Significant Increase in Home Insurance Premiums in Colorado Amid Natural Disasters

In Colorado, homeowners are facing substantial hikes in home insurance premiums, highlighted by LendingTree's 2026 State of Home Insurance Report. Since 2020, insurance costs have surged over 100%, marking the state as a national leader in premium increases, followed by Iowa at 96% and Minnesota at 88.2%. In 2025 alone, premiums in Colorado rose by an additional 18.3%.

The escalation in insurance costs is largely due to significant losses from natural catastrophes in 2024, like hail, wildfires, and severe storms. LexisNexis data confirms these events as major cost drivers. Lindsay Bishop, a home insurance expert at LendingTree, points to the increase in severe weather events and rising labor and material costs as key contributors to the higher premiums. The U.S. experienced an average of 23 billion-dollar disasters annually from 2020 to 2024, up from 15 in the previous five years, with severe storms averaging more than 14 annually during this period.

Nationally, the average annual home insurance premium is $2,395, while Colorado's average has soared to $4,310. Other states like Oklahoma and Nebraska also report high averages, whereas states such as West Virginia, Vermont, and Maine have experienced smaller increases. In response to these challenges, Colorado Governor Jared Polis signed legislation SB26-155, establishing the Strengthen Colorado Homes Enterprise within the Division of Insurance. This initiative provides grants for reinforcing roofs against hail and exploring solutions to mitigate wildfire-related insurance costs. Colorado Insurance Commissioner Michael Conway highlighted this measure as building on previous efforts to lower costs, focusing on roof upgrades to reduce claims and associated risks statewide.