Your home may be one of your most prized possessions. Is it protected? If you don’t have comprehensive home insurance, one of your most significant assets could be left uncovered. That’s where Obrella comes in. We make sure that shopping for and buying a Utah home insurance policy is as painless as possible. With the help of experts, you can compare and contrast different policies to make a decision that you will feel confident about.
Homeowners in Utah
Home insurance premiums in Utah average $580 annually. That’s nearly half the national average of $1,034per year. Those rates make Utah the third least expensive state in the nation when it comes to how much homeowners pay for their home insurance.
- Median Home Value: 216,100
- Household Income: 63,383
- % of Income on Home Ownership: 29.00%
With a median home value of $212,800, Utah residents appreciate the protection that comes with home insurance. In the Beehive State, 69% of homes are owner-occupied and the average household size is just over 3 people. Utah has a median household income of $59,770, leading homeowners to spend 29% of their income on home ownership costs. That places Utah as the 27th most costly state in regard to the cost of owning a home. Make sure your home has the right protection by contacting an insurance expert to review your current home insurance policy.
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Determining Home Insurance Premiums in Utah
Insurance companies look at a range of factors when determining the cost of your home insurance policy. They start with information about your home and your area, including local building costs, crime rates, the size of your home, and the year it was built. Premiums can also be affected by the likelihood of natural disasters such as tornadoes, floods, and earthquakes. Even things like your credit score and whether or not you have a swimming pool or a guest house on your property may affect the cost of your insurance premiums.
Why do these aspects matter? They all relate to risk. If your insurance provider determines that these factors make your home riskier to insure, you’re likely to wind up paying more for your homeowners insurance policy. Fortunately, though, there are ways to lower these risks. Making your home more secure is a good start. Installing a complete home security system, for example, can lower the likelihood that your insurance company will need to pay up in the event of a burglary. Even installing motion-sensitive lights and surveillance cameras can lower your risk—and therefore your premium.
Homeowners Insurance in Utah
Most Utah home insurance companies offer a range of coverage options; some of which are defined below:
- HO-1: Limited Coverage
- An HO-1 policy offers coverage in the event of any of the first 10 classified disasters: fire or lighting, windstorms or hail, explosions, riots, damage caused by aircraft, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption. However, this basic policy is no longer available in most states.
- HO-2: Basic Policy
- In the event of any of the 16 classified disasters, an HO-2 policy will give you basic protection.
- HO-3: Standard, most popular
- With very few exceptions, this policy offers comprehensive coverage, making it pretty much standard among Utahcustomers.
- HO-8: Older Home
- To protect against depreciation, this policy will usually reimburse homeowners for damage on an actual cash value basis, though some older homes may not qualify for full replacement cost policies.
What is Covered By Standard Utah Homeowners Insurance?
Typically, home insurance will only cover damage caused by particular events addressed in your policy’s terms. So, for instance, you wouldn’t be eligible to receive a payment for damages if your house flooded but you didn’t have flood coverage in your policy. To make sure you’re in the know about the variety of policies and coverages available, check out the following home insurance coverage definitions:
- Coverage A – Dwelling
- Protects against damage to the home and attached structures. This includes damage to the home’s plumbing, wiring, and permanent air-conditioning and heating systems.
- Coverage B – Other Structures
- Other Structures coverage applies to structures that are not attached to the home, such as tool sheds, guest homes, free-standing garages, and fences.
- Coverage C – Personal Property
- Personal Property coverage pays back homeowners in the event that a personal possession—like clothes, furniture, or electronic equipment—is lost or damaged. This coverage is valid whether or not the loss or damage occurs on the property—meaning items kept in a storage facility, for example, are still protected.
- Coverage D – Loss of Use
- With Loss of Use coverage, the homeowner can get reimbursed for living expenses during home repairs.
- Coverage E – Personal Liability
- Personal Liability coverage provides financial protection in the event of a lawsuit in which the homeowner is found legally liable for another’s injuries or damages.
- Coverage F – Medical Payments to Others
- Takes care of the medical costs of anyone injured by the homeowner’s pets or anyone injured on the homeowner’s property.
Utah Insurance Resources
The Utah Insurance Department works to foster a healthy insurance market throughout the state. The department educates, serves, and protects consumers by promoting fair practices that ensure quality insurance products are available, affordable, and reliable. The department is part of the National Association of Insurance Commissioners, which helps to regulate insurance practices across the country. As a Utah homeowner, you can seek assistance from the department by calling 1 (801) 538-3800 or 1 (800) 439-3805. You can also visit the Utah Insurance Department at 3110 State Office Building, Salt Lake City, UT 84114.
Another resource for Utah homeowners is the Utah Condominium and Homeowners Association, which is an organization dedicated to improving the community living experience for homeowners throughout the state. The association provides strategies to fight the high cost of homeowners insurance and provides training and support for HOA committees and boards across Utah. To learn more about the association, or to join, you can call 1 (801) 479-4777 or visit their offices at 5732 S 1475 E, Ste. 200, South Ogden, UT 84403
With so many options for home insurance, choosing the right policy can be downright overwhelming. Give an experienced insurance agent a call and we’ll get all of your coverage questions answered. They’ll determine your coverage needs, help you review different policies, and discuss your options with you. They can even take care of binding your policy over the phone! So use Obrella and skip the hassles of shopping for home insurance! It’s quick, easy, and reliable.
Call at [mapi-phone-link /] today! Insurance professionals are standing by to put their Utah home insurance policy expertise to work for you.