Farmington is one of those Utah cities where everything looks perfect on the surface. You've got mountain views, a family-friendly vibe, the Station Park development bringing in shopping and dining, and home values climbing steadily. The typical home here sold for around $695,000 in early 2025, up more than 20% from the previous year. But here's what most Farmington homeowners don't think about until it's too late: you're living directly on top of one of the most active earthquake faults in the country.
The Wasatch Fault runs right through Davis County, and geologists give it a 57% chance of producing a magnitude 6.0 or larger earthquake in the next 50 years. That's not a distant possibility—that's a coin flip. Yet only about 14% of Utah homeowners carry earthquake coverage. Most people assume their standard home insurance has them covered. It doesn't. And when you're talking about a $700,000 home sitting in an active earthquake zone, that gap in coverage could wipe out your family's financial security overnight.
Why Farmington's Location Changes Your Insurance Needs
Farmington sits at the base of the Wasatch Mountains in Davis County, which makes it gorgeous—and geologically active. Recent 2025 research found that rock near the Wasatch Fault is weaker than expected from tens of thousands of years of previous earthquakes, and the fault's angle could produce more intense surface shaking than originally predicted. Translation: when the big one hits, it's going to hit hard here.
Your standard homeowners policy covers fire, theft, wind damage, and liability. It does not cover earthquakes. Period. You need a separate earthquake endorsement or policy, and in Utah, that typically costs $75-$100 per month—essentially doubling your annual premium from around $1,385 to nearly $2,400. But here's the kicker: earthquake policies come with massive deductibles, usually 10% to 20% of your home's insured value. For a $700,000 home, that's $70,000 to $140,000 you'd pay out of pocket before insurance kicks in.
And it gets worse. Those deductibles apply three separate times: once to your dwelling, once to your contents, and once to additional living expenses if you need to live somewhere else during repairs. Most homeowners don't realize this until they file a claim. Make sure your agent walks you through exactly how these deductibles work before you sign anything.
The Rising Property Value Problem
Farmington's growth has been explosive. Station Park brought in major retail and office space, the University of Utah opened a medical campus nearby, and residential developments keep popping up. Home values have climbed from around $630,000 to $695,000 depending on the source, with some areas seeing 20% appreciation in a single year. That's great if you're selling. It's a problem if you're insured.
Here's what happens: you bought your home three years ago for $550,000 and insured it for that amount. Today it would cost $700,000 to rebuild with current construction costs and material prices. If a fire destroys your home, your policy pays out $550,000—and you're $150,000 short. This is called being underinsured, and it's shockingly common in fast-growing areas like Farmington.
You need to review your coverage limits every year, especially if you've done renovations or if property values in your area have jumped. Many policies offer guaranteed replacement cost coverage, which pays to rebuild regardless of your policy limit, but it costs more and has conditions. Ask your agent whether your policy includes it—and if not, what it would cost to add.
Other Risks You Might Not Be Thinking About
Earthquakes get all the attention, but Farmington faces other hazards that catch homeowners off guard. Wildfire risk is real in areas near the foothills. If you're close to undeveloped land or brush, ask your insurer about wildfire coverage and whether they have restrictions or higher premiums for foothill properties. Some carriers have pulled back from high-risk wildfire areas entirely.
Water damage from snowmelt and spring runoff can also be an issue, especially if your home is in a lower-lying area or near creeks. Standard policies cover sudden water damage from burst pipes, but they don't cover flooding from outside water sources. If you're in a flood-prone zone, you need a separate flood policy through the National Flood Insurance Program. Even if you're not in a high-risk flood zone, consider it—30% of flood claims come from low-to-moderate risk areas.
Finally, if you're in a newer development, pay attention to your home's construction quality and materials. Farmington has seen a building boom, and some newer homes have different replacement costs than older brick homes. Frame homes typically cost less to insure for earthquake coverage than brick structures, but they may have higher wind or hail damage risk. Know what you're working with.
How to Get the Right Coverage Without Overpaying
Start by getting quotes from at least three carriers. Utah's home insurance market is relatively affordable compared to other states—averaging $1,385 per year versus the national average of $2,110—but rates vary widely between companies. Some insurers offer better earthquake coverage terms, lower deductibles, or discounts for seismic retrofitting.
When you talk to agents, ask these specific questions: What is my dwelling coverage limit and does it reflect current replacement costs? What is my earthquake deductible as a dollar amount, not just a percentage? Does my policy include guaranteed replacement cost or extended replacement cost? Am I covered for sewer backup, water damage from outside sources, or wildfire? What discounts am I eligible for?
You can lower your premium by raising your standard deductible (not the earthquake one—that's already high). Increasing your deductible from $1,000 to $2,500 might save you 10-15% annually. Bundle your home and auto policies for additional savings. Install a security system, smoke detectors, and storm shutters if you're near wildfire areas—many insurers offer discounts for risk mitigation.
And don't forget liability coverage. Farmington is a family-oriented community with lots of kids, parks, and neighborhood activity. If someone gets hurt on your property—a neighbor slips on your icy driveway, a kid falls off your trampoline—you could be sued. Most policies include $100,000 to $300,000 in liability coverage, but that's not enough if you have significant assets. Consider increasing your liability limit or adding an umbrella policy for an extra $1-2 million in protection. It's cheap—usually $200-400 per year—and it could save you from financial ruin.
Farmington is a fantastic place to own a home. The schools are strong, the community is engaged, and the location offers easy access to both Salt Lake City and outdoor recreation. But living here means accepting geological and environmental realities that most standard insurance policies don't address. Take the time to understand what you're covered for, what you're not, and what it would actually cost to rebuild your life if disaster strikes. Your home is likely your biggest investment—make sure it's protected properly.
