Short answer: In Colorado, hail and wildfire are real risks for renters, and your landlord's policy doesn't cover your belongings. Under C.R.S. §38-12-102.5, a landlord can't require a security deposit of more than two months' rent. Under §38-12-103, the landlord must return the deposit, or a written statement of the exact reasons for keeping any of it, within 30 days after the lease ends or the premises are surrendered and accepted, whichever is later. The lease can extend that to no more than 60 days. If they keep any part, they must give a written statement of the exact reasons, or they forfeit the right to withhold.
This guide is general information for Colorado renters. It isn't legal advice, and local ordinances can add rules. Your lease and policy wording control.
Your landlord's policy covers the building, not your belongings or liability. A renters policy (HO-4) covers personal property, personal liability and loss of use; flood is generally excluded (see FloodSmart). Coverage basics: renters insurance. Roommates: whether renters insurance covers roommates. Liability: how much renters liability coverage you need.
Step 1: Deposit cap
Under C.R.S. §38-12-102.5, added by SB23-184 (Colorado session laws), on and after August 7, 2023, a landlord can't require a security deposit greater than two monthly rent payments.
Step 2: Getting the deposit back
Under C.R.S. §38-12-103, as summarized by the Colorado Judicial Branch's Legal Help Center and the Division of Real Estate's HB25-1249 summary (effective January 1, 2026):
- The default deadline is 30 days after the lease ends or you return the property. The lease may set a longer period, but not more than 60 days.
- No deduction for normal wear and tear.
- If there's actual cause to keep any part, the landlord must give a written statement listing the exact reasons, with payment of the balance. Mailing it to your last known address counts.
- If the landlord fails to provide the statement on time, they forfeit all rights to withhold any portion of the deposit. Wrongful retention can bring treble damages plus attorney fees and costs, if you give the landlord written notice of your intent to sue at least seven days before filing. The landlord bears the burden of proving the withholding wasn't wrongful.
- Either side may request a walk-through before the lease ends.
Step 3: Hail, wildfire and loss of use
Colorado renters should check that their policy covers belongings for wind, hail and fire, and includes loss of use in case an evacuation or fire makes the unit unlivable. Keep a photo inventory in the cloud. Flood is generally excluded; see FloodSmart.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Colorado.
Frequently asked questions
What's the maximum security deposit in Colorado?
Two months' rent, under C.R.S. §38-12-102.5.
How long does a Colorado landlord have to return my deposit?
30 days after the lease ends or you return the property, as of January 1, 2026. A lease can extend it to no more than 60 days.
What if my Colorado landlord doesn't send a written statement?
Failing to provide the statement on time forfeits the landlord's right to withhold any portion of the deposit.
Does Colorado renters insurance cover wildfire?
Fire is typically a covered peril for belongings, and loss of use can help with temporary housing. Check your policy.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.