An overview of USAA
The USAA or the United Services Automobile Association provides not just home insurance, but retirement planning, banking, financial counseling, and investments as well, to active-duty and retired personnel in the military, including their families. The company offers a lot of benefits to their clients.
25 army officers who were looking for insurance back in 1920 founded USAA. Since military members are serving people and going to war, they were considered as a high-risk group, that is why most insurance companies don't want to provide insurance to military personnel. At first, the company just offered military insurance, but as time changed, they expanded their services and included investment and banking.
Today, the company is serving over 11 million military members and is still growing. They are located in San Antonio, Texas and have received a lot of great feedback and reviews. USAA services are for the U.S. military, U.S. Armed Forces, and National Guard and Reserve members and their families only. That is why they have more focus to serve the best and quality services for their customers, resulting in great customer satisfaction.
They offer an affordable rate and a comprehensive homeowners insurance policy to the members of the U.S. military and their families. They also provide the best customer service in the financial industry.
Is USAA's claim true?
We found that USAA's claims about their company are all true. Even if the company doesn't offer a lot of discounts on their home insurance policies, they offer affordable rates. Consider getting home insurance together with your auto insurance so you can save more on your policy, your premium would be much lower.
They offer a comprehensive home insurance policy to veterans, military members, and its families. It covers most of the major risks or damages that might occur in your homes such as vandalism, fire, natural disasters, and theft, and you can have an option to customize your policies just in case you need more protection on some valuables like electronics and jewelry. They also cover military uniforms and lost belongings, and will pay the full rebuilding cost of your home, without considering its depreciation factors.
When it comes to their customer service, USAA's is one of the best. It is one of the highest-scored insurance company in some of the major insurance rating agencies. Customers are giving excellent reviews, from the policies they cover, their rates, and how helpful and hospitable their agents are. Indeed, USAA is one of the best providers of home insurance for military personnel.
USAA Home Insurance Coverage
Their standard home insurance policy covers:
- Belongings such as computers and other electronic devices
- Loss of use coverage
- Home structures such as roof and exterior walls
- Liability protection
- Hazards such as vandalism, theft, weather damages, and fire
Other than those mentioned above, they also offer some unique benefits that you won't usually find in other home insurance companies, including:
- Identity Theft - Losses related to identity theft will be covered and USAA will provide 5,000 USD.
- Replacement Cost - The company will reimburse the cost of the damaged or stolen belongings to replace them.
- Military Uniform - If you’re on active duty, and your uniform gets lost or stolen, the company will reimburse you.
They don't offer a lot of discounts, because they already offer affordable rates. However, you can save more by following the tips below. Not just in USAA, but in all insurance companies as well.
- Try to consider choosing high deductibles. It might cost more when you file a claim but your monthly premium will be reduced.
- If you have a security system installed in your home, there will be a high chance that you’ll be given a discount.
- To get the most coverage out of the money you've paid, compare rates from several companies.
- Maintain high credit score as this tells the insurer how responsible you are with your bills.
- Most insurance companies offer discounts when you get home and auto insurance in a bundle.
- Make your home disaster-proof.
Consumer and Financial Strength Ratings
In comparison with its competitors, such as State Farm, they both have excellent customer service. However, USAA is more affordable than State Farm’s rates, so even if they have discounts, it won't help you save more. In the J.D. Power Homeowners study in 2018, USAA is rated to be among the best, next to Amica Mutual. While State Farm is only about average.
Clearsurance also gave a high customer service rating to USAA. They got 4.67 stars out of 5, which means that their customers are very pleased with their services. Customers are saying that they've been with USAA for a long time and its great service hasn't changed. There are a few negative feedbacks from them, however, those are outnumbered by positive ones.
A.M. Best Rating gave the company an A++ for their financial strength, which is the highest of the 16 possible ratings. The company's rating is the same as Geico's and State Farm's.
Pros and Cons
You can get more advantages to USAA than disadvantages. Here are the pros and cons of this company:
- You don't have to pay anything if your home is damaged because the company will cover the replacement costs without factoring the depreciation.
- Their claims service is 24/7.
- They will replace stolen or damaged items in your home.
- Policies are customizable.
- They have mobile apps suited for Android and iOS devices to bring more convenience to customers.
- They only provide home insurance to retired and active-duty military and its families.
- USAA doesn't have offices in other locations so you have to call or email them when you have inquiries.
- The company only offer a few discounts.
If you're a member of service personnel and planning to get insurance for your home, USAA can be one of the best options for you. Read our article to learn more about home insurance for military and veterans.
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