If you’ve noticed your homeowners insurance rates increasing, you’re not alone. Home insurance premiums are rising across the country, and Colorado homeowners are feeling the impact. But why is this happening? As your trusted insurance agency serving Denver, Westminster, and all of Colorado, we believe in educating our clients about the factors driving these changes so you can make informed decisions about your coverage.
- Rising Claim Costs
The cost of settling home insurance claims has surged due to multiple economic and environmental factors. From severe weather events to higher labor and material costs, insurance companies are adjusting rates to keep up with the increasing expenses of rebuilding and repairing homes.
- Increasing Cost of Building Materials
Construction costs have skyrocketed in recent years. From October 2021 to October 2023, residential construction prices increased by 13.8%. This means that when damage occurs, it costs more to repair or rebuild homes, leading to higher claim payouts—a key driver of rising insurance premiums.
- More Frequent and Severe Weather Disasters
The U.S. has seen a dramatic rise in billion-dollar weather disasters. In 2024 alone, there were 27 weather events with losses exceeding $1 billion each—a sharp increase from the historical annual average of 8.1 events.
Colorado homeowners, in particular, face threats from:
🔥 Wildfires – Dry conditions and high winds have made wildfires more destructive.
⛈️ Hailstorms – Colorado is in “Hail Alley,” leading to costly home and roof repairs.
💨 Wind and Snowstorms – Heavy snow and high winds cause structural damage and insurance claims.
These disasters are a major factor in why home insurance rates are increasing in Colorado.
- Labor Shortages in the Construction Industry
A shortage of skilled labor is delaying home repairs and increasing costs. As of October 2023, there were 416,000 job openings in the construction industry. Fewer workers mean longer rebuild times and higher expenses, which contribute to rising home insurance rates.
What Can Colorado Homeowners Do?
While market conditions affect insurance rates statewide, there are steps you can take to ensure you’re getting the best coverage at a competitive price:
✅ Review Your Policy: Make sure you understand what’s covered and where you might need adjustments.
✅ Consider Higher Deductibles: A higher deductible can help lower your premium while keeping strong coverage.
✅ Bundle Policies: Combining home and auto insurance can lead to discounts.
✅ Improve Home Resilience: Investing in impact-resistant roofing, fire mitigation, and security systems can help lower risk and potential claims.
Get a Homeowners Insurance Quote in Colorado
At Conexus Insurance, we provide comprehensive home insurance solutions and work with you to ensure you have the right coverage at the best possible rate. Whether you’re in Denver, Westminster, Boulder, Fort Collins, Colorado Springs, or anywhere in Colorado, our team is here to help.
📱Call or text us at 303-429-3501
📍 Serving homeowners across Colorado
