USAA homeowners insurance is a well-established company recognized for its affordable rates and excellent ratings from several third-party rating agencies. However, it's only available to active-duty military members, veterans, and their families.
Business Insider compared USAA to the best homeowners insurance companies and found it to be a superior choice due to its competitive rates, highly acclaimed customer service, and claims satisfaction for military members.
USAA Homeowners Insurance Pros and Cons
USAA Homeowners Insurance Pros
- High customer satisfaction ratings with JD Power
- Competitive rates for eligible customers
- Homeowners insurance can be combined with other USAA financial products
USAA Homeowners Insurance Cons
- You need to sign up to get a quote
- Only available to military, veterans, and their families
- Discounts may be limited compared to competitors
USAA Homeowners Insurance Overview
Founded by a group of Army officers, USAA homeowners insurance consistently ranks among the best in the industry. Its homeowners insurance offerings for homeowners are no exception. With a straightforward claims process, customizable coverage options, and top-notch customer service, USAA makes home insurance simple. Reports also indicate the company offers some of the more competitive career benefits in the industry.
The downside? USAA products are only available to current and past military members and their immediate families. Extended family, friends, and non-military affiliates don’t qualify for bank accounts or other financial and insurance products. If you’re a member of the military community, it's worth checking out.
USAA Homeowners Insurance Plans and Coverage
USAA offers various home insurance coverage options for different types of dwellings, including single-family homes, condominiums, farms and ranches, and mobile homes. USAA also provides landlord insurance for qualified real estate investors.
The Standard Homeowners Insurance (HO-3)
The USAA standard homeowners insurance policy typically covers the following:
Dwelling (Coverage A)
This is what most people think of when they hear “home insurance.” It covers the cost of rebuilding or repairing your home. However, it doesn’t include sheds, detached carports or garages, or any other structures not directly attached to your home. Unlike other insurers, USAA provides replacement cost coverage as a standard, meaning they pay to replace the item rather than its depreciated value, helping protect against inflation.
Other Structures (Coverage B)
Coverage B is automatically set at 10% of the dwelling coverage. So if your replacement costs were $500,000, your other structures coverage would be $50,000 to rebuild sheds, garages, and other detached structures.
Personal Property (Coverage C)
Personal property covers items you own. Depending on your coverage, you can usually file personal property claims for theft, vandalism, and other claims. Household items, such as laptops, cell phones, furniture, and bicycles, fall within this category. If you need additional coverage for costly items, USAA offers valuable personal property (VPP) coverage for an additional fee.
Loss of Use (Coverage D)
This covers hotel stays and other extra costs if you cannot live in your home due to a covered loss. The USAA quote we reviewed included unlimited Coverage D—something we haven’t seen from other insurers. In the event of a significant loss, this allows families to cover immediate living costs without worrying about caps.
Personal liability (Coverage E) and medical payments (Coverage F)
Policy limits on personal liability could start as low as $1,000. It covers injuries or damages you are responsible for, such as injuries on your property or a dog bite. If you run a business from your home, have a larger dog, or have other unique circumstances, you may want to consider purchasing additional liability coverage. Medical payments to others may be added alongside liability coverage. This covers minor medical expenses for others injured on your property.
Renters Insurance (HO-4)
USAA renters insurance offers coverage for liability, medical payments to others, and temporary housing if your unit is destroyed due to a covered peril. Your personal property is also covered up to its replacement cost, even when it wasn’t damaged or stolen at your house.
USAA policies also include coverage tailored to meet the needs of military personnel. For example, your policy covers military equipment that is damaged or stolen, waiving your deductible.
To customize your policy, you can include optional coverages such as:
- Valuable personal property insurance
- Personal cyber insurance
- Enhanced coverage for your electronics
- Umbrella insurance
Condo (HO-6)
The standard condo insurance offered by USAA provides coverage for your condo’s interior, personal belongings at their replacement cost value, liability, medical payments to others, loss of use, and your military equipment. Your policy also comes with loss assessment for shared cost your condo association charges and identity theft coverage.
Some optional coverages you can add include:
- Increased limits for valuable personal property
- Flood protection
- Umbrella insurance
Manufactured/Mobile (HO-7)
USAA partners with Foremost and American Modern to offer insurance for your manufactured/mobile home. The standard policy includes coverage for your dwelling, other structures, liability, medical payments to others, and temporary living expenses.
You can also enhance your protection with additional coverages such as:
- Debris removal
- Credit card and check forgery
- Food spoilage
- Flood
- Umbrella
- Farm and ranch insurance
Additional Coverage Options (Riders) Offered by USAA Homeowners Insurance
Below, you'll find some popular riders available with USAA. In addition, a property and casualty agent can give you a more comprehensive list.
- USAA Home Protector: This optional add-on closes the coverage gap if your loss exceeds your coverage limits. With this protection, you can get up to 25% more coverage toward rebuilding costs and other mandated repairs. You must have insurance for at least 95% of the estimated rebuild cost to qualify for the extra coverage.
- Valuable personal property: If you have valuables such as electronics, specialty watches, or heirloom jewelry worth $100 or more, valuable personal property (VPP) insurance provides additional protection. It requires a deductible, and the policy remains in effect while you travel.
- Landlord: If you rent your property to tenants, this covers your liability, home and personal property, and loss of income if your rental property is destroyed by a covered loss.
- Flood: Floods are a common exclusion from homeowners insurance. USAA offers this coverage to protect your home if you live in a high-risk flood area.
- Earthquake: Earthquakes are another exclusion in homeowners insurance. You can buy this policy to protect your home from seismic activity if you live in an earthquake-prone zone.
- Technology: This helps you cover the cost of replacing or repairing damaged or stolen electronics, such as your laptop or smartphone.
- Umbrella: Buying this policy increases your home and auto liability protection. This coverage starts at $1 million coverage limits for about $1.50 a day, according to USAA.
- Hurricane/windstorm: USAA offers windstorm insurance for properties in coastal states, like Alabama, Florida, and Texas. It covers damage from hurricanes, tornadoes, and hail, with separate deductibles for each storm type.
- High-value home insurance: This type of insurance is specifically designed for affluent customers who own homes of high value. It offers enhanced protection beyond standard policies with features like cash payouts, guaranteed rebuilding costs, and optional services like risk consulting and home systems protection.
USAA Homeowners Insurance Cost
USAA homeowners insurance provides competitive pricing for home insurance, and many military members report it being the lowest cost for all property types. The average price of USAA home insurance is $96 per month, or $ 1,152 per year. However, your actual rates will vary based on your location, home details, claims history, and other factors.
Note: We requested a quote for a $321,000 home in New Mexico, built in 2018 and owned by a 38-year-old with good credit. We selected New Mexico for its average home insurance costs and chose age 38 to reflect the typical first-time homebuyer.
USAA Homeowners Insurance Discounts
While USAA is relatively affordable, its discount offerings aren’t as extensive as some of its competitors. Here are some discounts you may qualify for with USAA:
- Multi-policy: Get up to 10% discount by buying auto insurance with your USAA home insurance policy.
- Protective device: Qualify for up to 5% off your premiums if you have security or safety devices, such as a monitored fire alarm or home security system.
- Connected home: Save up to 8% on your premium if you sign up and install smart home technology.
- Multi-product; Save up to 9% off your bill if you have a combination of valuable personal property, umbrella, bank account, and life insurance products with your home insurance policy.
- Loyalty: Get up to 5% off your premium if you remain with USAA for three continuous years.
- Claims free: Save up to 15% if you have no claims for five years or more with USAA.
How to Purchase and Manage a USAA Homeowners Insurance Policy
To obtain a quote, go to USAA.com, select “Home” insurance, and click “Get a Homeowners Quote.” You’ll then be prompted to log in or sign up to begin the application. Note: You must be an active USAA member to start the quoting process.
Here's the type of information you’ll need:
Personal information:
- Name, birthdate, gender
- Mailing address
- Marital status
- Email address and phone number
- If you have a pet and they exhibits aggressive behavior
Property Information
- Type of property (Single-family, townhome, condo, mobile/manufactured home)
- Address
- Property use (Primary, secondary, vacation, rental)
- Year built and condition of home
- Square footage and number of stories
- Purchase amount
- Home construction (Style, materials, shape, etc.)
- Roof age and condition
- Home features (Kitchen counters, floor coverings, fireplace, etc.)
- Safety and security features (e.g., security alarms, fire alarms, fire sprinklers)
Once you purchase your policy, you will gain access to your USAA online account and mobile app. On your digital account, you can:
- Pay your bills
- Manage your payment preferences
- View your account activity
- Send money to friends
- View your insurance policies
- File and manage claims
Note: USAA insures homes in 50 states plus the District of Columbia.
How to File a Claim with USAA Homeowners Insurance
USAA claims can be filed easily online or over its mobile app 24/7. Policyholders can upload photos, schedule services, and speak directly with insurance adjusters for efficient processing and payments. Users report that the app is intuitive, and the process is straightforward for many buyers.
For non-tech-savvy policyholders or those who want more help, an insurance agent can also help with claims, or you can talk with a USAA representative over the phone. Call 210-531-8722, and USAA will connect you with the correct person. Representatives are typically available Monday to Friday from 6 a.m. to 10 p.m. CT and Saturday from 8 a.m. to 8 p.m. CT.
Finally, you can chat with the virtual assistant. After logging into your account, you can initiate a chat from the app or on your computer.
Here are some pieces of information you should have on hand to speed up the claims process
- Photos and videos of the damaged areas and belongings
- Receipts for any temporary repairs needed to prevent more damage.
- A list of damaged items with specifications of brands, make, and models.
- Proofs of purchase for damaged belongings, if available.
USAA states that a claim can take a few business days to several weeks to complete depending on the complexity of the damage and severity of injuries. If your claim has resulted from a disaster, your claim could take more time as your insurer assists other affected policyholders.
USAA Homeowners Insurance Customer Reviews and Ratings
- Negative reviews
- Positive reviews
Several customers complained about claims being denied, delayed, or not paid. Others have noted their positive interactions with the helpful and professional insurance representatives throughout the claims process, taking care of most of the legwork.
It's worth noting that your experience with the company may vary. A good way to ensure a smooth claims process is to understand exactly what your policy covers and have all your information prepared.
Here’s how the company scored with different review sites:
- Better Business Bureau: 1.16 out of 5
- Trustpilot: 1.2 out of 5
- Consumer Affairs: 2.4 out of 5
On the other hand, USAA users are generally satisfied with its mobile app, which has received high ratings from both Google Play and the App Store.
- Google Play: 4.7 out of 5
- App Store: 4.8 out of 5
The table below shows USAA’s ratings from various third-party agencies:
| Rating agency | Rating | What it means |
| AM Best | A++ | Superior financial strength |
| JD Power (Customer satisfaction) | 737 out of 1,000 | Better customer satisfaction than the study average of 640 |
| JD Power (Property claims) | 746 out of 1,000 | Better customer satisfaction than the study average of 682 |
| NAIC | 0.48 | More complaints than expected for its size |
USAA Homeowners Insurance Alternatives
See how USAA compares to three other options for home insurance coverage: Amica, State Farm, and Hippo.
USAA vs. Amica Homeowners Insurance
Amica offers two home insurance options: Standard and Platinum. Some extra features included in the Platinum plan, like water backup and replacement cost coverage, are standard for all USAA home insurance plans. While still cheap, many people like the simplicity of USAA's approach. Other Amica Platinum coverage options, like extended coverage for valuable personal property, come at an additional cost with USAA.
Policyholders rave about Amica's dividend return policy option, which returns a portion of your payments if you meet specific conditions. Customers must opt for the dividends policy to receive dividend payments. This policy is more expensive but often saves money over time. USAA has a history of providing dividend payments to customers with auto insurance, but does not have a specific dividend policy similar to the one Amica offers.
It's worth considering Amica for your home insurance needs, especially if you don't meet the eligibility criteria for USAA.
Amica Homeowners Insurance Review
USAA vs. State Farm Homeowners Insurance
State Farm homeowners insurance sells home insurance through captive agents who work for the company and only sell State Farm insurance products. If you prefer dealing with one agent whom you can get to know over the years, then State Farm might be a good fit. You can also file a claim directly through your agent, which might be helpful if you're uncomfortable with technology or prefer personalized care.
State Farm customers may need to pay for additional riders, or services may not be available. Recent homeowners insurance quotes we pulled include building/ordinance law coverage and inflation guard as standard parts of the insurance policy. However, the unlimited loss of use coverage we saw on our USAA quote is not included with State Farm homeowners insurance.
State Farm Homeowners Insurance Review
USAA vs. Hippo Homeowners Insurance
Hippo homeowners insurance is a new InsurTech company. The company was founded in 2015 to make insurance more straightforward and affordable while increasing profits. It aims to accomplish this by moving the entire application and claims process online. However, you can still speak to a representative via phone or video. In addition, Hippo standardizes some of the same coverages as USAA, which may come at an additional cost with other homeowners insurance companies.
One of the main features that sets Hippo apart is that it provides free smart technology for your home to avoid claims. This can be a helpful perk if you're comfortable with the devices in your home. Hippo also offers free home maintenance advice and checklists in the app.
Hippo only offers home insurance, not other insurance or banking products. It's also only licensed in certain states. USAA, on the other hand, can provide a host of banking and insurance products in one place, including auto insurance, checking accounts, loans, and more. It also offers services in all 50 states.
If you're comfortable navigating technology and want to try unique offerings like smart home devices, you might want to consider Hippo.
Hippo Homeowners Insurance Review
Why You Should Trust Us: What Went into Our USAA Homeowners Insurance Review
Give a breakdown of the factors considered including
- Affordability and Value: We gathered quotes based on a standard customer profile to evaluate cost. Beyond the sticker price, we considered the overall value, factoring in available discounts and policy perks that could deliver additional savings or benefits.
- Policy Customization: A strong homeowners policy should be adaptable to meet individual needs. We reviewed USAA’s optional coverages to determine how well customers can tailor protection to their specific needs and how its flexibility compares to competitors.
- Customer Feedback: We analyzed reviews from Trustpilot, the Better Business Bureau, and ConsumerAffairs to understand policyholder sentiment. This gave us insight into common customer experiences and how they measure up to other major insurers.
- Claims Performance: Filing a claim is where policy promises are put to the test. Using JD Power data, we examined how State Farm performs in terms of claims satisfaction, focusing on timeliness, ease of use, and overall customer approval.
- Financial Stability: We turned to AM Best to evaluate USAA’s financial strength. It's A++ rating indicates top-tier stability and a strong ability to pay claims, even during widespread or severe loss events.
Read more about how Business Insider rates homeowners insurance.
FAQ
How do I qualify for USAA home insurance?
You must be a USAA member to purchase home insurance through USAA. Membership eligibility is based on military affiliation and is open to active and retired military members, pre-commissioned officers, spouses, and children. Surviving spouses may be eligible in certain circumstances, but the eligible parent or spouse must become a USAA member first for the spouse and children to sign up.
Can I get discounts on my coverage?
USAA offers different discount options on home insurance coverage. To receive the discounts, you usually have to meet specific requirements. USAA offers bundling discounts, connected home discounts, protected home discounts, and claims-free discounts.
What do customers say about USAA home insurance?
USAA has strong and generally positive reviews for its banking and insurance products, but some members may be frustrated that the claims process is primarily digital. As with most companies and products, customer satisfaction depends on individual preferences and needs. Once you're clear on your top priorities for home insurance, you can find a company that meets them.
Is USAA a good homeowners insurance company?
USAA can be a good homeowners insurance company for active duty military members, veterans, reservists, and immediate family members. It has affordable rates, coverage options catered to military members' needs, and it is highly rated amongst third-party agencies like AM Best and JD Power.
What is the average cost of homeowners insurance for USAA?
The average cost of homeowners insurance for USAA is $96 per month or $1,156 per year. This quote is for a sample profile of a 38-year-old homebuyer in New Mexico with good credit and no claims history. Your individual quote can vary based on several factors, including your location, home details, claims history, and other relevant factors.
