Colorado Homeowners Insurance Coverage

Whether you own a modern prairie home outside Boulder or a traditional Victorian in Leadville, with a Farmers Flex^® Personal Home policy you can choose quality coverage for your Colorado lifestyle today, with new ways to help you save.

Colorado puts a home through a lot — hail in spring and summer, wildfire risk stretching from the foothills into mountain communities and heavy winter snow. Some things you can plan for. Some things you can prevent. Some things are simply out of your hands. And that’s where Colorado home insurance comes in for the 66% of Colorado householders who own their home.

But getting insured is only part of it. You also want to know what is (and isn’t) covered. Farmers^® can help you sort through it all, from reviewing the policy you have to exploring discounts, bundling and other ways to save.

What home insurance coverages are recommended in Colorado?

Colorado homes face a real risk of hail, which hammers roofs along the Front Range and Eastern Plains most years, and wildfire, which has become a costly threat, especially in the wildland-urban interface. Hail risk alone accounts for an average of 26% to 54% of a homeowner’s total insurance premium, depending on the county, according to the Colorado Division of Insurance (DOI). Fire and lightning claims are less common than wind and hail nationally but by far the highest cost, averaging more than $88,000 per claim from 2019–2023, according to the Insurance Information Institute (III).

A Farmers homeowners policy in Colorado typically helps with damage caused by:

Hail
Fire
Vandalism and theft
The weight of snow or ice
Lightning strikes
Wind
Explosions
Falling objects

Homeowners insurance can help pay for damage to your home, but it does more, too. Here’s what the standard coverages in a home insurance policy are for:

Structure (Coverage A) is for damage to your home.
Detached structures (Coverage B) is for damage to structures that aren’t connected to your home, like a fence or shed.
Personal property (Coverage C) is for your personal belongings if they are stolen or damaged.
Loss of use, or additional living expense coverage (Coverage D) is for additional expenses, such as a temporary place to stay and increased food costs, if damage makes your home uninhabitable.
Personal liability (Coverage E) is for accidental property damage or injuries you are legally responsible for.

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When you may need coverage beyond a standard homeowners policy in Colorado

A standard Colorado homeowners policy doesn’t cover every scenario. Flooding is a recurring risk in parts of the state. Between 20 to 30 large-magnitude floods occur somewhere in the state every year, and major flood disasters about every five years since 1959, according to the Colorado Resiliency Framework. But flood damage isn’t covered unless you have separate flood insurance. Standard home insurance also typically doesn’t cover other types of property, like a condo or a home you rent out, because different structures or ownership situations call for their own kind of coverage.

Coverage for risks not included in a standard home insurance policy

Flood insurance — A separate flood insurance policy through the National Flood Insurance Program (NFIP) can help cover flood damage to your home and belongings.
Earthquake insurance — You may be able to get coverage through an endorsement or a separate policy.
Personal liability umbrella insurance — An umbrella policy can provide coverage above the limits of those in your home or auto policy.

Different property, different insurance

Besides homeowners insurance, Farmers offers coverage for many types of properties and ownership.

Landlord insurance — For homes and other properties you own and rent to others; coverage can help with certain property damage and landlord liability.
Vacant home insurance — For homes left unoccupied for an extended period, including some homes undergoing renovation or waiting to be sold.
Condo insurance — Can help cover your belongings, the parts of your unit that are your responsibility and personal liability.
Mobile and manufactured home insurance — Coverage designed around the insurance needs of factory-built homes.

Learn more about all of Farmers property insurance options.

Farmers Flex Personal Home coverage in Colorado

Standard coverage isn’t always the end of the conversation. An older roof or a home in a wildfire- or hail-prone area may give you reasons to add other types of coverage. Farmers Flex Personal Home starts with the basics and lets you add more based on your home, your budget and what you want covered. Options include:

Extended Replacement Cost can pay up to 25% above your dwelling limit if rebuilding costs run higher than expected.
Guaranteed Replacement Cost can help cover the full cost to repair your home, even if it exceeds your policy limit.
FORTIFIED Roof™ Upgrade can help you rebuild your roof to enhanced storm-resistant standards.
Water Backup and Sump Overflow can help cover damage from water backing up through drains and sump pumps.
eBikes and Golf Carts can help cover vehicles otherwise excluded because they’re motorized.
Home Sharing can help cover part or all of your home if you’re renting it out through home sharing.
Valuable Items can help cover specific possessions like jewelry, firearms or silverware.
Cyber and Identity Shield can help cover many forms of identity theft and cyberattacks, plus monitoring services.
Emergency Mortgage Assistance can help cover up to three months of mortgage payments if you can’t live in your home.

Here’s the part worth checking before you choose: These options aren’t available with every policy, and availability and eligibility may depend on where you live and other requirements. Talk to a Farmers agent in Colorado to find out which options are available to you, exactly how the coverages work and what they would add to your policy and cost.

Learn more about Farmers Flex Personal Home options

Is home insurance required in Colorado?

Colorado doesn’t require homeowners to have insurance. But if you have a mortgage, your lender is probably going to require it, according to the Colorado Division of Insurance (CDI).

Even if you’re not required to have coverage, consider what you’d have to pay out of pocket without it. Home insurance can help pay for damage to your home and belongings from things like hail, wildfire and storms. It can also help with certain costs if you’re responsible for someone else’s injury or property damage.

How much is home insurance in Colorado?

The average cost of home insurance in Colorado is $2,492 per year, according to 2023 data (the most recent available) from the National Association of Insurance Commissioners (NAIC). That’s more than what homeowners nationwide paid — an average of $1,737 per year for coverage, the NAIC report shows. Keep in mind that insurance premiums in most states have changed since then; rising rebuilding costs and hail and wildfire risk have pushed rates higher across Colorado, according to the CDI. The amount you pay also depends on things like where you live, the age and value of your home, how much personal property you want to cover and what deductible you choose. Impact-resistant roofing and wildfire mitigation steps, along with other protective measures, may help lower your cost.

Save money with Colorado home insurance discounts

There’s more than one way to save on home insurance in Colorado. Some discounts are based on your policy and payment choices. Others recognize your home, your history with Farmers or where you work. Talk to a Farmers agent to find out if you’re eligible for any of these discounts, based on:

How you manage your policy

Preferred Payment — Pay your premium in full, in two installments or through automatic monthly payments.
ePolicy — Go paperless.
Good Payer — Pay your bill on time.

Your history with Farmers

Welcome — For new Farmers customers.
Claim Free — Stay claim-free for three consecutive years.
Loyalty — Stay with Farmers for a qualifying period.

Your home

Homebuyer or Rent-to-Own — For recent homebuyers or renters who are buying a home.
Protective Devices — For features such as a fire alarm, security system, internal sprinklers, or leak-detection or water-shutoff devices.

Your work or affiliations

Affinity — For people who work in certain professions, hold a qualifying degree or serve in the armed forces.
Farmers GroupSelect^® — Available to eligible employees and members of participating organizations.

Combining your home policy with another line of coverage, like a car policy, also called bundling, is one of the biggest ways to save.

Learn more about additional discounts for Colorado homeowners.

Colorado home insurance bundling discounts and benefits

The most obvious reason to bundle your home and auto insurance? The price. With Farmers, you can save up to 10% or more on both policies when you bundle.

But home and auto aren’t the only policies worth checking. Start with the insurance you already have and see which combinations could qualify for a discount.

Bundle	Colorado savings
Home + car	Up to 10% on both policies
Home + umbrella	Up to 3.4% on home policy
Home + life	2% on home policy
Condo + car	20% on condo policy
Renters + car	20% on renters policy

Have other policies? If you also have life, boat, RV, motor home or vacation home insurance, ask a Farmers agent whether switching your coverage to Farmers and combining it with your home policy could qualify you for additional savings.

There’s another reason to look at all your insurance policies together: It can be easier to see the bigger picture. A Farmers agent can help with more than just finding another discount. They can help you look across your coverages so you can spot where you might want to make adjustments.

And bundling doesn’t mean you can’t still be flexible. Your policies remain separate policies, so you can cancel one and keep the others. Just know that changing your bundle could also change the discounts on the policies you keep.

Learn more about bundling insurance with Farmers

How to get a home insurance quote in Colorado

Getting a home insurance quote in Colorado is quick, especially if you gather key information about your home ahead of time.

What you need to have ready

Your home’s address and basic details, like the year built, square footage, roof age and construction type.
Your current insurance information, if you have a policy.
Your mortgage lender’s name, if you have a mortgage.
A general sense of how much dwelling and personal property coverage you want. Taking a home inventory can help.
Your claims history, since recent claims can affect your quote.

What to do

Get a free Colorado home insurance quote online in minutes. Click through a few screens to enter the information about your home that you gathered ahead of time.
Talk to a Colorado Farmers agent if you have questions about coverage options.

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Other insurance to consider in Colorado

Homeowners insurance covers a lot, but it doesn’t cover everything. Depending on what you own and the risks you face, other types of insurance may be worth considering.

Learn more about home insurance

What is typically not covered by homeowners insurance in Colorado?

Standard homeowners insurance in Colorado typically doesn’t cover flooding, earthquakes or high-value items like jewelry or art beyond your policy’s standard limits, though you can add separate coverage for many of these risks. Home insurance also doesn’t cover damage from normal wear and tear or neglect, like a roof that fails because it wasn’t maintained. Talk to a Farmers agent about which exclusions apply to your policy and where you might want extra coverage.

Does homeowners insurance cover wildfire damage in Colorado?

Yes. Fire, including wildfire, is a standard peril under a Colorado homeowners policy, subject to your coverage limits and deductible. Wildfire risk is significant in Colorado. The 2021 Marshall Fire in Boulder County, the most destructive wildfire in state history, generated more than $1 billion in insurance claims, according to the CDI. Because wildfire risk affects both the availability and cost of coverage in parts of Colorado, ask a Farmers agent about mitigation steps, like defensible space and fire-resistant materials, that may help you qualify for coverage or a discount.

Does homeowners insurance cover flood damage in Colorado?

No. A standard homeowners policy doesn’t cover flood damage, and flooding is a recurring risk in Colorado. Separate flood insurance may be available through the National Flood Insurance Program (NFIP) or, in some cases, a private insurer.

How much homeowners insurance do I need in Colorado?

The amount of coverage you choose would likely depend on your home’s rebuild cost, how much your belongings are worth and how much you could lose if you hurt someone else accidentally or damaged their property, and they sued you. A Farmers agent can help you estimate rebuild costs in your area and point out things to consider when you choose coverage limits based on your home and what you want to protect.

What are common Colorado home insurance problems?

Hail and wildfire drive many of the most common home insurance issues in Colorado. Hail alone accounts for an average of 26% to 54% of a homeowner’s total insurance premium, depending on the county, according to the CDI. Wildfire is a growing concern. And because flooding isn’t covered by a standard policy, homeowners in flood-prone areas along the Front Range may be caught off guard by out-of-pocket repair costs if they don’t have a separate flood policy.