USAA Home Insurance Review 2024 (2024)

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Our Expert Take

Our Expert Take

We believe USAA is an excellent option if you’re in the military or from a military family. The insurer has low prices and offers quality service to service people. USAA also offers many discounts through the company’s perks program, including hotels, rental cars and cruises, which we think is an added benefit.

States Available In

Pros

  • Low rates make USAA an excellent option for military members and their families.
  • Quality customer service evident through its low consumer complaints to state departments of insurance.
  • No banned dog list.
  • Provides extended replacement cost for dwellings, which provides additional coverage beyond dwelling coverage.

Cons

  • Only available to active military personnel, veterans and their families.
  • Doesn’t offer guaranteed replacement coverage, which increases dwelling coverage to replace your home after a problem covered by your policy, regardless of house rebuilding costs.

Best for military and veterans

USAA Home Insurance Review 2024 (1)

Compare Rates

Compare rates from participating partners via EverQuote's website.

4.8

USAA Home Insurance Review 2024 (2)

Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Average cost for $350,000 of coverage

$1,270 yearly/$106 monthly

Complaint level

Very low

Table of Contents

  • USAA Home Insurance Cost Comparison
  • Are You Eligible for USAA Home Insurance?
  • About USAA Homeowners Insurance
  • USAA Home Insurance Discounts
  • Home Insurance Complaints Against USAA
  • Methodology

Show more

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USAA Home Insurance Cost Comparison

USAA offers excellent home insurance rates when compared to other top companies helping it to make the Forbes Advisor list of best home insurance for military and veterans.

Home insurance companyAnnual average cost for $350,000 coverage Dollar difference from national average of $1,678 a year
Progressive$729-$949
Nationwide$1,157-$521
Erie$1,256-$422
USAA*$1,270-$408
State Farm$1,298-$380
Allstate$1,395-$283
Auto-Owners$1,525-$153
Source: Quadrant Information Services.*USAA home insurance is open only to members of the military, veterans and their families.

Are You Eligible for USAA Home Insurance?

You can join USAA only if you are a current military member or veteran, or the spouse of a military member. Children of military members are also eligible.

About USAA Homeowners Insurance

Started in 1922 by selling insurance policies to 25 Army officers, USAA has been serving military members and their families ever since. USAA is the third-largest home insurance company in the United States.

The homeowners insurance policies from USAA provide the standard types of coverage that you’d expect:

  • Dwelling coverage pays for damage to your house and its attached structures, like a garage or deck.
  • Other structures coverage pays for damage to detached structures on your property, like a shed or fence.
  • Personal property coverage pays for theft or damage to your belongings such as furniture, electronics, clothes and valuables.
  • Liability insurance covers accidental property damage and injuries to others, such as a guest who slips on your icy sidewalk. It also pays for your legal defense if you’re sued over an incident that’s covered by your home insurance policy.
  • Additional living expenses covers extra costs such as restaurant meals, hotel bills and services (like pet boarding) if you cannot live in your home due to a problem covered by your policy (like a fire).
  • Medical payments coverage pays the medical bills of people who blame you for accidental injuries, without regard to fault. Coverage is typically in small amounts, such as $1,000 to $5,000.

Home insurance policy add-ons are available from USAA, such as:

  • Extended replacement cost, which provides additional coverage for your dwelling if repair costs exceed your stated dwelling coverage amount. This is especially good in times when there’s widespread damage (such as tornado damage) and construction costs spike. USAA offers extended replacement coverage of 25% or 50%.
  • Home sharing coverage offers protection when you rent out your house or just a single room.
  • Earthquake insurance pays for repairs to your home if it is damaged in an earthquake.
  • Flood insurance covers flood damage to your house structure and/or belongings.
  • Valuable personal property insurance pays the replacement cost of your valuables (as opposed to the depreciated value) and does not have a deductible.

In addition to homeowners insurance, USAA sells condo, renters and rental property insurance. USAA also sells umbrella insurance, which provides excess liability insurance.

USAA Home Insurance Discounts

USAA home insurance discounts can include:

  • Bundle and save discount of as much as 10% on USAA home insurance when you have a USAA auto insurance policy.
  • Claims-free discount of 15% if you go without a claim for five or more years.
  • Protective device credit of 5% when you install an ADT home security system.
  • Loyalty discount reduces your home insurance costs if you’ve been a long-time USAA customer.
  • Roof age discount can reduce your home insurance premiums based on your roof’s age.
  • Early quote discount provides a lower rate if you get quotes before your policy’s effective date.

Home Insurance Complaints Against USAA

USAA has a very low complaint level compared to the industry average. The most common reason for a complaint about USAA involves claim handling, including delays and unsatisfactory settlements/offers, according to the National Association of Insurance Commissioners.

USAA Home Insurance Review 2024 (3)

Methodology

To find the best home insurance we scored companies based on these factors:

  • Home insurance rates (50% of score): Based on average rates for each insurance company for homes with dwelling coverage of $200,000, $350,000, $500,000 and $750,000.
  • Complaints (20% weight): Based on complaints about home insurance that were upheld by state insurance departments. Source: National Association of Insurance Commissioners.
  • Availability of extended and/or guaranteed replacement cost coverage (20% of score): Extra dwelling coverage is valuable in the event of large disasters, when construction materials and labor costs tend to spike. We gave points to companies that offer either extended or guaranteed replacement cost coverage. Source: Forbes Advisor research.
  • Banned dog lists (10% of score): Banned dog breed lists can make homeowners ineligible for coverage. (A company’s banned dog list might not be applicable in all states.) While any homeowners insurance company could potentially ban any dog with a biting history, not all put a ban on specific breeds. Source: Forbes Advisor research.

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USAA Home Insurance Review 2024 (2024)

FAQs

USAA Home Insurance Review 2024? ›

Our team rated USAA 4.5 out of 5 stars based on its below-average costs for basic home insurance coverage and financial stability. USAA received an A++ financial strength rating from credit rating agency AM Best, which shows a superior ability to pay potential claims.

Is USAA dropping homeowners insurance? ›

30, 2023: USAA announced it will begin to limit California home insurance coverage in March 2024. USAA plans to tighten its wildfire safety standards and only insure homes with a wildfire risk score below 12, with 32 being the highest possible.

Why is USAA homeowners insurance so high? ›

Risk Assessment: Balancing Protection and Peril

The foundation of insurance pricing lies in risk assessment. Insurers like USAA meticulously evaluate various risk factors, including geographical location, property value, and potential hazards, to determine appropriate premium rates.

What are the disadvantages of USAA? ›

Cons
  • Not all homeowners can qualify for USAA.
  • Customer service hours are limited.
  • May not offer as many discounts as some carriers.

Why does USAA have an F rating? ›

A check of the BBB website provides a few answers. The failing grade is due to two stated reasons. The first is that the company agreed this year to a $15 million settlement with the U.S. Consumer Financial Protection Bureau over how USAA's banking arm mishandled thousands of personal checking accounts.

Which homeowners insurance company has the highest customer satisfaction? ›

The best home insurance companies at a glance
Best home insurance categoryCompany winner
Best for consumer satisfactionAmica
Best coverageAndover Companies
Best for high-value homesChubb
Best for using an agentCountry Financial
2 more rows
3 days ago

Is USAA really the cheapest insurance? ›

Discover if you are overpaying for car insurance below. Key Takeaways: Backed by over 765 hours of research, we found USAA car insurance rates are some of the cheapest in the nation, so we designated it as having Low Rates for Military Members.

Who is the number one home insurance company in America? ›

State Farm is the largest home and auto insurance company in North America, capturing 17.79 percent of the home market and 18.31 percent of auto.

What is the lawsuit against USAA? ›

Plaintiffs allege that USAA acted in violation of the law because USAA has, among other things, failed to provide required information to the members of the Class that would enable them to determine if USAA should have paid or otherwise reimbursed the Class members for certain payments.

Is USAA cheaper for homeowners insurance? ›

With an annual average rate of $2,196, USAA homeowners insurance costs less than the national average of $2,417. USAA is also less expensive than many of our top picks for home insurance companies, including State Farm, Allstate and Nationwide.

Is USAA insurance in financial trouble? ›

For 2022, USAA reported a net loss of $1.3 billion, its first loss for a full year since 1923 — 100 years ago. Also, USAA said its net worth — basically, the difference between what it owns and what it owes — declined dramatically from $40.1 billion in 2021 to $27.4 billion in 2022.

Why is USAA so expensive? ›

High Standards of USAA

They provide an exceptional range of coverages that protect against numerous perils, often surpassing the standard offerings of other insurance companies. This excellence, while attracting many homeowners, contributes to the higher cost of their insurance policies.

Is USAA trustworthy? ›

USAA has some of the highest customer satisfaction ratings of any major U.S. car insurer.

What has happened to USAA? ›

For 2022, USAA reported a net loss of $1.3 billion, its first loss for a full year since 1923 — 100 years ago. Also, USAA said its net worth — basically, the difference between what it owns and what it owes — declined dramatically from $40.1 billion in 2021 to $27.4 billion in 2022.

What is the average cost of homeowners insurance for USAA? ›

With an annual average rate of $2,196, USAA homeowners insurance costs less than the national average of $2,417. USAA is also less expensive than many of our top picks for home insurance companies, including State Farm, Allstate and Nationwide.

Why did my homeowners insurance get Cancelled? ›

Common reasons for nonrenewal of home insurance include a history of frequent claims, failure to maintain the property, living in a high-risk area prone to natural disasters, changes in underwriting guidelines or risk assessment by the insurance company and failure to pay premiums on time.

Is it hard to get homeowners insurance after being dropped? ›

If your insurer nonrenewed or cancelled your policy because your house needs repairs or you filed too many claims, you may have difficulty finding an insurance company willing to insure your home.

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