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    Home insurance requirements in Colorado

    Build a custom insurance policy that meets your state’s requirements and helps protect you from unexpected events.

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    Minimum mandatory home insurance in Colorado

    Colorado doesn’t have homeowners insurance requirements. However, some lenders may ask you to buy coverage as a loan stipulation (Insurance Information Institute).

     

    Standard home insurance coverages for Colorado residents

    The following coverages are typically included in a standard homeowners insurance policy.

     

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    Coverage for your home

    Dwelling coverage (Coverage A) protects your home – think roof, walls, floor, siding and windows.
    A windstorm sends a tree crashing onto your roof. This portion of your standard homeowners insurance policy helps you cover some of the repair costs.
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    Coverage for other structures

    Other structures coverage (Coverage B) protects structures such as detached garages, sheds, fences or pools.
    The new shed you built in your yard is damaged in a storm. This portion of your homeowners insurance can help you cover some of the damages up to your policy limits. You have the option to add more coverage if you would like.
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    Coverage for your things

    Personal property coverage (Coverage C) helps replace or repair items such as clothing, jewelry, appliances, furniture and electronics.
    Your home suffers a fire with extensive damage to your personal property and valuables. This portion of your homeowners insurance helps you repair and replace them.
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    Coverage for living expenses

    Loss of use coverage (Coverage D) helps pay for expenses such as hotel stays and food should your home become unlivable.
    Your house is damaged in a fire, and you must move out while it's fixed. This portion of your homeowners insurance policy can help you pay for expenses such as accommodations and food costs.*
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    Coverage when accidents happen

    Personal liability (Coverage E) provides financial protection for property damage and injury to others.
    A guest injures themselves on your property while visiting; this coverage can help provide you with some financial protection from costs that may occur as a result.*

    Information for Colorado Policyholders

    On May 28, 2025, Governor Jared Polis signed House Bill 25-1182 into law, which requires some insurers to provide discounts to policyholders for certain fire mitigation actions that have been taken to reduce the risk of loss.

    To comply with this law, we are offering a 5% discount on the wildfire portion of your premium if you have a homeowners policy covering property located in Colorado that is part of a Firewise USA® designated community.

    Discounts will be available as of July 1, 2026. Please contact our Customer Service department or your agent to request a discount. You have the right to appeal the Wildfire Risk Score or applicable mitigation discounts. To request an appeal, written appeals may be submitted to:

    American Family Insurance Company

    Attn: CO Wildfire Appeals

    6000 American Parkway

    Madison, WI 53783

    Optional add-on homeowners coverages

    Adding optional coverages to your homeowners insurance may be especially helpful if your home is at risk for events like flash floods, which are not typically covered by standard policies. They add an additional layer of protection from unexpected losses.

     

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    Add-ons for more events & parts of your home

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    Add-ons based on how you use your home

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    Add-ons for personal property & identity

    Get homeowners insurance today

    Contact your local American Family Insurance agent for a personalized home insurance quote or get a custom quote online.

     

    This article is for informational purposes only and based on information that is widely available. While we believe it to be reliable and accurate, we do not guarantee the accuracy or reliability of the information. Please check your state and local laws.

    The information on this webpage represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Coverage features and limits vary by state and may be subject to change. Some products are not available in every state. Discount availability and eligibility vary by state and policy terms. (Discounts apply to auto and property policies.) Please check with your agent and read the policy for exact details on coverages and exclusions. We are not responsible for the content of any third-party sites that may be linked in this article.

    References

    Insurance Information Institute. (n.d.) Can I own a home without homeowners insurance? https://www.iii.org/article/can-i-own-home-without-homeowners-insurance