Of all the things you could be doing in Colorado—skiing the Basin, catching a Rockies game, bombing the 401 in Crested Butte and so on—you're shopping for house insurance. We know this is a painful process so we're going to make this simple but informative. Here's what we can tell you with certainty about shopping for Colorado house insurance rates: a little knowledge goes a long way in saving you money. Colorado is unpredictable enough, right? So let's get cracking.

A Centennial State Insurance Primer
According to the National Association of Insurance Commissioners'2007 report, Coloradoans paid an average premium of $826. And the most popular homeowner's policy? The HO-3 which consists of the following:

  • Coverage from damage to your Dwelling and Other Structures (garage, shed, etc.) from named perils like fire, lightning, etc. Typically only excludes flooding, earthquake, war and nuclear hazard.
  • Coverage from damage to your Personal Property. Coverage is typically 50% of the dwelling amount. And it costs about 70% of the dwelling rate.
  • Personal Liability covers you against civil suits and damages when others are injured on your property. Coverage typically starts at $100,000.
  • Medical Payments pay for medical expenses when others are injured on your property.
  • Additional Living Expenses pay for you to live elsewhere when your home is unlivable. This is usually 20% of your dwelling coverage.

Useful Colorado House Insurance Tidbits: Q & A
What is the difference between "actual cash value" (ACV) and "replacement cost"?

ACV takes depreciation (age, wear, tear) into consideration when calculating for a loss. For example, a tornado takes off your 10-year-old roof and needs to be replaced. If the average life of a roof is 20 years, you'd most likely be reimbursed for half of what a new roof would cost. Replacement cost—usually purchased at a slightly higher premium—replaces, repairs, or rebuilds using the same or similar materials without considering depreciation.

Would I be covered for wildfires?
Wildfires are covered in a basic policy and will insure against loss of structure and smoke damage to your home and belongings.

What about flooding?
Flood policies are always separate from a standard policy. They're typically sold through regular insurance companies with rates based on flood risk and amount of coverage. Rates average about $300 a year. Check floodsmart.gov to find your property's risk.

Is damage from the weight of snow and falling ice covered?
Yes. Most policies cover these incidents.

What about frozen pipes?
This is typically covered in a policy as long as you used reasonable care to maintain heat in the home and shut off the water supply.

Will my $5,000 mountain bike be covered if it's stolen off my car's roof?
Yes. This is typically covered under the personal property section. Usually, the insured and their possessions are covered anywhere in the world.

Sample Colorado House Insurance Rates
Because there are more Colorado house insurance scenarios than there are Colorado cyclists, we'll give you just a few to chew on. These scenarios are brought to you by the folks at the Colorado Division of Insurance from a 2008 survey of insurance companies. They'll give you some idea of the range of rates out there.

Lakewood Frame Home (HO-3) Scenario- $200,000 in dwelling coverage; $160,000 PP; $100,000 personal liability; $1,000 medical payments; $500 deductible.
Rates ranged from $408 to $2,542.

Boulder Condominium (HO-6) Scenario- $80,000 PP; $100,000 personal liability; $1,000 medical payments; $500 deductible.
Rates ranged from $136 to $404.

Grand Junction Masonry Home (HO-3) Scenario- $200,000 in dwelling coverage; $160,000 PP; $100,000 personal liability; $1,000 medical payments; $500 deductible.
Rates ranged from $263 to $2,396.

Gunnison Frame Home (HO-3) Scenario- $200,000 in dwelling coverage; $160,000 PP; $100,000 personal liability; $1,000 medical payments; $500 deductible.
Rates ranged from $437 to $2,560.

Steamboat Springs Renter (HO-4) Scenario- $40,000 PP; $100,000 Personal Liability; $1,000 Medical Payments; $500 Deductible.
Rates ranged from $123 to $667.

Getting the Lowest Colorado House Insurance Rates
You can save up to 50% by qualifying for a variety of discounts offered by insurance companies. Be sure to ask an agent about all discounts. Here's a brief list to get you thinking:

  • House protective devices like dead-bolt locks, smoke detectors, fire extinguishers, automatic sprinklers, burglar/fire alarms, and new plumbing/wiring.
  • New house discounts. The newer the house the lower the risk.
  • Multi-line (house, auto, life)
  • Senior (55+)
  • Non-smoker
  • Paying in advance vs. making monthly or bi-monthly payments.
  • Payroll deducted payments.
  • Military

The above scenarios show how varied the market is with rates. So the biggest way to save on your Colorado house insurance rates is to comparison shop with a company like LocalInsurance.

LocalInsurance searches the web for agents in your area, giving you a handful of rates and companies to compare. It's quick and easy and could save you hundreds.

Colorado has a Department of Insurance which can help ensure that you have the appropriate coverage for your home and provide you with useful information when selecting a homeowners insurance policy.