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Colorado leads nation with 101% surge in home insurance costs
Margaret Jackson //June 10, 2026//
In Brief:
- Colorado home insurance rates rose 100.8% since 2020
- State ranked no. 1 for 2025 rate hikes at 18.3%
- Average annual premium in Colorado is $4,310
- More than 321,000 homes exposed to wildfire risk
Colorado homeowners are feeling an unprecedented squeeze as the state secures a sobering title: the nation’s most dramatic home insurance cost increases.
Premiums across the Centennial state have more than doubled since 2020, according to LendingTree‘s newly released 2026 State of Home Insurance report.
Over the past five years, Colorado home insurance rates skyrocketed 100.8%, marking the fastest rate increase in the U.S.
The upward trajectory showed no signs of slowing down last year. Colorado also claimed the No. 1 spot for rate hikes in 2025, with premiums jumping and additional 18.3% in a single 12-month span.
The compounding increases have pushed Colorado to the No. 3 spot nationally for the highest overall home insurance costs. Homeowners in the state now pay an average of $4,310 annually for coverage – 80% higher than the national average of $2,395.
Experts say Colorado’s unique and volatile climate is driving the crisis. The state recorded the highest loss costs from catastrophe-related home insurance claims in 2024, an expensive reality fueled by a destructive mix of severe hail, windstorms and winter weather.
Environmental risks continue to loom large over the state’s housing stock. LendingTree data shows that more than 321,000 Colorado homes are exposed to moderate-to-great wildfire risk.
This puts roughly $141 billion in potential reconstruction costs at risk.
“Colorado has experienced some of the most intense pressure on home insurance costs in the country,” said Lindsay Bishop, LendingTree’s home insurance expert.
Wildfire risk, severe storms and rising catastrophe losses have created a challenging environment for both insurers and homeowners.
“As insurers face higher claim costs, those increases are increasingly being passed onto consumers,” Bishop said.
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