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Renters Insurance in Colorado

Renters Insurance in ColoradoRenters Insurance in Colorado

Summary

Colorado was one of the top states for people to move to in 2022. The beautiful landscapes, unique culture, and economic opportunity within the state are enough to draw people all over the country. However, this has created more competition for rentals and increases in average rent, with averages in major cities like Denver reaching over $2,500 per month.

Colorado renters need to differentiate themselves from other applicants in order to secure the best rental units in their area. One of the best ways to do this is by investing in renters insurance. Colorado has seen one of the most significant increases in rent in recent years, correlating with a major increase in the state population. This has caused many renters to face steep competition in the rental market, increasing rent annually. For renters who want to protect themselves from financial losses and stand out in a highly competitive market, renter’s insurance is a must. 

Renters insurance protects tenants from financial losses and puts them in the upper echelon of tenant applicants, since there are also benefits for landlords whose tenants have insurance coverage. In this guide, we’ll review several of the major benefits of renters insurance and help you find a policy that’s right for you. 

Is Renters Insurance Required in Colorado?

Colorado state law does not require tenants to carry renter’s insurance. However, this doesn’t mean you are fully exempt from renters insurance requirements. Many landlords in Colorado require it prior to signing a lease and can deny your application if you don’t maintain coverage.

Even if your landlord doesn’t require verification of renters insurance before submitting your application, it’s a good idea to research your options. There are affordable renters insurance options in Colorado that serves your needs without breaking the bank. RentSpree can help you find policies that match your needs within our nationwide network of providers. If you’re interested in finding options in your area of Colorado, contact us. 

Why Your Landlord Might Require Renter’s Insurance

Landlords often prefer applicants with a renters insurance policy before signing a lease. There are many reasons, including decreased liability on their end and added protections for you as a renter. Your landlord may require renter’s insurance because:

They are looking for the most qualified applicants

Requiring renters insurance is an easy way for landlords to narrow down the selection of their tenants. In competitive rental markets in Colorado, landlords may receive dozens or even hundreds of applications for a single unit. In order to narrow their selection, they may require renters insurance to find the most responsible renters among their applicant pool. 

Their insurance premiums may go down

Landlords are required to carry insurance for their properties, which primarily covers the building itself and some liability for onsite accidents. However, if you carry your own insurance, you can file your own claims instead of everything going through your landlord. Their insurance policy won’t cover everything either – including damages to your personal belongings. Carrying your own policy ensures your property is protected no matter what. 

They want to ensure you are protected in the event of a fire, burglary, or forced relocation

Your landlord’s insurance may cover damages to a building in the event of a fire, flood, or another disaster, but it won’t cover damages to your property or relocation expenses if the unit is deemed uninhabitable. Without insurance, you would have to replace all of your furniture and appliances and find a new place to live with no financial support. Requiring renter’s insurance protects your landlord and ensures that you have a backup plan in the event of a catastrophic emergency affecting your rental home. 

Colorado Renters Insurance FAQ

If you’re looking into renters insurance in Colorado, it's important to research different providers to find the one that’s the best fit for you. Below are some of the most commonly asked questions we receive about renter’s insurance and what you should be looking for in a policy: 

Who needs renters insurance? 

Anyone who cannot afford to replace all of the possessions in their apartment should invest in renter’s insurance. This includes furniture, appliances, electronics, and other valuables you bring into the rental home. It is also recommended to get renter’s insurance if you plan on having guests over frequently, as your policy will protect you from liability if anyone is injured or has property lost or stolen while at your apartment. 

What does renters insurance cover? 

Renters insurance typically includes three different coverages: 

Personal property coverage: Replacing damaged property that resides within the rental unit

Personal liability coverage: Coverage that protects you from liability if someone is hurt on site or if property is stolen or damaged during your tenancy. 

Loss of use coverage: Coverage for your living expenses including temporary lodging if your unit is deemed uninhabitable

Some policies only cover specific damage included in a list of “named perils,” while others are for general property damage and liability coverage. Choosing which one is right for your situation is essential, which is where talking to a RentSpree representative can help. 

What doesn’t it cover? 

Some insurance policies won’t cover damages due to major storms, natural disasters, or fires and floods unrelated to the unit's plumbing and electrical systems. Others won’t cover damage from pests or pet damage. If you’re unsure what your renter's insurance will and won’t cover, talk to your agent for more information. 

How much does it cost in Colorado?

Renters insurance in Colorado can range from $9 to $15 per month, which is below the national average. However, certain factors may influence your monthly or yearly premium, including your previous rental history, the location of the property, your pet ownership, military status, and more. 

Can I share my policy with a roommate?

You are allowed to include any property within the rental unit in the household inventory of your insurance policy, including your roommate’s. However, it is not typically recommended for roommates to share policies for several reasons. First and foremost, if you have separate policies, you can effectively double the amount of coverage you have for your apartment. This also keeps finances separate, which is useful if one of you decides to move out before the other. And, because renter’s insurance in Colorado is so affordable, it is typically a no-brainer to get separate policies for each roommate in the same unit. 

What is a “named perils” policy?

A “named perils” renters insurance policy is a type of limited insurance where only certain named damages will be covered. This typically lowers your insurance premiums but will limit the type of claims you’re allowed to make. Typically, a named perils policy will cover damages from certain accidents including: 

  • Fire and lightning
  • Explosions
  • Riots
  • Car collisions
  • Smoke damage
  • Theft and Vandalism
  • Plumbing, electrical, or HVAC issues

Where can I get renters insurance? 

Renters insurance is available through most major insurance providers. If you sign up for renters insurance through RentSpree's partnership with SURE.

Each insurance provider offers different coverage options, premiums, and discounts depending on your unique qualifications.

RentSpree makes it easy for you to to obtain new renters insurance through SURE, or verify your existing insurance policy with a landlord using RentSpree's renters Insurance verification.

Renters Insurance

Notify tenants about renters insurance

RentSpree makes it easy for tenants to submit proof of insurance and for landlords and property managers to verify their coverage.

Cap Rate Calculator

rentspree illustration of calculator

How to use

Enter information in the boxes below to calculate the comparative value of a piece of property in order to determine if it would be a good investment for you.

Property Value

Current market price or listed value
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Yearly earnings

Anything you make a profit from that has to do with the property
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Total A:

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0.00

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Yearly Expenses

Anything you make a profit from that has to do with the property
$
$
$
$
$
$
Total B:

$

0.00

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Cap rate

0.00

%

Cap rate

$
$

0.00%

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Commission Calculator

How to use

Enter information in the boxes below to calculate the comparative value of a piece of property in order to determine if it would be a good investment for you.

Property Price

$

Commission Percentage

%
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Total Commission

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0.00

Commission for Each Agent

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0.00

Total Amount Seller Receives

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0.00

Rent to Income Ratio Calculator

How to use

Enter information in the boxes below to calculate the comparative value of a piece of property in order to determine if it would be a good investment for you.

Rent-to-Income Ratio Calculator

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Rent-to-Income Ratio:

0

%

Move-in Move-out Calculators

Move-In Calculator

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1st Month's Prorated Rent:

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0.00

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Total Move-In Cost:

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Move-out Calculator

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Move-Out Prorated Rent:

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