Landlord Insurance in Colorado: Hail, Deductibles and What Denver Owners Actually Need

Why your homeowners policy probably isn't enough

The moment your home becomes a rental, it stops being just a residence and becomes a place of business. The National Association of Insurance Commissioners puts it exactly that way. A standard homeowners policy isn't designed for rental use, and an insurer may deny claims if it learns the home was leased.

For a long-term rental of the whole home, the Insurance Information Institute says you'll likely need a landlord or rental dwelling policy. Call your agent before the tenant moves in, not after the first claim.

What a landlord policy covers

A landlord (often called "dwelling fire" or DP-3) policy typically covers:

• The dwelling and other structures like a detached garage or fence.
• Your property at the rental, such as appliances you provide.
• Lost rental income while the home is uninhabitable after a covered loss.
• Liability if someone is injured on the property and sues you.

It does not cover your tenant's belongings. That's what renters insurance is for. Colorado doesn't require tenants to carry renters insurance by statute, but many landlords require it in the lease.

What it costs

The NAIC tells owners to expect to pay 10–25% more per year than a homeowners policy. The Insurance Information Institute puts it at about 25% more. Colorado premiums of every kind have climbed fast: the Colorado Division of Insurance found homeowners premiums rose about 52% from January 2019 to October 2022, and more recent reports show continued double-digit increases.

Hail: the Denver insurance story

Denver sits in "Hail Alley." According to the Rocky Mountain Insurance Association:

• Colorado ranks 2nd in the U.S. for hail insurance claims.
• The damaging hail season runs from mid-April to mid-September.
• The Front Range averages three to four catastrophic hailstorms a year, each causing at least $25 million in insured damage.
• The costliest storm in Colorado history hit the Denver metro on May 8, 2017, causing about $2.3 billion in insured damage.

Colorado Division of Insurance data shows how much of your premium hail drives. In Denver, hail accounts for about 51% of homeowners premiums. Wildfire is about 1%.

Wind/hail deductibles

This is where many owners get surprised. The Colorado Division of Insurance warns that many policies have wind/hail deductibles calculated as a percentage of your coverage, for example 1%, 2% or 5%.

If the damage estimate is below your deductible, the insurer won't pay anything. A minor hail claim on a home with a $12,000 deductible may be entirely out of pocket.

What to do:

• Find your wind/hail deductible on your declarations page today.
• Keep a reserve big enough to cover it.
• Compare the premium savings of a higher deductible against how often your area sees hail.

Colorado's roofing contractor rules

After a big storm, roofers knock on doors. Colorado has rules to protect owners:

• No deductible waivers. Under C.R.S. 6-22-105, a roofing contractor paid through your insurance can't advertise or promise to pay, waive or rebate any part of your deductible. If one does, your insurer doesn't have to consider that contractor's estimate.
• No public adjusting. Contractors can't act as your public adjuster.
• 72-hour right to cancel. Under C.R.S. 6-22-104, if your insurer denies the claim in whole or in part, you can cancel the roofing contract within 72 hours after you receive written notice of the denial, and the contractor must refund your money within 10 days, minus work already done.

A roofer who offers to "cover your deductible" is offering something illegal in Colorado. Walk away.

Since August 2026, Colorado's new Strengthen Colorado Homes program (SB26-155) has been setting up roof-hardening grants and contractor standards. Watch for grant availability if your rental needs a new roof.

Hail and your tenants

When hail damages the roof, windows or siding, it can become a habitability issue. Lack of weather protection is one of the conditions Colorado presumes to threaten life, health or safety, which starts a 24-hour clock for you to respond and begin repairs. See our repair responsibilities guide.

After any significant storm:

1. Ask tenants to report leaks or broken windows immediately.
2. Do a quick exterior inspection, including the roof from the ground, gutters, siding, window screens and AC condenser fins.
3. Photograph damage with dates before any repair.
4. Make temporary repairs, like tarping, to prevent further damage. Keep receipts.
5. Call your agent or insurer to open a claim if damage likely exceeds your deductible.

Insurance checklist for Denver landlords

• Switch to a landlord or dwelling policy before the lease starts.
• Carry enough liability coverage, and consider an umbrella policy.
• Add loss-of-rent coverage.
• Know your wind/hail deductible and keep it in reserve.
• Require renters insurance in your lease and keep proof on file.
• If the home will sit vacant, ask about vacancy limits. Many policies restrict coverage after 30 to 60 days. See our winter guide.
• Review coverage and replacement cost every year, since rebuilding costs have climbed.

How to get help

A good manager makes insurance claims easier. Look for one who documents condition with dated photos at every inspection, checks homes after major storms, uses licensed contractors and keeps the records insurers ask for. Ask to see a sample inspection report.

We'll match you with vetted, licensed Denver managers. Free, no obligation. See what to look for in maintenance and inspections or get matched free.