Rising Home Insurance Premiums in Colorado: Key Insights for 2024

In the last decade, home insurance premiums have risen significantly across the United States, with Colorado experiencing one of the most substantial increases. From 2015 to 2024, Colorado's average home insurance cost surged by 137%, reaching $4,142, according to a National Bureau of Economic Research study. This sharp increase greatly surpasses the 64% national average, emphasizing pressing issues in regulatory compliance and risk management.

By 2024, Colorado ranks as the state with the second-highest home insurance premiums, trailing only Florida, where homeowners face an average cost of $4,448. Within Colorado, Pitkin County, home to the luxury resort town of Aspen, records the highest premiums, averaging $6,385. Conversely, Rio Blanco County reports the lowest average premium in the state, at $1,929. These variances reveal critical insights for industry stakeholders concerning regional underwriting strategies.

The trend of escalating premiums in Colorado is most pronounced in central regions, notably near the Front Range. These patterns underscore essential considerations for insurance professionals engaged in risk assessment and policy development. The data serves as a significant input for payers and carriers in their strategic planning to address these AI-driven prior authorization delays and ensure effective compliance with evolving regulatory requirements.