8.7 / 10

USAA Homeowners Insurance Review

USAA features comprehensive home coverage and superior customer service at industry-leading rates, but membership with USAA is limited.

Pat Howard 1600

Pat Howard

Published January 30, 2020

Methodology
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At Policygenius, we're committed to providing objective and transparent advice through strict editorial standards to help you get insurance right. Read more about our methodology.

USAA

OVERALL

8.7

THE GOOD

    Perfect customer service and claims ratings with J.D. Power

    Industry-leading financial ratings

    Several discounts to choose from

THE BAD

    Only available to people affiliated with the military

    Doesn't appear to offer extended or guaranteed replacement cost dwelling options

THE BOTTOM LINE

USAA is in a class of its own, offering great coverage and industry-leading customer service at some of the most competitive rates in the industry. As a USAA member, you can trim those rates even more by using USAA for your other financial protection needs, like car and life insurance, banking, investments, retirement funds, mortgages, and more.

Cost

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8.0

Confidence

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9.8

Customer satisfac...

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8.3

Policy options

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7.5

Customer experience

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10.0

USAA COMPANY SPOTLIGHT

5 out of 5

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J.D. Power Rating

A trusted customer satisfaction and product quality research agency

A+

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BBB Rating

A nonprofit organization focusing on marketplace trust and product quality

A++

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A.M. Best

100-year-old U.S. credit rating agency focused on the insurance industry

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The Bottom Line

With USAA, you can be sure your home and personal belongings are backed by financial certainty. The company has a superb A++ financial rating with A.M. Best, the leading insurance company credit agency. USAA also earned high marks with consumer insights leader J.D. Power, scoring a 5 out of 5 in both their 2019 U.S. Home Insurance Study and Property Claims Satisfaction Study. So you can rest assured that, when it comes time to file a claim for damages, you won’t spend hours on the phone waiting for a claims representative or months waiting for your reimbursement.

The Details


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The Good

Perfect customers service and claims ratings with J.D. Power. Whether you need to file a claim or simply have a question about your policy, there isn't a company better suited to give you a helping hand than USAA. USAA earned perfect 5 out of 5 ratings with J.D. Power in both its 2019 homeowners insurance study and its property claims study.

Industry-leading financial ratings. USAA is also one of the most financially stable insurance companies out there, holding down top notch ratings with both Standard and Poors and Moody's and an A++ rating with leading insurance company credit rating agency A.M. Best (the top rating a company can receive).

Several discounts to choose from. The average USAA homeowners insurance premium is a little higher than the average quoted policy with Policygenius, but USAA has a number of options for keeping your rates down, such as multi-policy discounts, automatic devices discounts, good payment history discounts, and more.

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The Bad

Only available to people affiliated with the military. In order to get insured with USAA, you need to have served or have some family affiliation with the U.S. armed forces. But in spite of its limited membership, USAA still manages to insure the fifth-most homes in the industry.

Doesn't appear to offer extended or guaranteed replacement cost dwelling options. USAA doesn't appear to offer extended or guaranteed replacement cost dwelling coverage — endorsements that increase your dwelling coverage limits if the rebuild cost of your home exceeds the policy's limit of liability. This endorsement is offered by most major homeowners insurance companies.

Cost

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8.0

When it comes to policy premiums, USAA is among the most competitively priced in the industry. You can save even more money through USAA’s discount programs, which reduce your premiums if you bundle your home and auto insurance or use multiple USAA products, from their savings accounts to index funds to IRA plans.

The average annual quoted USAA premium is $2,112 as of 2019, according to Policygenius data. That makes USAA homeowners insurance policies a little higher than the industry average.

Your rates are particularly impacted by the amount of coverage in your policy. Below is the average cost of homeowners insurance at different levels of coverage with USAA.

USAA coverage amountUSAA annual premium
$200,000-400,000$1,733
$400,000-600,000$1,760
$600,000-800,000$2,684

Average annual homeowners insurance premiums for each coverage level were calculated using Policygenius quoting data.

Discounts

A great way to keep your homeowners insurance costs down is to take advantage of discount opportunities. USAA offers plenty of ways to lower your insurance premiums.

  • Auto and home combination discount - Save up to 10% when you have more than one policy with USAA
  • Claims-free discount - You’re eligible for a claim-free discount if you’re able to go more than three years without filing a claim
  • Membership loyalty discount - When you’ve been with USAA for at least two years
  • Multiple USAA products discount - When you opt to receive policy information and billing electronically
  • Good payment history discount - A good discount for a good payment history
  • Impact-resistant roof discount - Reduce your premium if your roof is disaster-proof
  • Automatic detection devices discount - Trim money from your bill by modernizing your home with water and gas leak sensors
  • Home age discount - Discount if you’re insuring a new home
  • ADT Home Security Systems discount - 50% off ADT Home Security Systems installation, a 10% off monthly monitoring discount, and a discount on your premiums when you secure your home with ADT

Confidence

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8.3

Homeowners insurance protects your most important financial assets, so you'll want to be sure you're insuring your home, your personal possessions, and other assets with a company that will be able to pay out your claim in the event of a disaster. USAA has been around for almost 100 years and has well-established financial strength with the top insurance rating agencies in the world. With USAA, you can insure your home with confidence.

  • Year founded: 1922
  • Standard & Poor's rating: AA+
  • Moody's rating: Aa1
  • A.M. Best rating: A++

Standard & Poor's measures companies' creditworthiness and is used primarily by financial investors and other market stakeholders. S&P is also valuable in measuring the long-term financial stability of insurance companies. A AAA rating is the highest issuer credit rating assigned by S&P, so USAA's AA+ rating makes them a top-tier insurance company from a financial confidence standpoint.

Moody's is very similar to Standard & Poors, except rather than measuring a company's ability to remain financial stable and creditworthy, Moody's measures what the expected losses would be if a company were to go into default. It's particularly valuable in analyzing the value of stocks and bonds with certain companies. A AAA rating is the highest possible score you can receive from Moody's, and USAA's Aa1 rating gives it the second highest investment grade designation.

A.M. Best is the most reliable credit-rating tool insureds can use to gauge the financial health of a particular company. Unlike S&P and Moody's, A.M. Best is focused exclusively on the insurance marketplace. A good score with A.M. Best means a company is more likely to fulfill their financial obligation to you when it comes time to file a claim. With a score of A++, USAA has the highest rating a company can receive with A.M. Best.

Customer ratings

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8.3

It's important to know what experts think about homeowners insurance companies - but it's also good to know what actual customers and consumer sentiment sites are saying, too.

USAA has perfect ratings with J.D. Power and excellent marks with Consumer Affairs and Consumer Advocate.

  • J.D. Power: 5 / 5
  • BBB: N/A
  • Consumer Affairs: 4 / 5
  • Consumers Advocate: 4.7 / 5
  • Trustpilot: N/A
  • NAIC complaint index: 0.31

J.D. Power provides studies that rate insurance companies across policy offerings, price, clarity of billing and policy information, interaction, and claims. An overall satisfaction score, "based on how customers view every experience of their experience with homeowners insurance providers," is reflected here and used for our ranking.

The Better Business Bureau ranks companies across a large swath of criteria. While consumers can submit ratings to the BBB, these scores are not taken into account in their rating, although tangential metrics that take into account customer experience are.

Consumer Affairs is a platform that lets consumers directly rate customers, while Consumers Advocate rates companies based on stability, reputation, and policy coverage.

The National Association of Insurance Commissioners tracks the number of complaints submitted to state insurance departments with their national complain index. A score of 1 is the baseline average, and a score of 0 means there weren't enough complaints to count. USAA's 2018 score of 1.64 means they receive lower-than-average complaints.

Policy options

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7.5

USAA keeps it fairly simple, featuring a single home insurance policy with replacement cost coverage for both your home and personal property.

A notable feature of USAA’s home policy is the high personal property coverage limit, which includes 75% of your dwelling coverage. Most insurance companies cap personal property coverage at 50% of your home’s insured value, or they’ll charge you an additional premium to increase your limits.

USAA’s standard home insurance policy includes a number of additional coverages — like inflation guard (reimburses you for rebuild cost surge pricing), building ordinance and law coverage, and debris removal — under a single endorsement called “home protector” coverage.

Here are the noteworthy parts of USAA’s home insurance policy:

  • Replacement cost dwelling and personal property coverage
  • Unlimited loss-of-use coverage
  • Home protector coverage
  • $500,000 in personal liability coverage
  • $5,000 in medical payments to others coverage
  • Deductible options up to $10,000 to keep your rates down

Customer experience

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10.0

USAA homeowners insurance is available anywhere in the country, the company offers has an outstanding web experience, and has a customer service and claims reputation that is among the best in the industry.

State availability

USAA homeowners insurance is available in all 50 states and the District of Columbia.

The application

USAA’s application process takes under five minutes once you become a member, but obtaining membership is the more trying part. In order to become eligible for USAA insurance, one of the following needs to apply:

  • You’re an active duty officer
  • You’re in the National Guard or a Reserve officer
  • You’re an officer candidate in commissioning programs
  • You’re a spouse or child of a USAA member

When you apply for home insurance with USAA, you're asked basic questions about your home, like your address and ZIP code, and then their services are able to auto-fill information about your home specs If you’re already a USAA member, your discounts are automatically applied to your initial quote, which we found pretty cool.

Ease of claims

When it comes to claims, USAA is one of the best in the business. Not only did they receive a 5 out of 5 claims satisfaction rating with J.D. Power; they also received a 0.31 complaint index rating with the National Association of Insurance Commissioners (hint: any rating below a 1 is good).

If you need to file a claim with USAA, the insurer gives you the option of filing on their website, through your mobile app, or over the phone.

Additional claims service

  • 24/7 claims service
  • Mobile app claims
  • USAA-preferred contractors
  • Around-the-clock claims service through its Claims Communication Center

Claim satisfaction

USAA has outstanding claims satisfaction ratings (5 out of 5) with J.D. Power.

Payment methods

  • Online and mobile billing
  • EFT payments
  • Automatic monthly premium withdrawal from your bank account
  • Recurring credit card monthly billing
  • Direct bill to your mailing address

Policygenius offers insurance policies from many of the nation's top insurers, who pay us a commission for our services. However, all editorial choices are made independently.