UPDATED 11/22/2024
According to KSL Radio, Utah still ranks as one of the top 10 states nationwide for the highest percent increase in homeowners insurance from 2020 to 2024.
Using numbers from the National Bureau of Economic Research and Corelogic, here are the numbers for the most populated Utah counties:
Increases in home insurance premiums among Utah counties
| County | Insurance % change from 2020 to 2023 | Median home insurance premium in 2020 (dollars) | Median home insurance premium in 2023 (dollars) |
| Beaver | 9.8 | 997.98 | 1,095.83 |
| Box Elder | 66.3 | 876.43 | 1,457.50 |
| Cache | 44.7 | 901.19 | 1,304.16 |
| Carbon | 44.9 | 960.52 | 1,391.98 |
| Davis | 57.6 | 923.11 | 1,454.83 |
| Duchesne | 46.9 | 989.37 | 1,453.51 |
| Emery | N/A | N/A | N/A |
| Garfield | 41.7 | 1,295.65 | 1,835.90 |
| Grand | 154.4 | 773.09 | 1,966.88 |
| Iron | 53 | 753.19 | 1,152.41 |
| Juab | 71.3 | 819.52 | 1,403.73 |
| Kane | 83.2 | 723.93 | 1,326.47 |
| Millard | 53.1 | 973.64 | 1,490.59 |
| Morgan | -6.4 | 1,324.97 | 1,240.81 |
| Piute | -38.1 | 1,307.21 | 809.87 |
| Rich | 21.3 | 1,213.06 | 1,471.74 |
| Salt Lake | 51 | 1,045.42 | 1,578.57 |
| San Juan | 69.5 | 732.35 | 1,241.21 |
| Sanpete | 52.2 | 867.06 | 1,320.04 |
| Sevier | 39.2 | 838.40 | 1,166.60 |
| Summit | 96.8 | 1,437.38 | 2,829.61 |
| Tooele | 79.6 | 891.16 | 1,600.56 |
| Uintah | 21.9 | 908.62 | 1,106.48 |
| Utah | 71.6 | 872.34 | 1,497.01 |
| Wasatch | 69.1 | 1,038.52 | 1,756.08 |
| Washington | 59.3 | 800.55 | 1,275.59 |
| Wayne | 63 | 710.39 | 1,158.26 |
| Weber | 86.4 | 886.02 | 1,651.45 |
We are fortunate here in Utah to have some of the most affordable homeowners insurance in the nation. According to policygenious.com the average cost of a homeowners policy in Utah is $923.00 annually or about $77.00 per month. That’s half of the national average of $1899.00 per year or $158.00 per month. Those estimates are for dwelling coverage of $300,000 which is very low in 2022.
A very typical Utah home is 1000 square feet above grade and 1000 square feet in the basement for total finished square footage of about 2000. In 2022 if you multiply that by a conservative $175.00 per square foot, that’s $350,000. You would need to add for a garage and if the home has above average finishes or other features the cost per square foot can increase drastically.
Utah however ranks 7th with the highest increase in homeowners insurance in 2022 at 14.1%. Even with a 14% increase Utah still ranks as one of the most affordable states in the nation to purchase homeowners insurance.
What is causing homeowners insurance to go up?
The highest inflation rate in 40 years is having a huge impact. We see it in everything we purchase and homeowners insurance really is “everything we purchase” from building materials to bread and butter, everything is going up and homeowners insurance has to account for that.
A tight labor market is taking a toll as well. Skilled labor is much more expensive than it was two years ago and that cost is passed onto the consumer. The amount of construction in Utah causes competition and drives up the cost of labor. In the Salt Lake area they recently completed the Airport expansion which caused a high demand for labor. We will soon see the new prison project competing for the best labor. It’s great to see our fellow Utah workers make what they deserve but we are also feeling it in the cost of construction more so than in other states.
Increased cost of building materials is causing an increase. According to NRCA (National Roofing Contractors Association) roofing material is up 24.4% since 2020. Roofs are a big part of the cost of a new home and most exposed to damage from wind and hail. Aggressive roofing companies who knock on doors and unnecessarily inflate roofing prices are also to blame for the increase in roofing claims and costs.
According to the Producer Price Index, building materials have increased 20.4% in the last year and 33% since the start of the pandemic. Insurance companies are always going to be more reactionary at catching up to the increases and at this point there is a lot of catching up to do.
For more information on homeowners insurance, call a knowledgeable Anderson Insurance agent today.