Saying it has seen a decrease in the cost of claims for insurance on newer homes in Utah, Farmers Insurance Group said Monday it is lowering its premium rates on homes in the state that are less than 10 years old.
That means some 50,000 Farmers customers in Utah will see their annual homeowners insurance premiums drop the next time they renew.The discount, which ranges from 5 percent to 25 percent depending on the age of the home, was previously available only for homes less than seven years old.
Brian Braddock, executive director of Farmers in Utah, said owners of newer homes have fewer and less costly claims because their homes have newer wiring, better burglary and fire protection and newer appliances and other systems.
He said some 62 percent of Utah residents own their own homes, and the new home market is forecast to grow 13 percent during the next four years.
Farmers is the nation's third largest home and auto insurer.