Best Homeowners Insurance in Utah: Top 5 Insurance Companies to Protect Your Investment

Utah is an amazing place to invest in real estate. It has a diverse job market, and it offers plenty of economic opportunities for those willing to discover them. If you're planning on buying a new home or rental property, you'll certainly find many options that'll suit your taste.

One of the most important things you can't forget after buying a home is getting insurance for it. Home insurance aims to protect your property from any unexpected events that could damage it.

Even though paying for insurance coverage may get your investment amount higher, keep in mind you could also save money in the future.

There are dozens of great insurance companies in Utah, so which one could be your pick? That's what we'll find out today!

Today, we'll look at the best five homeowners insurance companies you can hire in Utah. Whether you live in Salt Lake City or Provo, this information will come in handy when you least expect it.

What Is Utah Homeowners Insurance?

Home insurance protects your real estate investment from unexpected damage. The damage can come from certain events, disasters, or accidents.

Depending on the type of policy you get, you can get reimbursed for interior/exterior damage, personal injuries, and the loss of your belongings. However, if you get a few extra perks, you could also cover replacements, damage from identity theft, and more.

Basic home insurance in Utah will give you enough protection to get started, but if you live in a high-risk area, we suggest you consider adding more to your policy. Utah isn't such a risky area to invest in compared to other states, but it's still an excellent idea to have insurance just in case.

What Are the Average Home Insurance Costs in Utah?

According to NerdWallet, the average annual premium for homeowners insurance in Utah is $950 (or $79 per month). This is one of the lowest averages in the country if you compare it to the national average of $1,820.

The average premiums in Utah are lower because it's not as prone to disasters as other states like Colorado, for example. Still, this doesn't mean that you shouldn't get home insurance to protect your property.

You never know what can affect or damage your property, and it's always better to have a backup plan to recover your money than to have to pay out of pocket for repairs or replacement.

Keep in mind that the $950 average should only be used as a reference. It doesn't mean that you will pay that amount for your premium. Several factors can affect your quote, including your ZIP code, the state of your home, and more.

Also, you can get a lower premium if you use a company's discounts. Most home insurance companies in Utah offer attractive discounts to encourage potential clients. If you compare different quotes, you'll be able to go for the cheapest option without sacrificing any perks.

Is Homeowners Insurance Required in Utah?

Home insurance isn't mandatory in Utah or at a federal level. This basically means that you don't have to get homeowners insurance for your property if you don't want to.

Even though you may be tempted to not insure your property and save some money, think about the future. It doesn't matter if you purchased a property in a low-risk zone; you never know when a disaster could damage your property or personal belongings.

There are many affordable insurance options to choose from today, so there's no need to spend all your savings on home protection. You just have to know where to look.

If you're getting financing for your home, however, you may have to get homeowners insurance. Lenders are legally allowed to ask you to get insurance before giving you money. If you don't accept, then you're less likely to receive the loan.

In any case, the best option will be to get homeowners insurance, even if it's a basic policy. They will give you peace of mind if certain events affect your property in the future.

Which Factors Affect Home Insurance Coverage in Utah?

As mentioned previously, your premium will depend on different factors. Since not everyone has the same goals and needs, you're expected to get a quote tailored to what you're looking for.

Some of the "standard" factors that affect your policy's price include:

• State, city, and ZIP code
• Dwelling coverage limit
• Credit history
• Value, type, and age of your property
• Past claims history
• Marital status
• Deductible

Keep in mind that many insurance companies also consider some extras like:

• Distance from a fire station or water
• Having pools or any other attractive nuisances

You're more than likely to get different quotes from every company you talk to. Make sure to take your time and compare quotes so that you find the best one to meet your goals.

What's the Difference Between Homeowners Insurance and Landlord Insurance?

If you're investing in real estate to rent it, you may have thought of getting landlord insurance. While homeowners and landlord insurance are similar, there are key differences you must understand. Most of the time, one of the two options may be a better fit for you.

The first thing you must keep in mind is that homeowners insurance is more affordable than landlord insurance. However, you can only get home insurance if you're going to live at the property. Another thing to point out is that, unlike home insurance, landlord insurance protects you as the owner. It doesn't protect the property itself.

Let's talk about liability now. If you get homeowners insurance, you'll get protection regardless of where the event/accident happened. On the other hand, if you get landlord insurance, you'll only get liability protection for things that happen on the property.

Landlord insurance is better for renters because it gives them loss-of-rent protection. It means that it can reimburse you if any event or circumstance causes you to not get your full rental payments. Homeowners insurance, on the other hand, provides loss-of-use protection.

Loss of use means that you'll get covered if your property gets severely damaged and it becomes unlivable. The money would go toward paying for your meals and lodging while the property gets repaired/replaced.

In the end, your decision will depend on how you'll use the property. If you're going to live there, the best thing you can get is homeowners insurance. On the contrary, if you're planning to enter the rental industry, you'll be better off with landlord insurance.

Essentials That Your Utah Homeowners Insurance Policy Must Have

Regular insurance packages may be enough to cover most of what you need for your property. Unfortunately, certain areas are exposed to earthquakes.

If this is your case, you may want to invest in earthquake coverage. Most insurance policies don't include this type of protection, so you would have to get it as an extra.

Unlike other states, you may not have to get flood insurance unless you live near a large body of water. Many insurance companies have partnerships with other entities like the National Flood Insurance Program (NFIP), so you could get extra insurance for that if you don't want to leave things up to chance.

Besides those factors, you could also get these add-ons for more peace of mind:

• Sewer backup
• Umbrella policy
• Service line coverage
• Identity theft protection

What Are the Most Common Insurance Claims in Utah?

Even though Utah isn't necessarily a high-risk state, its weather is unpredictable. The state's dry and windy conditions make a few areas prone to wildfires. Depending on the area, you may also have to worry about earthquakes or wind.

Flooding is not as common as the other perils we mentioned, but you could still be at risk if the property is in certain risky areas. Feel free to get flood insurance if you want to stay safe.

To summarize, common insurance claims may be related to wildfires, earthquakes, and extreme wind.

Tips to Find the Best Utah Homeowners Insurance Companies

The process to find a Utah homeowners insurance company may be overwhelming at first. There are too many companies out there. Some of them may seem too expensive, while others offer unrealistic promises that may not benefit you in the long run.

Thankfully, there are a few tips you can keep in mind if you want to find the right fit for your next Utah property. Keep reading to learn more.

Check the Current State of Your Property

The stronger and more valuable your home is, the more likely it is to get a lower premium. Insurance companies tend to evaluate your home based on how safe it is.

If you feel like your property could use some security upgrades, feel free to do them. They may help you bring the costs down.

Keep the Location in Mind

Insurance companies also focus heavily on your state, city, and ZIP code. If you live in a "high-risk" area, you could get a higher premium. Before you invest in any property, check if it's in a safe or risky zone.

Consider Your Deductible

A higher deductible will get you a lower premium and vice versa. Check your budget and long-term goals to see which deductible may be more convenient for you.

Ask for Available Discounts

As mentioned before, most companies offer discounts to their clients to get their premiums lower. Check with your preferred insurer to see which discounts you can apply to.

Compare Quotes

Take as much time as you need to compare different quotes. This way, you'll find the cheapest home insurance package much faster.

What Are the Best Home Insurance Companies in Utah?

Now that you know how homeowners insurance in Utah works, let's look at the best companies you can find in 2023.

Each option you'll find here was reviewed based on what it offers, what discounts it has available, and any other extra perks that we found interesting. Remember that the price for your policy will change depending on your coverage limits, extras, discounts, and other factors.

If you want to know exactly how much you'll pay for your homeowners insurance policy, the best thing you can do is talk to an agent from the company.

#1 - State Farm

State Farm has been around since 1922, and it's currently the largest home insurer in the United States. Besides selling essentials like home and auto insurance, you can also expect renters, life, and umbrella insurance.

The company's network has over 19,000 agents in the country, so you will not have any issues when working out your insurance policy with it.

State Farm works in all states in the U.S., except Rhode Island, Massachusetts, and California.

Coverage and Features

The standard policy for homeowners insurance includes protection for:

• Dwellings and unattached structures
• Medical expenses and personal liability coverage
• Personal property
• Loss of use

Something that makes State Farm special is that you can extend your dwelling coverage automatically. This comes in handy if you're looking for an extra like replacement cost coverage. If you've insured your home to at least its estimated replacement cost, the company will extend your coverage up to 20%. That extra money can certainly help you in tough situations.

State Farm also offers a wide list of add-ons you can get for your policy. If you're interested in any of them, make sure to ask your agent if you can add those to your policy:

• Identity theft protection
• Liability coverage for nursing workers
• Liability coverage for personal injury claims
• Earthquake coverage
• Home system breakdown coverage
• Sewer or drain backup coverage
• And more

Discounts

State Farm's average annual insurance premium is $740. It's currently one of the cheapest options you can get for home insurance. Remember that you could get a lower or higher premium depending on what you add to your policy.

Even though State Farm doesn't offer as many discounts as other options mentioned on this list, it still has a few options worth considering. You can get discounts for:

• Bundling two or more policies from State Farm
• Installing protective devices on your property
• Reinforcing your roof with impact-resistant materials
• Reinforcing your home to protect it against wind damage

#2 - Nationwide

Nationwide is one of the "expensive" options on our list. Fortunately, its standard insurance packages offer things that aren't usually available in other policies, so this is a nice extra to consider.

The company sells homeowners insurance in Utah and every other state except for Louisiana, Alaska, and Hawaii. If you're interested in getting an excellent "base" policy and not in adding too many extras, this may be your top option.

Even though Nationwide is expensive, remember you could bring the cost of your premium down with the help of the company's discounts.

Coverage and Features

Nationwide's standard insurance package includes most of the basics you need, including dwelling coverage, personal property protection, loss of use, etc.

Now, there are a few extras you could add at no additional cost. You could, for example, add ordinance or law coverage, which helps you get your house up to building codes during rebuilding projects.

A Nationwide insurance policy can also cover losses up to $500 due to:

• Forged checks
• Counterfeit money
• Unauthorized debit/credit transactions

What about the add-ons? You'll be happy to know that Nationwide offers plenty. Here are some of them:

• Extended/guaranteed replacement cost coverage
• Reinforced roof replacement
• High-value belonging coverage
• Personal injury coverage
• Service line coverage
• Identity theft protection
• Water backup/sump pump coverage

Discounts

The average annual premium for Nationwide in Utah is $855. Even though it's on the expensive side, you have access to several discount options that could bring that price down.

Overall, you can get discounts for:

• Living in a gated community
• Bundling insurance packages from Nationwide
• Reinforcing your roof
• Installing protective devices on your home
• Installing smart-home technology in your home
• Not filing claims (claims-free discounts)

You could also get a discount if you have been continuously insured by another company. If you want to update your utilities (plumbing, electrical, cooling, etc.), the company may give you a renovation credit.

#3 - American Family

American Family works in 19 states in the U.S., including Utah. What made American Family get into this list is that many add-ons can help you protect your property more efficiently. Its rates are also decent for most people.

Coverage and Features

The standard insurance package for Utah homeowners includes protection for:

• Dwellings
• Unattached structures
• Medical expenses
• Personal property
• Personal liability
• Loss of use

On the other hand, these are some of the extras you can get for your policy:

• Water backup/sump pump protection
• Service line coverage
• Coverage for home-based businesses
• Equipment breakdown protection
• Matching siding
• Hidden water leak damage
• And more

Discounts

The current annual average for American Family in Utah is $745. It's already much lower than the national average, but you can also check its discounts to get your price even lower.

You could get discounts for:

• Buying a new property within the past three years
• Installing protective devices or smart home technology
• Bundling policies from American Family
• Replacing your utilities within the past 15 years
• Insuring a 14-year-old (or younger) property
• Setting up automatic payments
• Paying your premium in full
• Going paperless
• Having a parent that's insured with American Family (this only applies if you're 18-30 years old)

#4 - Farmers

"Farmers Home Insurance" takes an interesting approach to its policies by offering three tiers you can choose from.

The company works in about 40 states in the U.S., including Utah.

Coverage and Features

Your standard homeowners insurance package will include dwelling coverage, protection for your belongings, personal liability coverage, and all the other basics we've already mentioned. The package can also include:

• Personal Property Replacement Cost Coverage: It reimburses the full amount of your destroyed/damaged items to replace them. Without it, you would get a lower amount to replace your belongings, so this certainly comes in handy.
• Extended Replacement Cost Coverage: It gives you an extra percentage of coverage if the cost to rebuild your home goes beyond your coverage limits.

What about the other two tiers, though?

Here's what you can get:

• Enhanced Package: It helps you cover the cost of replacing your roof or belongings. You also get a higher policy limit.
• Premier Package: It offers higher policy limits, as well as guaranteed replacement cost coverage. Make sure to ask your agent if you can apply to get this tier.

The benefits don't end there. Farmers offers several extras you can add to your policy, including:

• Identity theft protection
• Eco-rebuild
• High-value item coverage
• Personal injury coverage
• Service line coverage
• Ordinance or law coverage
• Equipment breakdown coverage
• Water backup/sump pump coverage

Discounts

The current annual average premium in Utah is $1,065. Still, the company offers a lot of discount opportunities for you to get that premium down.

Depending on the case, you could get a discount for:

• Setting up automatic payments
• Paying your premium in full
• Installing protective devices
• Bundling insurance products from Farmers
• Working in (or retiring) from certain professions
• Going paperless
• Buying a new property that's less than 14 years old
• Paying your bills on time
• Renting to own
• Reinforcing your property and roof
• Installing smart home systems
• Getting a "Green Certification"

#5 - Allstate

Last but not least, Allstate is a great option if you're looking for a balance between basic coverage, add-ons, and discounts. If you don't want to think too much about your homeowners insurance policy, this could be your pick, as the company makes the process easy.

The best news about Allstate is that it's available in all 50 states and the District of Columbia. You'll have no problems preparing a great insurance package for your Utah property.

Coverage and Features

Allstate's basic package includes most of what you need to protect your property from any unexpected perils, including:

• Personal property protection
• Dwelling coverage
• Personal liability protection
• Loss of use

If you want to get a bit more than what the standard policy offers, you could get the "Enhanced Package." It offers a few extra perks like deductible rewards, claims-free discounts, and the ability to maintain your premium's price even after filing a claim.

Some other add-ons you can get for your insurance policy include:

• Identity theft protection
• Water backup/sump pump protection
• High-value item coverage
• Yard/garden coverage
• Electronic data recovery
• Ordinance or law coverage
• Service line coverage
• Extended replacement cost coverage
• And more

Discounts

The current annual average premium for Allstate in Utah is approximately $1,111.93 with $300k in liability coverage and $1,068.93 with $100k in liability coverage.

Additionally, you could try to get that premium down by applying for discounts. Allstate could lower your premium if you:

• Bundle policies from Allstate
• Stay claims-free
• Pay your premium in full
• Reinforce your home to resist extreme wind
• Buy your policy at least a week before your other one expires
• Set up automatic payments
• Install protective devices
• Don't have a mortgage
• Don't smoke
• Are a senior/retiree
• Buy a recently constructed property

You may be able to get welcome and loyalty discounts with your Allstate policy, so feel free to ask your agent if you can apply to those as well.

Are There Any Other Home Insurance Companies in Utah You Can Consider?

As you can see, each insurance company has something that makes it unique. What if none of the companies mentioned above convinced you?

Don't worry; here are other homeowners insurance companies you can check out. They also offer interesting packages that may be appealing to you.

• USAA
• Travelers
• Amica
• Liberty Mutual
• Farm Bureau

Regardless of the insurance company you decide to go with, remember to compare quotes and think about long-term benefits if you want to find the cheapest option.

Conclusion

Getting Utah home insurance should be one of your top priorities after investing in real estate. Besides protecting your property and personal belongings, there's nothing like the peace of mind that comes with knowing you're safe if something were to happen.

Remember that most companies have different discounts and extra perks that may be better for your case. Evaluate every option that gets your attention, take your time to compare them, and you'll surely find the perfect fit.