Homeowners insurance is not legally required in the state of
Utah, although some lenders may ask for proof of coverage if you refinance your house. To know for sure, check in with your lienholder or mortgage company.
According to the United States Bureau of Labor Statistics, the average American spends
37% of their income on housing. Owning a home is a significant investment but also poses some risks. Natural disasters, theft, or any unforeseen peril are not only emotionally devastating but could do some serious financial damage.
To protect your investment, you’ll need homeowners insurance. It’s smart to have, and you’ll be thanking yourself should disaster ever strike. Licensed insurance broker and shopping app
Jerry has rounded up all of the need-to-know info on
homeowners insurance and what you’ll specifically need to know about insuring your Utah home.
What is homeowners insurance?
Let’s go back to basics. The term homeowners insurance is often thrown around willy-nilly. But, as a property owner, you’ll need to understand exactly what it is and what goes into it.
Homeowners insurance protects your dwelling and its contents from peril. Peril is just insurance-speak for specific risks, such as theft or fire, or losses that are covered by your insurance policy.
For anything not specifically listed as peril—oftentimes this includes floods and earthquakes—you will have to purchase additional coverage.
Basic components of Utah homeowners insurance
Homeowners insurance in Utah is typically made up of the following five kinds of coverage:
Coverage A (Dwelling): Coverage damages to or replacements for the physical house.
Coverage B (Other Structures): Covers damages to or replacements for any additional structures on your property like a detached shed, pool, or fence.
Coverage C (Personal Property): Covers movable property within your home like your furniture, jewelry, electronics, etc.
Coverage D (Additional Living Expense or Loss of Use): If your house is damaged and rendered unlivable due to a covered loss, loss of use will cover any temporary living expenses (hotel stay, rent, etc.).
Coverage E (Personal Liability): Protects you from claims that may arise if someone is injured on your property.
Coverage F (Medical Payments Coverage): Helps pay medical expenses if a non-resident sustains injuries while on your property.
As far as policies go, you have some options. You can purchase a policy that covers either the actual cash value (AVC) or the replacement cost of your home. Keep in mind that the replacement cost would grant you financial reimbursement for your damaged or destroyed items, while actual cash value pays for the goods you lost, minus depreciation.
As a rule of thumb, most lenders require you to purchase at least 80% of the replacement cost.
Unless you purchase additional coverage, your homeowners insurance will only cover what is explicitly written in your policy. These are known as named perils and often include:
If you want to know exactly what you're covered for—and more importantly, what you’re not covered for—you’ll have to take a look at your policy’s named perils.
Is homeowners insurance required in Utah?
Legally, no state requires home insurance. But, lenders will often require you to have it. If you’re planning to refinance your home, you’ll most likely have to show proof of homeowners insurance to your bank or lienholder.
How to get homeowners insurance
When getting homeowners insurance, it’s recommended you don’t take the first thing that comes your way. You’ll want to shop around and compare policies. But, with everything else you’ve got going on, how on earth are you supposed to find the time?
Jerry, the insurance shopping app, and quite possibly your new best friend. Jerry does the shopping for you by showing you competitive quotes from top homeowners insurance agencies in seconds. Better yet, Jerry can also show you how to save when you
bundle with your auto insurance.
Recommended home insurance coverage in Utah
Utah has a fairly dry, arid climate. So, floods aren’t ever really something you’ll need to worry about unless you live along the Colorado River. It doesn’t flood often, but you’ll want to purchase additional flood insurance for your home if it’s a concern.
Earthquakes are uncommon as well, but they’re not a named peril on your homeowners insurance. If you live near the Wasatch Fault outside of Salt Lake City, you’ll probably need earthquake coverage. Fun fact: earthquake coverage also covers damage from other “earth movements,” like rockslides or landslides.
Utah is quite dry, so wildfires are a concern for property owners. Luckily, though, they’ll be covered by your homeowners insurance policy—no additional coverage needed.
Why is homeowners insurance in Utah so cheap?
Homeowners insurance in Utah, on average, costs $766 per year. This is about 48% percent cheaper than the national average.
Why is Utah so much cheaper, you may wonder? It’s because homeowners insurance providers see Utah as a lower-risk state. The lower risk your property is, the less you’ll end up paying.
Homeowners insurance discounts in Utah
There are plenty of ways to save on your homeowners insurance:
Most insurance providers will offer you a discounted policy if it’s your first time purchasing a home.
If you maintain a certain period (typically a few years) without any claims on your policy, you may be eligible for a discount.
Installing weather safety measures, such as an upgraded roof or storm shutters, could also earn you a discount on your homeowners policy.
If you’ve got a security system to prevent theft, your insurance company might discount your homeowners insurance rate.
Set up your fire alarm to contact the fire department directly—your insurance company may give you a discount for a shorter fire response time.
How to save on your insurance
Even though Utah is one of the more affordable states as far as
home insurance goes, $766 is still a lot of money out of your pocket each year. But, did you know that the average
Jerry user saves $887 on their insurance? And who doesn’t like more money in their pocket?
And it’s easy to use! All you need is your phone and a WiFi connection. Simply download the Jerry app from the app store, take 45 seconds to answer some questions, and then Jerry collects quotes from top insurance providers.
Plus, when it’s time to renew your policy, Jerry will send you new quotes so you know that you’re always the best deal around.
Jerry saved me over $4500 during the entire year. The money really adds up.” —D’Shawn G.
This app is great, but the customer service is even better! Not to mention convenient! My husband and I got the lowest rate (much lower than the rates I was finding online through my own searches), quickly, and pretty much all through text message! Thank you so much for a hassle free experience👍