The process of finding the homeowners insurance policy that’s right for you can be tough, confusing, and less than transparent. Sometimes the cheapest plan isn’t always the best, and sometimes a higher premium won’t necessarily get you more. Nothing is worse than dropping a ton of cash something that gives you very little.

That’s why we set out to find the best insurance providers in The Centennial State. We evaluated the top insurance companies in Colorado based on financial reputation, customer service, coverage options, and affordability. Several insurance providers checked all the boxes.

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The Best Homeowners Insurance in Colorado

Freshome’s Top Recommendations: Amica, Liberty Mutual, State Farm, Nationwide, American Family, GEICO

Before you settle for the first home insurance policy that knocks on your front door, it’s a good idea to get as many quotes as possible. All the insurance agencies we recommend in this guide offer online quotes to find a policy in Colorado, and that is the best way to get a quick idea of how much your premiums will be. Online quotes are not as accurate as getting a full phone quote with an agent, but they will give you an idea of how much you’re going to spend per year.

“Mortgage lenders require borrowers to have homeowners insurance and if the borrower does not purchase a policy, the lender will get a policy for them and pass the cost of the premiums onto the borrower within their mortgage payment. Borrowers should never defer that choice to the lender — they usually partner with an insurance carrier and there could be a comparable policy out there with a better price. Borrowers have plenty of time to shop and purchase a policy on their own. There’s no reasons they should let that happen and a lot of people do.” – Michael Thrasher, Research Analyst, ValuePenguin

To get online quotes, we looked for rates for a 2,000-square-foot, single-family home valued at $200,000. We said we didn’t have a swimming pool, trampoline, or dog – because those things can raise your property rates – and we opted for water backup/sump pump overflow coverage. (For more information on that, keep on reading.)

Our Quotes
Liberty Mutual$1,342 Per Year
Amica$1,728 Per Year
State Farm$1,935 Per Year

Every homeowner’s situation is unique. Factors like burglar and fire alarm systems, age of the house, homeowner credit history, age, and claims history play a big part in determining the yearly premium. Because quotes can vary significantly, you should not read this as a firm, inflexible ranking of home insurance companies. Instead, you should treat this as a guide full of suggestions to help you make a well-informed decision about which plan to choose.

When looking for insurance, it is important to considering their financial strength ratings from organizations like J.D. Power, A.M. Best, Moody’s, and Standard & Poor’s. Based on these rankings, we determined you may want to give a shot to Nationwide, American Family, and Farmers.

What You Should Know Before Getting a Quote

Get HO3 Coverage

Freshome recommends that homeowners look for HO3 coverage — the most commonly purchased policy. And HO3 policy is an “open perils” policy that covers any damage to your property and the structures on it — like a tool shed — unless it is specifically exclude.

Rates Will Vary

The average cost of a yearly home insurance premium in Colorado is $990 — only 4 percent higher than the national average of $952, according to 2016 data from ValuePenguin.

The online quotes received from all three of our top insurance companies were much higher than the state and national average. This could have resulted from a number of factors including the specific neighborhood, age of the house, or even valuation.

Be Prepared for Your Quote

Collect as much information about your house as possible before you go into your pricing insurance premiums. This includes construction history, roofing materials, age of the home, size, distance to the nearest fire station, number of smoke detectors, and much more. If a claim has been made on the house in the last five years (by you or the previous owner), your insurance agent needs to know. Always keep your property information handy when you begin pricing.

Your Credit May Affect Your Premiums

Nationally, homeowners whose credit scores dropped from “Excellent” to “Poor” saw an increase of nearly double their previous rates. In Colorado, there is a 140.9-percent increase according to a 2014 report from InsuranceQuotes.com. So definitely keep tabs on your credit so you can be prepared when you get your quote.

Flood Insurance Is Not Included

This is an important factor to consider, especially because flood insurance is not required when purchasing home insurance, nor is it covered by a basic homeowners policy. Flood insurance is available through the federal government. Even if you don’t get a ton of rain, you never know when the worst might happen. Flood damage can uproot you and destroy all your property, so it’s best to have the coverage just in case.

What Does Homeowners Insurance Cover?

Simply put, if it’s on your property, it’s covered. But there are always certain restrictions — especially when it comes to personal property. For instance, some policies may only allow $1,000–$2,000 for all your jewelry.

The Insurance Information Institute suggests homeowners go room to room and complete an inventory of their items to make the claims process easier in the event of a loss. Take photos or videos, and store the information in a fireproof box — then put that in an even more fireproof box. The Institute adds that 50 to 70 percent of insurance claims consist of personal belongings.

Generally, coverage for personal belongings also covers items stored off-premise, meaning you can be away from Colorado and still be able to file a claim on any of your possessions damaged on the trip, anywhere in the world.

“Homeowners policies cover things such as jewelry and furs, but only up to that category’s claim limit (usually around $2,000). When policyholders begin tallying up the value of those possessions, they frequently realize they wouldn’t be fully covered in the event of a loss. The categories also usually have a per-time limit within them, as well. In that case, a homeowner might have to schedule a specific item. This scenario applies to all categories, too.” – Michael Thrasher, ValuePenguin

Why are Colorado rates slightly high?

Blame it on the weather, if you must. Colorado underwent a significant amount of storms and natural catastrophes from 2008 to 2010, according to the Denver Post.

From wildfires to tornadoes and hailstorms, the weather changes upped the risk in Colorado — and in order for insurance companies to be able to pay out claims (something that every homeowner wants), they had to raise their rates to anticipate future claims.

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FAQs

What are common coverage gaps?

It’s easy to assume that everything about the structure of your house is covered under your homeowner’s insurance, but there are some hidden items that can cause serious damage to your pocketbook if you forget to add them to your yearly premium. The biggest is water backup/sump pump overflow coverage. A sump pump is a piece of equipment often found in the basement of houses that removes water in an area where it collects. Water backup/sump pump overflow coverage has to be added to your home insurance plan. Most companies will offer it at the time of purchase for a little additional cost to your premium.

It gets cold in the Rockies, and it’s prime time for your pipes to freeze and burst. In the event that happens, there may be a chance your insurance won’t cover that. Be sure you take proper precautions — such as draining the pipes.

How much should my deductible be?

Well, what can you afford? Your deductible should be a number you can afford in the event something should happen to your property. Can you shell out $3000 if you sustain major roof damage? The deductible should be commensurate with your income. If you raise your deductible, you’ll likely pay a lower premium, and vice versa.

How can I lower my premiums?

One simple way to lower your premium is to remove risky or hazardous features from your home — like swimming pools, diving boards, and trampolines. These are known as “attractive nuisances.” Attractive nuisances are objects that will likely attract the attention of children — who could in turn slip and fall. That’s the last thing you’d want.

Another way to lower your premium is to pay yearly rather than monthly. While a $1,700 premium may seem like a lot, it’s a lot cheaper than paying $190 for 12 months. When getting your quote, be sure to double check the yearly rate knocks off a couple hundred from your premium.

“You can often save up to 15 percent on your premium with deadbolt locks, fire extinguishers, smoke alarms, burglar alarms and fire alarms that alert your local police and fire stations. Check with your agent to see if your insurance company has specific requirements to qualify. [Additionally,] increasing your out-of-pocket payment from $250 to $500 or even $1,000 can save you money on your premium and it will discourage you from making small claims, which could put you at risk for being non-renewed.” – Rocky Mountain Insurance Information Association

I already have a home warranty; do I still need home insurance?

Yes. A home warranty is not the same as home insurance. A good home warranty will ease your pocketbook worries in the event your refrigerator goes on the fritz. Home warranties cover your large appliances — like the fridge or the dryer — that aren’t necessarily included in your homeowners insurance.

But you don’t need to have a home warranty. Read our rundown of home warranty coverage to get an idea if it’s right for you.

Take Action

Just because shopping for home insurance can be a little confusing and tedious, that doesn’t mean you can’t be prepared. Now that we’ve laid it out for you all you have to do is open up a new tab and start your getting some quotes for your new homeowner’s insurance. By now you should have a better idea of what goes into searching for the right insurance, how to go about getting a claim, and what you need to get going.

With our guide, we hope you’ll walk away with the tools to know what to look for in an homeowner’s insurance policy, what gaps to look for, and where to start when considering companies.

Freshome’s Top Recommendations: Amica, Liberty Mutual, State Farm, Nationwide, American Family, GEICO

Compare Homeowners Insurance Rates

To quickly find and compare rates in your area, enter your ZIP code below.

Enter Your ZIP Code:

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