USAA Homeowners Insurance Review 2023

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Founded by a group of Army officers, USAA Homeowners Insurance regularly ranks as one of the best banks and insurance providers. Its homeowners insurance offerings for homeowners are no exception. With a straightforward claims process, customizable coverage options, and top-notch customer service, USAA makes home insurance simple. Reports also indicate the company offers some of the more competitive career benefits in the industry.

The downside? USAA products are only available to current and past military members and their immediate families. Extended family, family members who did not sign up under the military member’s account, etc., will not qualify for bank accounts or other financial and insurance products. But if you have a connection to the military, it’s worth checking out.

Here’s the complete breakdown of policy options, costs, customer reviews, and how coverage works.

Types of Homeowners Insurance Plans from USAA

USAA has various home insurance coverage options for different dwelling types. For example, it offers policies for single-family homes, condominiums, farms and ranches, and mobile homes with separate applications and different policies for each type of dwelling. USAA also provides landlord insurance for qualified real estate investors.

For a standard homeowners insurance policy, USAA typically covers the following.

• Coverage A Dwelling: This is what comes to mind for most people when they think about home insurance. It covers the costs of rebuilding or repairing your home. However, it does not cover sheds, detached carports of garages, or other things not directly attached to your home.

  It’s worth noting that replacement cost coverage is standard with USAA. Because of that, USAA provides the cost to replace the item instead of the item’s value, which helps protect against inflation.

• Coverage B Other Structures: Coverage B is automatically set at 10% of the dwelling coverage. So if your replacement costs were $500,000, your other structures coverage would be $50,000 to rebuild sheds, garages, and other detached structures.
• Coverage C Personal Property: Personal property includes items you own. Depending on your coverage, you can usually include personal property claims in theft, vandalism, and other claims. Household items like laptops, cell phones, furniture, and bikes fall within this category. If you need additional coverage for costly items, USAA offers valuable personal property (VPP) coverage for an additional fee.
• Coverage D Loss of Use: This covers hotel and other extra costs if you cannot live in your home due to a covered loss. The quote we pulled from USAA had unlimited coverage D. USAA is the only insurer we’ve seen offering unlimited coverage in any section. In the event of a significant loss, this makes it simpler for families to take care of their immediate needs without worrying about individual costs.
• Personal liability: Policy limits on personal liability could start as low as $1,000. It covers accidents related to your home (for example, if a stair broke), dog bites, and many other issues. If you run a business out of your home, have a larger dog, etc., you may want to buy more liability coverage. Medical payments to others may be added alongside liability coverage.

Additional Coverage Options (Riders)

This review found USAA also offers riders to supplement and personalize your homeowners insurance coverage. Below, you’ll find some popular riders available with USAA. In addition, a property and casualty agent can give you a more comprehensive list.

• USAA Home Protector: This optional add-on closes the coverage gap if your loss exceeds your coverage. With this protection, you can get up to 25% more coverage toward rebuilding costs and other mandated repairs. You must have insurance for at least 95% of the estimated rebuild cost to qualify for the extra coverage.
• Valuable Personal Property: If you have valuables like electronics, specialty watches, or heirloom jewelry worth $100 or more, valuable personal property (VPP) insurance offers additional protection. It requires a deductible, and the policy remains active when you travel.
• Military uniform replacement: This coverage is unique to USAA and is a nod to its military affiliation. USAA will cover the total cost of replacing uniforms

USAA homeowners insurance customers can also get quotes for flood insurance, umbrella policies, hurricane insurance, and other specialty coverage in certain states. USAA may also partner with other companies to offer coverage for products like hurricane insurance.

How Much Does USAA Homeowners Insurance Cost?

USAA Homeowners Insurance provides competitive pricing for home insurance, and many military members report it being the lowest cost regardless of the property. USAA is not ranked in the sense that companies like State Farm would be on the JD Power homeowners insurance study because its coverage is exclusive to military members. However, it maintains a high score listed below the top rankings.

To receive a quote for your property, you must be an active USAA member. Your insurance agent can look up the following information. But they may ask you about recent updates to the plumbing and roof:

• Square footage
• Year it was built
• Foundation
• Roof type
• Exterior materials
• Details about counters and flooring

How to File a Claim

USAA claims can be filed easily online or over its mobile app 24/7. Policyholders can upload photos, schedule services, and speak directly with insurance adjusters for efficient processing and payments. Users report the app is intuitive, and the process is straightforward for many buyers.

For non-tech-savvy policyholders or those who want more help, an insurance agent can also help with claims, or you can talk with a USAA representative over the phone. Call 210-531-8722, and USAA will connect you with the correct person. Representatives are typically available Monday to Friday from 6 a.m. to 10 p.m. CT and Saturday from 8 a.m. to 8 p.m. CT.

Finally, you can chat with the virtual assistant. After logging into your account, you can initiate a chat from the app or on your computer.

USAA Homeowners Insurance FAQs

Methodology: What Went into Our USAA Homeowners Insurance Review

For this USAA homeowners insurance review, we considered many factors, including customer service experience, coverage details, optional coverage availability, customer reviews, and ease of application. We wanted to get an idea of the whole customer experience. Of course, not every customer will do well with any one insurer. But we find these factors combined give an accurate picture of the consumer’s experience.

We compared USAA home insurance to other long-standing insurance providers like Amica, Geico, Progressive, and State Farm. We also considered InsurTech insurance companies like Lemonade and Hippo Insurance. You can also learn more about Insider’s insurance rating methodology.

Compare USAA Homeowners Insurance vs. Amica

Of the companies officially ranked in JD Power’s Home Insurance Study, Amica ranked first in customer satisfaction and customer service. It offers two home insurance options: Standard and Platinum. Some extra features included in the Platinum plan, like water backup and replacement cost coverage, are standard for all USAA home insurance plans. While still cheap, many people like the simplicity of USAA’s approach. Other Amica Platinum coverage options, like extended coverage for valuable personal property, come at an additional cost with USAA.

Policyholders rave about Amica’s dividend return policy option, which returns a portion of your payments if you meet specific conditions. Customers must opt for the dividends policy to receive dividend payments. This policy is more expensive but often saves money over time. USAA has a history of providing dividend payments to customers with auto insurance but does not have a specific dividend policy similar to the one Amica offers.

It’s worth considering Amica Homeowners Insurance for your home insurance needs, especially if you don’t meet the eligibility criteria for USAA.

Compare USAA Homeowners Insurance vs. State Farm

State Farm Homeowners Insurance sells home insurance through captive agents who work for the company and only sell State Farm insurance products. If you prefer dealing with one agent who you can get to know over the years, then State Farm might be a good fit. You can also file a claim directly through your agent, which might be helpful if you’re uncomfortable with technology or prefer personalized care.

State Farm customers may need to pay for additional riders, or services may not be available. Recent homeowners insurance quotes we pulled include water backup and inflation guard as standard parts of the insurance policy. However, the unlimited loss of use coverage we saw on our USAA quote is not included with State Farm homeowners insurance.

If you’re looking for personalized customer service from one agent and can find a top-notch agent, State Farm might be a good fit. But for coverage alone, USAA seems to offer more.

Compare USAA Homeowners Insurance vs. Hippo

Compared to USAA, Hippo is a new InsurTech company. The company was founded in 2015 to make insurance more straightforward and affordable while increasing profits. It aims to accomplish this by moving the entire application and claims process online. However, you can still speak to a representative via phone or video. In addition, Hippo standardizes some of the same coverages as USAA, which may come at an additional cost with other homeowners insurance companies.

One of the main features that sets Hippo Homeowners Insurance apart is that it provides free smart technology for your home to avoid claims. This can be a helpful perk if you’re comfortable with the devices in your home. Hippo also offers free home maintenance advice and checklists in the app.

Hippo only offers home insurance, not other insurance or banking products. It’s also only licensed in certain states. USAA, on the other hand, can provide a host of banking and insurance products in one place, including auto insurance, checking accounts, loans, and more. It also offers services in all 50 states.

If you’re comfortable navigating technology and want to try unique offerings like smart home devices, you might want to consider Hippo.