OLD COLORADO CITY, Colo. -
Since 2009, Colorado has seen at least one major hail storm event every year. The last one, which was two weeks ago, is projected to cost insurance companies $1.4 billion.
That's bad news for Colorado homeowners who already pay an average of just over $1,200 a year in H0-3 insurance premiums. Roughly $100 more than the national average.
"I think the first thing people need to know especially with our transient military community is that they're entering into a community with some of the highest insurance rates in the country," said Lina Rawlings, owner of Southern Colorado Insurance in Colorado Springs.
Rawlings says many homeowners have seen on average a $300 increase in their premiums over the last three years.
Likely contributing to rising premiums was Waldo Canyon and Black Forest fires and significant hail and wind storms.
Insurance companies base their premium rates on three types of criteria: loss history, credit score, and geographic location. And even if you've never filed for a loss and have great credit, you could still be paying more for homeowners insurance based on where you live.
"What ends up happening is if companies experience too many losses in a geographical area, it's essentially a business decision. It's an underwriting decision. So what ends up happening to stay profitable, they have to non-renew or cancel," Rawlings said.
This leaves many homeowners to wonder how much higher premiums will go.