Average Colorado Homeowners Insurance Cost: Top-10 Ranking Explained

By Yolanda Ponce · More articles

Colorado · An average is a house-year, not your quote

Colorado’s place on a “most expensive” list does not tell you what your policy costs.

The Insurance Information Institute’s table of 2022 premiums, drawn from National Association of Insurance Commissioners data, puts the average HO-3 premium in Colorado at about $2,079. That ranked fifth among states. The national HO-3 average in the same table was about $1,569. An average premium is total premium divided by exposure, and a house-year is 365 days of coverage on one dwelling. It blends different dwelling limits, deductibles, roofs, and territories. It is not a price anyone has to offer you. Newer quote studies use different assumptions. Check the year before you repeat the number.

Shop the rebuild and the hail deductible, not the rank. Coverage A is what it costs to rebuild, not the sale price. Many HO-3 forms pay replacement cost on the dwelling only if that limit is about 80 percent of rebuild cost. A hail deductible is often a percent of Coverage A. On a $450,000 dwelling, 2 percent is $9,000. That is an example, not a quote. Two policies with different Coverage A, or one roof at replacement cost and one at actual cash value, are not the same product. A cosmetic-hail exclusion changes the claim even when the premium looks lower. Wildfire underwriting can change whether you are offered the policy at all. None of that is inside the statewide average.

The pages that size the policy: Colorado homeowners, dwelling coverage, and wildfire. The state’s own statistical report, which is a different data set from the 2022 NAIC average: Colorado Division of Insurance, 2024 statistical report. The regulator’s home page is doi.colorado.gov.

Ask for two quotes with the same Coverage A, the same hail deductible in dollars, and the same roof settlement. Ask an agent or get a quote.

Sources and further reading

  1. Insurance Information Institute — homeowners and renters facts (NAIC 2022 premiums)
  2. Colorado Division of Insurance
  3. Freedom — Colorado dwelling coverage

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