USAA homeowners insurance is a great option for military service members and their families. USAA is available in all 50 states and is known for its stellar customer service and high customer satisfaction rates. It also offers competitive and affordable rates, and its home insurance policies protect homeowners against everything from natural disasters to break-ins.
Unlike some other home insurance providers, USAA covers the full cost of replacing your home if it’s damaged or destroyed. Even though USAA is only available to members of the armed forces and their families, this company has earned a place as one of the best homeowners insurance companies. If you are an active or former service member and looking for stellar customer service, USAA is a company worth checking out. Take a look at our review and find out why.
USAA was founded in 1922 by a group of Army officers. Since then, the organization has grown to cover military members all around the country. The company is ranked as the sixth most popular insurance brand, and its customers describe it as unique, useful and personal. Its products and services are available in all 50 states. This insurer has also received extremely high financial health ratings and has been a reliable organization with close to 100 years in business.
- Great customer service The overall customer satisfaction index ranking for USAA homeowners insurance improved 11 points from 2019 to 2020 in J.D. Power’s home insurance study.
- Affordable rates USAA offers its customers and their families competitive rates.
- Comprehensive coverage Its basic coverage includes fire, theft, vandalism, liability and most weather-related events.
- Bundling For those looking to save, you can bundle your homeowners and auto insurance to get up to 10% discount.
- Discount for claim-free customers The company offers a 10% discount on annual premium costs for policyholders that haven’t issued a claim in over five years.
- Exclusive USAA is typically known for having insurance coverage available to active and former military members and their families, making it inaccessible to the general public.
- Limited discounts USAA falls short in the discount department when compared to other renown insurance companies. We could only find three available discounts on the company’s website — bundling discount, claims-free discount and home security system discount.
The average annual premium for USAA homeowners insurance is low, but your premium may vary depending on various factors, including location, weather and the size of your home. Not all of these factors are within your control. For instance, if you live in an area with above-average chances of natural disasters, such as wildfires or earthquakes, you may end up paying more for your insurance premiums. Similarly, old houses often come with higher homeowners insurance premiums, since older homes are more likely to break down and are more expensive to repair. No homeowners policy is the same since it is tailored to each policyholder’s specific needs. That is why it’s crucial to consider how much home insurance you need to ensure that your home is appropriately covered.
USAA offers comprehensive coverage of fire, theft, vandalism, most weather-related events, and liability. A homeowners insurance policy also covers up to $5,000 in identity theft coverage. USAA policies include dwelling coverage, which provides for the cost of repairing or rebuilding your home after a qualifying event. Home insurance also covers personal belongings, loss of use, and personal liability. In addition to your home, USAA policies also cover separate structures such as garages, sheds, fences and driveways.
Suppose you’re not sure what structures will need separate coverage and how to estimate your homeowners insurance. In that case, you can start by considering your total assets and taking inventory of your belongings to make sure they’re adequately protected.
USAA is perhaps best known for its excellent customer service. USAA is highly rated by J.D. Power for overall customer satisfaction and is one of the best in the industry when it comes to happy customers. While USAA does receive some complaints, according to the National Association of Insurance Commissioners, it receives far less than its competitors.
USAA has a few discounts when it comes to home insurance. Customers can save up to 10% on their home insurance premiums if they also purchase a car insurance policy with USAA. Another great perk is that customers who haven’t filed claims in five years can get 10% off. Homes that have security systems installed can also qualify for a home security system discount.
We evaluated the company based on their customer rating and experience, financial stability, and coverage to determine Reviews.com score and create our USAA Homeowners Insurance Review. To compare this company with home insurance companies across the board, we then compared each Reviews.com score based on the following:
- Customer Ratings: Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage: As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence: It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience: The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
|Company||Reviews.com Score||AM Best Financial Strength Rating||J.D. Power 2020 Score||NAIC Customer Complaints|
|USAA||4||A++||889/1000||Fewer complaints than average|
|Geico||2.75||A++||N/A||More complaints than average|
|Progressive||3.75||A+||797/1000||Fewer complaints than average|
|Allstate||4||A+||829/1000||Fewer complaints than average|
*All information accurate as of 09/28/2020.
USAA vs. Geico
In terms of customer satisfaction, when comparing USAA to Geico, we found that USAA has fewer complaints. USAA’s superb customer service and coverage options make it one of our top picks for our best homeowners insurance companies and cheapest homeowners insurance categories. USAA also underwrites its own home insurance policies while Geico uses third-parties. Another key differentiator is that USAA is exclusively available to active and retired service members.
Even though USAA and Geico offer different coverage types, they do share some similarities. For instance, both companies offer multi-policy discounts when bundling with a car insurance policy. Also, both companies operate nationwide and provide comprehensive and affordable coverage. It’s also worth mentioning that neither company has vast discount options for policyholders.
USAA vs. Progressive
A J.D. Power Home Insurance Study showed that USAA surpasses Progressive by almost 100 points when it comes to customer satisfaction. Meanwhile, Progressive customers expressed a lack of consistency in the company’s customer service. As for financial strength, USAA takes the lead over Progressive. Like Geico, Progressive also hires third parties that underwrite many of their policies, while USAA handles all of theirs. When it comes to discounts, Progressive has far more options than USAA.
USAA and Progressive are both in our top picks for best homeowners insurance companies, and both companies serve extensively across the U.S. — offering coverage to all 50 states.
The Bottom Line
If you’re a member of the armed services or part of their family, USAA homeowners insurance offers great coverage and customer service. Members have access to competitive rates and excellent customer service and can rest assured that their property is protected in unexpected disasters. USAA is available in all 50 states. Hence, customers are eligible regardless of location.
USAA does offer a few deals and discounts when it comes to home insurance, including a bundle-and-save option — if you also purchase auto insurance from USAA— and an additional 10% discount if you’re a claim-free customer for five or more years. We did find two downfalls: USAA isn’t available to members of the general public since they cater solely to service members and that the company lacks the variety of discounts that its competitors offer. But, overall, USAA is a well-rounded insurance company that has a lot to offer.
USAA Homeowners Insurance FAQ
USAA offers insurance for homes, condos, rental properties, farms and ranches. In addition, the company provides renters insurance, life insurance and auto insurance. Current USAA policyholders can save up to 10% of their homeowner premiums if bundled with a car insurance policy.
One of the most frequently asked questions about homeowners insurance is “How much home insurance coverage do I need”? In general, it’s a good idea to choose the coverage that protects the entire value of your home in case of damage or property loss. How much coverage you need also depends on where you live, how big your home is, and how old it is, among other factors.
USAA is available in all 50 states.
USAA underwrites its home insurance policies itself.
Homeowners insurance with USAA covers fire, theft, vandalism, most weather-related events, and liability, as well as up to $5,000 in identity theft coverage. USAA also offers multiple perils you can add on to your existing policy like coverage for personal belongings if damaged, home-sharing coverage to protect you and your guests and earthquake coverage.