USAA, a home insurance company that caters to military members, veterans and their families, consistently ranks well for customer satisfaction, whether you look at J.D. Power’s scores or our own SimpleScore. On the downside, it does not offer in-person agents.
In this USAA home insurance review, we look at what we love about the insurance provider, what could be better and a few of its competitors. We also lay out where USAA insurance stands on our proprietary SimpleScore.
Our methodology
To compare how USAA insurance for veterans and military members compares to other carriers, we awarded the insurer with a SimpleScore after examining the factors that matter most to customers like discounts, coverage options, customer satisfaction, support and website accessibility.
We also looked at how its competitors did with SimpleScore, as well as how they did with third-party reviewers, such as J.D. Power and Consumer Reports.
Great for Customer Satisfaction – USAA
While USAA offers its products and services to a niche customer base of military members, veterans and their families, this insurance carrier’s fame for superior customer satisfaction is practically unmatched.
- Highest ranking in customer satisfaction
- Understands the needs of military policyholders
- Affordable coverage
- Only available to military personnel and their family members
Owning a home is a big investment. Therefore, getting financial protection that’ll help you repair or replace your major investment is a wise choice. Home insurance is the best and most affordable way to ensure that your home (and its contents) are covered in case of loss or damage. This USAA home insurance review will provide you with a comprehensive look at the insurance company, which ranks on top consistently for customer satisfaction. To compare how USAA insurance for veterans and military members compares to other carriers, we awarded the insurer with a SimpleScore after examining the factors that matter most to customers like discounts, coverage options, customer satisfaction, support and website accessibility.
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What we like about USAA
There’s a lot to like about USAA. If we had to keep it simple and stick to a couple of points, we’d have to say customer service and coverage are what set the insurer apart from the competition.
Stellar customer satisfaction
J.D. Power conducts in-depth customer satisfaction surveys every year, asking policyholders what they like most about their insurance company. When members of the J.D. Power evaluate USAA reviews from customers, USAA beats out all other insurance companies every year. Even though USAA is limited to military personnel and relatives, it’s the third-largest insurance company in the country.
Vast coverage options
USAA’s coverage is excellent. Insuring your home through USAA means you’ll be covered for nearly every peril and can also add flood insurance. Unlike many homeowners insurance companies, your home is covered in full at replacement cost, with no depreciation factored in. This means you’ll be able to purchase or rebuild with new items and materials.
Who should get this policy
Anyone who is privileged enough to qualify for coverage through military ties should put USAA on the shortlist of home insurance companies.
[ Read: How to Find Cheap Home Insurance ]
Things to consider
As with any insurance product, there are always some drawbacks you should be aware of before you buy.
Failure to maintain risk management
USAA may shine when it comes to customer satisfaction, but it’s under a Consent Order with the U.S. Office of the Comptroller of the Currency. The insurer must comply by addressing concerns about a failure to implement and maintain appropriate risk management for its size, as well as not properly securing its IT systems.
Lack of live agents
If you prefer to work with a local agent to help you with your homeowners insurance needs, USAA may disappoint. The insurer doesn’t have offices or a network of agents available. You’ll need to manage your coverage through the website, mobile app or by calling customer service.
Who shouldn’t get this policy
Traditional policyholders who prefer to let an agent file claims on their behalf, as well as handle other details of their home insurance should skip USAA insurance for veterans.
How we analyzed USAA home insurance
Here’s a closer look at the five most important elements behind this USAA home insurance review and SimpleScore.
Discounts
- Claims-free: Save as much as 10% off your home insurance premium when you don’t have any claims for five years or more.
- Firewise: Member communities of the Firewise program that have minimized their wildfire risk qualify.
- Good payment history: Pay your bills on time and you’ll get rewarded with lower home insurance rates.
- Home-age: Newer homes will save on home insurance coverage.
- Impact-resistant roof: A higher-resistance roof reduces your premiums.
- Loyalty: The longer you’ve been a member of USAA, the more you’ll save.
- Multipolicy: USAA provides other types of insurance. When you bundle home and auto insurance, you may save up to 10% on your insurance bill.
- Protective device: Homes equipped with theft and fire alarm systems will qualify for the discount.
[ See: What Home Insurance Discounts Are Available? ]
Coverage
- Standard coverage: Includes replacement-cost coverage for your property and home’s structure, as well as limited liability insurance for lawsuits. In addition, your property is covered wherever in the world you’re deployed.
- Flood insurance: Available as an add-on for areas at risk of flooding.
- Earthquake coverage: Earthquake insurance is not included in a standard policy because not all areas are prone to earthquakes. It’s available as an add-on for at-risk areas.
- Landlord coverage: If you rent your home, your home is covered and lost income included without the need for a separate policy.
- Personal property riders: If you own higher-value jewelry, electronics or special items such as art, collectibles or firearms, this rider will cover you above the limits of standard home insurance.
Customer Satisfaction
USAA has been highly ranked by most rating companies. Take a look at it’s ratings below.
- AM Best: A++
- BBB: A-
- J.D. Power: 889/1,000
- Moody’s: Aaa
- S&P: AA+
Support
USAA offers plenty of ways to get support if an issue were to arise with your policy or if you need to file a claim. You can contact them by phone, email and through the USAA Mobile App.
Accessibility
USAA doesn’t have offices available or local agents but you can file claims online or through the claims phone number. The best way to contact USAA is using the phone numbers available on its site. The insurer doesn’t provide live chat, but you can manage many basics through the mobile app. In addition, the USAA blog and resource pages provide advice on insurance.
USAA home insurance vs. the competition
Great for accessibility – Geico
Geico is not a major provider of home insurance, although we found that it ranks well in support and accessibility, according to our SimpleScore.
Geico got its start providing insurance coverage to government employees and provides affordable home insurance to a broader customer base than USAA. You don’t have to be a government contractor or military personnel to get coverage. The issue is, Geico doesn’t underwrite all its policies — you may have coverage from a different insurer than you expected when you choose Geico.
Great for in-person service – State Farm
One of the largest home insurance providers in the country, State Farm offers independent agents across the U.S., something you might value if you prefer to be face-to-face.
State Farm ranks high in customer service, but not as high as USAA. Nevertheless, if you can’t qualify for USAA membership, State Farm is a great option. The insurance carrier is the largest in the country for good reason — State Farm is known for its top-notch service, variety of coverages and user-friendly website and mobile app.
Great for customer support – Progressive
While not at the top in customer satisfaction, according to J.D. Power, Progressive scores 5 out of 5 in support and accessibility in our SimpleScore.
When comparing Progressive to USAA, the main thing to consider is who you’ll be dealing with. USAA writes its own policies. Progressive and Geico both partner with a variety of insurance companies, meaning you’ll ultimately need to deal with a different insurance provider. Still, Progressive is worth considering if you’re on a strict budget and the cheapest home insurance is a priority — Progressive has more homeowners insurance discounts than USAA.
Getting a USAA insurance quote
USAA homeowners insurance is lauded for being affordable. Too many factors come into play that could affect your homeowners insurance rate to ballpark one. The main factors that will determine the cost of your USAA home insurance include the declared value of your home and its contents, your claims history and the ZIP code.
Location can make a huge difference in your premiums. If you live in an area at risk for wildfires or with higher-than-average crime or theft, your home insurance premiums may be considerably higher.
[ Read: The Average Cost of Home Insurance ]
USAA online and mobile app
USAA provides policyholders with a mobile app and online access, but the insurance carrier isn’t doing anything revolutionary when it comes to the digital sphere. Still, the website and app make up for the lack of USAA local agents and offices.
A unique feature other insurance carriers don’t offer is the USAA community. The section of the USAA website includes a blog about insurance, related news and financial planning. You’ll also have access to the USAA community where you can ask other service members questions about finance, insurance services, claims and more.
USAA auto and life insurance
Besides USAA homeowners insurance, this company provides a variety of other insurance coverages and financial services so you can handle coverage and banking all in one place.
Auto insurance
USAA provides the same high level of service when it comes to car insurance. Bundle more than one policy or vehicle to maximize the savings on your insurance needs. USAA auto insurance is designed for military personnel. It’s the only insurer that provides you with coverage if you drive your car overseas. Or you can leave your car behind and receive a price reduction for storing your car while you’re away.
Life insurance
If you have loved ones who depend on you, a life insurance policy from USAA can provide them with a cash payout to cover bills and funeral expenses, pay off a home mortgage or fund college for the children you leave behind. USAA provides low-cost term life insurance or permanent coverage through its whole life insurance policy as an option.
[ Next: How to Compare Home Insurance Policies ]
Bundling discounts
When you bundle auto insurance, you may receive up to 10% on the overall cost of your home and auto insurance. Best of all, you can take advantage of multiple discounts, such as safe driver and new home discounts, in addition to the premium reduction you’ll receive when you bundle your insurance.
USAA in the news
- USAA pays dividends to auto insurance policyholders. The insurer announced $800 million would go back to members, equivalent to 20% off premiums for three months. It recently announced another round of dividends amounting to $270 million.
- USAA has signed a deal with Charles Schwab to provide USAA members with wealth management and financial services through the brokerage firm.
- In light of the COVID-19 pandemic, USAA’s claim process is now nearly 100% virtual from start to finish.
Too long, didn’t read?
USAA is the highest-rated homeowners insurance company when it comes to customer satisfaction. Unfortunately, coverage is only available to those who can qualify for membership because of military service (or being related to a veteran or personnel). If you can meet the requirement, you’ll enjoy full replacement cost home insurance coverage from a financially-solid carrier.
We welcome your feedback on this article and would love to hear about your experience with the home insurance providers we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.
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