Colorado home insurance rates rising among fastest in the nation

DENVER -- When it comes to home insurance costs, Colorado is  the third fastest rising state in the nation, according to a new report. 

The National Association of Insurance Commissioners (NAIC) looked at data from 2007-2015 and found that average premium costs had risen $557 per household. 

“Over the last three years we’ve started to see 10 percent plus increases (per year) on a lot of our homes,” independent insurance agent Shawn Padalecki said. 

But where do those costs come from? Hail and other natural disasters, like tornadoes and wildfires. 

“As long as we keep having natural disasters we're still going to see increases year-over-year,” Padalecki added. 

But there are other factors in our state, including a lack of contractors and construction workers that drive up prices insurance companies have to pay. It can also be blamed on the homes themselves.  

“In some of the new builds, square footage is larger, finishes are nicer, if you have a complete loss the cost to rebuild is more expensive,” Padalecki said.

“Unfortunately those trends are not changing (and) they’re going to continue to escalate,” Carole Walker of the Rocky Mountain Insurance Information Association said.

One Aurora homeowner said his bill rose $400 in one year. 

“I think the last year he told me it went up 17 percent,” Brent Walker told Denver7. 

That’s leaving him and many others along the Front Range with a tough choice: pay more for coverage or roll the dice on less and hope nothing bad happens. 

“There’s (sic) some risks you take by maybe exposing yourself to situations that you should have coverage and you hope you don’t need it,” the homeowner said. 

But the experts suggest avoiding that if at all possible. 

“When you’re paying more in premiums, it’s really not a big amount compared what it would pay out if you lost your home or had to replace your own roof,” Carole Walker of RMIIA countered. 

For more information or if have questions about your insurance, call the Division of Insurance at 303-894-7490 or 800-930-3745.

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