Colorado Homeowners Hit Hardest by Insurance Rate Hikes

Owning a home is great, but it comes with a cost far more than just dollars. No one tells you how much upkeep you have to do on your home annually. Making sure everything is functioning properly takes time. If you lose track of some of these tasks, it can cost you thousands of dollars down the road.

While I consider myself lucky to be able to own a home in Colorado, I have noticed that some of the bills have been going up over the past couple of years. Property taxes are one, but the biggest financial increase I have seen is with homeowner's insurance.

Colorado Homeowners Are Seeing Insurance Costs Climb

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I am certainly not the only homeowner in Colorado who has seen a drastic increase over the past couple of years. Since 2020, homeowner's insurance prices have jumped nationwide by approximately 47 percent.

READ MORE: Colorado is the Third Most Expensive State in the USA

Some states have seen higher increases in homeowner's insurance rates than others. According to Lending Tree, Colorado has been hit the hardest. From 2020 to 2025, Colorado's homeowner's insurance rates have risen more than 100 percent.

Rate hikes like this can put financial strain on homeowners across the state. When homeowner's insurance rates have more than doubled in five years, it can certainly be a hard pill to swallow.

Colorado's Homeowners' Insurance Rates Are High For a Reason

Colorado is ranked as the second-highest state in the nation for homes at moderate or greater wildfire risk. Our state also has the highest loss cost from catastrophe-related home insurance claims in 2024. Most of these claims on Colorado homes have come from severe storm damage, wildfires, and hail.

READ MORE: Colorado Ranks High for Shifting Middle-Class Income

Only one other state in the nation ranks higher for hail exposure and damage to homes: Minnesota.

Severe Weather and Wildfire Risk Add to Colorado Costs

On average, Colorado homeowners pay an average of $4,300 annually for insurance coverage on their dwelling, which is the third-highest rate in the nation. For more information on the state of home insurance in the USA, visit lendingtree.com.