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Best homeowners insurance in Utah for 2022
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Homeowners in the Beehive State have many options when it comes to homeowners insurance, but knowing which option is the best can be tricky. Although not a legal requirement, homeowners insurance can be an integral part of your financial plan if you live in Utah, and having the best homeowners insurance means building a policy personalized to your home and needs.
To help you find the best Utah homeowners insurance, Bankrate reviewed and compared some of the biggest carriers by market share using our unique methodology and third-party rate data.
- The average cost of home insurance in Utah is $668 per year for a policy with $250,000 in dwelling coverage, well below the national average of $1,383 per year.
- USAA, State Farm and Nationwide are among the best providers in the state, according to our analysis.
- According to quoted annual premium data from Quadrant Information Services, American Family has the one of the lowest average home insurance rates for Utah homeowners.
How Bankrate chose the best home insurance companies in Utah
To help you find the best Utah homeowners insurance, Bankrate’s editorial team conducted in-depth research on the biggest Utah homeowners insurance companies by market share. Based on the findings, each company was assigned a Bankrate Score out of a possible five points. To calculate Bankrate Scores, the editorial team looked at factors like affordability, online/mobile policy management tools, coverage options, customer satisfaction scores and financial strength ratings from third-party agencies.
Using Bankrate Scores to guide your home insurance shopping journey may help you choose the most well-rounded carrier for your insurance needs. A high Bankrate Score indicates that a company ranks well in multiple categories, such as price, coverage options and customer service. On the other hand, a low Bankrate Score may be an indication that a company is lacking in certain categories, which can help you if you know which aspects of insurance are most important to you.
Best home insurance companies in Utah
Based on Bankrate’s review, the best home insurance companies in Utah include USAA, State Farm and Nationwide. These providers offer excellent coverage options, multiple discounts and helpful online resources. Of these three carriers, Nationwide is the only one that offers below-average rates compared to the average for the state, according to Quadrant Information Services. In Utah, the average home insurance premium is $668 per year for a policy with $250,000 in dwelling coverage.
In the table below, we’ve highlighted the best Utah home insurance companies based on Bankrate’s review, as well as their average annual premiums and third-party ratings:
|Home insurance company||Bankrate Score||Average annual premium for $250k in dwelling coverage||J.D. Power score||AM Best rating|
|State Farm||4.7||$801||835/1,000||A++ (Superior)|
|American Family||3.9||$553||831/1,000||A (Excellent)|
*Not officially ranked with J.D. Power due to eligibility restrictions
**Average rates reflect annual policies with $250,000 in dwelling coverage
Best for: Military-focused coverage
USAA is one of the best home insurance companies in Utah, with a near-perfect Bankrate Score of 4.8. The company stands out for its excellent customer satisfaction and financial strength ratings from third-party agencies, as well as its coverage options, like replacement cost coverage, identity theft protection and home sharing coverage. However, USAA only sells insurance to current and former military service members and their families, which means not all Utah homeowners will be eligible for coverage.
Learn more: USAA Insurance review
Best for: Policy bundling
State Farm is the largest home insurance provider in the country by market share and is also one of the most reputable, with high third-party ratings for financial strength and customer satisfaction. Out of the Utah home insurance companies we reviewed, State Farm is the best for bundling home and auto insurance. The company offers one of the most generous policy bundling discounts in the industry and has options to purchase multiple kinds of insurance. Despite its bundling discount and several others discounts, State Farm has one of the highest average annual rates out of the Utah home insurance carriers on our list. You may want to consider obtaining and comparing quotes to see if State Farm is the best fit for your financial situation.
Learn more: State Farm Insurance review
Best for: Add-on coverage
If you want to customize your home insurance policy with endorsements, Nationwide may be a good provider to consider. You can purchase multiple add-ons, like water backup coverage, identity theft insurance, dwelling replacement cost coverage, brand new belongings coverage, better roof replacement coverage and several others. Nationwide also offers a wide selection of discounts and has affordable rates, according to Quadrant Information Services. However, one of the downsides to Nationwide is that it doesn’t have the best rating from J.D. Power for overall customer satisfaction.
Learn more: Nationwide Insurance review
Best for: Affordable rates
American Family tops our list of companies in Utah for affordable home insurance rates. Based on rate data from Quadrant Information Services, American Family has some of the cheapest home insurance in Utah, with an average annual premium of $553 per year, which is well-below the statewide average rate of $668. In addition to its low rates, American Family also has many add-on coverage options for policy customization and discounts for even more cost-savings. However, American Family has one of the lower Bankrate Scores of 3.9, narrowly scoring above Farmers.
Learn more: American Family Insurance review
Best for: Discounts
Farmers is one of the best home insurance companies in Utah for discounts. You might be able to save on policy costs if you belong to a qualifying affinity group, enroll in paperless policy statements, insure a newly-built home, install protective devices in your house, have a green-certified home or pay your premiums on time. If you buy a policy from Farmers, you may want to take advantage of as many discounts as you can, considering that the company has the highest average rates out of the providers on our list.
Learn more: Farmers Insurance review
How much is homeowners insurance in Utah?
The average cost of homeowners insurance in Utah is $668 per year for $250,000 in dwelling coverage. This is cheaper than the national average cost of homeowners insurance at $1,383 per year for the same dwelling coverage, and even cheaper than the average annual premiums in neighboring states such as Nevada ($874) and Colorado ($1,863). Utah’s affordable home insurance rates may be due to the state’s overall low cost of living.
However, it’s important to keep in mind that home insurance premiums vary depending on features of your home, such as the age, size, building materials used and overall condition, as well as by the coverage options included in the policy. To be sure that you are getting the best rate for your home, experts highly recommended that you shop around and request quotes from multiple insurance companies.
Another factor that impacts home insurance rates is the city and ZIP code where your home is located. In the table below, you can see the average cost of home insurance in some of the largest Utah cities:
|Utah city||Average annual premium for $250K dwelling coverage|
|Salt Lake City||$679|
Home insurance in Utah
When purchasing home insurance for your property, you should be aware of the available coverage options that can be added to the policy for more financial security and peace of mind. The coverage options you choose will likely depend on a number of factors, including the climate conditions in your region, the rate of crime in your area and the most common causes of property damage.
Common causes of loss in Utah
Utah homeowners don't typically face catastrophic risks more common to other states, such as hurricanes or tornadoes. However, homeowners should be prepared for a variety of losses that could potentially cause significant damage to their dwelling or personal belongings if not protected by coverage customizations or higher limits. Here are some of the most common causes of loss in Utah:
- Earthquakes: While there are no major fault lines running through Utah, the state’s close proximity to fault lines in other western states means that earthquakes can occur. Since 1847, there have been 17 earthquakes in Utah with a magnitude of 5.5 or greater. Experts predict that there is a 43% chance that Utah will see at least one earthquake with a magnitude of 6.75 or greater in the next 50 years.
- Wildfires: Wildfires are a big cause of concern in Utah, especially in recent years. On average, there are 800 to 1,000 wildfires in Utah each year, many of which were accidental. In 2018 alone, there were 1,327 wildfires in Utah, resulting in an estimated $13.4 million in property damage.
- Winter storms: Utah often experiences harsh winter weather. For example, in early 2022, the state saw a huge surge in snowpack due to frequent storms. For homeowners, snow and ice has the potential to cause property damage, especially on roofs.
Home insurance coverage options in Utah
A standard home insurance policy in Utah provides the most important coverage types, including dwelling, personal property, liability, medical payments and loss of use insurance. However, many homeowners can benefit from adding optional endorsements to fill gaps in their policy and gain greater financial protection. Here are some other home insurance coverage types that Utah homeowners may want to consider:
- Earthquake insurance: Because standard home insurance policies exclude coverage for earthquakes, Utah homeowners might consider electing for a separate earthquake insurance policy or endorsement to round out their insurance portfolio. Most major home insurance carriers offer this type of coverage, which protects your home and personal belongings in the event of an earthquake.
- Flood insurance: If your home is located in a flood zone or near a body of water, having a flood insurance policy can be important. Most HO-3 and HO-5 home insurance policies do not include flood coverage, but flood policies are available from the National Flood Insurance Program (NFIP) and through some private insurers. According to the Insurance Information Institute, 90% of U.S. natural disasters involve flooding, which means that mostly Utah homeowners should at least consider flood insurance.
- Water backup coverage: Water backup coverage is an endorsement that many home insurance companies sell. It provides coverage if your sewer line gets clogged or a sump pump fails, which causes water to back up into your home. Flood insurance does not cover water backup, and home insurance policies must have this endorsement to provide coverage.