Alternatives to the FAIR Plan in Utah

Located in the Inter-mountain Western US, Utah is the 30th most populated state with over 3 million people and the 12th largest geographically. Although Utah is widely known to be a desert state, its natural diversity has three climatic regions, humid, sub-humid and arid, each covering about one third of the state. Utah has major cities and the risks that come along with them combined with some of the most remote areas in the country including 5 vast national parks. It is this diversity that poses a high risk so some homeowners and a challenge for homeowners insurance companies. 

Homeowners in these area's will experience different risks associated with the threat those climate these regions present. Being a great distance from fire stations for those residing in the sparsely populated area's of Utah causes residents to be considered a high risk, especially for fire claims. The dry climate only allots fewer than 40 days a year of thunderstorm activity. Lightening strikes mixed with the dry climate often results in wildfires in the summer. Wetlands formed directly from groundwater from the mountains are common in this state. Utah receives about 500 inches of snow fall a year. This correlates directly with freezing and water claims in the state causing homeowners to have a higher risk for flooding. Flooding can cause mudslides which present a different risk for homeowners. Homeowners are urged to try to mitigate potential risks and claims as best as they can. 

A healthy insurance marketplace has made Utah a state that has not had the necessity to form a state FAIR Plan. As one of the more competitive markets in the country, Utah’s market will continue to thrive and respond to the manmade and natural disasters across the state.

 

Many insurance companies now have responded with different deductibles, surcharges or credits for consumers, not only based on the age of the roof, but now the type of roof and materials. While the market moves on, consumers will find themselves more and more looking toward mitigating risk both to protect their futures and their insurance premiums.