The multisegment Wasatch fault zone is a well‐studied normal fault in the western United States that has paleoseismic evidence of recurrent Holocene surface‐faulting earthquakes. Along the 270 km long central part of the fault, four primary structural complexities provide possible along‐strike limits to these ruptures and form the basis for models of fault segmentation. Here, we assess the impact that the Wasatch fault segmentation model has on seismic hazard by evaluating the time‐independent long‐term rate of ruptures on the fault that satisfy fault‐slip rates and paleoseismic event rates, adapting standard inverse theory used in the Uniform California Earthquake Rupture Forecast, Version 3, and implementing a segmentation constraint in which ruptures across primary structural complexities are penalized. We define three models with varying degrees of rupture penalization: (1) segmented (ruptures confined to individual segments), (2) penalized (multisegment ruptures allowed, but penalized), and (3) unsegmented (all ruptures allowed). Seismic‐hazard results show that, on average, hazard is highest for the segmented model, in which seismic moment is accommodated by frequent moderate (moment magnitude 6.2–6.8) earthquakes. The unsegmented model yields the lowest average seismic hazard because part of the seismic moment is accommodated by large ( 6.9–7.9) but infrequent ruptures. We compare these results to model differences derived from other inputs such as slip rate and magnitude scaling relations and conclude that segmentation exerts a primary control on seismic hazard. This study demonstrates the need for additional geologic constraints on rupture extent and methods by which these observations can be included in hazard‐modeling efforts.