longer need at all. These are not the only 3 things you can do, but they serve as a good example of what you should be on the lookout for.

  • Multiple Policy Discounts
    If you have more than one insurance line with the same company, you are eligible for a multiple policy discount. This discount is sometimes called customer loyalty, but the savings are being passed on to you because having more than policy with the same company has been shown to reduce the overall risk of having to settle claims for the insurance company.
  • Reduce Risks
    Reduce the risks to your home, and you will have lower premiums. Install a fence around the property, have a professional alarm company put in a burglar alarm that is monitored 24/7, or install deadbolt locks to keep your home as safe as possible. You can also quit smoking which consequently lowers the risk of a house fire, or put a security fence around your pool to reduce the risk of accidental drowning.
  • Review your Coverage Often
    A home insurance policy is a dynamic thing. Each time you make a new purchase, the value of your personal property changes, and each time you add a new room or other improvement you are changing the value of the home that needs to be insured. To keep your insurance in balance, review the policy at least once every 6 months and make changes to your policy as needed.

Home Characteristics Affecting Colorado Insurance Rates

The state you live in will affect the insurance rates you have to pay. One reason for this is because the laws are different for each state, and so are the costs of settling a claim. Another reason is because Colorado is subject to severe winter storms, and that raises the risk level for insurance companies. The initial risk is affected by the materials used to build the dwelling, because some materials, like brick, are more durable over an extended time period than wood. And the size of the home is always an important factor, because insurance companies calculate the cost of your insurance using the square-footage of your home.

Defending Your Home Against Crime & Vandalism

With a per capita crime rate of 5.20 burglaries per 1000 people, Colorado is only slightly higher than the national 5.17 per thousand people. Insurance companies advise their customer that the home can be made safer by undertaking 3 simple steps. First, install a fence around the perimeter of the property to keep out unwanted people. Second, install a professional security system that is monitored around the clock. And finally, make getting into the home more difficult for intruders by installing deadbolts locks on all the doors leading out of the home.

Local Natural Disasters Colorado Homeowners Should Consider Protecting Against

Colorado is affected by several types of possible perils during the course of a year. They have a relatively high ratio of flood claims, can experience earthquakes and tornadoes, and the entire state is subjected to sometimes brutal winter storms. When you understand how Colorado compares to other states you will be better able to decide what coverage you shouldn’t leave home without.

  • Earthquakes
    The state of Colorado ranks 14 out of 51 for states with the most earthquakes. This might seem to be proof that you don’t much to fear from an earthquake, but remember that one serious movement of the earth can affect thousands of homes. Earthquakes in Colorado are possible, and you should take that into consideration when buying insurance.
  • Flood
    Colorado residents filed 48 claims-related claims in 2009, while 46,621 claims were filed nationally. The situation is not that a lot of flood claims are filed each year, but that insurance claims related to flooding are expensive to deal with and many people mistakenly believe that they are automatically covered for this common peril, which is simply not the case. Flood insurance is purchased in addition to your home insurance, which makes it important that you know the risks you are taking by skipping flood insurance.
  • Hail
    Hail damage can be expensive, so it is a good thing that hail damage is generally part of a standard home insurance package. Do not assume that you are protected, though. Read through your policy carefully to make sure that hail is not specifically excluded, because it’s too late to sort out the paperwork if you wait until disaster strikes.
  • Hurricanes
    Hurricanes are not a big concern in Colorado, but winter storms could be. Instead of gale force winds and rain, Colorado residents may get the same high winds along with biting cold and heavy ice. A winter storm can be just as damaging as a hurricane, but wind damage is generally included in a standard home policy.
  • Tornadoes
    Colorado gets more tornadoes each year than many states, with an expected 62 per year, compared to 1,680 tornadoes for the entire country. Tornadoes primarily cause wind damage, an included peril, but it is also important to understand that flooding is often associated with a tornado-spawning storm.
  • Wildfires
    74,749 wildfires are reported nationwide every year, and states with a high concentration of sprawling forest, like Colorado, are especially vulnerable to wildfires once they get started. Damage caused by a wildfire is covered under the fire coverage of your policy, but make sure that your policy offers full replacement value rather than cash value or you could end up thousands of dollars short when the claim is settled.

Colorado Homeowners Insurance Optional Coverage

Optional coverage are available to complement the primary policy or increase the limits on some portions of the policy, such as adding extra personal property coverage to make sure you will be able to replace all of your belongings. You can also buy extra personal liability insurance, a move that is often taken by those with the most to protect, because liability insurance acts as a shield to prevent someone from suing you for “all you are worth.”

Important Contact Information

Colorado Department of Insurance
1560 Broadway, Suite 850
Denver, CO 80202
Phone: (303) 894-7499
Website

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