USAA Home Insurance Review

USAA has an impressive reputation for providing quality homeowners insurance coverage and customer service, but it’s only available to military personnel, veterans, and their families. USAA offers homeowners insurance to former and active-duty military personnel and their families. It includes complete coverage for all major perils, and it offers several endorsements to customize your policy in case you need added protection.

MIlitary members and their families – USAA

As one of the highest-ranking companies in the country, USAA is easy to recommend. Because of their financial and customer service strength, as well as easy-on-the-wallet pricing, we recommend they be your first stop if you are affiliated with the military.

J.D. Power Rating
5/5
AM Best Rating
A++
Standard & Poor’s
AA+
SimpleScore
4.6 / 5.0
close
SimpleScore USAA 4.6
Discounts 3
Coverage Options 5
Customer Satisfaction 5
Support 5
Accessibility 5
  • Excellent customer service
  • Affordable rates
  • Covers the complete replacement cost of your home
  • Up to $5,000 identity theft coverage included
  • Only available to military families
  • B+ rating from Better Business Bureau
  • No branch locations

USAA doesn’t offer many discounts, but its rates are known for being affordable. It’s one of the few home insurers that pays you the complete replacement cost of your home without factoring in depreciation, so you don’t have to worry about paying out of pocket. Despite its limited accessibility, USAA is the third-largest home insurer in the nation and much of this popularity stems from its incredible customer service. It routinely scores at the top of customer satisfaction surveys, in many cases beating the competition by a significant margin. However, it doesn’t offer branch locations.

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    In this article

      Pricing

      Homeowners insurance rates vary, depending on several factors like location, home age, and creditworthiness. Every company weighs these factors differently, so get quotes from several companies to ensure you’re getting the best deal.

      If I am on a budget, should I consider USAA

      Yes. If you qualify for USAA by being a member of a military family, USAA should be your first stop. The company is known for its competitive rates, and that makes it a bargain considering that your policy will cover replacement costs if you make a claim, something that you don’t get from many other insurers.

      Customer experience

      Customer service is where USAA really shines. In J.D. Power’s 2019 U.S. Home Insurance Study, USAA scored 33 points ahead of the second-best insurer, Amica Mutual. Customers reported a high degree of satisfaction with all aspects of USAA’s service, from its rates and policy coverage to the clarity of billing statements and helpfulness of representatives.

      In terms of claims resolution, USAA also came in at the top of the list, just ahead of Amica, with most customers reporting an above-average experience.

      Coverage

      As a general rule, most homeowners insurance policies cover the following perils:

      • Damage caused by aircraft
      • Damage caused by vehicles
      • Explosion
      • Fire or lightning
      • Riot or civil commotion
      • Smoke damage
      • Theft
      • Vandalism
      • Volcanic eruption
      • Windstorm or hail
      • liability

      Certain natural disasters, like earthquakes and floods, are not covered under traditional insurance policies, so if you live in an area where these disasters are common, you’ll need to purchase extra coverage. You may also want to purchase endorsements for valuables like jewelry, art or electronics.

      Deals, discounts and add-ons

      USAA doesn’t have many discounts for homeowners, but it’s still known for offering consistently affordable rates. Those looking to save a little more should consider bundling their home and auto insurance together and selecting a higher deductible. You’ll pay more in the event of a claim, but your monthly premium will be much lower.

      USAA gives discounts to those with new homes, security systems, and residents of Firewise communities, as well as those who are claim-free for five or more years. However, USAA’s rates are affordable, so even without discounts, you may be able to get a good deal.

      You’ll find a number of endorsements, or add-ons, at USAA that allow you to customize your policy. You can purchase added earthquake or flood insurance if either of these is a concern for you. There’s extra coverage if you own expensive jewelry, electronics or other pricey items. In some states, you can get coverage for home sharing, if you’re renting out a room or property.

      Find the Best Home Insurance

      Save money on home insurance with our simple comparison tool.

      Matching you with providers.
      We found results in
      Click at least 2-3 companies to find the very best rate.

        America’s top-rated home insurance

        • Policies starting at just $25/month
        • Sign up in seconds, claims paid in minutes
        • Zero hassle, zero paperwork

        USAA home insurance overview: Financial strength, availability, and history

        Best for

        USAA sells insurance to active, retired and honorably discharged members of the U.S. military, along with their spouses, widows and un-remarried former spouses who joined USAA during the marriage, as well as individuals whose parents joined USAA. Children and stepchildren are eligible as well, but siblings and parents of military members are not.

        States served

        USAA is available throughout the U.S., but not all discounts and endorsements are available in all states. Contact the company to find out what’s available in your location.

        AM Best rating

        USAA has a rating of A++, which is the highest ranking possible. An AM Best rating is an objective opinion on the insurer’s creditworthiness, based on a comprehensive analysis of balance sheet strength, operating performance and business profile.

        S&P rating

        USAA’s S&P rating is AA+. Similar to A.M. Best ratings, S&P ratings ranks creditworthiness. AA+ indicates that the company is high quality, with low credit risk.

        Moody’s rating

        Another measure of financial stability, USAA’s Moody ranking of Aaa is the highest one possible, and indicates it is of the highest quality with the lowest credit risk.

        Standout features

        It’s hard to find anything to criticize with USAA. The company has stellar customer service and claims management scores across the board. Its rates are competitive with what other companies are offering, yet it provides a high quality of coverage that includes replacement costs on your home and standard identity theft coverage.

        Who are USAA’s competitors?

        • Geico: Geico doesn’t offer its own homeowners insurance policies. Instead, it partners with a variety of local lenders to offer you coverage. Customers appear happy with the service they receive, according to J.D. Power’s survey, where Geico received an above-average rating. However, it’s a good idea to do a little research into the company that will underwrite your policy before you make a purchase.
        • Allstate: Allstate has a huge selection of homeowners discounts, but despite this, its rates are typically more expensive than those offered by the other companies on this list. It offers a unique RateGuard option, which works like accident forgiveness for your home. If you purchase this add-on, you don’t have to worry about your rates increasing following your first claim. Allstate also offers a good selection of endorsements, making it easy to customize a policy around your needs.
        • Progressive: Progressive, like Geico, doesn’t underwrite its own policies, so once you’ve made your purchase, you deal exclusively with the underwriter. According to J.D. Power’s survey, customers don’t seem that satisfied with the deals they get through Progressive. It scored just below the national average. However, Progressive’s selection of endorsements is hard to match, so if you’re interested in building a custom policy, it’s a good company to choose.
        • State Farm: State Farm is known for its impressive customer service, but its homeowners insurance customers were less impressed with its rates, according to the J.D. Power survey. Unfortunately, State Farm doesn’t offer many discounts. However, it offers solid homeowners insurance coverage and endorsements to customize your policy, so if you place a high value on customer service, State Farm may still be a good deal to you.

        USAA home insurance simplified

        • USAA sells insurance policies to current and former members of the military and their families.
        • It receives top rankings from organizations that look at financial stability.
        • It’s also at the top of consumer rating organization lists such as J.D. Power, which looks at customer relations and claims management.
        • USAA is known for reasonable prices; several discounts may help bring the cost of your policy down even more.

        FAQ’s

        According to the Insurance Information Institute, the average cost of a homeowner insurance policy is $1,211. Your costs will vary based on everything from the age of your house to how close you are to a fire hydrant.

        The most common way to save money is to bundle your auto insurance with homeowners. USAA also offers other types of insurance as well, including renters, condo, rental property, umbrella, and motorcycle. Ask your agent if any of these entitle you to a discount.

        Not necessarily. You can be the spouse, ex-spouse, widow or child of a service member as well. You must, however, have a connection to the military.

        The USAA community includes an informational blog, support network, financial advice, and other services for its members. It’s a vibrant community that allows you to connect with other service members and share your stories.

        Methodology

        SimpleScore

        The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.
        For every review, our editorial team:

        • Identifies five measurable aspects to compare across each brand
        • Determines the rating criteria for each aspect score
        • Averages the five aspect scores to produce a single SimpleScore

        Here’s a breakdown of the five aspect scores and their rating criteria for our reviews on home insurance.

        Why do some brands have different SimpleScores on different pages?

        To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

        However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.

        Discounts

        We looked at the number of discounts each company offers – more discounts mean a higher score.

        Coverage Options

        We awarded higher scores to the companies that offer more coverage options.

        Support

        We awarded higher scores to companies with the most channels for customer support.

        Customer Satisfaction

        We leveraged the J.D. Power 2019 Home Insurance Satisfaction Study℠ to see how customers rated their experience with each company. (If a company wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)

        Accessibility

        We looked at the level of accessibility of each company – the more resources they have the higher their score

        Reviewed by

        • Aylea Wilkins
          Aylea Wilkins
          Insurance Editor

          Aylea Wilkins is an editor specializing in insurance for The Simple Dollar. After getting a degree in European studies and editing from Brigham Young University, she worked as a writer and editor for a variety of small websites before transitioning to the insurance field.