The Colorado Division of Insurance announced that new data from insurance carriers shows hail is a major factor in homeowners insurance premiums across Colorado counties, and mitigation efforts could help residents save money.
The division collected data from 20 homeowners insurance carriers representing 80 percent of the market to analyze average premiums in 11 counties. The analysis found that hail risk contributes between 26 and 54 percent of total premiums statewide, which far exceeds wildfire risk in most areas. Governor Jared Polis said the data outlines the problem of high insurance costs and calls for innovative actions to lower premiums and enhance home resilience. “Polis supports measures to save Coloradans money on insurance as part of addressing housing affordability,” according to the Colorado Division of Insurance.
Homeowners in Colorado pay some of the highest insurance rates in the country. According to NerdWallet’s analysis, homeowners insurance premiums average $3,910 per year for $400,000 in dwelling coverage. Bankrate reports similar figures, noting Colorado’s average at around $3,306 annually, influenced by hail and wildfire risks in various regions. Nationally, the average homeowners insurance premium is $2,490 per year for $400,000 in dwelling coverage, as reported by NerdWallet. Insurify data shows a U.S. average of $2,544 annually with variations by state; states like Oklahoma and Florida face higher costs due to similar hazard exposures.
The Colorado Division of Insurance regulates the state’s insurance industry—including health, auto, homeowners, life and title policies—and assists consumers by addressing complaints and enforcing state laws according to its official website. The division monitors company financial health and promotes a competitive market to improve access and choices for residents.
The agency also provides resources for consumer protection and license verification according to its official website. It operates throughout Colorado with tools for checking licenses and filing complaints related to insurance matters while focusing on regulatory oversight across the state.
