Colorado Homeowners Pay Some of the Highest Insurance Costs In The Country

Colorado homeowners are facing some of the steepest homeowners insurance costs in the Mountain West, with premiums well above the national average.

New data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report show that climate-driven risks, particularly hail and wildfire exposure, continue to pressure the state’s insurance market.

Colorado’s Insurance Costs Outpace Neighbors

The latest American Community Survey (ACS) data from the U.S. Census Bureau shows that in 2024, Colorado homeowners with a mortgage typically pay $2,000–$2,499 annually for homeowners insurance, while those without a mortgage average $1,500–$1,999. Overall, statewide costs are also in the $2,000–$2,499 range.

Colorado has 1,635,345 insured homeowner households in total—1,127,939 with a mortgage and 507,406 without. Among mortgaged owners, 78,682 pay less than $100 annually and 200,063 pay $4,000 or more. Among those without a mortgage, 79,206 pay less than $100 and 80,861 pay $4,000 or more.

Compared with nearby states, Colorado is clearly on the higher end. Utah homeowners with a mortgage typically spend $1,000–$1,499, while New Mexico’s costs fall into the $1,000–$1,499 range as well. Nebraska homeowners report even higher expenses, at $2,000–$2,499 for mortgaged households. Wyoming and Kansas also trend upward, with averages ranging from $1,500–$1,999 to $2,000–$2,499.

This puts Colorado among the more expensive states in the region, reflecting both its large housing market and growing exposure to climate-related risks.

Climate Risks Drive Rising Costs

The Realtor.com 2025 Climate Risk Report highlights how wildfire and storm risks contribute to high premiums across the West. Nationally, about 5.6% of homes—worth $3.2 trillion—face severe or extreme wildfire risk, and Colorado ranks among the top markets for exposure.

Denver-Aurora-Centennial metro area, for example, has nearly $191.8 billion in home value exposed to severe or extreme wildfire risk, representing 30.7% of its housing stock. Colorado Springs is even more vulnerable, with 76.6% of its housing value—$95.2 billion—at severe or extreme wildfire risk, the highest share among all U.S. metros.

This concentration of wildfire risk makes Colorado unique compared to coastal states like Florida, where flood and hurricane exposure dominate. Instead, the state’s insurance challenges stem from hail, wind, and fire events that drive costly claims. As insurers recalibrate, many Colorado homeowners have already seen significant premium hikes.

Insurance Affordability A National Challenge

Rising costs in Colorado fit into a broader national trend. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they’ve already faced difficulties obtaining or renewing coverage.

Premium spikes are influencing where and how people buy homes. Nearly 30% of current homebuyers said they had completely changed the geographic area they were searching in due to insurance concerns, and another 25% said they had overhauled their buying strategy entirely. Some are even weighing going without insurance: 58% of homeowners said they would consider dropping coverage altogether if costs became too expensive.

For Colorado homeowners, already facing some of the highest premiums in the region, these concerns are far from theoretical. With both wildfire and storm risks projected to intensify, affordability pressures may only grow, keeping insurance at the forefront of housing conversations in the state.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.