Best Renters Insurance in Colorado: Top 5 Insurance Companies to Protect Your Investment

Colorado renters often come to the Rocky Mountain State to enjoy the breathtaking scenery, fresh air, and unique experiences the state has to offer. In fact, it's the eighth largest in the country, and renters can enjoy condominiums, houses, and apartments.

As the landlord, you want to protect your property and will likely have landlord's insurance to cover your structures and personal belongings. However, that won't cover the tenants and their items, which is why you should consider requiring renters insurance.

There are no laws mandating renters insurance in Colorado, but landlords can write clauses in their rental agreements to require it. It's important to know what it offers, how it works, and where to find it for your tenants.

Generally, renters insurance policies will protect the tenant and the landlord, which you'll learn about today. Before discussing the cheapest renters insurance companies in Colorado, it's wise to find out what it offers and why it's necessary. Let's jump in!

What Is Colorado Renters Insurance?

Renters insurance is similar to homeowners insurance and covers various unexpected events, which are generally called covered losses or perils. The insurance protects people with liability coverage, personal property coverage, and additional living expenses.

Typically, Colorado renters insurance is broad and will help in various circumstances. However, it's crucial for the tenant to get an appropriate amount of coverage to meet their needs. Likewise, they must check out multiple renters insurance companies in Colorado and get quotes. Learn more about the process of buying renters insurance!

Average Cost of Renters Insurance in Colorado Per Month and Year

The average cost of renters insurance in Colorado is roughly $11 per month, which makes the average annual price about $128. That's about 20 percent lower per month than the national average.

However, renters insurance companies in Colorado offer customized quotes, which could show different rates depending on what the tenant wants to cover and how much stuff they have.

How Much Does Colorado's Renters Insurance Cost (Based on Popular Cities)?

According to Value Penguin, the average annual cost of renters insurance in Colorado will vary based on the city in which the tenant lives. For example, those in Grand Junction and Fort Collins will pay less per month, but Denver renters will pay more per month for renters insurance coverage.

Renters insurance quotes don't vary much based on the city, but here's a look at the most popular places to live:

• Broomfield - $163/year
• Brighton - $164/year
• Boulder - $169/year
• Colorado Springs - $176/year
• Fort Collins - $157/year
• Denver - $190/year
• Grand Junction - $157/year
• Westminster - $172/year
• Parker - $163/year

Does the State of Colorado Require Renters Insurance?

There's no state law that requires renters insurance in Colorado. However, landlords can mandate that tenants have renters insurance. If you put it in the lease, the tenants will have to get a policy before they can move in or renew the agreement.

You might be wondering how you'll know if your tenant got renters insurance like they were supposed to. It's possible to ask for the proof of insurance every time the lease is renewed. Plus, you can check up on tenants throughout the lease term to ensure they don't drop it.

Generally, it's wise to require renters insurance so that you know tenants have personal property coverage that will cover them during specific events. You can also ask to be listed as an interested party to be notified of changes or cancellations. This will protect you from tenants who only sign up for renters insurance to get into the unit.

What Does Renters Insurance Cover in Colorado?

Tenants and landlords should understand what renters insurance in Colorado covers before they demand it or buy policies. Here are the losses that are generally covered:

Personal Property Coverage

Personal property coverage will reimburse the tenant for any personal belongings that are damaged, lost, or stolen. The renters insurance will use either replacement value or actual cash value, depending on the option chosen.

Personal Liability Coverage

If a tenant's guest is hurt or damages property, renters insurance covers liability up to the policy limit. This also applies if the tenant damages the landlord's property.

Medical Expenses

Similar to personal liability, if someone needs medical help after being injured at the rental property, the renters insurance policy will likely reimburse the tenant for some of those expenses.

Loss of Use

Loss of use is often called additional living expenses coverage. Suppose the rented unit is damaged, and the tenant must move out before repairs can be done. The renters insurance policy will cover those associated expenses, such as meals, laundry, and housing.

Common Items Typically Stolen in Burglaries

Here are the things that are often stolen during a burglary:

• Cash and Other Currency - This includes bullion, bank notes, gold/silver coins, stored value cards, and smart cards.
• Electronic Equipment - Most renters insurance policies will offer electronics coverage for phones, laptops, computers, earbuds, iPads, smart watches, home devices (Alexa and Google), gaming systems, and television sets.
• Power Tools - This can include saws, drills, drivers, and more.
• Clothing - This can include jewelry, designer handbags, watches, and shoes.
• Firearms - This includes rifles and pistols, but only if they're legally obtained.
• Personal Information - Companies rarely include identity restoration as part of a standard policy, but renters can get this as an add-on. In this case, stolen personal equipment, information stolen from documents, and bank account data are covered.
• Kitchen Appliances - Renters insurance will cover personal appliances if they're stolen, destroyed, or damaged by a covered loss. This includes coffee machines, ice makers, electric mixers, blenders, microwaves, and refrigerators.

What Does Renters Insurance in Colorado NOT Cover?

Tenants should always read the policy before choosing renters insurance in Colorado. Though personal property is usually included, here are a few things that might not be covered:

Losses Over the Policy Limit

Renters insurance will always have a maximum policy limit. If the tenant sustains a heavy loss, they will only get reimbursed up to that amount.

Unscheduled Valuables

If tenants own high-cost items, including expensive jewelry and electronics, the damage or loss might not be covered. They will require an endorsement to schedule them separately. This will generally cost more.

Non-covered Event Damage

Some damages aren't covered under the renters insurance policy. For example, earthquakes and floods might not be included. However, it's possible to buy flood and earthquake coverage separately if the tenant feels that might be necessary.

How to Choose the Right Policy and Get the Best Renters Insurance Rates

Tenants often want the best renters insurance rates they can get, so they might sacrifice the amount of coverage to save money. However, here are a few tips to help your renters understand how to get the right policy for them:

• Deductible Amount - The deductible is the amount of money the tenant pays out of pocket before the renters insurance in Colorado kicks in. A higher deductible will lower the renters insurance rates they pay, but they might have to shell out more for a covered event.
• Coverage - Colorado has many insurance companies available, and it's often possible for tenants to customize their policies. They can adjust the add-ons and property coverage.
• Location - The property's location will influence the price tenants pay for renters insurance. Large cities might deal more with theft, so the cost could be higher. Rural areas may also have higher prices because emergency services would take longer to arrive on-site.

Overall, tenants should inventory their personal belongings, including collectibles, books, jewelry, furniture, electronics, clothing, kitchen items, small appliances, and home decor. Then, they should estimate what it would cost to replace all of those things. This will tell them how much coverage they need.

Finally, tenants should get renters insurance quotes from three different companies to compare costs and coverage amounts.

Available Discounts in Colorado

All renters insurance policies are different, so each company might offer varying discount options. It's important for the tenant to review various brands to ensure they're getting the best deal on renters insurance in Colorado. Here are the top discounts:

• No claims discount
• Bundling discount
• Protective device discount (fire alarms, burglar alarms, smoke detectors, etc.)
• Pay-in-full discount
• Secure or gated community discount
• Paperless discount
• Retired senior discount
• Automatic payments discount

How Does a Renters Insurance Policy Protect the Landlord or Property Manager?

Before checking out the companies offering the best renters insurance in Colorado, it's important to understand why you, as a landlord, should require tenants to get it. Here are the main benefits to you:

• Find More Reliable Tenants - You can use renters insurance to indirectly screen potential tenants. If you know they have or are willing to get a policy, you could think of them as responsible and caring individuals.
• Take Pets - Ask renters to get renters insurance that covers pet liability and be more welcoming to taking in these tenants. They'll be glad you did!
• Protects You from Personal Liability - Renters policies generally include personal liability coverage to cover legal and medical costs if a guest is injured or does damage to the property.
• Protects the Tenant's Personal Property - Landlord insurance covers the building and whatever the landlord owns. Tenants need renters insurance to protect their furniture, clothing, electronics, and other items in case of a covered event.

Top 5 Best Renters Insurance Companies in Colorado

Even if you're not shopping for the best renters insurance companies in Colorado personally, you can still read about the top choices here. This will help you recognize reputable brands and point confused tenants in the right direction when the time comes for them to buy it.

1. USAA Renters Insurance

USAA renters insurance is an affordable option and starts at about $10 per month. Colorado renters tend to like it. With various coverages and features, including built-in earthquake and flood coverage, it's the best choice if you're in the military or were in the past.

Overall, USAA renters insurance is only available to veterans and their military families. Still, it has received excellent ratings from many sources and allows tenants to bundle auto and renters insurance to get the best deal.

The discounts available include:

• On-base discount
• Security discount for installed fire alarms and other things
• Bundling discount
• No-claims discount

2. Lemonade Renters Insurance

Lemonade hasn't been around as long as some of the other companies on the list. However, it offers convenience and modernity because it's all done online.

Overall, Lemonade renters insurance is highly affordable, and you can get your quote in a few minutes. One feature making this company unique is that it will pool claims and premiums from all policyholders. When the year ends, the excess amount is donated to one charity.

Likewise, you'll find the Lemonade renters insurance starts out at about $5 per month, but the average is about $15. This includes most personal property, but prices are higher when there are high-value items. Plus, adding roommates to the plan can change the price tenants pay.

Generally, Lemonade doesn't offer many discounts compared to other companies, but here are the two top:

• Bundling discount
• Safety device discount

Claims are generally paid quickly, and some are paid instantly. However, it might not be the best choice if the tenant prefers that personal touch.

3. State Farm Renters Insurance

Since State Farm has been around for over 100 years, it's definitely a top pick and could be the best renters insurance company in the state. Because it's the largest casualty and property insurance company in the United States, it gives Colorado renters peace of mind. They know they'll be reimbursed after a covered loss.

Overall, the company sees tons of praise and has excellent customer service. It also quickly pays claims. Tenants like that they have higher limits than with other companies.

The average price is about $10 per month, which is roughly $125/year. Tenants also have access to various discounts, such as:

• Multi-policy discount (bundle renters and auto insurance)
• Alarm-security discount

There are many add-ons, as well, which include water backup protection, replacement cost coverage, earthquake coverage, and identity restoration coverage.

4. Progressive

Progressive Insurance is one of the largest renters insurance companies in the United States and has a strong reputation for customer satisfaction and claims payment. Though it does cost higher than other brands, it offers a single-deductible option for claims applying to multiple policies.

One thing tenants like about Progressive is the many discounts it provides. Here's a look at the top ones:

• Pay-in-Full Discount - If the tenant pays their renters insurance premium in advance for the year, they'll save money.
• Secure Community Discount - If the rental is in a gated or secure community, the premium is reduced.
• Multi-policy Discount - Bundling auto and renters insurance with Progressive can offer huge savings.
• E-Document Discount - Progressive wants to go paperless, so if the tenant agrees to receive their documents electronically, they can save money.
• Quote in Advance Discount - Tenants who request a quote from Progressive before the existing policy runs out will get a discount.

5. Allstate

Allstate is one of the top renters insurance providers in the US and is also a Fortune 500 company. It offers some of the best discounts on Colorado renters insurance, including one that helps seniors save on their premiums.

Overall, Allstate is well-regarded and financially secure. However, it's also with the technological times. Tenants can find mobile apps and online options to make it easier to file a claim and buy a renters insurance policy.

The average cost is $16 per month, though the company does say some tenants can pay $4 or less if they bundle the renters insurance with auto insurance.

Take a look at the discounts to see what tenants might save by using Allstate:

• Easy-pay Discount - When tenants enroll in the automatic payment option, they can get a discount.
• Safe Home Discount - If the rental unit has a burglar alarm, smoke detector, or fire alarm, tenants can save money.
• 55 and Retired Discount - If the tenant is over 55 and not working, they could save about 25 percent on their renters insurance.
• Bundling Discount - When tenants bundle multiple policies through Allstate, they can reduce their annual premiums significantly.

What Is DoorLoop?

It's crucial to ensure that tenants have renters insurance in Colorado, and you can require them to get it. However, you must keep everything organized to know who has paid, who is current on their renters insurance payments, and all the rest. How do you do it? DoorLoop can help! It's an all-inclusive property management software solution!

You could manage commercial properties, deal with residential properties, or have a mixture of both. It doesn't matter because DoorLoop will help you:

• Get a free and customized website. Tenants can apply online, and you can easily market your vacancies with Zillow and Trulia.
• Create rental agreements.
• Manage all of your accounting needs.
• Collect the rent automatically.
• Manage all rental portfolios from one centralized hub.
• Let tenants use the online tenant portal for convenience.
• Manage maintenance requests with ease. Tenants don't have to text or call; they can put in a request through the online portal.

You don't have to feel overwhelmed anymore. DoorLoop can make your job easier. Please schedule your demo today to learn more about the software and how it works.

Why Work with DoorLoop

Tenants rarely get renters insurance if they're not required to do it. However, you can mandate it in your lease, causing everyone to comply. You've learned what it does, how it works, what it covers, and which companies are the best.

However, DoorLoop can also help you require tenants to get a renters insurance policy! They can submit their own through the software or apply directly on the tenant application or through the tenant portal, which is powered by SURE or Lemonade. Learn more about renters insurance through DoorLoop today!