Cost of Homeowners Insurance

Rates vary according to how likely it is a claim will be filed and how much it will likely cost. For example, a homeowner living in a wildfire-prone area would pay a higher insurance rate than a homeowner living in a low risk area.

How your insurance rates are set also depends in part on which state you live in, because rates are regulated on a state-by-state basis. The insurer has to follow the regulations of the state you live in. For more information on insurance rating and regulation, click here.

The National Association of Insurance Commissioners (NAIC) released in December 2023 the latest report: Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance Report: Data for 2021

Data from this report shows Colorado is ranked as the sixth highest for average premium for the HO-3 policy form (as of 2021). 

Top states:

1. $2437 – Florida
2. $2259 – Louisiana 
3. $2155 – Oklahoma 
4. $2146 – Texas 
5. $1900 – Rhode Island
6. $1802 – Colorado 

Over a 10-year period, the average change in homeowners premium in Colorado was +73.6%, the second highest increase of all states, behind Wyoming. However, when compared to the NAIC’s report on profitability, this increase in premium has been adequate to return insurers to underwriting profitability, and this is prior to the full impact of recent spikes in inflation and the cost of capital (i.e., reinsurance).

Click on your state below to contact your state insurance department.

Colorado | New Mexico | Utah | Wyoming

Cost of Homeowners Insurance by State

The following chart is based on the latest data from the NAIC on 2021 premiums.