If you’re a first-time homebuyer or you’ve got a lot of experience with buying homes over your lifetime, you are most likely painfully aware of the research it takes to make certain you insure that home with a policy that delivers on value and affordability.
If you are a service member, veteran, or family member of a veteran, you’ll likely qualify to purchase insurance from USAA. You’ve probably seen USAA’s television commercials where they are interviewing policyholders who show appreciation and gratitude for having their relationship. Although no insurance company is always perfect, the testimonials in these commercials appear to be authentic.
In this review article, we will drill down into USAA’s Homeowners Insurance and provide you with the information you’ll need so you can make an informed decision if USAA homeowners’ insurance is the best fit for you.
About USAA Insurance Company
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United States Automobile Association (USAA) was founded in 1920 by Army officers who had become disappointed and frustrated with being unable to get good life insurance to protect their families because they were considered high-risk while serving in the military.
The original management team began to offer life insurance and other financial products to members of the military and their families to help with financial protection and planning for their financial futures.
Today, USAA is serving more than 11 million policyholders and is continuing to grow its footprint in the insurance and financial services industries. Starting with just life insurance, the company has expanded its product selection to cover all the financial needs of its members.
Here is a list of the products available from USAA:
|Home & Auto||Life Insurance||Health Insurance||Financial Products||Real Estate|
|Auto Insurance||Term Life Insurance||Dental Insurance||Annuities||VA Loans|
|Homeowners||Whole Life Insurance||Vision Insurance||Mutual Funds||Equity Loans|
|Renters||Universal Life||Medicare||529 Plans||First-Time Buyer|
|Condos||Health Insurance||Stocks & Options|
|Flood Insurance||Short term Medical||CDs|
|Rental Property||Fixed Health Plan||Checking|
|Boat Insurance||Mortgage Loans|
|RV Insurance||Personal Loans|
USAA’s Current Financial Ratings
Certainly, if your planning to purchase insurance or financial products from an insurance company, you are entitled to know if that company is financially stable and whether it demonstrates that it is financially capable of remaining stable over several decades. Fortunately, any consumer can access the company ratings by the national rating companies and make their own determination regarding financial stability.
|Rating Company||Current Rating|
|A.M. Best||A++ (Superior)|
|Moody's Investors Service||Aaa (Exceptional)|
|Standard & Poor's||AA+ (Very Strong)|
|As of October 2019|
USAA Homeowners Insurance
USAA offers several forms of homeowners’ insurance which allows them to accommodate almost every type of homeowner risk presented to them. As with most insurance companies, USAA’s most popular policy form is the HO3 special form which offers comprehensive coverage for the home, the contents, and the homeowner’s personal liability.
|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|
USAA is one of the few home insurance companies that go outside the box when it comes to homeowners’ insurance. They do this by offering better coverage than you’ll find in traditional homeowners’ insurance.
- Contents coverage for up to 75% of the dwelling coverage (others usually cap at 50%)
- Identity Theft coverage of up to $5,000
- Inflation Guard – Protects you if costs for rebuilding exceeds replacement cost
- No limit on Loss of Use coverage
- Up to $500,000 for Personal Liability limits
- Deductible options up to $10,000 to save money on your policy
USAA’s Homeowners’ Policy Discounts
When it comes to getting the best value and most affordable premium on your USAA Homeowners’ Insurance, it’s all about the discounts. USAA is fairly generous when it comes to reducing your rates through discounts:
|Multi-Policy||When you purchase auto, life, or other insurance policies along with your homeowners' policy, USAA will offer up to a 10% discount off your rates.|
|Claim-Free Discount||For applicants who are claim-free for 5 or more years on a homeowners or renters insurance policy, USAA will offer up to 10% off your rates.|
|Home Age Discount||Applicants who insure newer homes will receive lower rates than applicants with older homes.|
|Firewise Discount||Applicants in states that are common to wildfires and have chosen a community or neighborhood that have taken steps to mitigate wildfire risk are eligible for discounts.|
|Impact Resistant Roof||Homes with roofs that rated high for resistance to wind or hail can earn additional discounts.|
|Protective Device||Homes with an alarm system for burglary and fire are eligible for Protective Device discounts|
|Loyalty Discount||Policyholders that demonstrate loyalty to USAA by keeping their policies for many years earn additional discounts.|
|On-time Payments||Policyholders who demonstrate on-time payments will receive additional discounts.|
How USAA Homeowners Insurance Compares to Others
When you’re considering insurance for your home which is likely your most valuable asset, value and pricing should be at the top of your list for decision making. Although we cannot offer rates for your insurance without all of the pertinent underwriting information, we can make some rate comparisons based on national averages.
Here is how Auto-Owners compares with other companies:
|Insurance Company||$150,000 Coverage||$200,000 Coverage||$350,000 Coverage|
Insurance rates published by ValuePenquin.
What USAA’s Customers are Saying
It’s always a good idea to check with more than family and friends when it comes to insurance shopping. With today’s technology, it’s quick and easy to find feedback on any insurance company. Here’s what customers are saying about USAA’s homeowners’ insurance:
- ConsumerAffairs – 4 out of 5 stars (280 reviews)
- clearsurance.com – 4.75 out of 5 stars (6,098 reviews)
- Wallet Hub – 4 out of 5 stars (196 reviews)
- J.D. Power – 5 out of 5 stars (customer satisfaction score)
Frequently asked Questions
Who is eligible to buy insurance from USAA?
USAA welcomes active duty, Guard or Reserve, a veteran, an eligible family member, or a cadet or midshipman.
What services does USAA offer besides insurance?
USAA also provides banking services, financial advice, and shopping discount services for its members.
Does my USAA homeowners insurance cover floods or earthquake damage?
Although USAA’s homeowners’ policy provides comprehensive coverage, homeowners who need flood or earthquake insurance must by separate stand-alone policies.
Is membership in USAA free?
Yes, anyone who is eligible can create an account with USAA and then enroll in any of the company’s products or services.