Whether you own your home outright or if you have a mortgage, it’s still likely that it’s your most valuable asset and as such, you should protect yourself from the risks of owning it.
In this article, we’ll take a look at AAA Homeowners Insurance to help you make an informed decision about whether this will be the company you choose to protect your most valuable asset, your home.
Most homeowners insurance companies offer similar products but when we look at optional coverages, discounts, claims service, and pricing, it’s fairly simple to create a short-list and then whittle down your selection from there.
About AAA Homeowners Insurance
First of all, it’s important that the consumer understands that there are AAA branches across the country that are connected in various ways but there is no one set standard of operation for each office.
The organization, AAA, was established over 100 years ago with a mission to lobby for drivers’ rights and the rights of their passengers. The organization was quick to recognize that both drivers and passengers were being short-changed when it came to fair auto-related laws and vehicle safety.
Since its inception over a century ago, AAA has grown its membership to over 50 million members and as a result, the company has expanded its product offering from roadside assistance to auto insurance, homeowners insurance, renters insurance and a host of other products for individuals and families.
Since the AAA organizations operate differently in various geographic areas, you’ll likely find that the office you visit is actually an insurance broker and can sell practically any insurance product that you might need because they are using third-party underwriters rather than AAA insurance products.
AAA Insurance Financial Stability and Ratings
Certainly, it’s important to concerned insurance shoppers that they’re able to make an informed decision about an insurer’s financial stability before agreeing to enter into a relationship with them. Not only does AAA offer home insurance but they also offer auto insurance.
Since AAA Auto Insurance operates on a regional basis, it makes good sense to check into the operation that is handling the region your state is located in.
Rather than list each AAA regional office, we will consider the financial ratings for its three largest offices: Automobile Club Group, Automobile Club of Southern California, and CSAA Insurance Group.
Overall, AAA Auto Insurance ranked in various categories as follows:
- A.M. Best Financial Strength Ratings – Automobile Club Group: A-, Automobile Club of Southern California: A+, and CSAA Insurance Group: A
- Customer Service – The National Association of Insurance Commissioners report that AAA has fewer complaints than other auto insurance companies of comparable size.
- D. Power Customer Satisfaction Survey – Auto Club of Southern California ranked 834 out of 1,000 – just above GEICO, State Farm, and Progressive
The AAA Homeowners Insurance Policy
AAA uses the HO3 Special form as the package policy for its homeowners’ insurance offering. This policy form is easily the most popular because it is a good choice for average homeowners across the U.S. For homeowners that own historic or unusually expensive homes, the HO3 form, in our opinion, will fall short on the special coverages that you’ll need to adequately mitigate the risk of owning your home.Here are the coverages provided in the HO3 Special homeowners’ insurance package:
|Type of Coverage||What it Covers||Typical Limit of Coverage||Deductible Applied|
|Dwelling||Covers the structure of the home and any attached/built-in appliances||Claims are generally based on replacement cost of the home (land or lot not covered)||Yes - Flat amount or % of structure value|
|Other Structures||Covers any structures on the property not attached to the house such as fences, barns, workshops||Usually 10% of dwelling limit. Can be increased if needed.||Yes|
|Personal Property||Personal belongings inside and outside of your home||50% of dwelling limit but can be increased or decreased as needed||Yes|
|Loss of Use||Pays for temporary relocation expenses while the home is under repair||20% of dwelling limit||Yes|
|Personal Liability||Pays for medical expenses and legal expenses if found liability for injuries or property damage to a third-party||Typically available limits are $100,000 to $1 million||No|
|Medical Payments||Pays medical expenses for third-party injuries regardless of fault||Typical limits are $1,000 to $10,000||No|
Depending on the office you’ll be doing business with, you can also purchase additional coverages such as:
- Water Backup and Sump Overflow
- Mold Coverage
- Scheduled valuable personal property
- Service Line Coverage (water and gas lines that service your home)
- Green Upgrades Coverage
- Home Daycare Liability Coverage
- Incidental Rental Coverage (short-term rental like Airbnb)
AAA Homeowners Insurance Discounts
AAA offers several discounts that if qualified, an applicant can save substantial premium dollars on their homeowners’ insurance:
- Age of Home – If your home is new or has been recently updated, AAA offers up to 40% savings on your homeowners’ insurance.
- Protective Devices – Homeowners who install protective devices like smoke detectors, sprinklers, and burglar alarms will typically qualify for a 15% discount which in many cases, is enough to pay for alarm monitoring expenses.
- Claim Free Homeowner – Applicants who have not filed a homeowner claim for at least the previous three years are eligible for an additional discount of up to 13%.
- Retired Homeowner – Applicants who are 55 or older and retired may qualify for an additional 10% discount on their homeowners’ insurance.
- Hail Resistant Roof – The AAA Homeowners insurance policy will also be discounted up to 35% if your home has been constructed with a hail-resistant roof.
AAA Homeowners Insurance Rates
Although we must collect the needed underwriting information about you and your home to provide an accurate AAA homeowners insurance quote, we can provide comparative rates using homeowners’ insurance policy national averages.Here’s how AAA did against its competition:
|Insurance Company||$150,000 Coverage||$200,000 Coverage||$350,000 Coverage|
The rates above were published by ValuePenguin.com
The Bottom Line
If you are a current AAA member and maybe even have your auto insurance with them as well, it makes sense to consider AAA Homeowners Insurance because of the company’s financial stability and the additional discounts you could receive by bundling your policies as an AAA member.
Frequently asked Questions
Do all AAA offices offer the same insurance?
AAA has about 44 regional offices across the country. Although some of them offer the same homeowners insurance, many offices broker their business to third-party insurance companies.
What if I'm not a member of AAA?
If you’re interested in buying insurance from AAA, becoming a member is easy and it will save you money on your insurance.
Does AAA offer renters or Condo insurance?
If you are considering protecting your personal belongings while renting a house or an apartment, AAA has great rates on Renters Insurance as well as Condo coverage.
Does AAA have neighborhood agents?
AAA continues to have offices in neighborhoods that consumers can visit with on reach online or by telephone. Click Here to locate an AAA office near you.