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ByAdam Morgan Contributor

Adam Morgan is a former senior editor for Reviews.com. He's written about banking, credit cards, home warranties, insurance, and many other subjects.

USAA Homeowners Insurance Review

First, the good news: USAA ranks extremely high in customer satisfaction surveys from J.D. Power and Consumer Reports, usually knocking every competitor out of the water. However, USAA home insurance is only available to current and former members of the military and their families. USAA is our top pick for military members, veterans, and their families in our review of the best homeowners insurance companies, thanks to its outstanding customer service and financial strength. But even if you qualify, it's worth comparing quotes and coverage options with a few other providers — USAA may not always provide you with the best policies at the best price.

Features

Price Varies
In business since 1922
A.M. Best financial strength rating A++
Moody's financial strength rating Aa1
S&P Global financial strength rating AA+
Standout features High customer service scores
Excellent financial strength
Military-friendly policies
Online support community
Home-sharing coverage
Replacement cost coverage
Home security system discounts

The Claim

Founded in 1922 by Army officers who were denied auto insurance because they were deemed too risky, USAA prides itself on being the best choice for military members and their families today when it comes to insurance, banking, and investment services. With home insurance, USAA claims that its policies are specifically tailored for military members.

Is it true?

Yes. If you qualify for USAA homeowners insurance, you won’t find a better option when it comes to customer service or financial strength. Plus, its policies really do cater to military members — USAA even offers uniform and military equipment coverage in the event of a loss. USAA also provides a few innovative add-ons that some of its competitors lack, such as home-sharing coverage for homeowners who rent out a room (or their entire house).

The only reason USAA wouldn’t be the best option for a military family is if another company offered the same coverage for a lower price. While bundling your USAA homeowners insurance with your auto insurance can save you up to 10% on your premium, USAA doesn’t offer nearly as many discounts as providers like Allstate or Amica, so it’s possible that you’ll find a better deal somewhere else. That’s why it’s so important to compare home insurance quotes from multiple companies.


USAA

USAA Homeowners Insurance Pros

✓ Perfect for current and former military members and their families
✓ Stellar customer service
✓ Excellent online support community
✓ Discounts for home security system installation.

USAA Homeowners Insurance Cons

✗ High premiums
✗ Not ideal for those who are eligible and looking for cheaper options
✗ Only available to active-duty and retired service members and their families.

Amazing customer service

USAA doesn’t just boast the best customer service ratings in the industry — it’s the best by a mile. In J.D. Power’s annual home insurance survey, it places first at 891 out of 1,000, beating the next-best option (Amica) by a whopping 30 points. In Consumer Reports’ survey of more than 7,000 homeowners, USAA was rated “Excellent” in every possible category. It goes above and beyond when it comes to customer support, with resources like an online forum called the USAA Community and a great mobile app with claims and support functionality.

Online support community

A few insurance companies like Allstate provide excellent online resources to augment their customer service experience, but no provider does it better than USAA. The USAA Community portal is a combination forum, resource center, newsroom, and support system all rolled into one. You can ask detailed questions about your home insurance options, seek financial advice, search for relevant conversations, and keep up with news and events that are relevant for military members, veterans, and homeowners.

Financial strength

An insurance provider’s financial strength ratings from A.M. Best, Moody’s, and S&P Global are an estimate of how financially secure the company will be in the near-to-long-term. Why does that matter? Because you don’t want all of your insured assets in the hands of a company that can’t afford to pay your claims in the event of a recession like the 2008 financial crisis — and you definitely don’t want your insurer to file for bankruptcy or close down completely. USAA’s financial strength ratings are consistently among the highest in the insurance industry, thanks in part to its stable base of customers; there will always be plenty of military members and veterans in the United States, regardless of what’s happening on Wall Street. With USAA, financial strength isn’t a concern at all.

Home security system discounts

Many home insurance providers, including Allstate, Amica, and State Farm, will automatically discount your premium if your home is protected by a security system. While USAA doesn’t do that, it does have a partnership with ADT that allows members to save 50% off installation and 10% off monthly monitoring if you’ve served in the military for 20 years or more. Plus, installing a home security system is one of the most common ways to lower the cost of your home insurance premium, because it makes your home less risky to insure — so while USAA won’t automatically provide a discount, it may well take a security system into account the next time it re-evaluates your premium.

Possible drawbacks

Cost of premiums

Great customer service usually comes at a cost. While the price of your USAA premium will vary depending on a host of different factors, it’s possible that you might find similar coverage for less money at an alternate provider — especially if you qualify for multiple discounts. If you’re willing to risk a less-than-stellar customer service experience with another homeowners insurance company in exchange for a lower rate, compare quotes from several companies, starting with our picks for the best homeowners insurance companies.

The Competition

Enter your ZIP code for quotes in your area

USAA
Allstate
Geico
Amica
Our review
Our review
Our review
A.M. Best financial strength rating
A++
A+
A++
A+
J.D. Power 2018 U.S. Home Insurance Study score
5/5
3/5
N/A
5/5
24/7 support

USAA vs. Allstate

Because Allstate offers more discounts and more coverage options than the average home insurance provider, it’s entirely possible that Allstate may provide some military members and their families with more affordable and more flexible home insurance policies. However, USAA’s customer service and financial strength rankings are consistently higher than Allstate’s, so as the saying goes, you get what you pay for. We recommend getting quotes from both companies and weighing your priorities before making a decision.

USAA vs. Geico

While USAA sells its own home insurance, Geico outsources policies to third-party underwriters. As we noted in our Geico home insurance review, that means you won’t get to choose which home insurance provider Geico matches you with. It also means your experience as a Geico customer is really a roll of the dice, depending on which company you’re paired with. The advantage of USAA is that you’ll know exactly what you’re getting — the highest-ranked customer satisfaction and the best financial strength in the industry. Geico may offer you a cheaper premium, though, so it’s always worth getting quotes and comparing your options.

USAA vs. Amica

The only insurance provider that rivals USAA’s customer service is Amica. The two are often at the very top of J.D. Power’s and Consumer Reports’ rankings, sometimes alternating for first place depending on the year and the survey. Since Amica offers insurance to civilians and military members alike, it’s our pick for best customer service in our roundup of the best home insurance companies, and we recommend getting a quote from Amica in addition to USAA. However, keep in mind that Amica doesn’t offer many online resources, so the USAA Community may be a better resource if you're still learning about insurance.

USAA Homeowners Insurance FAQ

Do I have to be in the military to qualify for USAA homeowners insurance?

You must be “active military, former military, an eligible family member, or a cadet or midshipman” in order to qualify for USAA insurance, according to the USAA website. Eligible family members include “spouses, widows, widowers and un-remarried former spouses of USAA members who joined USAA prior to or during the marriage, as well as individuals whose parents joined USAA.” The fine print also notes that “separated military personnel must have received a discharge type of ‘Honorable,’” and that “eligible former dependents of USAA members may join USAA.”

What does USAA homeowners insurance cover?

USAA’s standard home insurance policies cover your home and related structures, liability and medical payments when someone is injured on your property, and “loss of use” if your home is rendered uninhabitable. It also covers identity theft and military uniforms and equipment.

Does USAA offer flood insurance?

No. Like most insurance companies, USAA sells flood insurance policies through the National Flood Insurance Program (NFIP). If you live in a flood-prone area, make sure to ask your agent about adding flood insurance. For what it’s worth, flood insurance is included in USAA’s standard renters insurance policies.

The Bottom Line

If you qualify for membership, USAA is most likely your best choice for homeowners insurance, thanks to its stellar customer service and financial strength. The only reason to consider alternative providers is if they offer more affordable or more customizable coverage — which may well be the case for many customers. We recommend that all USAA-eligible homeowners compare quotes at several different providers, beginning with our picks for the best homeowners insurance.


USAA

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