Colorado Home Insurance - What's Happening
From the state’s beautiful scenery to the variety of available outdoor activities, there are many benefits to living in Colorado. Unfortunately, low home insurance premiums aren’t one of those benefits. Annual premiums for Colorado homeowners insurance average around $940 in the second quarter of 2014, compared with the national average of $829. What make Colorado home insurance higher? It might have something to do with the state’s extreme weather.
Homes in the Centennial State face many natural hazards including tornados, floods, wildfires, severe thunderstorms, and extreme winter weather. Each region of the state faces different weather threats, which is why it’s best to work with a licensed HomeInsurance.com agent to make sure you have the correct coverage for your home.
Call the number on your screen or enter your ZIP code above to get in touch with our licensed agents.
Curious about car insurance? Click here to learn more about auto insurance in Colorado.
Colorado Home Insurance Report Card
We get that buying home insurance is complicated. We've demystified it by assigning each state grades based on information collected from HomeInsurance.com customers about their houses. It's a coloring-outside-the-lines approach that shows how factors about a home can affect what you pay for coverage.
Home (Grades related to the house itself)
There’s not much to complain about, from a home insurance standpoint, when it comes to homes in the Centennial state. Average year built, home size and replacement cost all come in better than U.S. averages. Colorado homes also have a high percentage of sump pumps, which protects homes from suffering costly water damage claims – a big bonus.
Average year built
The average Colorado home was built in 1983, which means it is newer by three years than the average U.S. home.
Average home size
At 1,853 square feet, the average size of a CO home comes in under the national average of 1,971 sq. ft.
Average replacement cost
At $270,951, the average replacement cost for a Colorado home is $7,625 less than the U.S. average.
% of homes with sump pump
29% of CO homes have a sump pump, more than twice the U.S. average.
Property (Factors related to the property and location)
Overall, Colorado looked strong in the property factors category. When it comes to the average insured cost of other structures (such as garages, fences, etc.) the state was at $19,046 – well below the national average of $26,165. The Rocky Mountain state also scores points for avoiding swimming pools, a big property liability. Only 1.1% of CO homeowners have pools compared with the average of 5.5% around the country.
When it comes to ATVs and snowmobiles, about 3.4% of state homes have them. While you might need them to navigate through the CO snow, they are still a major liability.
Bonus (Other factors that influence your home insurance premiums)
% of homes with fire extinguishers
93% of CO homes reported having fire extinguishers, which helps contain fires.
% of homes with dead bolt locks on exterior doors
98% of homes in the state have deadbolt locks, which means burglars should steer clear. Safety features like these can score CO homeowners discounts.
% of homes with smoke detectors
CO takes fire safety seriously, which is why 99% of homes in the state have smoke detectors.
% of homes with security alarms
Only 16% of homes reporting having security alarms, which increases vulnerability to burglars.
Overall Grade - A (the high life)
Considering Colorado’s reputation for extreme weather, an ‘A’ reflects well on the Rocky Mountain state. CO homeowners scored big in certain areas, such as fire safety. Home characteristics were another strong area for the state. Those factors helped overcome the high percentage of homes with ATVs and snowmobiles. The low percentage of homes with security alarms was another area CO fell short. Don’t worry though, from an insurance standpoint, most states look up at Colorado.