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Colorado Homeowners Insurance Premiums Surge to Sixth-Highest in the Nation

The Colorado Sun· July 11, 2026

Colorado has experienced the largest increase in homeowners insurance premiums in the United States since 2020, with costs more than doubling over the last five years. State Insurance Commissioner Michael Conway is calling for innovative solutions as the private market struggles with rising replacement costs and frequent natural disasters like hail and wildfires. These trends are forcing more residents into the state's FAIR plan, a high-risk insurance pool of last resort, while insurers attempt to stabilize loss ratios.

According to data from insurance-comparison site Insurify and a LendingTree analysis, Colorado's average homeowners premium is projected to reach $4,164 in 2024, marking a 61% increase from the previous year. This figure places the state as the sixth most expensive in the country, significantly exceeding the national average of $3,057. Analysts attribute these spikes to a 42% increase in home construction costs per square foot since 2019, alongside a 100.8% rise in premiums over the same period. Matt Brannon, a senior economic analyst at Insurify, noted that while home insurance previously received little attention, the current rate of increase is atypical and driven by both inflation and severe weather events.

State data reveals that property insurers are beginning to see more favorable loss ratios after a difficult 2023. Commissioner Michael Conway noted that the 2024 loss ratio for homeowners insurance stood at 70%, which falls within the industry's target range of 65% to 75%. This is a sharp recovery from 2023, when constant hail storms drove the loss ratio to 115%, meaning insurers paid out more in claims than they collected in premiums. Individual performance varies widely among the state's largest carriers; State Farm, the state's largest insurer, reported a 100% loss ratio in 2024, while Allstate and Farmers Insurance Exchange reported more profitable ratios of 61% and 48%, respectively.

To combat the affordability crisis and lack of private coverage in high-risk areas, Colorado has implemented several legislative measures, including the Fair Access to Insurance Requirements (FAIR) plan. While the FAIR plan currently provides coverage to several hundred property owners rejected by the private market, Conway emphasized that it remains expensive and offers limited coverage. Additionally, the state is launching a grant program to help homeowners fund risk mitigation efforts, such as installing fortified roofs to protect against hail damage. The state's long-term goal is to restore a robust private market that can absorb risk without relying on state-backed safety nets, though officials admit that the market will not solve these affordability challenges without innovative intervention.

Read the full story at The Colorado Sun

Summary generated by RabbitReport AI from public reporting. The full article and original reporting belong to The Colorado Sun.

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