Though Colorado may be far from hurricane-prone regions, major storms like Hurricanes Milton and Helene can still impact homeowners insurance rates across the country. When hurricanes hit, insurance companies face enormous financial burdens due to the sheer number of claims for wind, flood, and property damage. To keep themselves in business after such events, insurers rely on actuaries—professionals who assess risk and determine how much coverage should cost. These actuaries must look at the financial impact of hurricanes and adjust premiums to ensure the insurance company remains stable.

This means that even if your home in Colorado is far removed from the threat of coastal hurricanes, you might still see your insurance premiums rise. Insurance companies operate nationwide, and when a major storm strikes one part of the country, it can ripple through their entire system. Because they need to balance risk across all their policyholders, insurers may adjust rates for homeowners in areas unaffected by hurricanes, like Colorado, to help cover the cost of large payouts in hurricane-affected states.

For Colorado homeowners, rising premiums after hurricanes may seem disconnected from their own risks, but Colorado faces its own natural challenges, particularly wildfires. Homes in wildfire-prone areas, especially those in the Wildland-Urban Interface (WUI), already face higher premiums due to increased risk. When hurricanes force actuaries to reassess overall risks for the insurance company, they often adjust premiums not just for hurricanes, but for other risks, like wildfires. This means Colorado homeowners may experience higher rates after major coastal storms.

While it might feel frustrating to see your rates increase because of a hurricane happening thousands of miles away, it’s part of how insurance companies maintain the funds needed to cover potential claims, no matter where or when disasters occur. The financial ripple effects from major storms like Milton and Helene can affect homeowners across the country, even in places like Colorado.

Tips to Help Colorado Homeowners Save on Insurance Premiums

While rising insurance rates may seem inevitable, there are ways you can manage and even reduce your premiums. Here are some friendly tips for Colorado homeowners to help keep costs under control:

• Bundle Your Policies: If you have multiple types of insurance—like auto and home—bundling them with one provider can lead to significant savings. Many insurers offer discounts (up to 20%) for customers who combine policies. Colorado homeowners can check with local insurance experts like Castle Rock Insurance to see what kind of bundling options are available.
• Improve Your Home’s Fire Resistance: Living in a wildfire-prone state means reducing your home’s fire risk can save you money on premiums. Installing fire-resistant roofing, maintaining a defensible space around your home, and clearing flammable vegetation can all make a difference. Some insurers offer discounts if your home meets certain fire-safety standards.
• Shop Around: It’s easy to stick with your current insurance provider, but shopping around for new quotes could help you find better rates. A local Colorado-based insurance broker, like Castle Rock Insurance, can compare different options for you, giving you access to multiple carriers and policies that might offer better value.
• Regularly Review and Update Your Policy: Don’t just set your policy and forget it! Homeowners should regularly review their insurance coverage to make sure they’re not overpaying for coverage they no longer need. If you’ve upgraded your home’s security or added safety features like a new roof, those updates could qualify you for additional discounts.
• Raise Your Deductible: If you’re in a financial position to handle a higher out-of-pocket cost in the event of a claim, raising your deductible could lower your monthly premium. Just make sure the deductible is still affordable for you in case you need to make a claim.
• Ask About Loyalty Discounts: Some insurance companies reward long-time customers with loyalty discounts. If you’ve been with the same insurer for several years, it doesn’t hurt to ask if you qualify for any savings.

Work with Local Experts

Colorado homeowners face unique risks with wildfires and harsh weather, so it’s important to work with insurance providers that understand those challenges. Local brokers like Castle Rock Insurance know the specifics of the Colorado market and can help you find the most affordable policies without compromising coverage.

By staying proactive and making smart decisions about your homeowners insurance, you can mitigate rising costs and protect your home, no matter how far you are from the coast.