How Much Does Apartment Building Insurance Cost in Colorado?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 14
- 2 min read
Owning an apartment building in Colorado can be a rewarding investment, but it also comes with responsibilities—especially when it comes to insurance. From wildfires to hailstorms and harsh winters, Colorado’s natural risks make comprehensive coverage essential.
So, how much does apartment building insurance cost in Colorado, and what should property owners expect?
Average Insurance Costs in Colorado
The cost of apartment building insurance in Colorado typically ranges from $3,000 to $12,000 annually, depending on the number of units, location, and risk profile. On a per-unit basis, expect to pay between $300 and $600 per year. For example:
A 10-unit building may cost around $5,000/year
A 20-unit building could be $8,000–$12,000/year
Premiums are higher in areas like Denver’s “Hail Alley” or wildfire-prone zones near Boulder.
Key Coverage Components
Covers structural damage from fire, hail, windstorms, lightning, and more. In Colorado, frozen pipes and ice dams are common winter hazards.
Protects against tenant or visitor injuries—such as slip-and-fall incidents or faulty stair railings.
3. Loss of Rental Income
Compensates for lost rent if the building becomes uninhabitable due to a covered peril.
4. Optional Add-ons
Flood and earthquake coverage are not included in standard policies and must be purchased separately. These are especially important in mountainous or flood-prone areas.
Factors That Influence Premiums
Location: Properties in wildfire zones or hail-prone regions face higher premiums.
Building Age & Condition: Older buildings may require additional coverage for outdated systems.
Claims History: Frequent claims can increase rates.
Safety Features: Installing fire alarms, sprinkler systems, and security cameras can reduce premiums.
Final Thoughts
Colorado’s natural beauty comes with insurance challenges. Apartment building owners must navigate rising premiums, coverage gaps, and evolving risks. That’s why partnering with a reliable insurer is key.
Wexford Insurance offers tailored commercial property insurance for apartment buildings across Colorado. Our policies cover everything from property damage to liability and loss of income—ensuring your investment is protected. Connect now!
FAQs
1. Why are apartment insurance premiums higher in Colorado?
Due to frequent hailstorms, wildfires, and severe winters, insurers charge more to cover these risks.
2. What’s the difference between landlord insurance and homeowners' insurance?
Landlord insurance covers rental properties and includes liability and income loss protection, unlike standard homeowners' policies.
3. Can I reduce my insurance costs?
Yes. Installing safety features, bundling policies, and choosing higher deductibles can help lower premiums.
