Best Cheap Home Insurance Companies in Colorado

State Farm has the best home insurance for most Colorado homeowners, with an average annual rate of $2,405.

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Colorado's best cheap home insurance

Cheapest homeowners insurance in Colorado

The cheapest home insurance rate for most people in Colorado was $2,405, from State Farm insurance.

The two absolute cheapest options for homeowners insurance are Chubb and USAA. However, Chubb has an undisclosed minimum coverage amount that is likely to be higher than what most people need. And USAA is only available to people who have served in the military or anyone whose spouse or parent has had a USAA policy.

The graph shows which companies are the cheapest for home insurance in Colorado

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Other insurance companies charge much more, with Allstate's average rate reaching nearly $4,000 per year.

Cheap annual home insurance in Colorado

Chubb logo
USAA logo
State Farm logo
State Farm
Auto-Owners logo
Travelers logo
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To establish a fair price comparison across every insurer, we used the same coverage amount across all of the insurers — $343,300. However, Chubb specializes in high-end home insurance and may only provide policies with much higher limits.

Best for most people: State Farm

  • Editor rating

  • Annual rate

    $2,405 ?

Pros and cons

  • Affordable quotes
  • Quality customer service
  • Easy online experience
  • Few discounts available

State Farm is our top pick for homeowners insurance in Colorado, as it has affordable rates, very highly ranked customer service and powerful online tools.

We found an average price of $2,405 per year for homeowners insurance from State Farm. That's the best price available to most people, and 12% less than the state average.

State Farm has a complaint index of 0.74 from the National Association of Insurance Commissioners (NAIC), meaning that it receives about three-quarters as many complaints as could be expected given its size. It also received an above-average score on the J.D. Power homeowners insurance survey and an "excellent" rating from AM Best.

Finally, we're fans of State Farm's online tools. It's easy to get a quote, manage your policy and file a claim online.

Best customer service: Auto-Owners

  • Editor rating

  • Annual rate

    $2,835 ?

Pros and cons

  • Exceptional customer service
  • Useful coverage add-ons
  • Higher-than-average rates
  • Can't compare quotes online

Homeowners who place a priority on top-tier customer service should look at Auto-Owners. With an overall ValuePenguin rating of 4.5/5, it ranked as well as our top pick, State Farm.

Customers are usually very happy with the service they receive from Auto-Owners, especially after a claim. It also offers some coverages that can be hard to find at other companies, such as guaranteed home replacement cost and a flood insurance add-on.

Prices at Auto-Owners are slightly above the state average, with an average price of $2,835. However, it's much more affordable than large insurers like Allstate and Farmers.

Best for high-value homes: Chubb

  • Editor rating

  • Annual rate

    $2,044 ?

Pros and cons

  • Standard policy includes many coverage extras
  • Affordable rates
  • Requires high coverage limits

We recommend Chubb insurance for owners of high-value homes, as Chubb offers premium service and coverage options that appeal to affluent customers. Chubb also offers very competitive rates, though it may not be available to all homeowners.

Chubb is famous for its extremely high level of customer service. Customers report hassle-free claims and generous coverages as key benefits of the company's insurance.

And it offers luxurious benefits that other insurers generally don't offer. For example, Chubb provides a "cash-out" option if your home is totally destroyed: Instead of using the money to rebuild your home, you can simply take a check for the same amount to use as you wish.

Chubb's average rate is very affordable: just $2,044 per year for $343,300 of coverage. However, Chubb typically imposes coverage minimums, meaning that you'll only be eligible if you buy at least a certain amount of insurance.

Best for military families: USAA

  • Editor rating

  • Annual rate

    2,316 ?

Pros and cons

  • Cheap rates
  • Reliable customer service
  • Military-specific benefits
  • Only available to military members, veterans and their families

Members of the military and their families should take a close look at USAA. Its highly regarded customer service and coverages tailored to enlisted people make it worth considering, in addition to its competitive rates. USAA is among the cheapest home insurers we found in Colorado, at $2,316 per year — 25% less than the state average.

USAA is well known for having a great customer experience: It has a perfect 5/5 rating from J.D. Power and a low 0.50 NAIC complaint index. This means USAA customers filed only half as many complaints as a typical insurance customer and suggests that they tended to be happy with their experience.

Soldiers can benefit from USAA's extra benefits tailored to their needs. For example, USAA's personal property coverage applies in war zones — something very few other insurers offer. Plus, your deductible is waived on your uniform and military equipment, so long as you're on active duty.

Colorado insurance rates: City by city

The most expensive city in Colorado for home insurance is Burlington, where the average price is $4,501 per year — 61% more than the state's average rate.

On the other hand, residents of Orchard Mesa have the lowest average price, at $1,347 per year.

The cost of home insurance can vary significantly based on where you live. You may pay more for home insurance if you live in an area prone to fires or with high rates of crime.

Average annual cost
Difference from state average (%)
Acres Green$3,56830%
Air Force Academy$3,30221%
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The best homeowners insurance companies in Colorado

The best homeowners insurance companies in Colorado are USAA, Auto-Owners and American Family. These companies all have dependable customer service, so you'll be able to count on them when you need to make a homeowners insurance claim.

Keep in mind that USAA is only available to people who've served in the military and their families, so you may need to consider other options if you don't have a connection to the armed forces.

American Family
State Farm

Common homeowners insurance perils in Colorado

Due to its high elevation in the Rocky Mountains, Colorado's most common home insurance perils are fires, snowstorms and some flooding. Colorado doesn't have as many seasonal storms as Atlantic states, nor earthquakes like along the West Coast.

Are wildfires covered by home insurance?

Wildfires are increasingly common in Colorado, especially in the drier and more mountainous parts of the state. These massive fires can cause hundreds of millions of dollars of damage — for example, the 2020 Black Forest Fire spread over 208,913 acres and resulted in 469 structures being destroyed.

For the most part, damage to your home caused by fires, whether because of a wildfire or another cause, is covered by home insurance. Fire is one of the perils explicitly covered by most home insurance policies.

However, if your home is located in an area at a very high risk of fire, some insurers may decline to sell you a policy. If that's the case, you may need to buy home insurance from a high-risk insurance provider, which is generally more expensive than a policy from a typical company.

If your home is in a wildfire-prone area, it's essential to minimize the risk of your home being damaged by fire. Steps to take include:

  • Use fire-resistant materials in the structure of your home, especially your roof
  • Clear brush away from your home, particularly dead or dry material
  • Change batteries in smoke detectors twice yearly
  • Keep propane and gas storage tanks far away from other structures

Is flooding covered by home insurance?

Flooding isn't as common in Colorado as it is in other states, but it does occur, especially in areas located near major rivers like the Big Thompson River or the Arkansas River.

Unfortunately, home damage due to flooding is almost never covered by homeowners insurance. If your home is at risk of flood damage, you'll need to buy a separate flood insurance policy to protect it.

Flood insurance policies are available in two forms: federally backed policies sold through the National Flood Insurance Program (NFIP) and totally private policies backed by insurance companies. NFIP policies are available to all homeowners in the U.S., regardless of flood risk. However, NFIP policies have a long mandatory waiting period before your coverage starts, and strict coverage limits.

Private flood insurance policies have shorter waiting periods and more flexibility when it comes to coverage limits, but homes at a very high risk of flooding (that need coverage the most) may not be able to get a private policy.

Is snow damage covered by home insurance?

Generally, yes, damage to your home due to snow is covered by home insurance. The main way snow and ice damage your home is by "weight of snow" — if lots of snow falls in a short time, the weight of snow and ice can damage your roof or other parts of your home.

Repairing this damage is usually covered by homeowners insurance, so long as you weren't negligent about addressing the issue (like if you left snow to build up on your roof for several weeks). The same is true for ice dams and frozen pipes.


We collected over 6,000 homeowners insurance quotes from every ZIP code in the state of Colorado. Our sample property was a 2,100-square-foot home built in 1984 carrying $343,300 of property coverage — the state's median home value.

Home insurance companies surveyed:

  • Allstate
  • American Family
  • Auto-Owners
  • Chubb
  • Farmers
  • State Farm
  • Travelers
  • USAA

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

To determine our home insurance quality rankings, we considered AM Best financial strength ratings, NAIC complaint index scores, J.D. Power's home insurance survey, and ValuePenguin's editorial ratings.

Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.