Owning a home in Colorado comes with unique challenges, from unpredictable weather to rising insurance costs. Whether you’re a new homeowner or a long-time resident, staying informed about the evolving insurance landscape is crucial. Here are the top five things you need to know about homeowners insurance in Colorado in 2025.

Homeowners Insurance Rates Are Rising

In recent years, Colorado has seen a sharp increase in homeowners insurance premiums. According to the Rocky Mountain Insurance Information Association, homeowners in Colorado pay some of the highest insurance rates in the country due to frequent hailstorms, wildfires, and other natural disasters. Premiums are expected to rise further in 2025, making it essential to review your policy regularly and explore cost-saving options.

Wildfire and Hail Coverage Are Essential

Colorado is one of the most wildfire-prone states in the U.S. With over 4.3 million acres burned in the last decade, insurance companies are adjusting policies to reflect the increasing risk. Additionally, Colorado ranks second in the nation for hail-related damage, making hail coverage a critical component of any homeowners policy. Some insurers now require homeowners to install impact-resistant roofing to qualify for coverage or discounts.

How to Lower Your Premiums

Despite rising costs, there are ways to reduce your homeowners insurance premiums in Colorado:

• Increase your deductible: Opting for a higher deductible can significantly lower your monthly premium.
• Bundle your policies: Many insurers offer discounts when you bundle home and auto insurance.
• Make home improvements: Upgrading your home’s roof, installing fire-resistant landscaping, and adding security features can lead to lower premiums.
• Shop around: Insurance rates vary by provider, so comparing quotes can help you find the best deal.

Be Prepared for Policy Non-Renewals

Due to the increasing risk of wildfires and hailstorms, some insurance companies are choosing not to renew policies in high-risk areas. If you receive a non-renewal notice, don’t panic. You have options, including:

• Shopping for a new policy with different insurers
• Exploring state-backed insurance programs if you live in a high-risk area
• Working with an insurance broker who specializes in difficult-to-insure properties

Choose the Best Policy for Your Needs

Not all homeowners insurance policies are created equal. When selecting a policy, consider:

• Replacement Cost vs. Actual Cash Value: Ensure your policy covers full replacement costs rather than depreciated values.
• Coverage Limits: Make sure your policy limits reflect the actual value of your home and belongings.
• Exclusions: Understand what’s not covered—such as floods or earthquakes—and purchase additional coverage if necessary.

Final Thoughts

As a Colorado homeowner, understanding your insurance policy and staying proactive can help you navigate rising costs and coverage changes. Work with a knowledgeable insurance agent to ensure you have the right protection in place for 2025 and beyond.