Apartment Building Insurance Costs in Colorado Explained
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 14
- 2 min read
Owning an apartment building in Colorado can be a profitable venture, but it also comes with significant responsibilities—especially when it comes to insurance. With the state’s exposure to wildfires, hail, and severe winter conditions, understanding your insurance costs is essential to protecting your investment.
Average Insurance Costs in Colorado
According to industry data, the average cost of apartment building insurance in Colorado ranges from $1,200 to $4,600 annually per building, depending on location, building size, and risk factors. In high-risk areas like Denver’s “Hail Alley” or the Boulder foothills, premiums can be significantly higher due to increased claims from natural disasters.
Key Coverage Components
This protects against structural damage from fire, hail, windstorms, and more. In Colorado, frozen pipes and ice dams are common winter hazards that require robust coverage.
Essential for covering tenant or visitor injuries—such as slip-and-fall incidents on icy sidewalks or faulty stair railings.
If a covered peril makes your building uninhabitable, this coverage compensates for lost rent, helping you meet mortgage and tax obligations.
4. Optional Add-ons
Flood and earthquake coverage are typically excluded from standard policies and must be purchased separately. These are especially important in areas prone to flash flooding or seismic activity.
Factors Affecting Insurance Premiums
Several variables influence your insurance costs:
Location: Properties in wildfire zones or hail-prone regions face higher premiums.
Building Age & Condition: Older buildings may require additional coverage for outdated plumbing or electrical systems.
Claims History: A history of frequent claims can increase your 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 today!
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.
