Colorado Homeowners Face Soaring Insurance Costs Due to Hail Damage

Hail accounts for up to 54% of home insurance premiums in some Colorado counties

Published on Feb. 23, 2026

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Colorado is becoming one of the most expensive states for homeowners insurance, with hail damage being a key driver. Recent studies show that hail-related costs account for an average of 26% to 54% of total homeowner insurance premiums in the state, depending on the county. The impact varies across Colorado, but even in areas less prone to hail, homeowners still contribute a significant portion of their premiums towards hail risk.

Why it matters

Hail damage is a major contributor to rising insurance costs in Colorado, which consistently ranks second nationwide in hail insurance claims. This is significantly impacting homeowners, who are facing higher insurance premiums as a result. Addressing the hail issue is a priority for the state, as it looks to incentivize the use of hail-resistant roofing materials to help lower overall insurance costs.

The details

A study of 20 home insurance companies covering approximately 80% of the Colorado market showed that hail-related costs account for an average of 26% to 54% of total homeowner insurance premiums, depending on the county. In the Front Range and Eastern Plains regions, roughly 50% of homeowner insurance payments are linked to hail risk. While hail is a widespread concern, the impact varies across the state, with areas like Summit County seeing an average of 35.6% of premiums dedicated to hail risk, compared to only 7.9% for wildfire.

  • The most significant natural disaster in Colorado in recent years was a $3 billion hailstorm that struck the Denver metro area in 2017.
  • The Marshall fire in Boulder County in 2021 caused approximately $2.1 billion in damages, making it the second most costly natural disaster in the state.

The players

Colorado

The state consistently ranks second nationwide in hail insurance claims, following only Texas.

Insurance Companies

Insurance companies are offering discounts to homeowners who install hail-resistant roofs, but adoption rates remain low.

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What’s next

The state is exploring the possibility of a reinsurance program for wildfire insurance, but officials believe addressing the hail issue is the priority.

The takeaway

This case highlights the significant impact that hail damage is having on homeowners in Colorado, with insurance premiums being a major burden. Encouraging the use of hail-resistant roofing materials through incentives and education programs could be a key solution to lowering overall insurance costs in the state.