USAA came into existence in the roaring 20s when 25 army officers sought insurance. Military personnel were deemed high-risk individuals due to their frequent absence from home, among other factors. This made it difficult for them to acquire insurance from most companies, given their line of service.
Initially, USAA only provided military insurance, but over time their services expanded to include banking and investment opportunities. USAA (United Services Automobile Association) extends beyond home insurance by providing military personnel, retirees, and their families, with an array of services.
Today, USAA maintains a spot on the list of top 10 property and casualty insurers in the country with over $25 billion in net premiums written. Their services include retirement planning, banking solutions, plus insurance for health, life, pets, travel, and all sorts of property.
When it comes to USAA home insurance, we wanted to know more about what kind of coverages and premiums we could expect. In this review, we’ll tell you what we found out. Plus, we’ll get the inside scoop on customer satisfaction and financial ratings.
USAA homeowners insurance coverages
USAA vows to provide quality coverage and exceptional service to its homeowners. As such, they offer the essential coverages a person could need to protect their home and property from certain damage. As a bonus, their site is pretty forthcoming with information about their home insurance.
At the risk of pretending to be a part of the brave men and women of America, we needed to use USAA’s online quote tool to find out more. This flow was very simple and straightforward, skipping all the extensive questions we were used to.
Nevertheless, we told the system that we were a retired veteran of the army and plugged in our usual test address. In Central Arkansas, there’s a home on the market that we put into quote tools for most of our reviews. It’s a 1,220-square-foot home built in 1986 with plenty of outlying structures. Arkansas is prone to high wind damage, causing annual premiums in the state to steadily skyrocket.
After putting in the address and going through the easy-to-use tool, we were met with these coverages:
|Personal Belongings||$108,332 (50%)|
|Other Structures||$21,666 (10%)|
|Loss of Use||$43,333 (20%)|
|Water Backup/Sump Pump Overflow|
|Wind and Hail Deductible||$4,333 (2%)|
|All Perils Deductible||$2,166 (1%)|
This policy comes with standard replacement cost coverage without depreciation. They’ve also automatically tacked on Home Protector coverage, which includes 25% more coverage toward rebuilding costs. In our case, that would equal around $50,000 more toward rebuilding, debris removal, building ordinance, or law requirements.
Not to mention, water backup coverage was given to us without a second thought. You can usually find coverage like this as an endorsement.
We told the quote tool that we were a retired veteran. In this case, our policy doesn’t outline the special coverage available to active duty members. Even when they’re deployed, active-duty military members have protection over their military equipment, including uniforms and other gear. These homeowners will have their deductibles waived if a personal property like this is damaged or lost during a war.
USAA homeowners enjoy a few other perks as well. For one, customers can save 10% on PODS moving fees and 15% on PODS storage rental fees. They can also benefit from savings on ADT home security installations and select projects from Anji.
Thanks to their many other partners and sponsors, USAA customers have the luxury of discounted products and services from various businesses, like FedEx, Enterprise, and more.
Check out our other reviews to see how USAA compared in terms of coverage. You might be surprised to see how USAA immediately provides us with more areas of protection than other companies.
USAA homeowners insurance premiums
Now that we know what kind of coverage USAA is capable of giving us, let’s see if their prices make sense. For the coverages we received, we expect an average of around $1,850 based on the location we put in.
Remember, Arkansas is a state that sees a significant number of claims each year due to high winds and hail. As a result, we predicted our annual premium would be a little on the higher side. This is especially true since the home is nearly 40 years old with an older roof.
As it turns out, USAA provided us with a decent premium. Look at how USAA compared to other companies with quote tools we’ve reviewed:
|Insurer||Dwelling Coverage||Annual Premium|
USAA offered us more coverage for less money than GIECO, Progressive, and Hippo. Considering a couple of these insurers are strong contenders on the market, we find this incredibly substantial.
We still can’t ignore the fact that we could get even more coverage for hundreds less with State Farm, Allstate, and Farmers. State Farm and Allstate are higher up on that list of top 10 home insurers we mentioned earlier, so this is to be expected. The competition is thick between popular brands and their prices.
USAA home insurance discounts
Based on the information we provided during our quote, we were provided with additional discounts and savings. These allowances permitted hundreds of dollars in savings and included discounts like:
- Claims free: We get a 15% discount for not filing a claim in 5 years or more.
- Protective devices: 5% was taken off our premium for having monitored fire and security alarms installed on the property.
- Early quote: We receive a discount for getting a quote just before a home purchase.
- Roof age: We told the quote tool that our roof was 5 years old, so we received a discount for having a roof with an age that meets their requirements.
- Home age: Our test home is almost 40 years old, but still meets the requirements for the home age discount.
There were a few other discounts which we didn’t quite qualify for. The Connected Home discount would have provided us with a small percentage off our premium if we had smart devices installed in the home. And of course, the Bundle & Save discount would have provided us with 10% savings if we had more than one policy open with USAA.
Clients can expect to receive numerous benefits when partnering with USAA. Their exclusive target audience allows the company to concentrate on providing only the highest quality services, which leads to excellent customer contentment.
The NAIC registered less than the average amount of complaints against the company in 2022. On their National Complaint Index, the average level is set at 1.00 by default. USAA earned a 0.37 spot on the scale.
The BBB tells a different story, however, with over 3,000 complaints launched against the company in the last 3 years. Suffice it to say, USAA is not accredited or rated by the BBB, despite their nearly 100 years of industry experience.
Elsewhere on the internet, customers are either exceedingly grateful for USAA’s service and knowledge or extremely disappointed in it. While one customer describes this insurer as “World Class” for years of positive service, another will defame the company as incapable, inconvenient practices.
If you find yourself needing to file a claim with USAA, you can go to their site and do it from there. They have plenty of information available to teach you about their process. Plus, you can view your policy details and track your claim from the same place.
The NAIC noted more complaints about car insurance and not home insurance. Still, it showed that claims delays and unsatisfactory settlements were the biggest problems.
Much like their reviews for customer service, reviews for claims are generally split. Thousands of customers are chiming in to thank USAA for a positive claims experience, where horrible experiences turned into happy endings. Thousands of others are ready to switch based on ALLCAT adjusters and confusing, lengthy practices.
Due to its longevity in the insurance sector, USAA has very favorable financial stability ratings. For example, AM Best has provided the company with an “A++ Superior” Rating for financial strength, and an “aaa Exceptional” rating for long-term issuer credit.
Weiss Ratings followed suit by giving USAA a solid “B” as an insurance safety rating. This just means the company offers decent financial strength with the ability to deal with different adverse economic issues.
To summarize, USAA has been providing American heroes with quality property insurance for nearly a century. With it, customers can enjoy several perks and discounts, along with a decent annual premium to match.
Their customer service and claims processes are hit or miss. This just means you should make sure you get stuck with agents and adjusters who are knowledgeable and personable.
If you’re in the military or have since retired from your line of duty, you and your immediate family members may thoroughly enjoy USAA’s products and services. Otherwise, you can use this review to find an alternative that meets your needs regardless of your employment status.