Colorado Sees Dramatic Home Insurance Premium Increases - 2026 Report

Colorado homeowners are experiencing significant increases in home insurance premiums, according to LendingTree's 2026 State of Home Insurance Report, with rates more than doubling since 2020. The state leads the nation in these hikes, showing a 100.8% increase over five years. Closely following are Iowa with a 96% rise and Minnesota at 88.2%. In 2025, Colorado again ranks first for rate increases, with premiums climbing by 18.3%.

The escalating costs are attributed to higher loss expenses from catastrophic events, such as hailstorms and wildfires, as reported by LexisNexis. Lindsay Bishop, a home insurance expert with LendingTree, noted the increased frequency and financial impact of severe weather events. Between 2020 and 2024, the average annual billion-dollar disasters in the U.S. reached 23, compared to 15 in the previous period. Severe storms saw a significant rise, escalating from nearly nine per year between 2015 and 2019 to over 14 per year during 2020 to 2024, thereby raising the damage potential.

Nationally, the average annual home insurance cost stands at $2,395, with Oklahoma having the highest average at $5,298, followed by Nebraska at $4,956 and Colorado at $4,310. Conversely, West Virginia, Vermont, and Maine reported some of the smallest rate increases. In response to rising costs, Colorado implemented legislative measures aimed at alleviating the burden on homeowners. Governor Jared Polis signed SB26-155, introducing the Strengthen Colorado Homes Enterprise under the Division of Insurance. This initiative aims to establish a grant program to assist homeowners in fortifying roofs against hail damage and explore insurance cost reductions related to wildfire threats.