Spanish Fork is growing fast. New subdivisions are going up across the city, and hundreds of families are closing on brand-new homes every year.
If you’re one of them — congratulations. But before you move in, there’s something your builder probably didn’t tell you about insurance.
The Builder’s Preferred Lender Trick
When you close on a new construction home, your builder often steers you toward a “preferred lender” and sometimes a “preferred insurance agent.” That preferred agent’s job is to get you to closing — not to make sure you have the right coverage long-term. The policy they recommend is often the bare minimum required to satisfy the lender.
What Builder Policies Often Miss
1. Accurate Replacement Cost
New homes in Spanish Fork are being built with materials and labor costs that have increased significantly. If your home is insured for $400,000 but would cost $520,000 to rebuild after a total loss, you’re absorbing $120,000 of that gap yourself.
2. Your Personal Property
The structure is covered by dwelling coverage. But everything inside — furniture, appliances, electronics, clothing, tools — is covered by personal property coverage. Bare-minimum policies often set this too low.
3. Liability Protection
What happens if someone gets injured on your property? A standard liability limit may not be enough, especially if you have a pool, trampoline, or frequently host guests.
4. Flood Coverage
Standard homeowners policies do not cover flood damage. Spanish Fork sits near the Spanish Fork River, and parts of Utah County have flood zone designations.
5. Earthquake Coverage
Utah sits on the Wasatch Fault. Earthquake damage is not covered by standard homeowners policies. It’s a separate rider worth considering.
6. Home-Based Business
Working from home? Standard policies typically exclude business equipment and liability from home-based operations.
What You Should Do Before (or Right After) Closing
- Get an independent review of your coverage
- Check your dwelling coverage matches actual rebuild cost
- Ask specifically about flood and earthquake
- Review your personal property limits
A Local Agent Who Knows South Utah County
I work with families buying new homes in Spanish Fork, Mapleton, Springville, Payson, and Salem. I’m an independent agent — I shop multiple carriers to find coverage that actually fits.
Call or text: 801.800.2968
Or request a quote here and I’ll get back to you the same day.
Lincoln Selk is a licensed independent insurance agent (License #696013) affiliated with Blue Mountain Insurance, serving South Utah County and all of Utah.