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Checked against official sources · Last reviewed October 13, 2026

What homeowners insurance costs in Colorado: average premium, 2023 $2,492 a year in Colorado vs. $1,737 countrywide · 4th highest of 51 · All states (HO-3 policies; NAIC)

Colorado's market right now

Hail and wildfire drive Colorado home insurance costs. The DOI asked 20 insurers, covering 80% of the market's premium, to break down what homeowners pay. It found that hail makes up an average of 26% to 54% of the total premium statewide, and wildfire 0.9% to 24.6%. The DOI calls hail "the Number One Cost Driver of Insurance in Colorado."

The same DOI analysis found that insurers spread hail costs across the whole state, while they charge for wildfire mainly in high-risk areas. It estimated that hail mitigation (such as a FORTIFIED roof) could save an average of $82 to $387 a year in the counties studied, compared with $3 to $25 for wildfire mitigation.

These are the DOI's estimates for selected counties. The DOI's homeowners toolkit explains the market and lists the laws passed since 2023. [6][9]

Last resort: the Colorado FAIR Plan

A FAIR plan (Fair Access to Insurance Requirements) is a state-created pool that sells basic property insurance when regular insurers won't. Colorado created its plan with HB23-1288, signed May 12, 2023. The DOI lists residential homeowners policies as available from April 10, 2025.

Key points:

- You can only get it through a licensed agent registered with the plan, and the agent must show proof that three insurers declined your property. - Homes are covered up to $750,000 for property and contents, at actual cash value (replacement cost minus depreciation), not replacement cost. - The basic policy covers fire, lightning and smoke. Wind and hail and some other perils can be added. It does not include liability, water damage or additional living expenses.

Full details are on our Colorado FAIR Plan page. The plan itself says to look at standard and surplus lines insurers first. [1][2][5][10][11]

If your insurer cancels or won't renew

Colorado law says an insurer may not cancel or refuse to renew a homeowner's policy unless it mails you a notice at least 60 days in advance that "specifically states the reasons." If the cancellation is for nonpayment of premium, the notice period is at least 10 days. The 60-day rule came from HB23-1174, which raised it from 30 days in 2023. The rule is in section 10-4-110.7(3) of the Colorado Revised Statutes, and lawmakers did not change it in 2024, 2025 or 2026.

Since July 1, 2026, a newer law (HB25-1182) also applies if your insurer uses a wildfire risk model or score. An insurer that is not renewing you must include your wildfire risk score or classification with the nonrenewal notice. See the next section for your right to appeal.

If you think the notice or the reason is wrong, call the DOI's Consumer Services team at (303) 894-7490, or (800) 930-3745 outside the Denver area, or file a complaint. Our nonrenewal guide covers the next steps. [3][4][7][12][13][14][15]

Wildfire risk scores, mitigation discounts and appeals

HB25-1182 took effect July 1, 2026, and applies to policies issued or renewed on or after that date. Under it, an insurer that uses a wildfire risk model or score must:

- Give you your wildfire risk score or classification: within 15 days of a completed application, in your renewal offer, or with a nonrenewal notice. - Send a yearly written notice of your score and the mitigation discounts that apply, with a plain-language explanation of why you got that score. - Post on its website the discounts available for mitigation work and how much each is worth. - Give discounts to policyholders who can show mitigation work, if its model does not already count property-level and community-level mitigation.

Appeals: if your score, classification or mitigation discount is wrong and you have evidence of mitigation work, you can appeal directly to the insurer. The insurer must acknowledge your appeal in writing within 10 calendar days and give a written decision within 30 calendar days. If you finish new mitigation work, you can ask for a revised score, which is due within 30 days of your request.

The law also applies to the Colorado FAIR Plan. Our wildfire home hardening guide explains common mitigation steps. [7][16][17]

Hail-resistant roof grants (Strengthen Colorado Homes)

In 2026 Colorado passed SB26-155, signed by the Governor on June 4, 2026. It creates the Strengthen Colorado Homes Enterprise in the DOI to give homeowners grants for resilient roof systems that hold up better against hail and wind.

What the law sets out:

- At least 85% of the fee money must go to grants to homeowners for roof retrofits. - Insurers pay a fee of 0.5% of their homeowners premium starting in 2027. They may not add it to your bill as a surcharge. - The board must put primary residences first and also weigh income, roof age, home size and local hail history. - A contractor paid with grant money may not waive your insurance deductible.

Status as of Oct. 13, 2026: the Governor appointed six board members on Sept. 11, 2026. It held its first meeting on Sept. 24, 2026, and its second is set for Oct. 15, 2026. The DOI's Strengthen Colorado Homes page does not list a grant application or grant amounts yet. Check that page, or sign up for DOI emails there, for when grants open. Our FORTIFIED roof guide explains the roof standard used by grant programs in other states. [8][17][18]

After a wildfire: protections if you lose your home

Colorado law adds protections when an owner-occupied home is a total loss in a wildfire that the Governor declares a disaster. Most came from HB22-1111, passed after the Marshall Fire. In its July 2026 advisory, the DOI lists these protections:

- Contents: the insurer must offer to pay at least 65% of your contents coverage without an itemized inventory. You can submit an inventory to claim more. - Additional living expenses (ALE): at least 24 months, with the option to extend twice by six months each. - Inventory claims: after you submit an inventory, the insurer must ask for any more information within 30 days and pay undisputed covered items within 30 days. - Debris removal: private debris removal must be paid within 60 days of receiving a receipt. - Copy of your policy: insurers must make it available within 3 business days of your request. This rule applies to every homeowners policy, not only after a wildfire.

HB22-1111 also gives you at least 36 months to collect the full replacement cost, plus two six-month extensions if delays are beyond your control. It lets you rebuild elsewhere or buy an existing home without losing replacement cost or code-upgrade coverage.

Separately, insurers must offer extended replacement cost coverage of at least 50% of your dwelling limit and law-and-ordinance coverage of at least 20% before issuing or renewing certain replacement-cost policies. These are offers, so you may have to pay extra for them. Confirm what your own policy includes with your insurer. [12][13][19][20][21]

Surplus lines and other options

If standard insurers turn you down, an agent may look at the surplus lines market. The DOI describes non-admitted (surplus lines) companies this way: they "do not have to meet state regulations and requirements like admitted companies do," but they "are more willing to provide coverage for higher-risk properties and situations." The Colorado FAIR Plan likewise tells consumers to try standard insurers and surplus lines before the FAIR Plan. See our surplus lines guide. [9][22]

Flood is separate

The DOI warns that "basic homeowners insurance does not include protection from flood damage, and that flood insurance must be purchased as a separate policy." After a wildfire, the DOI says there is "a greater threat of flooding and mudflow in and below the burn scars," and flood policies typically have a 30-day waiting period, so the DOI says to get covered as soon as possible. Our sister site FloodHawk covers flood zones and flood insurance. [23][24]

Where to get help

The DOI's Consumer Services team answers questions and investigates complaints, Monday to Friday, 8 a.m. to 5 p.m.:

- Phone: (303) 894-7490, or (800) 930-3745 outside the Denver metro area - Email: DORA_Insurance@state.co.us - Complaints: through the DOI's online Consumer Portal, or a printable complaint form you can mail

For Colorado FAIR Plan questions, call the plan's Customer Care Team at (833) 554-5425. [2][4]

Questions people ask