A group of military officers founded USAA in 1922, and over the ensuing 100 years, the company has expanded to provide military members with a full slate of insurance products. This USAA homeowners insurance review breaks down coverage options, costs and customer reviews to help you decide whether USAA is the right insurance provider for you.
We at the MarketWatch Guides team have researched and analyzed the best homeowners insurance companies nationwide, including USAA. The company is our top pick for military members and veterans, serving active-duty military members, veterans and their family members in all 50 states and Washington, D.C.
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Pros and Cons of USAA Home Insurance
Pros
Available in all 50 states and Washington, D.C.J.D. Power score suggests a high rate of customer satisfactionStandard policy offers personal property replacement cost coverage
Cons
Only available to military members and their familiesLimited discounts and endorsem*nt options
USAA Home Insurance: Ratings Breakdown
The table below provides more details about how USAA home insurance earned its scores in our most recent study.
USAA at a Glance
USAA Home Insurance Coverage
USAA provides comprehensive homeowners insurance options. Its standard coverage includes a few perks that other providers offer only as add-on endorsem*nts, such as replacement cost coverage on personal property.
- Dwelling coverage: After you pay a deductible, dwelling coverage pays for the cost to repair or rebuild your home due to damage from a covered event. It also covers any structures permanently attached to your home, like an attached garage or deck.
- Other structures coverage: This covers property damage to structures that are on your property but not affixed to your home, such as fences, detached garages, sheds and gazebos.
- Personal property coverage: This coverage includes personal belongings within your home, such as furniture, clothing, appliances and computer equipment. USAA provides replacement cost coverage as part of its standard home insurance policies, which offers enough money to replace the full value of damaged or stolen personal belongings. Other companies may provide the actual cash value of your belongings, which accounts for deterioration and depreciation.
- Loss-of-use coverage: If a covered loss leaves your home uninhabitable, USAA will pay for additional living expenses such as lodging, transportation and meals.
- Personal liability coverage: This coverage helps cover medical payments if a guest is injured in your home and requires care. It also covers the cost of damages that a policyholder or covered family members cause to another property.
Additional Coverage Options
For an additional charge, USAA offers the following add-0n coverage items or endorsem*nts:
- Flood insurance: USAA customers can add flood insurance through the National Flood Insurance Program.
- Earthquake insurance: USAA offers earthquake insurance for residents of California through the California Earthquake Authority. Other USAA policyholders can add earthquake coverage for a fee.
- Umbrella insurance: This endorsem*nt offers extended liability insurance for costs that exceed your other policy’s coverage limits, including your home insurance, auto insurance and rental property insurance.
- Valuable personal property insurance: This endorsem*nt boosts your personal property coverage. We recommend this coverage for customers who own high-value items such as jewelry, musical instruments, collectibles and guns.
- Personal cyber insurance: This policy helps pay damages caused by identity theft or other incidents related to a cyber attack.
Cost of USAA Home Insurance
The average annual cost of a USAA home insurance policy is $2,029, which is lower than the national average insurance rate of $2,728. This figure reflects the average cost of a standard policy before discounts or endorsem*nts.
It is important to note that individual homeowners insurance premiums can vary. Your premium costs will consider factors such as:
- Your home age, size and construction
- Your geographic location
- Your credit history
- Your claims history
- Your insurance coverage options, including selected coverage limits, deductibles and endorsem*nts
Since premium costs can vary, we suggest reaching out to USAA directly for the most accurate quote. Cost is an important factor to consider when comparing home insurance providers.
Cost of USAA Home Insurance by State
We at the Guides Home Team gathered 2024 home insurance quotes for the providers in this article using data from Quadrant Information Services. Quadrant is a leading source of property and casualty insurance solutions and data.
Our sample homeowner is a 40-year-old single male with good credit and no prior claims history. Our sample policies featured a $1,000 deductible and the following coverage and limits:
- Dwelling: $350,000
- Other Structures: $25,000
- Personal Property: $150,000
- Loss of Use: $50,000
- Liability: $300,000
- Medical Payments: $1,000
For each provider, we gathered a quote for 50% of the ZIP codes in every state it is licensed in. We used the most populous ZIP codes for our study. We took the average of these individual quotes to calculate national and state average premiums for each provider. Our sample rates are for informational purposes only. Actual premiums will vary.
USAA Discounts
USAA’s list of available discounts is shorter than some other providers, but the few insurance discounts USAA offers can save policyholders anywhere from 5% to 15% on premiums.
Discounts that are available to you should be automatically applied to your projected premium when you get a home insurance quote from USAA online. Available discounts include:
- Bundle-with-auto discount: By bundling your USAA homeowners insurance with USAA auto insurance, you can save up to 10% on your home insurance premium.
- Multi-product discount: You’ll save up to 5% on your home insurance if you have other insurance products from USAA, such as life insurance, renters insurance, umbrella insurance or valuable personal property insurance.
- Loyalty discount: Once you have been with USAA for at least three consecutive years, you can save up to 5% on your home insurance premiums.
- Protective device credit: If you protect your home with a monitored fire alarm or home security system, you can save up to 5%.
- Claims-free discount: If you have made no claims on your home insurance for at least five years, you can qualify for a 15% discount.
- Connected home discount: With qualified smart devices that monitor your home for water leaks, smoke or security breaches, you can save up to 7% on your home insurance premiums.
In addition to its lineup of discounts, USAA home insurance includes several unique perks for active-duty members of the military, such as covering military uniform replacement and military equipment. USAA also covers personal property loss or damage without a deductible if it is a direct result of war.
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USAA Reviews
The Better Business Bureau (BBB) and Trustpilot have a mix of positive and negative customer reviews for USAA. Satisfied customers have commented on the level of personal attention they received from representatives and the ease of USAA’s claim process.
Some customers expressed concern over a perceived trend that USAA has become less customer-focused in the past few years. Other customers have complained about using the company’s website.
“Every time I've had to deal with USAA, it's been a pleasure. [The company has] taken my insurance claims, done its due diligence and gotten everything sorted out with a minimum of stress. [USAA has] put a calming note on the experiences that necessitated calling them.” —Sam B. via Trustpilot
“I have been with USAA through checking, savings, auto insurance, etc. for over 24 years now. It has been the most professional, understanding, knowledgeable and friendly people I have ever met throughout my life.” —Jason B. via BBB
“For most of my adult life, I have loved USAA. For example, I get checks from USAA every winter before Christmas. When I had wind damage, it did not argue with me about the payout. I've never had a service problem. I have [USAA} credit cards, car insurance, homeowners insurance, wrap-around protection and car loans. However, in recent years, as USAA has sought to expand its market, it has severely compromised customer care and its focus. I call it institutional drift.” —Bill P. via Trustpilot
“I have been a customer for several years and have had no issues with customer service, financing or anything really. The issue I have is the security of the site leaves much to be desired. Passwords are limited to 12 characters and the two-factor authentication methods available are either insecure or on a proprietary app/platform that I would only use for this account.” —Steven N. via the BBB
The Bottom Line
USAA is unique in that it offers affordable insurance coverage only to active members of the military, veterans and their immediate families. Its nationwide availability, comprehensive coverage, targeted discounts and added perks make USAA homeowners insurance our top pick for military members and veterans. It also boasts a high financial strength rating from the credit rating agency AM Best.
USAA’s standard policies also provide coverage that competitors typically offer as add-on endorsem*nts, including replacement cost coverage for personal property. Conversely, USAA’s selection of discounts and add-on endorsem*nts are compared to other top insurance companies. If extended coverage or multiple discounts are essential to your choice of home insurance policy, Allstate or Liberty Mutual may better fit your needs.
We recommend that you get a quote from USAA to see if it provides the coverage you need at a price you can afford. If you are not a member of USAA, you need to become one to get a quote.
Frequently Asked Questions About USAA Home Insurance
USAA was founded in 1922 as a car insurance provider for military members. Today, USAA members can purchase a variety of insurance policies, including:
- Auto insurance
- Homeowners insurance
- Renters insurance
- Life insurance
- Health insurance
USAA also offers specialty insurance such as pet, travel and special event coverage. Additionally, the company offers bundling discounts that reward customers with 5% to 10% discounts on premiums when they use USAA for multiple policies.
USAA serves active military members, veterans and their families. If you are a spouse or child of someone who is active in the U.S. military or has been in the past, you may be eligible. Stepchildren, in-laws and grandparents may qualify as well. We suggest contacting USAA’s customer service department for a definitive answer.
With an annual average rate of $2,029, USAA homeowners insurance costs less than the national average of $2,728. USAA is also less expensive than many of our top picks for home insurance companies, including State Farm, Allstate and Nationwide. However, many of USAA’s competitors offer a wider range of discounts and endorsem*nts.
USAA states on its website that it does not have a blanket policy of raising rates for customers after they make a claim. Rate increases are dependent on several factors, such as:
- Rising costs of labor and supplies
- Changes to a home’s structure
- Likelihood of future claims
- Regional changes that increase risk
Most homeowners insurance providers will consider these types of factors when determining premium renewal rates for existing customers.
Methodology: Our System for Ranking the Best Home Insurance Companies
We closely evaluate solar installation companies with a focus on the factors most important to homeowners like you. We based our solar company methodology on input from multiple homeowner surveys, discussions with industry experts and research into the renewable energy market. Our review process involves assessing each company on the following criteria, which we then use to calculate a rating out of 5 stars.
- Cost and payment options (20 points): Cost is one of the most important factors when installing a solar energy system. Solar providers that offer cash purchases and in-house loan financing earn full points in this category. Companies also receive bonus points for offering solar panel leasing or power purchase agreements (PPAs).
- Services (20 points): In addition to solar installations, companies offering backup battery and electric vehicle charger installations, energy efficiency audits and system monitoring earn the most points in this category. Companies can also receive points for completing installations in-house, as opposed to using third-party contractors.
- Reputation (20 points): To assess the reputation of each company, we consider Google star ratings, Better Business Bureau (BBB) scores and reviews, and NABCEP certification status. We also look at customer complaint rates on sites like the BBB and weigh how the company responds.
- Warranty (15 points): We verify that each company offers workmanship, product and performance warranties on all of its solar installs. A provider earns more points for extending warranties that meet or exceed industry standards, including 10 years for system workmanship and products and 25 years for panel performance.
- Customer Support (10 points): Solar companies that offer virtual consultations, a mobile app, 24/7 customer support and high customer satisfaction with backend support earn the most points in this category.
- Industry Experience (10 points): Providers with 10 or more years of experience in the solar installation industry earn a perfect score in this category.
- Sustainability (5 points):To measure sustainability, we assess each company based on whether it shares a detailed sustainability statement or ESG disclosures on its website. We also conduct research to see if companies offer end-of-life panel disposal programs or have eco-friendly community partnerships.
How We Gather Cost Data
We at the Marketwatch Guides Team gathered home insurance quotes for the providers in this article using 2024 data from Quadrant Information Services. Quadrant is a leading source of property and casualty insurance solutions and data.
Our sample homeowner is a 40-year-old single male with good credit and no prior claims history. Our sample policies featured a $1,000 deductible and the following coverage and limits:
- Dwelling: $350,000
- Other Structures: $25,000
- Personal Property: $150,000
- Loss of Use: $50,000
- Liability: $300,000
- Medical Payments: $1,000
For each provider, we gathered a quote for 50% of the ZIP codes in every state it is licensed in. We used the most populous ZIP codes for our study. We took the average of these individual quotes to calculate a national average premium per provider. Our sample rates are for informational purposes only. Actual premiums will vary.
If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].
