The Real Cost of Utah Homeownership: What Every Buyer and Owner Needs to Know

The Real Cost of Utah Homeownership: What Every Buyer and Owner Needs to Know

Owning a home in Utah is a dream for many—but the true cost of homeownership is rising in ways most people don’t expect. It’s not just about your mortgage anymore. In my latest podcast, I sat down with Allen Johnson of American Family Insurance and Broch Lasik from Cross Country Mortgage to talk about the hidden risks and rising costs Utah homeowners are facing—especially when it comes to insurance, liability, and long-term protection.

Whether you're in Park City, the Salt Lake East Bench, or just planning your next move, here are the key takeaways every smart homeowner should know.

1. Your Homeowners Insurance Premiums Are Rising—Even If You’ve Done Nothing Wrong

You’re not imagining it. Allen explained that insurance premiums are going up due to nationwide natural disasters, inflation, and something called the “law of large numbers.” Even if you haven’t filed a claim, your policy is impacted by wildfire losses in California, hurricanes in Florida, and floods across the country.

Tip: Shop your policy yearly with an agent who can explain why your premium changed—not just quote you a new number.

2. Wildfire Zones in Utah Are Causing Insurance Access Issues

If you live in or near Park City, Emigration Canyon, Heber, or any wooded area, finding affordable—or any—homeowners insurance is getting harder. Fire risk scores now limit which companies will insure these properties.

Bottom Line: Luxury homeowners in high-risk zones are sometimes paying over $25,000 annually just to stay insured.

3. Insurance Can Break Your Loan Approval

Brokers like Broch are seeing deals fall apart because insurance costs are now affecting debt-to-income ratios. In some cases, buyers qualify for the mortgage—but not the combined cost of the mortgage and insurance.

What to do: Ask your lender and insurance agent to work together early in the home shopping process, especially in areas flagged for higher risk.

4. Coverage Gaps Could Cost You Everything

The cheapest insurance isn’t always the smartest. If you’re underinsured, one accident, lawsuit, or natural disaster could wipe out your home equity, assets, or retirement plans.

Allen broke it down simply: For just a few dollars more per month, you can go from $25,000 in liability coverage to $100,000 or more—and potentially save your financial future.

5. Umbrella Policies Aren’t Just for the Wealthy

If you have a home, a vehicle, a teen driver, or any real assets—an umbrella policy could protect you from lawsuits that go beyond what your base coverage includes. This extra layer of protection often costs less than $25/month.

“One bad accident can bankrupt a family. An umbrella policy can prevent that.” – Allen Johnson

6. Teen Drivers = Major Insurance Risk

As a mom, I felt this one personally. When my son started driving, our family insurance costs jumped. But what Allen explained really hit home: 81% of new drivers are involved in some kind of accident in their first two years.

If you’re adding a teen to your policy, talk with an agent who can help you strategize—not just quote you the worst-case rate.

7. The Annual Insurance Checkup is Non-Negotiable

Just like a health screening, your insurance policy deserves an annual review. Have you remodeled? Added a pool? Got a new car? Switched jobs? These things all impact how you should be insured.

No idea what to ask? Allen even offered a free review of the 6 key parts of every policy that homeowners often misunderstand or overlook.

Final Thoughts: Don’t Gamble with Your Greatest Asset

Your home is likely your largest investment—and it deserves more than a one-size-fits-all insurance policy. This episode isn’t just about insurance. It’s about protecting your lifestyle, your family, and your wealth.

I want you to feel empowered, not overwhelmed, when you think about homeownership in Utah. If you missed the full episode, you can watch it here on YouTube.

📲 Need a Real Estate or Insurance Check-In?

Call or text me directly at 801-872-7156 or head to LuxuryUtahProperties.com for free homeowner resources, market updates, and expert referrals like Allen and Broch.