Velocity Homeowners Insurance Review

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The Details

The Good

• Fairly affordable rates. Premiums with Velocity are only slightly higher than the industry average. Shoppers in the states where it’s available should be able to afford coverage without breaking the piggy bank open.

• Online claims services. Velocity provides convenient ways to file damage claims, including a customer hotline, a dedicated website, and a mobile app. Policyholders can also manage and monitor claims on the app or site. Handy!

• Early quote discount. Velocity will reward you a discount if you get a quote before your current policy’s expiration date. Combine that with other discounts, such as a safety device discount and a roof age discount, and you should save money on your premiums.

The Bad

• Available in only six states. Velocity is only found in six states: Connecticut, Florida, New Jersey, New York, North Carolina, and Texas. Unless you live near the Atlantic Ocean or Gulf of Mexico, you’ll have to look elsewhere for homeowners insurance.

• Few customer ratings available. Velocity only started in 2014, which makes it a very young company compared to other century-old insurers out there. So, there’s very little customer sentiment out there to get a feel for how policyholders are satisfied or not satisfied with their service.

The Breakdown

Various factors affect homeowners insurance rates. Your home's age, your state and ZIP code, any risks related to the home, and of course, the amount of coverage you buy. Your home's replacement cost will also affect your rates.

According to Policygenius quoting data, homeowners insurance with Velocity costs around $1,850 annually for around $300,000 of coverage. That's around 7 percent higher than the average quote with Policygenius. That’s not too big a leap over the industry average, so Velocity should be fairly affordable for customers who live where it’s available.

Discounts

Velocity has the usual discounts you’d expect, as well as some that stand out. You can save on rates by installing burglar alarms and protective devices. There are also roof age discounts and a discount that rewards retired homeowners. Keep in mind that these discounts will vary between states.

• Alarm systems and protective devices discount. Save money if you have burglary systems, smoke alarms, water leak detection systems, and other home safety devices installed

• Fire protection discount. Get a discount if your home is built with materials that protect against fire

• Early quote discount. Get a quote with Velocity before your current policy expires and you can receive a discount

• Direct repair program discount. Get a 10 percent deductible credit, up to $1,000 on personal property and up to $2,000 on commercial property on non-catastrophe losses. Not available in all states

• Mature homeowner discount. Save money you’re over the age of 55 or retired

• Roof age discount. Get a discount if your home has a younger roof

• Gated community discount. Get a discount if you live in a gated community

• Wind mitigation discount. Save money if your home has wind mitigation features installed with completed permits by a licensed contractor

Insurance companies have to last long into the future so they can pay out any potential claims down the line. To determine the financial stability of carriers, we look at ratings from the three big independent credit rating agencies: A.M. Best, Moody’s, and Standard & Poor’s.

Unfortunately, we have only one score to go by for Velocity, and that’s A.M. Best.

Here’s what we got:

• Year founded: 2014

• A.M. Best: A

• Moody’s: N/A

• Standard & Poor’s: N/A

Credit rating firm A.M. Best focuses specifically on the insurance industry. They give Velocity an A rating, which denotes an “excellent ability” to fulfill customer obligations.

Bond credit rating agency Moody’s and analysis firm Standard & Poor’s do not have ratings for Velocity.

To get a sense of what policyholders think about insurance companies we look at third-party sources including customer review sites, surveys, and state insurance department complaints.

Or, we would, normally, but there’s not much out there yet from Velocity customers.

Here’s what we got for Velocity:

• BBB: A+

• Consumers Advocate: N/A

• Consumer Affairs: N/A

• J.D. Power: N/A

• Trustpilot: N/A

• NAIC complaint index: N/A

Better Business Bureau is a nonprofit organization that rates companies based on truth in advertising claims, customer complaints, and other factors. They give Velocity an A+ rating.

The other sources we turn to, including review site Consumers Advocate and customer feedback site Consumer Affairs don’t have pages dedicated to Velocity. The same goes for customer ratings site Trustpilot and survey group J.D. Power, which judges companies based on the billing, policy, and pricing information of insurance companies. The National Association of Insurance Commissioners (NAIC), which monitors complaints submitted to state insurance departments, doesn’t have information about Velocity either.

Policy features with Velocity will vary between states, but you can expect the usual HO-3 homeowners coverage regardless of where you live. That includes the following:

• Dwelling coverage. Covers the cost of rebuilding or repairing your home

• Other structures coverage. Coverage for other structures on your property such as garages or sheds

• Personal belongings coverage. Covers your household belongings if they’re lost or damaged from a fire, theft, or other covered loss

• Additional living expenses. This pays for hotel stays in case you can’t live in your home due to damage or repairs

• Personal liability. Covers any legal expenses if you or other covered persons experience personal injury or property damage

• Medical expenses. Helps pay for medical bills for anyone injured on your property

The following Velocity options include deductibles, or the amount of money that you pay before insurance kicks into effect and pays you for a loss. For more information about homeowners insurance deductibles.

• AOP deductible. The All Other Peril deductible applies to all other damages to your property such as fire, hail, lightning, or theft. This deductible applies per occurrence, which means you’ll have to pay twice for two separate events. The deductible can be either fixed amounts of $1,000 or $2,500 or one, two, three, or five percent of your dwelling coverage.

• Wind and hail deductible. This applies to losses from wind and hail damage. The deductible can be one two, three, or five percent of your dwelling coverage.

Velocity offers several optional endorsements you can add on to your policy for extra fees:

• Loss assessment coverage. Velocity will cover the cost of assessing property damage

• Ordinance or law coverage. This brings your home up to current building codes during repairs

• Additional replacement cost coverage. Expands your coverage limit to rebuild your home

• Expanded personal belongings coverage. Extends your coverage limit for your personal belongings

• Animal liability coverage. Helps pay towards risks involving animals. Certain animals, such as livestock, horses, exotic animals, and vicious dogs are not covered.

• Golf cart coverage. Protection for your little golf course car

• Mold coverage. Covers dealing with mold removal

• Water backup coverage. Pays for any repairs related to water damage from sewage or sump pump backups

• Personal injury coverage. Cover expenses related to libel claims, false arrest, detention, or imprisonment

• Screened enclosures coverage. Pays for repairs or replacements for screened enclosures for decks, patios, or pools

• Sinkhole coverage. Covers damages caused to your home and loss of personal property and belongings from a sinkhole. Includes a 10 percent deductible.

• Wind-driven rain coverage. Covers damages caused to your home by stormy winds and rains

• Wind-only coverage. Covers damages caused to your home by wind. This endorsement removes AOP coverages.

All the above options will vary depending on the state you live in. For a personalized look at coverage options, speak to a Policygenius home insurance agent. For more information about what homeowners insurance can cover, refer to our comprehensive homeowners insurance explainer.

Velocity has a few convenient ways to file claims. Policyholders can download and file and monitor claims on a mobile app, sign into a website and quickly file claims there, or pick up the phone and call the customer service line.

In the event of claims and repairs, Velocity policyholders are assigned 24/7 assistance and can receive damage assessments and inspections through Sedgwick, a prominent claims management and repair service.

Interested shoppers can also apply and receive a quote online via Policygenius.

State availability

Velocity insurance products are available in only six coastal states: Connecticut, Florida, New Jersey, New York, North Carolina, and Texas.

Digital tools

• Online bill payment and policy management

• Mobile app

The application

To apply or receive an estimation you need to contact a Policygenius agent, find an agent on Velocity’s website, or call Velocity’s customer service.

Ease of claims

You can file a claim by filling out a form online, reporting a claim via mobile app, or by calling Velocity’s customer service line.

Payment methods

• Credit or debit card over the phone

• Check by mail

• Online

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.