Homeowners Insurance in Colorado
Homeowners insurance in Colorado protects your home, belongings and liability, with terms that matter here, like hail deductibles, roof settlement and wildfire rules. Chelsea Insurance Services, a family-owned independent agency in Firestone, helps Colorado homeowners compare options, including after a non-renewal.
Quick facts
- A homeowners policy typically covers your dwelling, other structures, belongings, loss of use and personal liability.
- Many Colorado policies have a separate wind/hail deductible, sometimes a percentage of the dwelling limit.
- Some policies settle roof claims at actual cash value rather than replacement cost.
- Flood is usually excluded and needs separate coverage.
- If you’ve been non-renewed, specialty markets or the Colorado FAIR Plan may be options.
What homeowners insurance typically covers
Homeowners insurance provides property and liability protection for owner-occupied homes. A typical policy, often an HO-3, combines several coverages. Your limits, deductibles and settlement terms depend on the policy and carrier.
- Dwelling. Helps pay to repair or rebuild the structure of your home after a covered loss such as fire, wind or hail.
- Other structures. Detached garages, sheds and fences, usually at a percentage of the dwelling limit.
- Personal property. Your belongings, subject to limits and sub-limits for certain items.
- Loss of use (additional living expenses). Helps with extra costs to live elsewhere while a covered loss is repaired.
- Personal liability if you’re legally responsible for injuring someone or damaging their property, including defense costs, subject to terms.
- Medical payments to others, which typically help with smaller injuries to guests, regardless of fault.
What it usually doesn’t cover
- Flood from rising water, which usually needs a separate policy. See private flood insurance.
- Earthquake and earth movement, unless added by endorsement where available.
- Wear and tear, deterioration and maintenance issues, such as an aging roof that leaks over time.
- Sewer or drain backup, which many policies exclude unless you add an endorsement.
- Business activities run from the home, which may need separate coverage.
Exclusions vary by policy and carrier. Your policy’s own wording controls.
Hail and wind in Colorado
For Colorado homeowners, hail is often the claim that matters most. Roofs, siding, gutters, skylights and window screens take the brunt of it.
- Separate deductibles. Some policies use a separate wind/hail deductible, either a flat amount or a percentage of your dwelling limit.
- Roof settlement. Some policies pay roof claims at actual cash value, which subtracts depreciation, rather than replacement cost. The difference can be significant on an older roof.
- Cosmetic damage. Some policies limit coverage for cosmetic dents to metal roofing or siding that don’t affect function.
Read your declarations page before storm season so you know which terms apply. After a storm, photograph the damage, make temporary repairs to prevent further damage if it’s safe, keep your receipts and report the claim promptly.
Wildfire and your home
Many Front Range and foothills homes sit in the wildland-urban interface, where homes meet grassland and forest. Defensible space around your home and hardening steps such as ember-resistant vents, clean gutters and non-combustible materials near the house can lower risk, and some insurers recognize these steps.
Wildfire risk scores. Under HB25-1182 (C.R.S. 10-4-124), for homeowners policies issued or renewed on or after July 1, 2026, insurers that use wildfire risk models must give policyholders written notice of their wildfire risk score and available mitigation discounts, explain what drives the score, and offer an appeal process. The Division of Insurance’s implementing rule takes effect January 1, 2027.
After a wildfire total loss. Under HB22-1111, after a total loss from a declared wildfire disaster, insurers must offer at least 24 months of additional living expense coverage, with the option of two six-month extensions in qualifying situations, and must offer at least 65% of the personal property limit without requiring a written inventory.
This is general information, not legal advice. Coverage depends on your policy’s terms.
Non-renewed or turned down? Your options
Hail and wildfire losses have made coverage harder to find for some Colorado homes. A non-renewal notice is stressful, but it isn’t the end of the road.
Specialty and hard-to-place markets. We work with specialty homeowners options for hard-to-place, high-value or non-standard properties, depending on the home and the market.
The Colorado FAIR Plan. Created by HB23-1288, the Colorado FAIR Plan is a state-mandated insurer of last resort. It began accepting residential applications on April 10, 2025. It requires proof that insurers have declined your property and is accessed through a licensed agent. According to the FAIR Plan, its coverage is limited and pays the actual cash value of the home rather than the cost to rebuild.
This is general information, not legal advice. Coverage depends on your policy’s terms.
Dogs and your homeowners policy
Under HB23-1068, effective January 1, 2024, Colorado home and dwelling fire insurers generally may not refuse to issue, cancel, non-renew or increase the premium on a policy based on the breed of dog kept at the home. They may act if a specific dog is known to be dangerous or has been declared dangerous under state law. Insurers may not ask about breed, only whether the dog is known to be or has been declared dangerous.
This is general information, not legal advice. Coverage depends on your policy’s terms.
Your homeowners liability may respond to a dog-bite claim, subject to the policy. If your dog has a bite history, or your policy limits animal liability, see Colorado dog liability insurance.
Winter in Colorado
Frozen and burst pipes and ice dams are common winter claims. Whether a claim is covered usually depends on the cause and on maintenance. Sudden damage from a burst pipe is often covered, while damage from a slow leak, or from pipes that froze because the heat was off in a vacant home, may not be.
Keep the heat on when you travel, know where your main water shutoff is, and consider a leak sensor near the water heater.
How to get a homeowners quote
- Tell us what you need. Use the quote form or call 720-669-3647.
- We compare options. As an independent agency, we can look at more than one insurance company for you.
- You choose. We walk you through the options in plain English, and you decide.
What to have ready:
- Your property address and year built
- Roof age and material
- Approximate square footage
- Your current declarations page and renewal date
- Any recent claims
- Any dogs, pools or trampolines
Sources
- HB25-1182 (enrolled), Colorado General Assembly
- HB22-1111, Colorado General Assembly
- HB23-1068, Colorado General Assembly
- Colorado Division of Insurance: FAIR Plan
- Colorado FAIR Plan: eligibility
- Colorado Division of Insurance: wildfire consumer protections
This is general information, not legal advice. Coverage depends on your policy’s terms.
Homeowners insurance FAQs
Does homeowners insurance cover hail damage to my roof in Colorado?
Hail is a covered peril on most Colorado homeowners policies, so roof damage from hail is often covered, subject to your deductible and the policy’s terms. Many policies use a separate wind and hail deductible, and some settle roof claims at actual cash value rather than replacement cost. Check your declarations page for your roof settlement and deductible terms, or ask us to review them.
What is a wind/hail deductible?
A wind/hail deductible is a separate deductible that applies only to wind or hail claims. It may be a flat amount or a percentage of your dwelling coverage limit. For example, a 2% deductible means you pay the first 2% of your dwelling limit on a covered hail claim. Percentage deductibles are common in hail-prone areas, so it’s worth knowing which one your policy uses before a storm.
Can a Colorado home insurer cancel or raise my rate because of my dog’s breed?
Under HB23-1068, effective January 1, 2024, Colorado home and dwelling fire insurers generally may not refuse, cancel, non-renew or raise rates based on a dog’s breed. They may act based on a specific dog that is known to be dangerous or has been declared dangerous. Insurers also may not ask about breed. This is general information, not legal advice. Coverage depends on your policy’s terms.
What can I do if I can’t find home insurance in a wildfire area?
Start with an independent agency that can check more than one insurance company, including specialty markets. If standard insurers decline your home, the Colorado FAIR Plan may be an option as an insurer of last resort; it requires proof of declinations and is accessed through a licensed agent. Mitigation work, such as defensible space and ember-resistant vents, can also help. Call us to talk it through.
What is a wildfire risk score, and can I appeal it?
Some insurers use wildfire risk models to score a property. Under HB25-1182, for Colorado homeowners policies issued or renewed on or after July 1, 2026, insurers that use these models must tell you your wildfire risk score and available mitigation discounts, explain the score, and offer a way to appeal a score you believe is inaccurate. This is general information, not legal advice. Coverage depends on your policy’s terms.
Does homeowners insurance cover flooding?
Standard homeowners policies typically exclude flood damage from rising water. Flood coverage is usually purchased separately, either through the National Flood Insurance Program or a private flood policy. Damage from a sudden burst pipe is a different situation and is often covered. If you’re near a creek, river or drainage area, ask us about private flood insurance.
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