Home insurance in Colorado

Protection that’s clear, dependable, and built to stay through every season.

When we say "home insurance" or "homeowners insurance," we're referring to House & Property insurance.

Outside of Florida & Louisiana, Kin offers House & Property insurance, which has a base policy that provides coverage similar to landlord insurance. Homeowners who live in their home can add an owner-occupied endorsement to create coverage similar to an HO3 policy.

Colorado is one of the most beautiful places in the country to own a home — and one of the most complex states to insure one. A combination of weather patterns, rising construction costs, and an evolving regulatory environment has made home insurance a moving target for many residents. But the market is also adapting, and new state laws are giving homeowners more information and more options than ever before.

Here's what to know about home insurance in Colorado, from the basics of what's covered to the smartest ways to save.

Colorado home insurance requirements

Colorado law doesn’t require homeowners to carry home insurance. However, if you have a mortgage, your lender will require it — and that's true in every state. Because your lender has a significant financial stake in the property until the loan is paid off, they require a policy to be in place to protect that investment against the unexpected.

How does homeowners insurance work in Colorado?

This short video walks you through how to get a quote and what insurance covers. Click a topic on the video to jump straight to what matters most to you.

What does homeowners insurance in Colorado cover?

All standard home insurance policies in Colorado include six basic types of coverage that apply in the event of a covered loss. Most insurers also offer options to customize your policy to meet your household’s specific needs.

Dwelling coverage (Coverage A)

What it covers: Dwelling coverage helps pay to repair or rebuild your home’s main structure if damaged by a covered event. This includes the roof, walls, floors, and ceiling, as well as attached structures like a built-in garage.

How much you need: Your dwelling coverage limit must equal 80 to 100% of the estimated cost to rebuild your home from scratch. Your dwelling coverage limit should equal 80–100% of your home's estimated rebuild cost — not its market value. Market value includes things like land and location, which insurance doesn't need to cover.

Trends to watch in Colorado: Colorado's construction costs have climbed significantly in recent years due to inflation, supply chain pressures, and skilled labor shortages.

Recent Colorado home insurance legislation: A 2025 law, HB 23-1174, requires home insurance providers to provide applicants with an estimate of their home’s replacement cost, along with an explanation of how that estimate was calculated.

Other structures coverage (Coverage B)

What it covers: Other structures coverage helps pay to repair or replace detached structures on your property, such as fences, detached shops, garages, and greenhouses.

How much you need: The standard limit is 10% of your dwelling coverage, though you can adjust this based on what you actually have on your property.

Personal property coverage (Coverage C)

What it covers:Personal property or contents coverage helps pay to repair or replace your personal belongings, such as clothing, furniture, books, tools, and household appliances not built into your home’s structure.

How much you need: Coverage limits for personal property typically start around 50% of your dwelling coverage limit. However, you can customize your policy by raising your coverage limit or purchasing optional add-on coverage types called endorsements.

Loss of use coverage (Coverage D)

What it covers:Loss of use or additional living expenses (ALE) coverage helps pay for living expenses that go beyond your routine costs if you’re displaced from your home temporarily by a covered loss or a mandatory evacuation order.

How much you need: Loss of use coverage limits are typically around 30% of your dwelling coverage limit.

Liability and medical payments coverage (Coverage E & F)

What it covers: Personal liability coverage (Coverage E) pays for medical bills, property repairs, and legal costs if you or a member of your household is responsible for bodily injury or property damage to someone else — on or off your property.

How much you need: Personal liability limits for home insurance typically range from $100,000 to $500,000 per occurrence.

Perils and exclusions: What is covered and what is not in Colorado?

Your policy determines what’s covered and how through two concepts: perils (what causes a loss) and exclusions (what the policy won't cover).

Perils in home insurance

A peril is simply a cause of loss like fire, theft, wind, hail, and so on. How your policy covers perils depends on which part of your home is affected.

A standard HO-3 policy — the most common type of home insurance — your home's structure and any other structures on your property are covered on an open-perils basis. Open perils means your policy covers any cause of loss except those specifically listed as exclusions.

Exclusions in Colorado home insurance policies

Exclusions are causes of loss, or perils, that are not covered by a standard Colorado home insurance policy. These include:

• Flooding: Your policy may cover other water damage, but floods are not covered by home insurance.
• Earth movement: Earthquakes, landslides, shifting soil, and other forms of earth movement are common in Colorado.
• Nuclear hazard and war: These perils are always excluded from home insurance.
• Continuous seepage: If your pipes burst suddenly, home insurance likely covers the damage.
• Pest damage: Termites, rodents, and other vermin are excluded from your coverage because they also fall under the category of maintenance problems.

Additional home insurance coverage to consider in Colorado

Service line and buried utility coverage

Standard policies cover burst pipes inside your home — but underground pipes, wires, and other utility lines between your home and the public street are typically excluded.

Water backup and sump pump overflow

Some Colorado homes — especially those with basements — are at extreme risk of flooding during spring snowmelt and summer monsoons.

Equipment breakdown coverage

Few states in the U.S. experience the extreme temperature swings that are part of life in Colorado.

Inland flood coverage

Most Colorado homes aren't in high-risk FEMA flood zones, but mountain communities are still vulnerable to flash flooding.

Extended replacement cost for high-risk zones

In theory, your dwelling coverage should cover a total loss.

Loss assessment coverage for HOA members

If you belong to an HOA, your association can pass costs from a major storm or liability event on to individual owners through a special assessment.

The cost of home insurance in Colorado

Coloradans with $350,000 in dwelling coverage pay an average of $1,228 per year for home insurance with Kin. However, your rate will vary.

Why Colorado home insurance rates are rising

Colorado’s rising home insurance premiums reflect two main drivers: more frequent weather events and higher costs to repair the resulting damage.

Understanding wind and hail deductibles in the Centennial State

Because hail is such a significant source of claims in Colorado, many insurers include a separate deductible specifically for wind and hail damage in their policies.

Wildfire mitigation and the 2026 transparency laws

Because wildfires pose such a serious insurance risk here, Colorado has invested significantly in programs that help homeowners reduce wildfire risk.

Wildfire defense programs

Some insurers offer wildfire defense programs as a complimentary benefit for policyholders in high-risk Western states, including Colorado.

Wildfire risk score transparency

A 2025 law signed in Colorado, HB 25-1182, gives homeowners the legal right to see and understand the wildfire risk score used to underwrite their policy.

Colorado insurance laws and consumer protections

• 60-day nonrenewal notice: If your insurer decides not to renew your policy, they're required to give you written notice at least 60 days before your expiration date and must explain why.

What to do if you can't get home insurance through the private market

Colorado launched its FAIR (Fair Access to Insurance Requirements) Plan in 2025 to serve as an insurer of last resort for homeowners who can't obtain coverage through the private market due to wildfire or hail risk.

How to save on your Colorado premium

High home insurance premiums may be the “new normal” for some homeowners, but there are still savings strategies that can potentially reduce your costs. Here are some of the most common discounts available from Colorado insurers.

Frequently asked questions about Colorado home insurance

Does homeowners insurance cover termites?

Homeowners insurance doesn’t cover the cost of termite removal or extermination.

Does Colorado home insurance cover hail damage to my roof?

Yes, a standard Colorado home insurance policy will cover roof damage caused by hail.

How do I appeal my wildfire risk score under the 2026 law?

Under HB25-1182 (effective July 1, 2026), you can appeal your wildfire risk score by submitting a written appeal with documentation of any mitigation measures you've completed on your property.

Does Colorado home insurance cover mudslides after a wildfire?

Standard home insurance generally does not cover mudslides, which are considered a form of earth movement.