Why Is Homeowners Insurance So Expensive in Colorado Springs?

It starts with hail

Colorado hailstorms routinely damage roofs, and carriers price for it. In El Paso County, hail accounts for roughly 52.5% of a homeowner's premium, based on data from 20 carriers that represent 80% of the market, collected by the Governor's office and the Colorado Division of Insurance (KOAA/Division of Insurance data, February 2026).

Wildfire is the second driver

Homes on the west side of Colorado Springs, near the foothills, carry extra wildfire exposure, and the June 2012 Waldo Canyon Fire (18,247 acres, about four miles northwest of the city) is the reference point. New state law HB25-1182, effective July 1, 2026, requires insurers to use wildfire risk models in pricing and to disclose those models to the Division of Insurance.

Colorado also created the FAIR Plan, a state-backed insurer of last resort available since spring 2025 to homeowners who have been declined by three private carriers.

What it actually costs

A typical Colorado Springs homeowners policy averages around $2,300 to $2,400 a year for standard coverage, but premiums vary widely with the age and condition of the roof, the home location, and the coverage amount, and high wildfire-risk exposures can run far higher (Insuranceopedia, 2026; ColoradoBiz, 2026). Quote carefully, because the spread is large.

Sources and what to compare

KOAA and Colorado Division of Insurance data, February 2026 (hail share of El Paso County premiums; Colorado premium increase of 100.8% from 2020 to 2025, the fastest in the nation). ColoradoBiz, 2026, and Insuranceopedia, 2026 (typical premium range). Willowhome, 2026. HB25-1182, wildfire risk-model rules effective July 1, 2026. Waldo Canyon Fire history, June 2012. FAIR Plan availability since spring 2025.

Every carrier and every property are different, and quotes should always be compared. These are market-level figures, not a quote for your address.