3 tips for shopping for home insurance in Colorado
When looking at how much each home insurance company charges for different coverage levels and risks, you should also be aware of what your policy does and doesn’t cover.
Before you buy homeowners insurance in Colorado, you should make sure you're protected against the state's severe weather and flooding.
Consider adding a separate wind/hail deductible
Colorado homeowners in the eastern part of the state may have the option of adding a separate deductible to their policy that applies to damage caused by wind or hailstorms.
Also known as "wind/hail deductibles," these are generally listed as a percentage of your home’s insured value rather than your standard $500 or $1,000 deductible. This means if you have a 3% wind/hail deductible on your policy and your home is insured for $300,000, you'll have to pay $9,000 out of pocket on wind and hail damage claims before your insurance company will cover the rest.
While percentage deductibles can be costly when it comes time to file a claim, insurance companies will often lower your rates substantially if you add one to your policy. If your home insurance rates recently went up and you're looking for ways to save, increasing your dollar amount deductible or opting for a separate one for wind and hail damage is an effective way to get your rates back down.
Consider buying flood insurance
While Colorado might not be the first place you think of when you imagine a catastrophic flood, recent history suggests flood events are becoming significantly more common in Colorado. In fact, in 2013 Colorado suffered one of the worst floods in the state’s history, engulfing 200 miles and affecting 17 counties. And the state was still recovering from the flood seven years later.
Homeowners insurance doesn’t cover flooding, so if you live in a FEMA-designated high-risk flood zone, you may need to purchase a separate flood insurance policy. Most insurers offer flood insurance through the National Flood Insurance Program. As of 2022, the average cost of flood insurance in Colorado is $805.
Learn more >> How much is flood insurance in Colorado?
Look into wildfire insurance
Colorado is one of many states that has seen an increase in the number of wildfires over the last few years. Colorado ranks No. 3 on our list of the states with the most properties at risk of wildfire damage — only California and Texas have more, according to Verisk Analytics.
If you live in a wildfire-prone region of Colorado, be sure you have enough dwelling coverage to fully replace your home in the event of a disaster and consider adding extended replacement or guaranteed replacement cost coverage to your policy.
Learn more >> What is wildfire insurance & how much do I need?
How to buy homeowners insurance in Colorado
The cost of home insurance in Colorado is above the national average, so comparing quotes from multiple companies is an excellent way to make sure you’re getting the best coverage at the lowest possible rate.
Here are a few steps to follow as you shop for homeowners insurance in Colorado:
1. Reach out to a licensed Policygenius insurance agent.
Our team of licensed insurance experts can help you figure out how much coverage you need and what company offers it at the best price. Our agents do this for free with no impact to your credit score.
2. Ask about the specific concerns you have.
Every situation is different, so you need to have an insurance policy that specifically addresses your unique needs. For example, if you have a swimming pool or certain dog breeds deemed “dangerous,” make sure to mention these things to your agent so they can help you find the right coverage for your needs.
3. If you’re unable to find homeowners insurance on the private market, ask about E&S insurers.
Excess and surplus insurance is designed for homes that are considered too high risk to insure on the standard market. This coverage tends to be more expensive than standard homeowners insurance and isn’t backed by the state, which means the company isn’t obligated to comply with insurance regulations in your state. This can be risky, but there are some situations where E&S insurance coverage may be your best option.
4. If you’re still struggling to find coverage, ask about your state’s FAIR Plan.
The Colorado FAIR Plan is designed to be a last-resort coverage option for homeowners who are not able to secure insurance on the private market. The Colorado FAIR Plan does not compete on the private market, and homeowners must have two denials from other insurance companies to qualify for coverage.
5. Figure out how high of a deductible you can afford.
You’ll want to set your deductible to an amount you can afford to pay in the event you need to file a claim due to loss or damage. The higher your deductible, the lower your home insurance rates — and vice versa.
6. Compare quotes from a Policygenius agent.
Once you’ve nailed down your coverage needs, limits, and deductibles, a Policygenius agent can walk you through your quotes to help you find the best policy for your coverage and budget needs.
7. Choose your policy, sign it, and pay your first premium.
After you’ve chosen the policy you want, your Policygenius agent will complete all of the paperwork for you, including canceling your old policy, if you had one. The only thing left to do is sign your new policy and pay your first premium.
What if I can’t find home insurance coverage in Colorado?
You have a few options to consider if you can’t find coverage in Colorado:
Use an insurance marketplace. Insurance marketplaces like Policygenius partner with dozens of home insurance companies, including E&S insurers that specialize in offering coverage to homeowners who were denied coverage on the private market. One of our licensed agents can help you compare quotes from different insurers to find one who is willing to offer you coverage.
Ask if you can make home renovations to mitigate risk. If your insurance company is still writing policies in your area, but their underwriting requirements are stricter, ask if there are improvements you can make to your home that will make you more insurable. This might mean installing fire-resistant roofing or wind-resistant storm shutters to better protect your home against extreme weather.
Talk to your neighbors. If you live in an area at high risk of storm or wildfire damage, odds are your neighbors are also having trouble finding coverage. Ask around to see if anyone had success with a specific insurance company.
Apply for home insurance through the Colorado FAIR Plan. As a last resort, you’ll likely be able to get a policy through the Colorado FAIR Plan. While it offers less coverage and is more expensive than traditional policies, it’s a good stop-gap until you’re able to find coverage on the traditional market.
