On this page
Homeowners insurance in Colorado costs about $4,310 a year on average in 2026 for a standard $350,000 dwelling policy, according to LendingTree’s analysis of Quadrant Information Services rate filings from February 2026. That puts Colorado third among the most expensive states, behind only Oklahoma at $5,298 and Nebraska at $4,956, and roughly 80 percent above the national average of $2,395. Other datasets put the Colorado average higher or lower, from a $2,307 median that homeowners report paying to a $5,511 quoted average, and this guide explains why each number says something different, what homeowners pay by city and carrier, and what actually moves a Colorado premium.
Colorado earned its ranking the hard way. Premiums rose 100.8 percent from 2020 to 2025, the fastest increase of any state, with another 18.3 percent in 2025 alone, according to ColoradoBiz figures cited by Latent Insurance. Two hazards drive it. Hail hits the Front Range metro areas, and wildfire threatens mountain and foothill homes in the wildland-urban interface. A Colorado Division of Insurance analysis found hail alone accounts for 26 to 54 percent of a homeowners premium depending on the county. No other state stacks two catastrophe risks quite this way, and carriers have responded with higher rates, tighter underwriting, and non-renewals in the riskiest ZIP codes.
How much is homeowners insurance in Colorado in 2026?
For a $350,000 dwelling with a $1,000 deductible, Colorado homeowners pay about $4,310 a year on average in 2026, or roughly $359 a month, per LendingTree and Quadrant Information Services. For a $300,000 dwelling, Insurance.com and Quadrant put the quoted average higher, at $5,511 a year or $459 a month. The median Colorado homeowner actually pays $2,307 a year, according to U.S. Census Bureau data analyzed by MonitorBankRates, with a 2026 forecast of $2,547. The three figures measure different things, and the table below lays them side by side.
| Source and method | Colorado average | What it measures |
|---|---|---|
| LendingTree / Quadrant, February 2026 | $4,310 a year | Quoted HO-3 policy, $350,000 dwelling, $1,000 deductible |
| Insurance.com / Quadrant, updated September 2026 | $5,511 a year | Quoted policy, $300,000 dwelling, $300,000 liability, $1,000 deductible |
| MoneyGeek, 2026 | $4,074 a year | Average across carriers for a standard profile |
| U.S. Census Bureau median, via MonitorBankRates | $2,307 a year | Median premium homeowners report actually paying, 2025 data |
| TrueRateGuide-style $200,000 dwelling benchmark | $2,580 a year | Quoted HO-3 for a $200,000 dwelling |
The national average gives the context. LendingTree puts it at $2,395 a year for the same $350,000 dwelling profile, so Colorado runs about 80 percent above the country as a whole. Insurance.com puts the national figure at $2,872 for its $300,000 dwelling profile, which makes Colorado’s $5,511 nearly double the national number. Either way, Colorado sits near the top of every ranking, and the gap has widened fast. Between 2023 and 2026 alone, Colorado premiums rose about 61 percent while the national average rose about 26 percent, according to Insurance Exit’s review of state data.
Why do Colorado averages range from $2,307 to $5,511 a year?
The range looks like disagreement, and it is really three different measurements. Quoted averages price a fresh standardized policy for a specific home profile, so they reflect what a new buyer would pay today. The Census median counts what homeowners actually pay across all policies in force, including older policies bought before the recent rate hikes, smaller homes, and homes with loyalty discounts. A third group, like MoneyGeek’s $4,074, averages quoted rates across carriers for one fixed profile. None of them is wrong. They answer different questions, and the honest way to read them is to match the number to your situation. If you are buying a policy now, the quoted averages near $4,300 to $5,500 are the relevant ones. If you have held a policy for years, the $2,307 median is closer to what your neighbors pay.
Coverage amounts explain part of the spread too. A $200,000 dwelling averages about $2,580 a year in Colorado, while a $400,000 dwelling averages about $4,135, according to the TeamzLab calculator built on 2026 Colorado rate data. Deductibles matter just as much. Colorado carriers increasingly use percentage deductibles for wind and hail, often 1 or 2 percent of the dwelling limit, so a $350,000 home can carry a $7,000 hail deductible. A policy that looks cheap on the premium line can leave a large bill after the first hailstorm.
What do Colorado homeowners pay by city?
Where the home sits matters more in Colorado than in most states, because hail risk follows the Front Range and wildfire risk follows the foothills. ValuePenguin’s 2026 city data, priced for a $350,000 dwelling, shows Aurora averaging $4,736 a year and Boulder $4,137, while Alamosa averages $2,177. Insurance.com’s city table puts Denver at $4,861 a year for its profile, and Denver County at $6,669, the highest county figure in its data. The cheapest ZIP codes cluster around Grand Junction and Montrose, where Orchard Mesa (81503) averages $2,145 a year and Grand Junction (81504) $2,153. The most expensive ZIP code in the state, 80734, averages $10,143 a year.
| City or area | Average annual premium | Cheapest carrier there |
|---|---|---|
| Aurora | $4,736 | Allstate, $2,729 |
| Boulder | $4,137 | Allstate, $2,387 |
| Denver (city) | $4,861 | State Farm has the lowest rates in Denver |
| Colorado Springs | $3,251 | Allstate has the lowest rates there |
| Alamosa | $2,177 | Allstate, $1,378 |
| Grand Junction area | About $2,145 to $2,170 | Among the cheapest ZIP codes in the state |
| Fruitvale (near Grand Junction) | $1,783 | Cheapest city average in ValuePenguin data |
The pattern is clear. Front Range cities along the hail corridor pay the most, while Western Slope towns pay far less. A home in Aurora can cost more than twice as much to insure as a similar home in Alamosa, even with the same carrier and the same coverage. That is why statewide averages mislead anyone shopping in a specific town. Get quotes for your ZIP code, not the state.
Which companies are cheapest in Colorado?
There is no single cheapest carrier for every Colorado home, and the studies disagree on the winner because they use different profiles. ValuePenguin’s 2026 study, priced for a 45-year-old married homeowner with no claims and a $350,000 dwelling, puts Auto-Owners first at $1,705 a year, State Farm second at $1,821, and Allstate third at $2,131, with Shelter at $2,156 and Farmers far behind at $4,192. Insurance.com’s analysis, based on 37,973,840 quotes from 134 companies, names Allstate the cheapest at $2,573 a year for a $200,000 dwelling and $2,798 for a $300,000 dwelling, ahead of State Farm at $2,685 for the $200,000 profile. MoneyGeek’s 2026 research puts Auto-Owners first at $1,733 a year, 57 percent below the state average, and State Farm at $2,349.
| Company | Cheapest annual rate found | Source and profile |
|---|---|---|
| Auto-Owners | $1,705 | ValuePenguin, $350,000 dwelling, 45-year-old married, no claims |
| State Farm | $1,821 | ValuePenguin, same profile |
| Allstate | $2,131 | ValuePenguin, same profile; $2,798 for $300,000 dwelling per Insurance.com |
| Shelter | $2,156 | ValuePenguin, same profile |
| Farmers | $4,192 | ValuePenguin, same profile |
The carrier spread is the most useful finding in the whole comparison. The gap between Auto-Owners at $1,705 and Farmers at $4,192, for the same profile in the same state, is $2,487 a year. Allstate is the cheapest carrier in 37 percent of Colorado cities and towns in ValuePenguin’s data, including Colorado Springs and Aurora, while State Farm is cheapest in 34 percent, including Denver, and Auto-Owners in 16 percent. Shopping three or four carriers is worth real money here, and it matters more than in states where carriers cluster together.
Hail or wildfire: which one drives your premium?
It depends on the address. Hail is the bigger driver for most Colorado homeowners, because it hits the populous Front Range. The Colorado Division of Insurance analysis cited by Colorado Public Radio attributes 26 to 54 percent of a homeowners premium to hail, depending on the county. Wildfire dominates in the foothills and mountain towns, where some carriers have stopped writing new policies or non-renewed existing ones. The U.S. Treasury’s Federal Insurance Office identified Colorado as one of the states with accelerating non-renewal rates in fire-exposed counties in its January 2025 report.
Two Colorado laws shape how this plays out for policyholders. HB22-1111, passed in 2022, rewrote the rules for total-loss fire claims after the Marshall Fire. HB25-1182, passed in 2025 and fully effective July 1, 2026, requires insurers that use wildfire risk models to disclose your wildfire risk score and tell you each year what mitigation discounts exist. If your carrier uses a wildfire model, you can now ask for the score and the list of discounts, and use them to plan mitigation work. Clearing defensible space, hardening the roof, and documenting the work can move the score and the premium.
What if no standard carrier will insure your home?
Colorado created its first insurer of last resort, the Colorado FAIR Plan, under HB23-1288, signed in May 2023, and the plan sold its first policies in 2025. It exists for homes that admitted carriers will not write, usually because of wildfire exposure. FAIR Plan coverage is basic and typically more expensive than a standard policy, and many homeowners pair it with a separate difference-in-conditions policy for the gaps. Think of it as a bridge, not a destination. The better path is usually to shop admitted carriers, then surplus-lines markets, and use the FAIR Plan only if both come back empty. A local independent broker who works all three lanes is the fastest way through that sequence.
How to lower your Colorado homeowners premium
Start with the worked example. A Denver homeowner with a $300,000 dwelling faces a city average of $4,861 a year in Insurance.com’s data, while Allstate’s statewide average for the same $300,000 dwelling profile is $2,798. The $2,063 gap is not a promise, because profiles and ZIP codes differ, but it shows the scale of what carrier choice alone can do. Add the standard moves on top of that. An impact-resistant roof earns a discount with carriers like State Farm in hail-prone areas, and it also reduces the chance of a claim. Raising the deductible from $1,000 to $2,500 cuts the premium, though the hail deductible may already be a percentage. Bundling home and auto with the same carrier typically saves 10 to 20 percent. And if your carrier uses a wildfire model, ask for the mitigation list under HB25-1182 and work through it, since those discounts are now disclosed by law.
One caution before raising deductibles. A percentage hail deductible on a $350,000 home at 2 percent is $7,000 out of pocket after a hailstorm, and Colorado hailstorms are frequent enough that this is a real exposure, not a remote one. Balance the premium saving against the cash you would actually need after a storm. For many Front Range homeowners, a lower percentage deductible is worth paying for.
Frequently asked questions
How much is homeowners insurance in Colorado per month?
About $359 a month for a $350,000 dwelling policy, based on the LendingTree and Quadrant average of $4,310 a year. For a $300,000 dwelling, Insurance.com puts the monthly average at $459. The median homeowner actually pays about $192 a month, per Census Bureau data.
Why is homeowners insurance so expensive in Colorado?
Hail and wildfire drive it. Colorado premiums rose 100.8 percent from 2020 to 2025, the fastest increase in the country. Hail accounts for 26 to 54 percent of a premium depending on the county, and wildfire exposure has pushed some carriers to non-renew homes in foothill and mountain areas.
Who has the cheapest homeowners insurance in Colorado?
It depends on the profile. ValuePenguin names Auto-Owners cheapest at $1,705 a year for its $350,000 dwelling profile, with State Farm at $1,821 and Allstate at $2,131. Insurance.com names Allstate cheapest at $2,798 a year for a $300,000 dwelling. Allstate is cheapest in 37 percent of Colorado cities, State Farm in 34 percent.
What is the Colorado FAIR Plan?
It is Colorado’s insurer of last resort, created by HB23-1288 in 2023, and it sold its first policies in 2025. It covers homes that admitted carriers will not insure, usually because of wildfire risk. Coverage is basic and usually costs more than a standard policy.
Does homeowners insurance in Colorado cover wildfire damage?
Yes, a standard HO-3 policy covers wildfire damage to the home and belongings. The problem in Colorado is availability and price, not coverage. Some carriers have stopped writing in high-risk areas, which is why the FAIR Plan exists and why wildfire mitigation discounts matter.
How much is homeowners insurance in Denver?
Denver averages $4,861 a year for Insurance.com’s profile, and Denver County averages $6,669, the highest county figure in its data. State Farm has the lowest rates in Denver in ValuePenguin’s city data. Rates vary widely by ZIP code, so quotes for your exact address matter more than the city average.
Insurance.com publishes the Colorado rates used above in its best and cheapest homeowners insurance in Colorado for 2026 guide, with rates fielded through Quadrant Information Services. For a sense of how Colorado compares with the rest of the country, see our cheapest and most expensive states for homeowners insurance in 2026, and for the priciest market in the country, our guide to how much homeowners insurance costs in Florida. California homeowners face a similar wildfire problem, covered in how much homeowners insurance costs in California, and Texas is another hail-heavy market in how much homeowners insurance costs in Texas.
