- USAA is one of the best home insurance companies on the market (for those who qualify) based on third party ratings
- Coverage is only available to active duty and retired military service members and their families
- USAA includes free identity theft coverage with every policy, up to $5,000
- The company offers comprehensive coverage, but few discounts
USAA is one of the best homeowners insurance companies by available metrics, to those who qualify for coverage. It’s consistently rated with top marks by third-party organizations, like J.D. Power and AM Best. However, with USAA, you must be affiliated with the military, or the spouse or child of a service member, in order to purchase a policy.
USAA is known for its excellent customer service, reliable coverage, and affordable prices. We reviewed USAA’s home insurance offerings and compared it to several competitors based on coverage options, discounts, customer satisfaction, and financial strength, using our data-based methodology.
USAA homeowners insurance is a great option for military service members and their families. USAA is available in all 50 states and Washington D.C., and is known for its stellar customer service and high customer satisfaction ratings. Many homeowners will find that USAA offers competitive and affordable rates. Plus, its home insurance policies protect homeowners against everything from natural disasters to break-ins, at replacement cost value.
Although we consider USAA to be one of the best homeowners insurance companies, it’s important to remember that USAA is technically considered rank-ineligible by J.D. Power, due to its limited availability to those outside the military. If you are an active or former service member and are looking for excellent customer service, USAA is a company worth checking out.
USAA was founded in 1922 by a group of Army officers. Since then, the organization has grown to cover military members and their spouses and children all around the country. The company is ranked as the third largest home insurance company in the country, with 6.67% of the total market share. Its products and services are available in all 50 states and Washington D.C.USAA has also received extremely high financial strength ratings and has nearly 100 years in business.
- Great customer service The overall customer satisfaction index ranking for USAA homeowners insurance improved to 905 in the 2021 J.D. Power home insurance study.
- Affordable rates USAA is known for offering its customers and their families competitive rates, but each homeowner’s rates are dependent on factors like age, credit score, and location.
- Comprehensive coverage Its basic coverage includes protections for losses resulting from fire, theft, vandalism, liability, and most weather-related events.
- Bundling For those looking to save, you can bundle your homeowners and auto insurance and save up to 10%.
- Discount for claim-free customers The company offers a 10% discount on annual premium costs for policyholders that haven’t filed a claim in over five years.
- Exclusive USAA only sells home insurance 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 insurance companies. We could only find three available discounts on the company’s website.
USAA rates are commonly considered highly competitive, but your premium may vary depending on various factors, including location, weather risks in your area, age, credit score, claim history, coverage limits, 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 may come with higher homeowners insurance premiums, since older homes are more likely to have risks and may be more expensive to repair. Every homeowner has different insurance needs, which is why it’s crucial to consider how much home insurance you need to ensure that your home is appropriately covered.
USAA offers home coverage for fire, theft, vandalism, most weather-related events, and liability. Every homeowners insurance policy also includes up to $5,000 in identity theft coverage. USAA policies include dwelling coverage, which pays 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.
To figure out how much home insurance you need, start by considering how much it would cost to rebuild your home back to its current condition. The same goes for replacing your personal items, like clothing, furniture, and electronics. You should have enough liability insurance to cover your personal assets in full.
USAA is perhaps best known for its excellent customer service. USAA is highly rated by J.D. Power for overall customer satisfaction, despite being rank-ineligible 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 for home insurance in qualifying states. Customers can save up to 10% on their home insurance premiums if they also purchase a car insurance policy with USAA. Customers who haven’t filed a claim in five years can get 10% off. Additionally, homes that have security systems installed can also qualify for a home security system discount.
We evaluated USAA based on their customer rating and experience, financial stability, and coverage options to determine Reviews.com score and create our USAA Homeowners Insurance Review. To compare this company with other home insurance providers, we then compared each one based on the following:
- Customer Ratings: Customer ratings are an indication of satisfaction with the process of filing a claim and agent interactions. We measured this using J.D. Power Homeowners Insurance Satisfaction ratings.
- Coverage: As there isn’t one company to fit everyone’s needs, we evaluated companies based on 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. We looked at ratings from the National Association of Insurance Commissioners (NAIC) Complaint Index to measure this.
|Company||Reviews.com Score||AM Best Financial Strength Rating||J.D. Power 2021 Score||NAIC Customer Complaints|
|USAA||4||A++||905/1,000||Fewer complaints than average|
|Geico||2.75||A++||N/A||More complaints than average|
|Progressive||3.75||A+||879/1,000||Fewer complaints than average|
|Allstate||4||A+||882/1,000||Fewer complaints than average|
*All information accurate as of September, 2021.
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, whereas Geico has no eligibility requirements.
Even though USAA and Geico offer different coverage types, they do share some similarities. For instance, both companies offer multi-policy discounts when bundling a car and home 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
J.D. Power’s 2021 U.S. Home Insurance Study showed that USAA scores higher than Progressive by a wide margin of points when it comes to customer satisfaction. That said, USAA is technically considered rank-ineligible due to not being available to all homeowners. 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 offer coverage to all 50 states and Washington, D.C.
The Bottom Line
If you’re a member of the armed services or have an immediate family member in the military, 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 and Washington D.C.
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. Additionally, 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% on their homeowner premiums if they also purchase 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 recommended 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 and Washington D.C.
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 replacement cost coverage for personal belongings, home-sharing coverage to protect you and your guests, and earthquake coverage.