USAA renters insurance coverage is among the best in the industry. However, only military service members, veterans and their immediate family members qualify for coverage with this company. With wide-ranging coverage options, good discounts and excellent customer service, you can’t beat a USAA renters insurance policy. Keep reading for our full review of USAA rental insurance.
USAA Renters Insurance Overview
Overall, USAA has a strong reputation. The company has an A- rating from the Better Business Bureau, although it has an average rating of just 1.2 stars based on 535 customer reviews. YouGov found that 45% of people have a favorable opinion of USAA, and only 4% of people have a negative view.
- Customer service USAA offers outstanding customer service with friendly agents and claims representatives
- Coverage USAA’s renters insurance policies include comprehensive coverage for your belongings and liabilities, which provides for flood and earthquake insurance
- Affordable rates USAA’s renters insurance premiums start at just $10 per month
- Limited availability You must be a service member, veteran or close family member to get coverage
- Few discounts USAA doesn’t offer as many discounts as some other renters insurance companies
USAA claims that its renters insurance policies start at just $10 per month. However, the actual rate you’ll pay depends on several factors, some you can control, and others you can’t. For example, your state, neighborhood, age and claims history are used to calculate your rate. Insurance companies also look at your credit score, the amount of coverage you want, the value of your personal belongings and your chosen deductible. The cost of renters insurance is different for everyone based on their unique circumstances.
USAA renters insurance covers liability, personal property and additional living expenses coverage. Its website states that items eligible for repairs or replacement in the event of theft include electronics, clothes, silverware, phones, jewelry, bicycles, military equipment, furs, hearing aids and much more. Renters insurance coverage does not include items that are lost, accidentally damaged or devalued as a result of wear and tear. To figure out the value of your assets, create a home inventory with a list of your belongings and their original cost, and set your coverage limit based on that amount.
USAA has a great customer experience and highly-rated claims handling. In J.D. Power’s 2020 U.S. Property Claims Satisfaction Study, USAA took the top spot, with a score of 904/1,000. Renters can file a claim online or through the mobile app 24/7, making the experience quick and easy. Applying for a policy through USAA is simple, as well.
Along with its customer satisfaction score, we also looked at USAA’s customer complaints using the NAIC Customer Complaint Index. In 2020, USAA received lower-than-average complaints in the industry for property insurance, meaning you’re likely to have a good experience with the company if you qualify for coverage.
For the most part, USAA’s renters insurance discounts are relatively standard. It includes common offerings like insurance bundling, safety device installation and claims-free discounts, which become progressively more rewarding the longer you go without making a claim. Compared to other insurance providers, USAA offers fewer discounts, but the premiums are already affordable. USAA doesn’t typically offer any deals or promotions.
For USAA renters insurance review, we evaluated the company based on its customer rating and experience, financial stability, and coverage. To compare renters insurance companies across the board, we calculated a 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 available 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.
- 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(On a 1,000-point scale)||NAIC Customer Complaints|
|USAA Renters Insurance||3.8/5||A++||888/1,000||Fewer complaints than average|
|Geico||2.8/5||A++||N/A||Fewer complaints than average|
|State Farm||3.3/5||A++||836/1,000||Fewer complaints than average|
|American Family||3.75/5||A||840/1,000||Fewer complaints than average|
|Erie||4.75/5||A+||865/1,000||Fewer complaints than average|
|Allstate||3.5/5||A+||841/1,000||Fewer complaints than average|
|Lemonade||2.7/5||N/A||866/1,000||More complaints than average|
*All information accurate as of October 2, 2020
USAA vs. Geico
USAA and Geico are both known for offering affordable renters insurance policies. But when it comes to reviews, USAA wins this battle. Geico did not appear on J.D. Power’s 2020 U.S. Renters Insurance Study, while USAA earned first place. USAA also offers better coverage, especially considering flood and earthquake insurance are automatically included.
However, we found that Geico offers more add-on policies than USAA. Geico customers can supplement their renters insurance policy with incidental business liability coverage, business merchandise coverage, replacement cost coverage and a few others.
USAA vs. State Farm
State Farm is another top-rated renters insurance company. State Farm also scored well in J.D. Power’s 2020 U.S. Renters Insurance Study, earning a score of 836/1,000, but didn’t score as high as USAA. One thing we like about State Farm is that it offers a variety of tools and resources to help renters figure out what renters insurance covers, why you need it and how much coverage you need. USAA’s website is helpful, but not as comprehensive.
State Farm’s renters insurance coverage is similar to USAA’s, but it doesn’t include earthquake or flood insurance. However, renters who have a cat or dog can add pet coverage to their policy, which isn’t an option with USAA.
The Bottom Line
USAA’s renters insurance is regarded among the best in the industry. The list of personal belongings that its standard policy covers is comprehensive, as is the list of circumstances under which those items are protected. It’s a great option for students, adults and families alike.
The major catch with such an enticing policy is that users only qualify for USAA if they or their immediate family members are veterans or service members in the military. Assuming this is the case, the combination of claims processes, financial stability and overall customer satisfaction makes USAA renters insurance a great choice for any renter.
USAA Renters Insurance FAQ
In addition to renters insurance, USAA also offers homeowners and condo insurance. If you bundle multiple property insurance policies with USAA, you could save money on your premiums.
As a rule of thumb, you should have enough personal property insurance to cover your personal belongings’ value and enough liability insurance to cover the value of your assets (income, savings accounts, retirement accounts, etc).
USAA renters insurance is available in all 50 states, so you can get coverage no matter where you live. It also makes it easy to keep your policy if you move states.
USAA underwrites its own renters insurance policies. The company assumes your full risk and pays you directly if you file a covered claim.
USAA’s renters insurance provides liability coverage and personal property coverage. Liability coverage protects your assets if you are found responsible in cases of bodily injury or property damage to another party. Personal property coverage protects your items if they get lost, stolen or damaged in covered cases.