by The Sherman Team at NextHome Foundations

Homeowners insurance has always been important — but in recent years, it has become one of the biggest factors affecting homeownership in Northern Colorado. Rising premiums, changing policies, stricter underwriting, and higher deductibles have created new challenges for homeowners, buyers, and even HOAs. Stick with us through this guide and you’ll understand why insurance matters more than ever, what to watch for, and how staying connected with a local insurance agent can protect you financially

Insurance premiums have increased across Colorado due to:

-severe weather events

-hail and wind claims

-wildfire risk

-rising construction and replacement costs

-changes in insurance company underwriting

Colorado has become one of the most expensive insurance markets in the country — and hail is a huge reason why. Colorado consistently ranks #2 in the nation for hail‑related insurance claims, and statewide data shows that hail alone accounts for a significant share of insurance losses. In fact, 54% of all homeowners insurance claim payments in Colorado are catastrophe‑related, driven largely by hail and wind damage.

Recent insurance data also shows how sharply costs have risen. State Farm reported a $1 billion increase in hail claim costs from 2021 to 2022, with the number of hail claims jumping by nearly 45,000 in a single year. Colorado ranked #8 in the nation for total hail claim costs in 2022, with $129 million in hail losses.

Wildfire risk is still a factor too — especially after the 2021 Marshall Fire, which caused over $2 billion in insured losses — but for most Northern Colorado homeowners, hail and wind remain the primary drivers of rising premiums.

These pressures have pushed insurance companies to tighten underwriting, raise deductibles, and increase premiums across the Front Range — including Greeley, Windsor, Fort Collins, and surrounding communities.

Source: http://www.rmiia.org/catastrophes_and_statistics/Wildfire.asp, State Farm reports $1 BILLION increase in hail claim costs

Northern Colorado has felt these increases just like the rest of the state. Even if you’ve never filed a claim, your premium may still go up — and that’s why staying informed is essential.

Because insurance companies evaluate the age and condition of major systems, our Home Improvement Guide can help you understand which maintenance items matter most.

Many homeowners go years without reviewing their insurance policy. But with today’s market, that can lead to:

-paying more than you need to

-being underinsured

-having deductibles you didn’t realize changed

-missing out on better coverage options

A quick annual review of your policy — especially after updates or repairs — ensures your coverage matches your home’s current condition

Local agents understand:

-regional weather risks

-local claim patterns

-HOA insurance structures

-lender requirements

-replacement cost trends

-how to shop multiple carriers

They can often find better rates, better coverage, or both — especially when premiums spike. We’ve personally seen local agents save homeowners hundreds of dollars simply by reviewing an existing policy.

Insurance isn’t just a homeowner issue — it can directly impact real estate transactions.

For example:

-A condo or townhome with an HOA master policy that has too high of a deductible may not qualify for financing.

-A home with outdated systems may be denied coverage until repairs are made.

-A roof nearing the end of its life may require replacement before closing.

Some carriers won’t insure certain properties based on age, condition, or claim history, and attached dwellings can be especially vulnerable. High deductibles on HOA master policies can make certain condos or townhomes uninsurable for buyers, which is why reviewing your HOA’s coverage is so important. Even though it takes time, attending association meetings — or at least reading the minutes — is crucial, because that’s where things like changes to the master policy are usually discussed. You don’t want to discover a major insurance change only after it is in place and it is affecting your ability to sell or refinance.
If you ever receive HOA documentation you don’t understand, or if you need help approaching your association with questions, reach out to us. We’ve seen firsthand how insurance issues can impact a sale. In one case, a condo couldn’t be sold because no lender would approve the HOA’s deductible structure. Situations like this are becoming more common, but they’re avoidable when you stay informed and catch issues early.

Insurance companies look closely at:

-roof age

-furnace and AC condition

-water heater age

-electrical systems

-plumbing materials

-exterior condition

Greeley has a wide range of home ages — from brand‑new builds to homes several decades old — and insurance companies evaluate them differently based on condition, updates, and system age.

Proper maintenance doesn’t just protect your home — it protects your insurability.  We touch more on home improvement with our home improvement guide

Construction costs have increased dramatically in recent years. If your policy hasn’t been updated:

-your replacement cost may be too low

-you may not be fully covered in a total loss

-you may face unexpected out‑of‑pocket expenses

A local agent can help adjust your coverage so you’re protected if the worst happens.

If you’re confused about rising premiums, unsure whether your coverage is enough, or worried about how insurance affects your home’s value or future sale, reach out to us. We can connect you with trusted local insurance agents who can review your policy, explain changes, and help you understand your options. Staying informed is half the battle — and you don’t have to navigate it alone.

When was the last time you looked at your homeowners insurance policy? If it’s been a while — or if your premiums have gone up — reach out to us. We can help you understand what’s changing in Northern Colorado and connect you with local insurance professionals who can review your coverage and make sure you’re protected.