- Our thoughts on USAA
- Where can you buy USAA homeowners insurance?
- What does USAA homeowners insurance cover?
- How much is USAA home insurance?
- USAA home insurance discounts
- What makes USAA home insurance rates go up?
- USAA vs. competitors: How does USAA stack up?
- Who qualifies for USAA home insurance?
- What do people ask about USAA?
- Is USAA a good homeowners insurance company?
Our thoughts on USAA
USAA is consistently named the best insurance company for military members; there are a few other companies that cater to the military, but none compete on the same level. For those who qualify, USAA has some of the lowest home insurance rates available.
USAA has high ratings with J.D. Power and every other agency; the company generally has a stellar reputation. It also has the best possible financial rating from AM Best, an A++.
“A robust financial rating can lead to competitive premiums, reflecting efficient operations and effective risk management,” says Siwei Gao, professor of insurance studies at Eastern Kentucky University.
Of course, USAA is only an option for those who are in the military, veterans and their families. As a result, we don’t rank it on our best home insurance companies list, nor does J.D. Power. However, our survey found that customers are generally happy with the service they receive from USAA.
USAA is generally known for affordable rates, but we didn’t find it the cheapest in our average homeowners insurance rate comparison. However, USAA home insurance rates are below average.
Overall: If you’re eligible for USAA, it should be high on your list for quote comparisons.
Pros:
- Consistently top-rated with J.D. Power with a low complaint ratio
- Provides services for military families
- Lower-than-average rates
Cons:
- Only open to military members, veterans and their families
- Didn’t perform as well on our survey as it did with J.D. Power
Where can you buy USAA homeowners insurance?
USAA homeowners insurance is available in all 51 states and Washington, D.C. Currently, despite other major companies pulling back, USAA still writes new home insurance policies in California and USAA home insurance is still available in Florida.
| State |
|---|
| Alabama |
| Alaska |
| Arizona |
| Arkansas |
| California |
| Colorado |
| Connecticut |
| Delaware |
| Florida |
| Georgia |
| Hawaii |
| Idaho |
| Illinois |
| Indiana |
| Iowa |
| Kansas |
| Kentucky |
| Louisiana |
| Maine |
| Maryland |
| Massachusetts |
| Michigan |
| Minnesota |
| Mississippi |
| Missouri |
| Montana |
| Nebraska |
| Nevada |
| New Hampshire |
| New Jersey |
| New Mexico |
| New York |
| North Carolina |
| North Dakota |
| Ohio |
| Oklahoma |
| Oregon |
| Pennsylvania |
| Rhode Island |
| South Carolina |
| South Dakota |
| Tennessee |
| Texas |
| Utah |
| Vermont |
| Virginia |
| Washington |
| Washington D.C. |
| West Virginia |
| Wisconsin |
| Wyoming |
*Some state rates will vary based on the addition of a hurricane deductible and may be much higher when included.
What does USAA homeowners insurance cover?
Homeowners insurance has several basic home insurance coverages included with standard policies, and a USAA home insurance policy has all of those coverages. They are:
- Your house (dwelling coverage)
- Any detached structures on your property (other structures)
- All of the contents of your house (personal property)
- Extra bills incurred when you can’t live at home due to a covered loss (loss of use/additional living expenses)
- Damages or injuries to others caused by you or occurring on your property (personal liability and medical payments)
Because it’s a military-focused insurer, USAA includes special coverage for military members at no additional cost. Personally owned military gear and clothing are covered with no deductible for losses while on active or reserve duty.
Furthermore, USAA includes replacement cost coverage for personal property as standard; that’s an endorsement with most companies. Identity theft coverage is also included.
There are also some options that you can add to your USAA home insurance policy, including the following:
- Home Protector extended replacement cost coverage, which extends your dwelling coverage by 25%
- Water backup coverage
- Personal injury coverage to protect you from slander or libel suits
- Valuable personal property insurance
USAA home insurance policies include the same exclusions as most standard home insurance, although some can be covered via an endorsement:
- No coverage for floods and earthquakes.
- Coverage limits on certain types of personal property, like jewelry, fine art, musical instruments and sports equipment.
- No coverage for excluded perils like war and terrorism, nuclear hazards, animal and pest damage and water and sewer backup (unless endorsed).
How much is USAA home insurance?
The average USAA home insurance rate nationwide is $2,506 for our standard sample coverage level of $300,000 in dwelling and liability coverage with a $1,000 deductible. Take a look at average rates for other coverage levels below.
| Coverage level ($1,000 deductible) | Average annual rate |
|---|---|
| $200,000 dwelling, $100,000 liability | $1,921 |
| $200,000 dwelling, $300,000 liability | $1,921 |
| $300,000 dwelling, $100,000 liability | $2,506 |
| $300,000 dwelling, $300,000 liability | $2,506 |
| $400,000 dwelling, $100,000 liability | $2,974 |
| $400,000 dwelling, $300,000 liability | $2,974 |
| $600,000 dwelling, $100,000 liability | $3,750 |
| $600,000 dwelling, $300,000 liability | $3,751 |
| $1,000,000 dwelling, $100,000 liability | $5,041 |
| $1,000,000 dwelling, $300,000 liability | $5,041 |
USAA home insurance discounts
USAA offers a good list of home insurance discounts. You’ll save the most -- more than 50% -- with the new home discount, but a combination of other discounts can also add up to big savings.
| Discount | Average rate before | Average rate after | % discount |
|---|---|---|---|
| New Home | $2,349 | $1,110 | 53% |
| Advance Purchase | $2,475 | $2,145 | 13% |
| Age of home | $2,440 | $2,150 | 12% |
| Claims Free | $1,128 | $1,015 | 10% |
| Separate Wind-Hail Deductible | $2,563 | $2,284 | 10% |
| Upgrades | $2,596 | $2,318 | 10% |
| Bundle | $2,418 | $2,283 | 6% |
| Construction type | $2,352 | $2,229 | 4% |
| Loyalty | $2,455 | $2,337 | 4% |
| Burglar Alarm | $2,367 | $2,359 | 1% |
| Fire Alarm | $2,335 | $2,321 | 1% |
| Sprinklers | $2,335 | $2,309 | 1% |
What makes USAA home insurance rates go up?
Your USAA rates will go up if the company sees an increased risk for any reason. Below are a few reasons for higher rates; as you can see, claims will increase your rates the most.
| Reason | Average rate before | Average rate after | % increase |
|---|---|---|---|
| Age of home | $2,141 | $2,178 | 2% |
| Claims | $2,346 | $2,979 | 29% |
| Home-Based Business | $2,485 | $2,560 | 3% |
USAA vs. competitors: How does USAA stack up?
While we didn’t rank USAA in our best home insurance companies list due to its eligibility requirements, we did survey USAA customers. Although USAA was highly recommended and seen as trustworthy, it didn’t perform as well as competitors like State Farm or Allstate when we asked about overall customer satisfaction, ease of service and policy offerings. The results are shown below.
| Company | Average annual rate | Customer satisfaction | Ease of service | Policy offerings |
|---|---|---|---|---|
| USAA | $2,506 | 79% | 79% | 71% |
| State Farm | $2,169 | 85% | 87% | 82% |
| Allstate | $2,098 | 83% | 82% | 81% |
Who qualifies for USAA home insurance?
To buy a USAA home insurance policy, you must be a member. You’re eligible for USAA membership if you are:
- Current military
- A veteran, retired or with an honorable discharge
- A pre-commissioned officer
- The spouse of a member, including widow/widower or divorced as long as you haven’t remarried and your spouse was a member during your marriage
- The child of a member
Contact USAA for questions about eligibility.
What do people ask about USAA?
We looked at what people are asking about USAA home insurance to provide some answers.
How do I get a USAA home insurance quote?
You can get a USAA homeowners insurance quote online or by calling USAA to speak to a representative.
Why is USAA homeowners insurance so expensive?
USAA ranked among the cheapest home insurance companies in our rate analysis. If your rates are expensive, it may be due to personal risk factors; call USAA to discuss your rates.
Why are USAA home insurance rates going up?
USAA home insurance rates are increasing along with rates from most other companies in response to increased claim costs and inflation. An S&P Global report shows USAA’s rates have gone up 34.7% since 2022. While that’s a lot, it’s not as much as many other companies.
Is USAA a good homeowners insurance company?
USAA has a good reputation for home insurance and performed generally well in our survey. It has a low NAIC complaint ratio and low rates. Here’s more from our survey.
Do people trust USAA?
Our survey found USAA to be generally trusted;79% of customers said they trust the company; however, several companies rated better, and American Family topped the category at 89%.
Do people recommend USAA?
A solid 88% of USAA customers surveyed said they would recommend the company to others. Several companies had better numbers here, and Erie topped the category at 95%
Do people plan to renew with USAA?
USAA customers are loyal; in our survey, 89% said they plan to renew their policy. However, several companies ranked at 90% or higher.
Is USAA good at paying claims?
Although J.D. Power doesn’t rank USAA due to its eligibility requirements, it earned the highest score of any company in the 2023 claims satisfaction survey at 906 out of 1,000. If ranked, it would have taken first place in the survey.
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