The 4 Best Homeowners Insurance Companies in Colorado

Living in the Centennial State definitely has its benefits. From the beautiful Rocky Mountain landscape to the more than 200 craft brewery locations, it’s no wonder Colorado residents report high satisfaction levels.

One downside of Colorado, however, is homeowners insurance costs. The average cost of homeowner insurance is $1,417, 15 percent higher than the national average, according to Insurance.com. Extreme weather conditions such as flooding, tornadoes, thunderstorms and harsh cold drive up insurance prices in many regions of Colorado. And yet, not all of those hazards are necessarily covered. It’s important to consider what’s included – and what isn’t – when you compare policies from various providers.

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    In this article

      Our Top Picks for Best Homeowners Insurance in Colorado

      We’ve outlined the top four Colorado homeowners insurance companies to help you narrow your search.

      • Nationwide
      • Allstate
      • AAA
      • American Family

      Nationwide offers some unique options for coverage, like Better Roof Protection, which upgrades your roof by one level of quality if it is damaged and a claim is filed. Credit card protection to pay debts in the case of a home catastrophe is also an option.

      J.D. Power Rating
      3/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA+
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore Nationwide 4.2
      Discounts 3
      Coverage Options 5
      Customer Satisfaction 3
      Support 5
      Accessibility 5

      Insuring your home through Nationwide guarantees comprehensive coverage at an affordable price, an award-winning claims department and various discount options. Plus, Nationwide provides all policyholders with a free review that teaches you how to properly manage your deductible, choose the best coverage for your budget and needs, and thoroughly understand your insurance policy.

      Nationwide also has excellent add-on coverage options, such as protection against flood or personal umbrella liability insurance. Its Brand New Belongings option, which provides policyholders with funds to replace their stolen or damaged personal property with the newest versions available, is easy to take advantage of and can really pay off after a disaster.

      Allstate has strong financial and customer satisfaction ratings and offers a wide range of coverage options and add-on protections to Colorado homeowners. Some of the unique add-ons include protection for outbuildings, guest medical expenses and living expenses for the duration of a repair if a catastrophe makes your home uninhabitable.

      J.D. Power Rating
      3/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA-
      SimpleScore
      4.4 / 5.0
      close
      SimpleScore Allstate 4.4
      Discounts 4
      Coverage Options 5
      Customer Satisfaction 3
      Support 5
      Accessibility 5

      Allstate’s Claim RateGuard, for example, ensures that your premium won’t go up just because you file a claim. Allstate also provides numerous discounts, such as its Claim-Free Rewards program, which gives bonus savings for every year you don’t have a claim on your record. Allstate provides coverage for multiple dwellings and other living situations, including coverage for older homes, which can be hard to find in the homeowners’ insurance market.

      Where Allstate really shines, however, is with its free, exclusive online resources and tools. One such tool is Allstate’s Premium Gauge, which shows you how different variables, such as installing an alarm system, affect the annual premium you’ll pay for your home insurance. This gives you real estimates so you can make a better-informed decision.

      Discounts are available for multiple policies, new homes, burglar alarms and having a claim-free history.

      J.D. Power Rating
      4/5
      AM Best Rating
      A
      Standard & Poor’s
      N/A
      SimpleScore
      3.3 / 5.0
      close
      SimpleScore AAA 3.3
      Discounts 3
      Coverage Options 3
      Customer Satisfaction N/A
      Support 4
      Accessibility 3

      AAA (American Automobile Association) is a non-profit group best known for providing members with roadside assistance, travel discounts, and driver’s safety courses throughout the U.S. However, AAA also offers affordable insurance policies from the Interinsurance Exchange network. This means that the underwriting insurer will vary with each policy but that claims, premiums, and customer service requests are all handled through AAA.

      Both members and non-members can buy homeowners insurance policies in Colorado, but special discounts and lower prices are available to AAA members (not to mention the free towing bonus). AAA has a high-quality and well-rated customer service department that will work with you to make sure your policy limits are exactly where they need to be to provide optimal protection. The company also has a guaranteed replacement cost coverage option, which will pay 100 percent of your home’s value if it is destroyed — something worth looking into if you live in a high-risk area of Colorado.

      American Family has been providing insurance policies in the U.S. for over 80 years with a community-based business model. The company offers a wide array of policy options, with specific coverage add-ons for home offices and studios, sewer backup, home day care centers and more, so it’s easy to tailor your policy to match your needs.

      J.D. Power Rating
      3/5
      AM Best Rating
      A
      Standard & Poor’s
      A
      SimpleScore
      4 / 5.0
      close
      SimpleScore American Family 4
      Discounts 4
      Coverage Options 5
      Customer Satisfaction 3
      Support 4
      Accessibility 4

      American Family provides premium reductions for customers who have stayed with the company or have gone claim-free for at least five years. Bundling home and auto policies, installing home security devices, renovating your home or having a newer home can garner you hefty savings on your annual premium.

      The American Family website also offers helpful resources for homeowners. The DreamVault tool, for example, allows you to keep a digital inventory of everything. If your property is stolen or damaged, you’re able to expedite the claims process.

      American Family gets three out of five stars from J.D. Power and an A rating for financial strength from A.M. Best.

      American Family knows that it may be hard to find policy information during an emergency. Its MyAmFam app is designed with this in mind; contact the right people and see what you are eligible for on your phone. The app helps you avoid sifting through your damaged home for paperwork and allows you to start the process for a claim right away.

      How much is homeowners insurance in Colorado?

      Colorado’s rates are relatively high on a nationwide scale. The $1,417 average premium is 15 percent higher ($188 more) than the national average of $1,228. You can also look for cheaper home insurance companies.

      Premiums will differ from the average based on a number of factors. A higher deductible will lower your premium. Higher home values will increase the cost, as could the cost of living in your city or area. The cost of rebuilding, based on living in a remote area, can also increase your individual premium. Catastrophic risk, described below, is another insurance rate factor.

      Colorado Rate Factors

      Catastrophes play a large role in the price of homeowners insurance by state. In Colorado, two things are the most likely to lead to a higher insurance premium: Snow damage is a common, annual event in much of the state. Wildfires are less common, but they can lead to significantly more risk of loss for insurance companies. Because of this, homes in wildfire-prone areas cost more to insure.

      Find the Best Home Insurance in Colorado

      Save money on home insurance with our simple comparison tool.

      Matching you with providers.
      We found results in
      Click at least 2-3 companies to find the very best rate.

        Methodology

        SimpleScore

        The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.
        For every review, our editorial team:

        • Identifies five measurable aspects to compare across each brand
        • Determines the rating criteria for each aspect score
        • Averages the five aspect scores to produce a single SimpleScore

        Here’s a breakdown of the five aspect scores and their rating criteria for our reviews on home insurance.

        Why do some brands have different SimpleScores on different pages?

        To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

        However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.

        Discounts

        We looked at the number of discounts each company offers – more discounts mean a higher score.

        Coverage Options

        We awarded higher scores to the companies that offer more coverage options.

        Support

        We awarded higher scores to companies with the most channels for customer support.

        Customer Satisfaction

        We leveraged the J.D. Power 2019 Home Insurance Satisfaction Study℠ to see how customers rated their experience with each company. (If a company wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)

        Accessibility

        We looked at the level of accessibility of each company – the more resources they have the higher their score