Colorado Insurance Premiums Rise 77%, Now 6th Highest Nationwide
Homeowners in Colorado are facing the pinch as insurance rates continue to rise.
According to a new study by LendingTree, homeowners insurance premiums in Colorado have jumped 76.6% since 2019 – the largest rise in the nation.
Today, Colorado has the sixth-highest insurance premiums in the country.
Many homeowners are grappling with higher rates and an uncertain future. Some Colorado homeowners face policy cancellations. Others are struggling to afford hundreds of extra dollars per month for premiums.
Colorado Experienced 24 Billion-Dollar Disaster Events, Fueling Higher Premiums
Homeowners insurance premiums in Colorado are rising faster than anywhere else in the nation, fueled partly by major disasters.
According to Lending Tree, Colorado experienced 24 billion-dollar disaster events between 2019 and 2025, contributing to higher homeowners insurance premiums.
Those billion-dollar disasters included severe hailstorms, wildfires, droughts, and winter storms.
In 2024 alone, for example, Colorado experienced a $1.9 billion winter storm (January 14 to 18), a $2.7 billion severe storm (April 8 to 11), a $6.6 billion severe storm (May 6 to 9), a $4.9 billion severe storm (May 18 to 22), a $3.0 billion severe hailstorm (May 31 to June 1), and a $5.4 billion drought (yearlong event). Those events also led to a collective 185 deaths statewide.
Colorado Sees Biggest Rate Hike in Nation
Colorado isn’t the only state with severe storms and billion-dollar weather events.
However, Colorado homeowners insurance rates are rising higher than virtually anywhere else in the nation.
The top 10 states with the largest increase in premiums between 2019 and 2024 were:
- Colorado: 76.6%
- Nebraska: 72.3%
- Utah: 70.6%
- Arizona: 70.1%
- Minnesota: 65.4%
- Iowa: 60.6%
- Illinois: 59.5%
- Montana: 57.8%
- South Dakota: 56.8%
- California: 55.3%
Today, the average homeowner in Colorado pays $4,489 per year for homeowners insurance, around 60.2% more than the average American. Only five states (Oklahoma, Nebraska, Kansas, Texas, and Kentucky) have higher average annual insurance premiums.
A study by the Colorado Department of Regulatory Agencies found a similar rise. According to that study, as reported by CBS News, the average homeowners insurance premium in Colorado rose more than 50% between 2019 and 2022, with rates particularly rising after the East Troublesome and Marshall Fires.
Colorado Has The 6th Most Expensive Homeowners Insurance Premiums Nationwide
As rates rise, Colorado continues to climb the ladder and is one of the most expensive states in the country for homeowners insurance, on average.
States with the most expensive homeowners insurance premiums per year, on average, include:
- Oklahoma: $6,133
- Nebraska: $5,912
- Kansas: $5,412
- Texas: $5,180
- Kentucky: $4,671
- Colorado: $4,489
- Mississippi: $4,201
- Louisiana: $4,033
- Florida: $3,889
- Arkansas: $3,722
States with the cheapest homeowners insurance, meanwhile, include Hawaii ($632 per year), California ($1,260), Vermont ($1,339), Alaska ($1,475), and Utah ($1,507).
Homeowners Insurance Rose 12% Year-Over-Year in Colorado in 2024
Colorado homeowners are paying 77% higher rates for homeowners insurance today, on average, than they did in 2019.
Unfortunately for homeowners, rates continue to increase by double-digit percentage points year over year.
According to the same Lending Tree study, the average homeowner in Colorado is paying 11.9% more for homeowners insurance in 2025 than they did in 2024.
Nevertheless, Colorado’s price increase trails 18 other states:
Change in homeowners insurance rates year-over-year (2024):
- Montana: 22.1%
- Nebraska: 22.1%
- Minnesota: 19.5%
- Washington: 19.5%
- North Dakota: 18.2%
- Iowa: 17.7%
- Utah: 17.4%
- Missouri: 16.4%
- South Dakota: 15.9%
- Wisconsin: 15.5%
Meanwhile, Colorado ranks 19th (11.9%).
Priced Out vs. FAIR Plan: What Happens Next?
Colorado is a beautiful place to live. However, as CBS News explains, many homeowners are being priced out of the state entirely.
CBS News interviewed a spokesperson for the Rocky Mountain Insurance Association, who claims to hear stories “every day” of homeowners struggling to afford premiums.
One homeowner claims she “will probably move on [from Colorado] because of fire insurance,” for example.
There are some things Colorado homeowners can’t control: Colorado is the second-worst state in America for hail damage claims, for example, and the second-worst state for homes in high-risk wildfire areas.
There are other things homeowners can control, like:
- Shopping around for homeowners insurance
- Installing risk mitigation systems, from sprinklers to fire breaks
- Diligently inspecting roofs and property for damage after a hailstorm
- Using Colorado’s FAIR Plan, which is the insurer of last resort for properties with an extreme risk of natural disasters
Colorado launched its FAIR Plan in 2025, two years after enacting legislation establishing the organization. The organization provides property coverage for homeowners and business owners unable to obtain coverage through the private market, similar to how FAIR Plans and insurers of last resort work in other states.
To qualify for the FAIR Plan, you must have been declined coverage by three admitted insurers.
FAIR Plan coverage includes perils like fire and lightning and has limits of up to $750,000 for homes and $5 million for commercial buildings. You can also add additional coverages for wind and hail. All coverage is based on actual cash value – not replacement cost.
As insurance rates continue to rise, Colorado homeowners continue to pay up.
