Homeowners insurance will cover any costs that arise from structural damage, personal property damage, or liability claims. Keep reading to determine the best home insurance company for you and your Colorado home.
Best Homeowners Insurance Companies in Colorado
Amica, Travelers, and Lemonade are our top picks for homeowners insurance because of their customer service, coverage options, and endorsements.
Amica offers more customizable liability coverage than the other providers in this review. Travelers and Lemonade coverage only goes down to $100,000, but Amica allows homeowners to choose as little as $25,000 worth of liability coverage, which means the company has double the number of coverage options as Travelers and Lemonade.
Amica Pros and Cons
|Has an online portal, mobile app, and chat function for self-service||Doesn’t help homeowners estimate the rebuilding cost of their home|
|Provides a 24/7 claims center for customers||Doesn’t have customizable personal property coverage|
|Offers a unique add-on for home businesses|
Travelers has more than 160 years of experience providing insurance products and services. Its homeowners insurance policies allow customers to customize their dwelling, other structures, personal property, loss of use, liability, and medical payments coverage.
Travelers Pros and Cons
|Offers a deductible up to $50,000||Doesn’t offer many endorsements|
|Provides medical payments coverage up to $10,000 per person||Customers have to talk to an insurance agent to get a quote in some states|
|Covers all 50 states and Washington D.C.|
Lemonade is a new insurance company that lives by one rule—transparency. The provider wants customers to understand how the company operates and what happens to their premium money, which is why they created the Giveback program. Lemonade uses a set percentage of your insurance premiums to maintain the company, and the rest is left to pay any claims that you might file. Any unused premium money remaining at the end of the year is donated to the charity of your choice.
Lemonade Pros and Cons
|Offers endorsements for jewelry, fine art, bikes, cameras, and musical instruments||Relatively new to the insurance industry|
|Is one of the more affordable providers in this review||Doesn’t provide other structures coverage|
|Has a unique coverage add-on for significant others|
Readers can get a free quote from Lemonade by visiting the company’s website.
Colorado Homeowners Insurance Coverage
You can expect your policy to cover six coverage areas, along with company-specific endorsements:
- Dwelling—If an event destroys your home, this part of your policy will cover the cost to rebuild it. To determine how much of this coverage to purchase, calculate the cost of rebuilding your home. You can do this by talking to a local appraiser, purchasing $100–$155 of protection per square foot, or using the estimation provided by the insurance company.
- Other structures—This protects detached structures on your property, like fences and garages. It usually makes up 10% of your dwelling coverage.
- Personal property—This part of your policy will pay to replace your belongings if they are damaged by an event. You can get an actual cash value (ACV) or replacement cash value (RCV) policy. An ACV policy reimburses you based on your items’ current value, while an RCV policy reimburses you based on their new value. You usually get 50% of dwelling coverage for personal property coverage.
- Loss of use—If you’re kicked out of your home for repairs, your policy will pay for additional living expenses during that time. For example, if you usually spend $300 on food every month, but you spent $400 this month because you had to eat out for every meal, your provider will give you $100 back. This coverage is usually 20% of dwelling coverage.
- Personal liability—If you cause bodily injury or property damage to someone else, your policy will pay the cost of medical bills or the cost of repairing or replacing the items. An example of this would be if your dog bites your neighbor and they see a doctor to get stitches. We recommend purchasing at least $300,000 of liability protection.
- Medical payments to others—Similar to personal liability, this covers medical bills if a guest is injured in your home. We recommend purchasing $1,000 per person.
Each company will offer at least one add-on, or endorsement, to allow you to customize coverage for your policy. Common endorsements include valuable personal property, personal property replacement costs, and identity theft protection.
How Much Does a Homeowners Insurance Policy Cost in Colorado?
The average Colorado homeowner paid about $125 per month for home insurance in 2017, according to the Insurance Information Institute. This higher-than-average rate made Colorado the eighth-most expensive state for this type of insurance at the time.
Factors to Consider Before Buying Homeowners Insurance
Keep these factors in mind when looking for a home insurance policy in the Centennial State:
- Proximity to a fire station and fire hydrant—Insurance companies prefer to insure homes that are within five miles of a fire station and 1,000 feet of a fire hydrant. The closer you are to a fire station or fire hydrant, the faster firefighters can get to your home to put out a fire, which decreases the amount of damage your insurance company will have to cover.
- Bundling—Insurance companies typically offer a discount for bundling home insurance with other types of insurance policies, like life or auto insurance. If you’re happy with your auto insurance provider, we recommend getting a quote from them to see how much you could save by bundling policies.
- Weather-related damage—The weight of snow, sleet, and ice can cause structural damage to your home or cause pipes to freeze, which could lead to leaks or water damage. When you’re looking for an insurance policy, make sure the company will cover this type of damage.
Deductible amount—If you’re looking for an easy way to save on your policy, select a higher deductible. Insurance companies will decrease the amount you pay each month if you choose a higher deductible because that deductible decreases the amount that the provider has to pay.
Compare Homeowners Insurance Coverage Options
|Get a free quote||Not available through This Old House||Not available through This Old House||Lemonade.com|
|Other structures coverage limits||10% of dwelling||1%, 5%, 10%, 25%, 50%, 75%, or 100% of dwelling||N/A|
|Personal property coverage limits||75% of dwelling||20%, 30%, 50%, 75%, or 100% of dwelling||40%–79% of dwelling|
|Liability coverage limits||$25,000, $50,000, $100,000, $200,000, $300,000, $400,000, $500,000, $750,000, or $1 million||$100,000, $300,000, $500,000, or $1 million||$100,000, $200,000, $300,000, $400,000, or $500,000|
|Unique add-ons||Home business, catastrophic coverages||Equipment breakdown, roofing, siding matching package||Significant other, swimming pool liability|
|Customer service||24/7 for claims; limited for sales and service||24/7 for claims; limited for sales and service||Online|
*Based on sample quotes our team received
If you live in Colorado and want an affordable home insurance policy that covers your home and personal belongings, consider a policy through Amica, Travelers, or Lemonade. For a free quote from Lemonade, which often offers some of the lowest rates, visit the company’s website.
Frequently Asked Questions About Homeowners Insurance in Colorado
Do I need a home inspection before getting homeowners insurance?
If you have an older home that hasn’t been inspected in over 10 years, an insurance company may require a home inspection to determine if your home poses a greater risk for claims. The company will look at elements like your roof, plumbing, electrical, and HVAC.
How do I get the best deal on homeowners insurance?
To save on a policy, look for discounts, maintain a healthy credit score of at least 700, choose a higher deductible, pay once, twice, or four times a year instead of every month, and consider installing safety features like a home security system and smoke detectors.
Which insurance company has the best claims process?
Every year, J.D. Power, an independent data analytics company conducts a survey on customer satisfaction for insurance companies. Amica ranked number one for the best claims process for the ninth consecutive year.
Another company that has an efficient claims process is Lemonade. Though new to the insurance industry, Lemonade approves and pays for most of its claims instantly.
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