A new report has found that poor credit scores and extreme weather are major obstacles to accessing affordable home insurance across the U.S. But Utah homeowners are better off than most, as the state ranks among those with the lowest home insurance costs.
Bankrate, in its annual report, evaluated the financial burden of home insurance on homeowners by comparing average premiums with median household incomes.
Nationwide, the average annual home insurance premium is $2,470. In Utah, however, the average premium is significantly lower at $1,290—$1,180 less than the national average.
The report shows Utah is the eighth least expensive state for home insurance, with Vermont taking the top spot as the most affordable. Historically, Utah has had relatively low insurance rates, though they have inched up in recent years. A 2024 study noted that Utah’s home insurance rates rose by about 20% in 2023, putting it among the states with the highest rate increases that year.
Even with these hikes, Utah homeowners still enjoy relatively low insurance costs compared to other parts of the country, where rates have been pushed up by natural disasters and economic pressures.
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