, although some lenders may ask for proof of coverage if you refinance your house. To know for sure, check in with your lienholder or mortgage company.

According to the United States Bureau of Labor Statistics, the average American spends

37% of their income

on housing. Owning a home is a significant investment but also poses some risks. Natural disasters, theft, or any unforeseen peril are not only emotionally devastating but could do some serious financial damage.

To protect your investment, you’ll need homeowners insurance. It’s smart to have, and you’ll be thanking yourself should disaster ever strike. Licensed insurance broker and shopping app

Jerry

has rounded up all of the need-to-know info on

homeowners insurance

and what you’ll specifically need to know about insuring your Utah home.

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What is homeowners insurance?

Let’s go back to basics. The term homeowners insurance is often thrown around willy-nilly. But, as a property owner, you’ll need to understand exactly what it is and what goes into it.

Homeowners insurance protects your dwelling and its contents from peril. Peril is just insurance-speak for specific risks, such as theft or fire, or losses that are covered by your insurance policy.

For anything not specifically listed as peril—oftentimes this includes floods and earthquakes—you will have to purchase additional coverage.

Basic components of Utah homeowners insurance

Homeowners insurance in Utah is typically made up of the following five kinds of coverage:

Coverage A (Dwelling): Coverage damages to or replacements for the physical house.

Coverage B (Other Structures): Covers damages to or replacements for any additional structures on your property like a detached shed, pool, or fence.

Coverage C (Personal Property): Covers movable property within your home like your furniture, jewelry, electronics, etc.

Coverage D (Additional Living Expense or Loss of Use): If your house is damaged and rendered unlivable due to a covered loss, loss of use will cover any temporary living expenses (hotel stay, rent, etc.).

Coverage E (Personal Liability): Protects you from claims that may arise if someone is injured on your property.

Coverage F (Medical Payments Coverage): Helps pay medical expenses if a non-resident sustains injuries while on your property.

As far as policies go, you have some options. You can purchase a policy that covers either the actual cash value (AVC) or the replacement cost of your home. Keep in mind that the replacement cost would grant you financial reimbursement for your damaged or destroyed items, while actual cash value pays for the goods you lost, minus depreciation.

As a rule of thumb, most lenders require you to purchase at least 80% of the replacement cost.

Named perils

Unless you purchase additional coverage, your homeowners insurance will only cover what is explicitly written in your policy. These are known as named perils and often include:

Theft

Fire

Lightning

Windstorm

Hail

Water damage

Freezing

If you want to know exactly what you're covered for—and more importantly, what you’re not covered for—you’ll have to take a look at your policy’s named perils.

MORE: The 16 perils of home insurance

Is homeowners insurance required in Utah?

Legally, no state requires home insurance. But, lenders will often require you to have it. If you’re planning to refinance your home, you’ll most likely have to show proof of homeowners insurance to your bank or lienholder.

How to get homeowners insurance

When getting homeowners insurance, it’s recommended you don’t take the first thing that comes your way. You’ll want to shop around and compare policies. But, with everything else you’ve got going on, how on earth are you supposed to find the time?

Enter

Jerry

, the insurance shopping app, and quite possibly your new best friend. Jerry does the shopping for you by showing you competitive quotes from top homeowners insurance agencies in seconds. Better yet, Jerry can also show you how to save when you bundle with your auto insurance.

Recommended home insurance coverage in Utah

Utah has a fairly dry, arid climate. So, floods aren’t ever really something you’ll need to worry about unless you live along the Colorado River. It doesn’t flood often, but you’ll want to purchase additional flood insurance for your home if it’s a concern.

Earthquakes are uncommon as well, but they’re not a named peril on your homeowners insurance. If you live near the Wasatch Fault outside of Salt Lake City, you’ll probably need earthquake coverage. Fun fact: earthquake coverage also covers damage from other “earth movements,” like rockslides or landslides.

Utah is quite dry, so wildfires are a concern for property owners. Luckily, though, they’ll be covered by your homeowners insurance policy—no additional coverage needed.

Why is homeowners insurance in Utah so cheap?

Homeowners insurance in Utah, on average, costs $766 per year. This is about 48% percent cheaper than the national average.

Why is Utah so much cheaper, you may wonder? It’s because homeowners insurance providers see Utah as a lower-risk state. The lower risk your property is, the less you’ll end up paying.

MORE: How much should you pay for home insurance?

Homeowners insurance discounts in Utah

There are plenty of ways to save on your homeowners insurance:

Discount	How to get it
Bundling	Bundling home and auto insurance can help you save on both policies.
First-time homeowner	Most insurance providers will offer you a discounted policy if it’s your first time purchasing a home.
Claims-free	If you maintain a certain period (typically a few years) without any claims on your policy, you may be eligible for a discount.
Storm proofing	Installing weather safety measures, such as an upgraded roof or storm shutters, could also earn you a discount on your homeowners policy.
Security system	If you’ve got a security system to prevent theft, your insurance company might discount your homeowners insurance rate.
Upgraded fire alarm	Set up your fire alarm to contact the fire department directly—your insurance company may give you a discount for a shorter fire response time.

How to save on your insurance

Even though Utah is one of the more affordable states as far as

home insurance

goes, $766 is still a lot of money out of your pocket each year. But, did you know that the average

Jerry

user saves $887 on their insurance? And who doesn’t like more money in their pocket?

And it’s easy to use! All you need is your phone and a WiFi connection. Simply download the Jerry app from the app store, take 45 seconds to answer some questions, and then Jerry collects quotes from top insurance providers.

Plus, when it’s time to renew your policy, Jerry will send you new quotes so you know that you’re always the best deal around.

“Super cheap!
Jerry
saved me over $4500 during the entire year. The money really adds up.” —D’Shawn G.

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What extra coverage should I purchase for my Utah home?

If you live along the Colorado River or the Wasatch Fault, it is recommended you purchase flood and earthquake policies in addition to your standard coverage. These kinds of disasters are uncommon, but you’ll want to be prepared just in case!

What is the average cost of homeowners insurance in Utah?

The average cost of Utah homeowners insurance is $766 a year or $64 a month.

Save an average of 18% by bundling your home and auto insurance

Bundle your home and auto insurance with Jerry and save!

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