Home Insurance Shifts Colorado Springs Buyers Should Know

Planning to buy in Colorado Springs and noticing insurance quotes feel higher or harder to secure? You’re not imagining it. The insurance market has shifted, and it can affect what you pay, what’s covered, and even your ability to bind a policy before closing. In this guide, you’ll learn what changed, how local risks shape coverage, and the smart steps to keep your budget and contract on track. Let’s dive in.

What changed in Colorado insurance

Colorado homeowners have seen notable premium increases as insurers respond to higher catastrophe losses and rebuilding costs. One market projection placed Colorado’s average homeowners premium in the mid $5,000s for 2024 with further increases expected into 2025, highlighting the state’s elevated costs compared to many markets (Insurify projections).

Insurers have also tightened underwriting and nonrenewed some policies in higher risk areas, which has raised availability concerns for certain addresses (Colorado Sun reporting). To address gaps, the state launched the Colorado FAIR Plan as a backstop for owners who cannot secure coverage in the private market; it began accepting personal lines applications on April 10, 2025. The FAIR Plan is designed as a last resort with coverage caps and typically higher cost (Colorado Division of Insurance FAIR Plan).

Colorado Springs risk factors to know

Hail on the Front Range

Colorado Springs sits in “Hail Alley,” and recent seasons have produced unusually frequent large hail. The Colorado Climate Center documented record numbers of 1‑inch or larger hail reports in 2023, a major driver of roof claims and premium pressure (Colorado Climate Center hail summary). Insurers often respond with separate wind and hail deductibles, roof restrictions, or credits for impact‑resistant materials.

Wildfire in foothills and WUI

The city and nearby foothill areas include Wildland‑Urban Interface zones, and the region has a history of large fires. Local Community Wildfire Protection Plans outline risks and mitigation priorities that can help you plan improvements and communicate risk reductions to insurers (CSFS CWPP resources).

Flood and flash‑flood corridors

Standard homeowners policies exclude flood. If a property lies in a FEMA Special Flood Hazard Area, flood insurance is typically required by lenders as a condition of financing (FEMA SFHA overview). Always check a property’s mapped status during your contingency period.

Policy terms to check closely

Deductibles and wind/hail specifics

Many Front Range policies include a separate wind or hail deductible that is a percentage of your dwelling Coverage A, often 1 to 5 percent. On a $400,000 insured dwelling, a 2 percent deductible means $8,000 out of pocket on a qualifying claim. Read your declarations page to confirm whether wind or hail has a higher, separate deductible (how deductibles work in Colorado).

Replacement cost and limits

Underinsurance was a major issue in recent Colorado wildfire losses. Regulators and carriers have moved toward better disclosure around rebuild costs, but you should still verify that Coverage A, any extended or guaranteed replacement cost, and contents limits reflect today’s construction costs (Marshall Fire analysis and reforms).

Exclusions and add‑ons

Flood is excluded and purchased separately. Consider endorsements for sewer backup and specific water damage scenarios if appropriate for the property. Ask your agent for a plain‑English walk‑through of exclusions and optional coverages.

Lapses and lender requirements

If a policy is canceled or nonrenewed and you do not replace it, a lender can place coverage on your behalf. Lender‑placed insurance is typically more expensive and provides limited protection, so avoid gaps and act quickly if you receive a nonrenewal notice (force‑placed insurance basics).

FAIR Plan as a fallback

If several insurers decline your address, the Colorado FAIR Plan can provide last‑resort coverage subject to eligibility and coverage caps. Treat it as a temporary safety net while you continue to shop the private market (Colorado FAIR Plan details).

How to protect your budget

• Get quotes early. Engage an independent broker during your inspection window so multiple carriers can evaluate the address. If underwriting flags conditions like roof age, you will have time to negotiate repairs.
• Choose deductibles intentionally. Model the out‑of‑pocket impact of percentage wind or hail deductibles and confirm your emergency fund can cover it if a storm hits.
• Document mitigation. Class 4 impact‑resistant roofs, ember‑resistant vents, and defensible space can improve insurability and sometimes qualify for discounts. Insurers have recognized Firewise‑type efforts in the past, and documentation matters (Firewise recognition and discounts context).
• Confirm limits and ALE. Verify dwelling, contents, and Additional Living Expense amounts are aligned with your needs and local rebuild costs.

Buyer checklist for contingencies

• Request the current declarations page and any available claims history for the home.
• Ask your insurance pro to explain, in writing, your wind or hail deductible, any cosmetic or roof exclusions, and key endorsements.
• Check FEMA flood maps for SFHA status and determine whether separate flood coverage will be required.
• If private carriers decline, discuss whether FAIR Plan eligibility is a viable fallback while you keep shopping.

After you buy: keep coverage strong

• Re‑shop at renewal. Markets shift, and new mitigation can unlock better options.
• Keep records. Save permits, photos, and receipts for upgrades like roofing or vent replacements. Provide them to your insurer.
• Inventory contents. A simple video walkthrough or app‑based inventory makes claims smoother if you ever face a loss.

Local resources

• Colorado Division of Insurance — FAIR Plan information and consumer tools: FAIR Plan overview
• Colorado State Forest Service — City and county CWPPs and wildfire mitigation guidance: CSFS CWPP resources
• FEMA flood zones — Learn about mapped Special Flood Hazard Areas: SFHA basics

If you want a second set of eyes on insurance during your home search or need introductions to reputable local insurance pros, reach out to Harrison McWilliams. You’ll get clear guidance, timely vendor connections, and a steady hand from offer to close.

FAQs

Can I still get homeowners insurance in Colorado Springs?

• Most homes remain insurable, but price and availability vary by address. Some owners have faced nonrenewals or tighter underwriting, so start quotes early and have a backup plan (Colorado Sun overview).

Why are Colorado premiums rising so fast?

• Insurers cite higher catastrophe losses, increased rebuild costs, and reinsurance expenses, which lead to statewide rate increases even if you have no claims (Colorado Sun reporting).

What is a wind or hail percentage deductible?

• It is a deductible set as a percent of your dwelling limit, often 1 to 5 percent, applied to wind or hail claims. On a $400,000 home, 2 percent equals $8,000 out of pocket (deductible guidance).

What happens if my policy is canceled or nonrenewed?

• You must bind a new policy before the effective date to avoid gaps. If you do not, a lender may force‑place limited, higher‑cost coverage; the Colorado FAIR Plan is a last‑resort option if several private carriers decline you (force‑placed basics).

Do mitigation steps really help with insurance?

• Yes. Impact‑resistant roofs, ember‑resistant vents, defensible space, and community wildfire programs can improve insurability and sometimes reduce premiums when well documented (Firewise recognition context).