Utah homeowners insurance rates have skyrocketed

Jul 3, 2024, 10:30 AM | Updated: Jul 8, 2024, 11:34 am

A neighborhood under construction in North Salt Lake....

Homes are pictured in North Salt Lake on Monday, Aug. 28, 2023. (Kristin Murphy, Deseret News)

(Kristin Murphy, Deseret News)

SALT LAKE CITY —‚ The cost of Utah homeowners insurance has skyrocketed over the past few years. Data from S&P Global showed that in 2023, Utahns spent about 52% more on homeowners insurance than they did in 2018. 

According to Jon Pike, Utah’s insurance commissioner, the biggest causes of the increase are inflation and housing costs. 

“If the costs of those things are going up, then of course the insurance costs are going to go up,” said Pike. “We’re seeing last year [and] this year in a roughly 19 [to] 20%. Which is very high, that’s quite high especially compared to the few years before that.”

Secondly, Pike said that location is a factor. Between 2011 and 2020, over 6,000 homes were built in areas considered high-risk of wildfire damage. 

“What that tells me, as an insurance person, [is] that [it] is kind of upping our risk level,” said Pike. 

The state has ranked second in the nation for building in fire-risk areas. 

Along with sticker shock, some Utah homeowners in those areas have been denied coverage. 

Residents used to cheaper Utah homeowners insurance costs

The average rate increase for Utah homeowners insurance is the third highest in the nation. Previously, that was not the case. 

Utahns are used to having very low-cost homeowners insurance rates, compared to the rest of the country. According to Pike, the usually low costs are the biggest reason for the dramatic spike. 

“They’re catching up. The insurance companies are kind of saying ‘Yeah our rates are not adequately reflecting our costs and our risks in Utah and therefore, we’re seeing more of an increase,” said Pike. 

In other words, insurance companies have begun charging Utahns more to keep up with rising costs and inflation across the nation. 
Additionally, higher premiums in fire-risk areas are likely contributing. 
Pike said that there are some things Utah residents can do to lower their risk. 
“We could consider requiring fire-safe construction, some states have done that,” said Pike. “We could promote programs such as Firewise. It’s a program and communities voluntarily can go through and become certified.”

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business + Economy

Sugarhouse Barbeque is calling it quits and road construction is a big part of the reason, accordin...

Tammy Kikuchi

SugarHouse Barbeque Company closing after struggles with road construction

Sugarhouse Barbeque is calling it quits and road construction is a big part of the reason, according to General Manager Jeff Berg.

3 days ago

Have summer plans? Thinking about car insurance and safety might be a good thing this summer...

Josuee Sanchez

Summer car insurance and safety should be top of mind, expert says

Traveling over the summer can be fun, but it can also be a tough if you don't think about car insurance when making those plans.

4 days ago

a woman loads groceries into her car from costco, costco membership fees are increasing...

Sam Herrera

Costco raising membership fees for first time in seven years

Costco membership fees will go up by $5 for Gold Star and business members in September, the company said Wednesday.

4 days ago

A rendering of a proposed "sports, entertainment, culture and convention center" surrounding Delta ...

Andy Cupp

Several groups protest use of taxpayer money for SLC entertainment district

Many are voicing concerns with using taxpayer money to help fund the proposed entertainment district in downtown SLC.

5 days ago

Kem C. Gardner Policy Institute predicts economic output of 2034 Winter Olympics...

Mariah Maynes and Britt Johnson

Kem C. Gardner Policy Institute predicts economic output of 2034 Winter Olympics

SALT LAKE CITY– The University of Utah’s Kem C. Gardner Policy Institute predicted the 2034 Winter Olympics could generate $6.6 billion in economic output. In comparison, the last time Utah hosted the Olympics, it generated $7.5 billion.  The estimate comes in anticipation of the International Olympic Committee’s July 24 announcement of the host of the […]

5 days ago

A rendering of a proposed downtown redevelopment, including a "sports, entertainment, culture and c...

Larry D. Curtis, KSL TV

SLC Council votes to endorse downtown redevelopment plan with tax increase

The SLC City Council voted unanimously to recommend the proposed downtown redevelopment zone, which would require a 0.5% city tax increase.

6 days ago

Sponsored Articles

A young woman smiles while reading the menu at a lakeside restaurant, enjoying the panoramic view o...

Bear Lake Convention & Visitors Bureau

The best restaurants to try in Bear Lake

Save this guide to the best restaurants in Bear Lake when you need to find a place to dine during your next visit.

Female leg stepping on weigh scales. Healthy lifestyle, food and sport concept....

Health Utah

Sustainable weight loss: the science-backed way to achieve it

Learn more about Debbie's weight loss journey with Health Utah, who have a unique weight loss philosophy for success.

Underwater shot of the fisherman holding the fish...

Bear Lake Convention and Visitors Bureau

Your Bear Lake fishing guide

Bear Lake offers year-round fishing opportunities. By preparing ahead of time, you might go home with a big catch!

A group of people cut a purple ribbon...


Comcast announces major fiber network expansion in Utah

Comcast's commitment to delivering extensive coverage signifies a monumental leap toward a digitally empowered future for Utahns.

a doctor putting her hand on the chest of her patient...

Intermountain Health

Intermountain nurse-midwives launch new gynecology access clinic

An access clinic launched by Intermountain nurse-midwives provides women with comprehensive gynecology care.

Young couple hugging while a realtor in a suit hands them keys in a new home...

Utah Association of Realtors

Buying a home this spring? Avoid these 5 costly pitfalls

By avoiding these pitfalls when buying a home this spring, you can ensure your investment will be long-lasting and secure.

Utah homeowners insurance rates have skyrocketed