Buying a home in Colorado this fall? Then you’re navigating one of the toughest insurance markets in decades. The combination of inflation, natural disasters, and a spike in claims has created a “hard market”—where premiums are up, underwriting is strict, and some insurers are even pulling out of high-risk areas.

That means getting insurance for your new home may be difficult, expensive, or both. So don’t wait until the week of closing—start shopping early.

The Hard Market Is Real In Colorado, especially in wildfire-prone zones near the foothills or mountain communities, many insurers are tightening eligibility. Some are not writing new policies at all in higher-risk ZIP codes. Others require extra inspections or impose high deductibles for fire and hail damage.

Even in urban areas like Denver or Aurora, rates have jumped. And lenders won’t let you close without proof of insurance.

Start Early to Avoid Delays Waiting to get quotes can delay your closing or force you into a policy that isn’t a good fit. Start insurance discussions as soon as your offer is accepted.

Replacement Cost vs. Market Value Your lender might only require coverage equal to your loan amount. But that’s not enough. You need coverage that reflects the replacement cost of rebuilding—especially with the current cost of materials and labor in Colorado.

Natural Disasters Aren’t Optional Risks

• Wildfires: If you’re buying in wooded areas or even semi-rural neighborhoods, fire risk is a concern. Make sure fire coverage is robust and look for policies with wildfire mitigation incentives.
• Floods: No standard HO-3 homeowners policy covers flooding—not one. If the property is anywhere near a creek, river, or in a known floodplain, you’ll need to purchase a separate flood insurance policy, often through FEMA’s National Flood Insurance Program or a private market provider.
• Hail and Wind: Along the Front Range, hail damage is one of the top causes of claims. Watch for wind/hail deductibles, which may be separate and percentage-based.

Loss of Use and Additional Living Expenses If your home becomes uninhabitable, you’ll want solid loss-of-use coverage to pay for temporary housing. This is especially important in Colorado winters, when displacement can get expensive fast.

Bundle to Save—If You Can Ask about bundling with your auto or umbrella policies. Discounts can be significant, but in a hard market, you may need to mix and match insurers.

Read Every Line Scrutinize exclusions, limits, and deductibles. Work with an experienced local agent who understands the nuances of the Colorado market.

In this environment, a little proactivity goes a long way. Get ahead of the insurance process so your home purchase doesn’t hit an unexpected wall right before closing.

Give us a call with questions- 303-907-8896