- Great policy options and discount available, especially for Texas homeowners
- A+ rating with the BBB (Better Business Bureau)
- Constantly expanding number of states covered
- Only available in 21 states
- Online quotes are unavailable
- Split customer ratings
With just under 20 years of experience in the insurance industry, Homeowners of America Insurance Company (HOAIC) serves nearly half of the US. Their goals for expansion prove to be fruitful considering their reach increased by 14 states to a total of 21 within the last 5 years.
Their Vice President has been in the insurance business for a little over 40 years. Was this the experience that this young company needed?
Keep reading to see our in-depth review of HOAIC. We’ll go over their reviews, claims, products, and more!
HOAIC home insurance premiums & discounts
HOAIC doesn’t have a way to access an online quote, which may be our first gripe. Their site leaves you no choice but to call an agent in your area. Luckily, they have a zip code search that will provide you with a list of agents serving your area.
We can tell you that, based on your area, your homeowners insurance can range from $560 to $1,945 a year for $200,000 worth of dwelling coverage. According to Dick Law Firm, HOAIC will cover dwellings from $50,000 to $750,000.
We can also tell you that HOAIC has a list of discounts available to sweeten the deal. The location of availability varies with each of these discounts, but they include:
- Multiple policy discounts: You can receive a percentage off when you bundle your HOAIC insurance endorsements.
- Advanced Shopper Discount. You will receive a quote at least one day before the effective date of the policy you signed-up for. This is only available in Texas.
- Claim-free renewal: This discount applies when you renew your policy without a history of claims.
- Accredited Dwelling: You can receive a discount on your insurance if your home is less than 5 years old and was built by one of 340 accredited construction companies.
- New buyers: You can receive this discount when you start your HOAIC policy with a new home purchase.
- Security features: This ensures you receive a discount for the purchase of extra security features in your home. These could be fire or burglar alarms installed on your property in a gated community.
- VA loan discount: This discount is applied to VA loans provided to veterans.
- New Roof: The New Roof discount is available to homes 10 years old or more with a roof that is 2 years old or younger.
- Fire Department Tax Credit. If you live in the cities of Fountain Hills or Carefree, you will receive a 1.35% discount. Available in Arizona only.
- Hail Resistant Roof. If your home’s roof meets certain company standards, a hail-resistant roof discount will be automatically applied to your premium. This is only available in Texas.
HOAIC is gracious enough to provide us with a brief overview of what a policy could look like, though. With a list of coverages available, we’ll be able to delve into the possibilities they provide for their customers.
HOAIC homeowners coverages & endorsements
HOAIC offers the standard 8 coverages available for homeowners in qualifying service areas. These include any combination of dwelling, other structures, personal property, loss of use, liability, and medical payments.
Their coverages can be bundled to your liking according to your location. Texas seems to win regarding total coverage and policy options available. Only here can you receive the extent of HOAIC’s services. This encompasses homeowners, renters, condos, dwelling fire/landlord, and flood insurance.
Regardless, all 21 covered states can enjoy HOAIC’s homeowner’s insurance. Here are the states where you can get covered by this provider in 2023:
There are also additional coverages some of these homeowners can benefit from.
Equipment breakdown coverage
This endorsement protects you from expensive equipment breakdowns. When items like appliances or computers are stricken with disaster, this supplement could save you thousands. Equipment breakdown coverage with HOAIC will take care of $100,000 worth of damage tops.
This includes $10,000 worth of spoilage coverage which will take care of any loss of goods due to your broken appliance. With a small deductible, this endorsement is available in partnership with Travelers BoilerRE, a trusted equipment breakdown insurance company, for over 100 years.
Refrigerated personal property
If your insured property has a freezer or refrigerator, HOAIC will cover up to $500 if the power goes out or the unit breaks due to conditions beyond your control. There’s a $100 deductible for this endorsement, and might be handy with equipment breakdown coverage.
Replacement cost on personal property
Your typical insurance policy will cover the actual cash value of your property when considering how much it costs to replace it. This is different from a replacement cost, which is how much your property is worth regardless of its current condition.
This endorsement allows your belongings to be repaired or replaced based on their replacement cost value. This leaves insurers with more bang for their buck when claims are made to help with the costs of expensive damaged items.
Inland flood endorsement
This inland flood endorsement is designed specifically for residents living in moderate flood-risk areas. Those at risk of flooding can enjoy coverage for their residence, other structures, and even their personal property. Inland flood coverage provides a debris removal service and will pay for the costs accumulated from extra living expenses. With their partners at MunichRe, this additional coverage is available for up to $50,000 worth of coverage.
Increased limit on jewelry & watches
Speaking of personal property values, it’s clear that your jewelry may have more value than some of your other items. In this case, HOAIC offers an increased personal property limit on your fine jewels and other priceless garnishments.
With this endorsement, your finer things get set into categories with raised limits. These categories include furs, jewelry, and watches. In case of a covered loss, your finest possessions will be covered up to a limit of $5,000 with an increased deductible.
Pet coverage
Let’s say a listed peril on your HOAIC policy has rendered you unable to live in your home. When you are temporarily displaced, this endorsement covers kenneling of your dog or cat. This means you’re covered if you need to kennel your dog or cat while you look for new digs.
Additionally, this coverage helps pay for your pet’s veterinary bills if they’re injured or killed in the line of damage done to your home. The pet coverage endorsement’s maximum payout is $500, and there’s no deductible.
Service line coverage
Service lines refer to the utility pipes that provide water, natural gas, or waste disposal to or from your home. This endorsement covers the cost to replace or repair underground pipes or wires that were damaged due to a leak, break, rupture, or collapse.
This endorsement limits liability to $10,000, including costs from excavation, loss of use, and outdoor property. The service line coverage pays only the portion of the loss that exceeds $500, and no other deductibles apply.
Identity theft
Provides policyholders with up to $15,000 in reimbursements for applicable expenses, such as legal fees. A $100 deductible will be applied before reimbursements are made.
Mortgage extra expense
This additional insurance coverage will help you take care of additional mortgage costs if something detrimental happens to your home. If your house needs to be rebuilt and your mortgage interest increases, this endorsement will pay the difference.
This coverage only pays for up to $250 per month of extra costs with $10,000 worth of total coverage. Additionally, HOAIC will reimburse you for up to $2,000 worth of appraisal and application fees associated with the replacement of your home. No other deductibles apply here.
HOAIC claims process
HOAIC boasts “Claim Service You Can Rely On”, but how much can they back that up? With fairness, speed, and professionalism in mind, their 24/7 claims team declares to be there every step of the way.
This promise appears to fall short in the eyes of its customers. Some declare that, instead of being supportive every step of the way, they tend to be more stingy with estimates.
You can report a claim by calling HOAIC directly at 1-866-407-9896, reporting the claim online on their website, or sending an email to claims@hoaic.com.
HOAIC customer satisfaction
There appear to be mixed reviews for HOAIC online. Half the reviews rave about their responsiveness and genuineness, while others declare the opposite. Reviews on some sites are literally 50/50 regarding excellent vs. poor ratings.
A few of their (likely now former) customers used terms like “ethically challenged”, and “the absolute worst” to describe HOAIC.
HOAIC financial strength
Despite lackluster reviews from customers in the wild, the Better Business Bureau reflects the HOAIC’s response rate at 97%. As of the day this article is written, they’ve received 29 total complaints in the last 3 years. Of those complaints, 13 have been closed in the last year.
Due to this company’s youth, AM Best has yet to provide a rating for HOAIC. And yet, Demotech has provided HOAIC with another A+ “exceptional” rating in terms of financial stability. They describe how their net premiums have tripled over the last 3 years.
Final verdict
Founded by Spencer Tucker in 2005, Homeowners of America Insurance Company (HOAIC) focuses entirely on homeowners, condo, renters, landlord, and flood insurance policies. Their first home insurance policy was written in Texas, although the company was founded in Delaware. By 2012, they were one of the largest home insurance companies in Texas.
This company has had outstanding growth, having been in business for such a short time. HOAIC is even comparable to State Farm or Progressive regarding consumer range and satisfaction.
The problem is, there isn’t enough information to put all our eggs in this basket. Even with an A+ review with the BBB, there are still many complaints about their sluggish claims and unresponsive customer support team.
The good news is, if you’re a Texas homeowner, you have a wide variety of insurance products to choose from. They seem to be rapidly expanding, so more states may be able to enjoy their coverage before too long. Conclusively, if their service is available in your area, it wouldn’t hurt to give an agent a call to see where you can save.
