Report: Home insurance rates go through the roof in Colorado

(The Center Square) – Colorado is projected to have the sixth-highest home insurance rates in the country this year, according to a new report.

The average cost of home insurance in the Centennial State was $3,996 in 2025, a 33% increase, the report from the online insurance marketplace Insurify found.

The report also projects Coloradans will see a 4% increase to $4,164 by the end of 2026.

“Insurers paid out more money in claims than they made in premiums in 2023,” the report said.

According to the Colorado Division of Insurance, hail is biggest reason for the increase in costs, accounting for 26% to 54% premiums depending on county. Wildfire risk also accounts for a significant portion of premiums in some counties, such as in La Plata County, where almost 25% of a premium is due to wildfire.

In Denver County, the average homeowner premium is $3,040, with an average of $1,547 due to hail. In El Paso County, hail accounts for 52.5% on average of a premium.

Matt Brannon, a senior economics analyst with Insurify, said Colorado “wasn’t always as big of an outlier in the region.”

“It’s gone from being around the ninth most expensive state in 2023 to the sixth most expensive now," Brannon told The Center Square during a phone interview.

Brannon noted that Colorado has seen severe storms in recent years, with nearly 800 hail events in 2023 and about half of that in 2024.

The Division of Insurance in a news release last month said hail mitigation such as fortifying roofs could decrease premiums

“Even Coloradans who don’t live in hail-prone areas, such as in mountain communities, are paying for hail damage through their premiums,” Colorado Insurance Commissioner Michael Conway said. “We can’t change the weather in Colorado, but we can and should help consumers in high risk areas fortify their roofs because that will help lower everyone's premiums. And we have to find innovative solutions to help address affordability in our high wildfire areas of the state.”

Conway added the division is working with lawmakers on legislation.

Senate Bill 26-049 would expand who’s eligible to receive grants from the state’s Natural Disaster Mitigation Enterprise for "impact-resistant roofing materials" to individual homeowners and homeowners’ association.

The bill would also allow homeowners to get a tax deduction if they establish dedicated “catastrophe savings account.”

The legislation has not moved since it was introduced in January and assigned to the Senate Finance Committee.Assistant Minority Leader Sen. Lisa Frizell, R-Castle Rock, one of the bill’s sponsors, told The Center Square in an email that the legislation “has received quite a bit of pushback from various state agencies,” which is why it hasn’t advanced. She added that the policy in the bill “is continuing to evolve.”

Brannon recommends homeowners shop around for insurance to find the lowest price, as well as take preventative measures to “minimize your home’s risk where you can,” like keeping trees trimmed or upgrading your roof.