Best homeowners insurance in Colorado (2024)

State Farm is the best overall home insurance company in Colorado due to its statewide availability, wide range of policy options for homes of all shapes and sizes, high marks for customer service, and its industry-best financial stability ratings.

Pros

• High customer satisfaction and financial strength ratings

• Top-tier coverage add-ons, including extended replacement cost coverage

• Offers large discounts when you bundle your home and auto insurance

Cons

• 20% more complaints filed with the NAIC than other companies of its size

• No discounts for first-time homebuyers

Why we chose State Farm

As the largest home insurance provider in Colorado, State Farm is best known for its easy-to-reach and dependable customer service. And this goes for all steps of the the customer journey — from shopping and setting up your policy to making changes to your coverage to filing a claim.

What makes this possible is State Farm's extensive network of local agents who understand the weather risks and overall coverage needs of their community. This is an especially important consideration for Colorado residents given the state's worsening wildfires and the increasingly difficult process of getting approved for home insurance.

Plus, while many competitors don't have the financial strength to pay out claims after several natural disasters in the same year, State Farm isn't one of them. It earns the highest rating possible from A.M. Best for financial strength and stability — only six insurance companies out of nearly 70 we reviewed hold this title.

How do State Farm home insurance rates compare to the Colorado average?

The average cost of State Farm home insurance in Colorado is $2,457 per year, which is about 6% more expensive than the average annual premium in Colorado of $2,322.

How to get a quote

Online through State Farm or by contacting your local State Farm agent.

American Family home insurance has industry-best coverage options, high customer service ratings, and several discounts to compliment its already affordable rates, making it a great option in the 19 states where it’s available.

Pros

• Lower than average rates

• High customer satisfaction and digital shopping satisfaction scores with J.D. Power

• Several one-of-its-kind coverage endorsements and policy perks

Cons

• Requires you to work with an agent to purchase a policy

Why we chose American Family

When it comes to home insurance coverage quality and affordability, there are few companies in Colorado in the same league as American Family.

Choose from three comprehensive policy tiers with various levels of protection offered through American Family, or customize a policy to suit your specific coverage needs. With up to 15 additional coverage options — including inland flood, equipment breakdown, and service line coverage — there is no shortage of ways to personalize your home insurance with American Family.

And the best part? American Family won't nickel and dime you for all of that coverage. Its rates are among the most affordable in Colorado, and it gives you even more ways to save with up to 11 available discounts.

How do American Family home insurance rates compare to the Colorado average?

The average annual cost of American Family home insurance in Colorado is $2,176 per year, which is about about 6% cheaper than the statewide average of $2,322 per year. 

How to get a quote

Online with American Family or by contacting a local agent

In addition to helping you save around 20% by bundling your home and car insurance, Farmers also gives you access to its extensive suite of discounts, policy credits, and incentives for not filing claims that can put even money back in your pocket.

Pros

• Over a dozen available discounts to help lower your bill

• Optional extended or guaranteed replacement cost coverage to better protect your home

• Declining deductibles features takes $50 off your deductible each year you’re a Farmers customer

Cons

• Ranks low with J.D. Power for overall customer satisfaction and digital customer service experience

• Average annual premium is among the highest in Colorado

Why we chose Farmers

Farmers home insurance stands out against competitors thanks to its 17 available discounts and policy perks. For context, Farmers competitors offer an average of around seven discounts total.

Along with several discount offerings and affordable rates, Farmers also offers the following two key policy perks:

• Declining deductibles: Earn $50 toward your home deductible each year you have a home insurance policy with Farmers.

• Claim forgiveness: Once you’ve gone five years without filing a claim, Farmers won’t raise your rate after that if you end up filing one.

Even more, depending on your state of residence, you can save up to 45% on your auto insurance and up to 34% on your home insurance when you bundle policies, according to Farmers.

How do Farmers home insurance rates compare to the Colorado average?

The average cost of Farmers home insurance in Colorado is $3,510 per year, which is around 51% more expensive than the annual statewide average of $2,322.

How to get a quote

Online through Policygenius or Farmers, or by contacting a local Farmers agent.

Nationwide offers an impressive selection of home insurance coverages for both standard and high-net worth Colorado homes, offering extended and guaranteed home replacement coverages and broad "all-risks" coverage for your home and personal belongings.

Pros

• Up to 14 additional coverage options, such as guaranteed and extended replacement cost, all-risk protection, and better roof replacement coverage

• Among the highest-ranked companies for claims satisfaction with J.D. Power

• A+ credit rating with AM Best

Cons

• Customer satisfaction and digital shopping experience ratings are below the segment average with J.D. Power

• Average annual premium is higher than average

Why we chose Nationwide

Nationwide is best known for its robust home and personal property coverage add-ons — something Colorado homeowners should consider given the recent uptick in wildfires throughout the state.

Nationwide customers in Colorado can choose from extended or guaranteed replacement cost coverages to increase their home's structural protection and ensure they have enough dwelling coverage to rebuild after a major wildfire. If your home is damaged or destroyed by a covered event, Nationwide's signature "better roof replacement" coverage will replace your roof with stronger materials than what you had before.

Keep in mind that both of these additional coverages don't come standard with Nationwide — you need to pay extra for them — and with Nationwide's already somewhat high premiums in Colorado, the thought of paying for even more coverage may give some homeowners pause. But if you're looking for the best in comprehensive wildfire protection and claims satisfaction, Nationwide seems like a no-brainer.

How do Nationwide home insurance rates compare to the Colorado average?

The average cost of Nationwide home insurance in Colorado is $3,048 per year, which is around 31% more expensive than the annual statewide average of $2,322.

How to get a quote

Online through Policygenius or Nationwide

Whether you’re looking for basic or comprehensive home insurance coverage, Allstate is a standout option. Airbnb hosts may find a suitor in Allstate thanks HostAdvantage — its affordable short-term rental coverage that can be easily added to any policy.

Pros

• Offers HostAdvantage — an excellent short-term rental coverage add-on that can be seamlessly added to any policy

• Extensive list of discounts and policy features to lower your bill and out-of-pocket costs

• A+ credit rating with A.M. Best

Cons

• Beginning to pull back coverage in high-risk areas

• Customer experience scores with J.D. Power are below the segment average

Why we chose Allstate

If you rent out your property through a short-term rental service like Airbnb and a guest destroys or steals your property, Allstate’s HostAdvantage will pay up to $10,000 per rental host period to replace or repair your property.

And the best part? This coverage can be seamlessly added onto your policy for just a small additional fee. Only around a third of the nearly 70 home insurance companies we reviewed offer any type of home-sharing coverage, making Allstate a great option for Airbnb hosts who also need home insurance of their own.

How do Allstate home insurance rates compare to the Colorado average?

The average annual cost of an Allstate home insurance policy in Colorado is $2,687, or around 16% more expensive than the statewide average of $2,322 per year.

How to get a quote

Online through Policygenius or Allstate, or by contacting a local Allstate agent.