Insurance

USAA Home Insurance 2021

USAA started in 1922 when a group of 25 Army officers met in San Antonio with the idea of insuring one another’s vehicles.

Today, USAA offers an array of insurance and financial products for members of the U.S. armed forces and reserves of any rank, along with veterans and their families. Based in San Antonio, USAA operates satellite offices around the United States, as well as London, Frankfurt, Germany, and Luxembourg.

In addition to homeowners insurance, USAA’s portfolio includes insurance for renters, life, health, autos, small businesses, pets, and personal property. USAA Bank offers a full line of checking and savings accounts, loan services, and access to ATMs nationwide. Its services also include investment advice, retirement planning, and other financial products.

USAA has about 36,000 employees worldwide and more than 13 million members. Almost one in four USAA employees is a veteran or a military spouse.

USAA on Twitter: "For many, a new home means a new mortgage. Life insurance  coverage can help pay off liabilities and debts. Review your life insurance  at https://t.co/tv3k7TorMf. #LifeInsuranceAwarenessMonth  https://t.co/yin3LA7CJK" / Twitter

Pros:

  • Excellent reputation for customer service
  • Replacement cost included
  • Digital claims tools available through app

Cons:

  • Must be a U.S. military member or veteran, or a relative of one
  • No local agents or insurance brokers
  • Fewer discounts than competitors

USAA takes the No. 2 spot in our Best Homeowners Insurance Companies of 2021 ratings. USAA offers bundles with its other insurance options and financial programs that can decrease your cost. The company is rated No. 1 in the U.S. News Best Car Insurance Company ratings. USAA also has discounts for having a monitored home security system and being claim-free, but it offers fewer of these types of incentives than its competitors in our ratings.

USAA’s customer service is consistently top-rated, with professional reviews praising it for its high customer satisfaction rates. It also includes the full-cost replacement in all its policies.

If the worst happens and you need to file a claim on your insurance, USAA offers multiple ways to file, including through its website or its mobile app.

USAA has an A++ financial strength rating from AM Best, a leading insurance company credit rating agency. Its products are only sold through its own agents, you won’t find it in comparison shopping sites or through insurance brokers.

What Homeowners Insurance Coverage Options Are Available From USAA?

Users First: An Interview With USAA's Tatiana Miller » Dallas Innovates

USAA includes typical protections offered by most insurance companies in a standard homeowners policy, providing coverage for your home, outbuildings, furniture and other possessions damaged by fire, theft, vandalism, and most natural events, except for floods and earthquakes. You can buy optional coverage for floods, which may be required depending on where you live. Check with USAA or your mortgage lender if you’re not sure. USAA also sells insurance policies with similar benefits for condo owners, renters, landlords, home-share property owners, and income property owners.

A standard homeowners insurance policy includes guest medical and personal liability insurance to help pay for medical care and damages resulting from injuries to others on your property, and loss-of-use coverage for living expenses if your home is uninhabitable after a claim. In addition, standard homeowners insurance coverage provides up to $5,000 to help pay fraudulent credit card expenses and other damages resulting from identity theft, although this coverage is not available in North Carolina. USAA also pays for the replacement of military uniforms that are damaged or destroyed as part of its standard coverage.

USAA further includes standard home replacement cost coverage, meaning it will pay to repair or replace your home and possessions at current value with no depreciation factored in.

Where Is Coverage Available From USAA Homeowners Insurance?

What Homeowners Insurance Discounts Are Offered by USAA?

USAA offers three main homeowners insurance discounts:

  • Multipolicy discount: Bundling a homeowners insurance policy with auto insurance or another type of policy can save USAA customers up to 10% on premiums.
  • Claim-free discount: If you’ve gone five years or longer with no claims on a homeowners or renters insurance policy, you may be able to save up to 10% on premiums.
  • Home-age discount: Newer homes are eligible for a lower rate than older ones.

A variety of other discounts are available for homeowners, depending on factors, including your home’s location and construction. USAA’s online estimating tool can give you an idea of your potential savings. Possible discounts include:

  • Impact-resistant roof: Installing a roof with greater resistance to wind or hail can entitle you to reduced rates.
  • Firewise discount: Residents of states prone to wildfires and living in communities that have taken steps to minimize that risk may be eligible for a discount.
  • Protective device discount: Homes with an alarm system or other protection against fire or theft may be eligible for a discount.
  • Membership loyalty: USAA offers lower rates for members who have been with the company longer.
  • Good payment history: Customers who regularly pay their bills on time may receive better rates.

What Additional Homeowners Insurance Coverages Are Offered by USAA?

Homeowners with USAA can pay a higher premium either to supplement levels in a standard policy or to cover less common events and circumstances. Additional homeowners insurance coverages include:

  • Personal umbrella policy: A standard homeowners insurance policy includes limited liability insurance to guard against lawsuits by visitors injured on your property. Liability limits may not be sufficient if you have a swimming pool, a large dog or something else that can increase the risk to visitors. A personal umbrella policy can provide more protection and help pay attorneys fees and any lost wages.
  • Flood insurance: Minor damage from a burst pipe or another water leak typically is covered under a standard policy, but additional coverage for flooding may be required if your home is located in a flood plain or other potential source of a flood. Even if it is not required by your lender, flood insurance may be a good idea. The Federal Emergency Management Agency estimates that about 25% of all flood claims come from areas with low to moderate flood risk.
  • Valuable personal property insurance: This provides additional coverage for jewelry, firearms, art, and other items with values of $100 or more.
  • Business insurance: A standard homeowners policy covers personal computers and basic home office equipment, but more specialized or expensive items used for a business that operates out of the home may require additional coverage.

How Do I Buy USAA Homeowners Insurance?

To purchase USAA homeowners insurance you must first be a USAA member. Once enrolled you can access its various services and get quotes for insurance. Before you start the process, be clear on how much coverage you need by calculating the amount it would cost to rebuild your home and replace all your possessions.

Follow these steps to buy USAA homeowners insurance:

  1. Apply for membership on the USAA website or by calling. You will need to provide details about you or your family member’s military service. Membership is free.
  2. Register for digital access to your USAA membership account on its website.
  3. Request a quote for homeowners insurance online or by calling.
  4. Have details about your home’s age and construction type, as well as your insurance history ready to give the agent.

How Do I File a Homeowners Insurance Claim with USAA?

You can file a homeowners insurance claim either online, through the mobile app, or by calling USAA directly.

Follow these steps:

  1. In some cases – such as theft or vandalism – contact the police first to file a police report.
  2. Contact USAA as soon as possible – you can do this online, with the mobile app, or by calling.
  3. Take photos and video (if possible) of the damage, and download any pertinent security camera footage.
  4. Make immediate repairs to anything that could cause further damage to your home – such as a water leak. Keep receipts for the work.
  5. Be prepared to provide details of the damage, its cause, and when it occurred. Have any photos, videos, receipts, or repair quotes you’ve collected on hand when you file.
  6. USAA will assign an insurance adjuster to your claim and says you should hear from them within 2 business days.

USAA vs. Lemonade

Lemonade is No. 1 in our Best Homeowners Insurance Companies of 2021 ratings, narrowly beating USAA with a score of 4.7 over 4.3. Its chief advantage over USAA is that it is open to anyone, with no membership required. But USAA is available nationwide, whereas Lemonade only operates in 23 states and Washington D.C. Additionally, you can only buy its policies online or through an app, there are no agents you can call until after you become a customer. Lemonade offers fewer insurance products than USAA and it also doesn’t include Identity Theft coverage. It does have more potential discounts, although there are no bundles. Like USAA, it will replace your items at their full cost. If you aren’t connected to the military and don’t mind getting a quote online, Lemonade may be a good option, otherwise, USAA may suit you better.

USAA vs. State Farm

State Farm offers a lot of the same products and features as USAA, including a good auto insurance bundle. It ties for No. 4 in our Best Homeowners Insurance Companies of 2021 ratings, with a score of 3.8. Its biggest selling point over USAA, beyond being open to everyone, is that it has an extensive list of additional coverages. In addition to insurance bundles, there are discounts available for home alert protection devices, such as smoke alarms, which USAA does not offer. Identity theft protection and full-replacement cost coverage are optional, not included as they are with USAA. As with USAA, State Farm Insurance can be bought online through its website or with an agent.

USAA home insurance rates

USAA’s average annual homeowners insurance cost is $1,509, according to NerdWallet’s rate analysis. This is lower than the national average of $1,585 per year, but higher than the average rates of State Farm, a large national competitor.

How much is USAA home insurance?

We compared USAA’s annual homeowner’s insurance premiums to the national average and rates from three competitors.

FAQ

Am I Eligible for USAA Homeowners Insurance?

Membership in USAA is open to:

  • People who currently serve in the Air Force, Army, Coast Guard, Marines, Navy, National Guard or Reserves.
  • Those who have retired or been honorably discharged from the U.S. military.
  • Widows, widowers and single former spouses of USAA members who joined the company before or during their marriage, and people whose parents joined USAA.
  • Cadets and midshipmen at U.S. service academies or affiliated academy preparatory schools, in advanced ROTC or on an ROTC scholarship, and officer candidates within 24 months of commissioning.

What Does USAA Homeowners Insurance Cover?

A standard homeowners insurance policy with USAA includes coverage for your home, outbuildings, furniture and other possessions damaged by fire, theft, vandalism, and most natural events, except for floods and earthquakes. Coverage for floods and earthquakes is optional.

A standard homeowners insurance policy also includes guest medical and personal liability insurance to help pay for medical care and damages resulting from injuries to others on your property, and loss-of-use coverage for living expenses if your home is uninhabitable after a claim. In addition, standard homeowners insurance coverage provides up to $5,000 to help pay fraudulent credit card expenses and other damages resulting from identity theft, although this coverage is not available in North Carolina. USAA also pays for the replacement of military uniforms that are damaged or destroyed in the home as part of its standard coverage.

USAA further includes standard home replacement cost coverage, meaning it will pay to repair or replace your home and possessions at current value with no depreciation factored in.

What Does USAA Homeowners Insurance Not Cover?

A standard homeowners insurance policy does not cover damage resulting from an earthquake or flood, but this coverage is available at extra cost. Valuable jewelry, art, and other collectibles may exceed the limits of a standard policy and require additional coverage. Moreover, a swimming pool, trampoline, or something else that increases the risk to guests may warrant additional liability insurance.

How Much Does USAA Homeowners Insurance Cost?

Costs vary widely based on a variety of factors. A tool on USAA’s website can give you an idea of costs for your home and its contents.

Does USAA Homeowners Insurance Cover Mold?

USAA provides some coverage for testing, treatment, and removal of mold as part of a standard homeowners insurance policy. Additional coverage may be available in some locations.

Does USAA Homeowners Insurance Cover Water Damage?

Water damage from leaking roofs is often covered by a standard homeowners policy with USAA, but coverage depends on various factors and individual policies. The best bet is to contact USAA directly. Flood insurance is optional.

Does USAA Homeowners Insurance Cover Termites?

Termite damage may be covered, subject to various limits and exclusions. Contact USAA to discuss your particular needs.

Does USAA Homeowners Insurance Cover Theft?

Insurance against theft is included with a standard policy up to the policy’s limits. Valuables may require additional coverage.

Does USAA Homeowners Insurance Cover Roof Leaks?

Water damage from a leaking roof typically is covered as part of a standard homeowners insurance policy with USAA.

Does USAA Homeowners Insurance Cover Tree Damage?

Depending on the cause, tree damage may or may not be covered. Damage from trees felled by wind typically is covered as part of a standard USAA policy.

Does USAA Homeowners Insurance Cover Dog Bites?

Some dog bites may be covered, but USAA encourages members to contact the company with questions.

Does USAA Homeowners Insurance Cover Personal Injuries?

Standard homeowners insurance policies include medical and liability coverage for injuries to guests. Increased levels are optional and may be advisable if you have a pool, trampoline or something else that could increase risk.

Does USAA Homeowners Insurance Cover Fire?

Fire is covered under a standard homeowners insurance policy with USAA.

Does USAA Homeowners Insurance Cover Insect Damage?

USAA’s standard coverage excludes termite and insect damage.

Does USAA Offer Replacement Cost Coverage?

USAA includes home replacement cost coverage with a standard homeowners insurance policy, meaning it will pay to repair or replace your home and possessions at current value without depreciation. Restrictions apply, so consult a USAA representative for details.

Does USAA Offer Military Uniform Coverage?

A standard homeowners insurance policy with USAA includes coverage to pay for uniforms that are lost, damaged or destroyed.

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