About USAA Homeowners Insurance
Starting in 1922 by selling insurance policies to 25 Army officers, USAA has served military members and their families ever since. USAA is the third-largest U.S. home insurance company based on market share and the fifth-largest auto insurance company.
You can join USAA only if you are a current military member, veteran or the spouse of a military member. Children of military members are also eligible.
Grandchildren of a veteran or military member can also be eligible, but only if the grandparent and parent has or had USAA policies. In other words, if the chain is broken, the grandchild doesn’t qualify for a USAA policy.
Who Is USAA Homeowners Insurance For?
USAA combines competitive prices with military perks and comprehensive coverage options, which make it an excellent option if you qualify.
USAA home insurance is limited only to veterans, military members and their families, so not everyone can benefit from USAA’s excellent rates. With a military slant, USAA offers perks for that community, which are not often found with other insurers. It understands the unique needs of military members, such as the frequent location changes that military families may face.
If you’re concerned about inflation and building costs surpassing your policy’s dwelling coverage, USAA offers extended replacement coverage that lets you exceed your dwelling coverage by 25% or 50% if your home is destroyed and you need to rebuild. That coverage can offer you a financial cushion, especially if a storm damages many homes in your area and building costs skyrocket.
Is USAA Homeowners Insurance the Best Choice for You?
USAA offers home insurance rates below the national average, which makes it a great option to check out if you qualify.
Price
USAA is over $400 a year cheaper than the national average for $350,000 dwelling coverage of the companies we analyzed. Only Progressive, Westfield, Nationwide and State Farm have better average rates of the companies we analyzed. Though USAA offers excellent rates, it’s still wise to check rates from other companies.
| Insurance company | Average annual rate for $350,000 dwelling coverage |
|---|---|
| USAA* | $1,548 |
| $967 | |
| $1,333 | |
| $1,468 | |
| $1,471 | |
| $1,610 | |
| $1,808 | |
| National average | $1,951 |
*USAA is available only to veterans, military members and their families.
Differences by Deductible Amount
Insurance companies like USAA let you choose your policy’s deductible, which is the amount subtracted from a claims check if you have to file a claim. The higher the deductible, the lower the home insurance premium.
USAA already has low rates, so you might not save as much by raising your deductible if you had coverage from a high-cost insurer. That said, you can still save over $200 on average by raising your policy deductible from $500 to $2,000.
Here’s how USAA’s annual rates measure up to competitors for different deductible levels.
| Company | $500 deductible | $1,000 deductible | $2,000 deductible |
|---|---|---|---|
| USAA* | $1,548 | $1,436 | $1,302 |
| $1,808 | $1,680 | $1,496 | |
| $2,109 | $2,089 | $2,032 | |
| $1,982 | $1,783 | $1,627 | |
| $2,082 | $1,778 | $1,581 | |
| $2,052 | $1,847 | $1,680 | |
| $1,610 | $1,536 | $1,413 | |
| $2,389 | $2,304 | $2.231 | |
| $1,468 | $1,424 | $1,317 | |
| $967 | $929 | $826 | |
| $1,447 | $1,389 | $1,256 | |
| $3,441 | $3,316 | $3,092 | |
| $1,333 | $1,333 | $1,279 |
*USAA is available only to veterans, military members and their families.
Extended Replacement Coverage
USAA’s extended replacement cost coverage lets you exceed the dwelling limit by 25% or 50%. The 50% option is tied with Nationwide for the most generous percentages of the companies we reviewed.
This policy add-on allows you to go over your dwelling coverage limits up to a specified amount or percentage if rebuilding your home costs more than your dwelling limit. For instance, if your dwelling coverage is $350,000, but rising building costs would require you to need $400,000 to rebuild your home in its current state, USAA would cover the full amount if you have extended replacement coverage.
| Company | Offers extended replacement cost coverage? |
|---|---|
| USAA* | Up to 25% or 50% more |
| From American Family Connect, starting at $5,000 | |
| Up to 25% more | |
| Up to 25% more | |
| Up to 25% more | |
| Up to 50% more | |
| Up to 20% more | |
| Up to 25% more |
*USAA is available only to veterans, military members and their families.
Differences by Credit History
Most states allow home insurance companies to set rates partially based on your credit history. Insurers consider homeowners with poor credit a higher risk than those with good or excellent credit.
USAA offers competitive rates regardless of your credit history, but you will pay significantly higher if you have poor credit, no matter which insurer you choose. Don’t let that stop you from shopping around, though. Some insurers offer better rates for customers with poor and fair credit histories than competitors.
For instance, USAA offers competitive rates for customers with poor and fair credit.
| Company | Poor credit | Fair credit | Good credit | Excellent credit |
|---|---|---|---|---|
| USAA* | $3,022 | $1,849 | $1,548 | $1,338 |
| $3,493 | $2,157 | $1,808 | $1,490 | |
| $3,697 | $2,496 | $2,109 | $1,779 | |
| $4,805 | $2,800 | $2,082 | $1,750 | |
| $2,680 | $2,450 | $2,052 | $1,691 | |
| $4,819 | $2,673 | $1,610 | $1,170 | |
| $8,311 | $3,049 | $2,389 | $1,669 | |
| $2,394 | $1,663 | $1,468 | $1,265 | |
| $1,427 | $1,078 | $967 | $869 | |
| Shelter | $5,292 | $3,381 | $3,057 | $2,840 |
| $3,473 | $1,924 | $1,468 | $1,098 | |
| $2,564 | $1,622 | $1,333 | $1,114 |
*USAA is available only to veterans, military members and their families.
How Much Does USAA Home Insurance Cost?
The average home insurance cost for USAA is $1,109 a year for $200,000 dwelling coverage, $1,938 a year for $500,000 and $2,561 a year for $750,000—all cheaper than the national average. That’s based on our analysis of rates.
| Company | $200,000 dwelling coverage | $500,000 dwelling coverage | $750,000 dwelling coverage |
|---|---|---|---|
| USAA* | $1,109 | $1,938 | $2,561 |
| $1,362 | $2,287 | $3,091 | |
| $1,513 | $2,658 | $3,362 | |
| $1,380 | $2,576 | $3,578 | |
| $1,263 | $2,883 | $4,179 | |
| $1,357 | $2,747 | $3,883 | |
| $1,031 | $2,143 | $2,978 | |
| $1,526 | $3,314 | $4,447 | |
| $947 | $2,018 | $2,961 | |
| $676 | $1,285 | $1,821 | |
| Shelter | $1,932 | $4,210 | $6,057 |
| $1,036 | $1,910 | $2,552 | |
| $2,582 | $4,285 | $5,779 | |
| $1,153 | $1,486 | $1,701 | |
| National average | $1,348 | $2,553 | $3,496 |
*USAA is available only to veterans, military members and their families.
USAA Home Insurance Rates Stability
USAA home insurance has increased at about the national average since 2022 (20% hike for USAA; 19% national average). However, USAA remains one of the cheapest homeowners insurance companies.
The combination of inflation and numerous record-breaking storms have led to higher home insurance rates, says Andrew Biscay, president of South Lake Agency, a Minneapolis area-based insurance brokerage and Forbes Advisor Advisory Board member. He added that material costs outstripped general inflation. That resulted in home insurance rate increases since home insurance costs are directly related to claims costs.
“Additionally, higher than average storm and climate events have put extra strain on supply, which causes greater pressure on costs,” says Biscay, adding that tariffs may also play a role in higher rates in the future since the U.S. imports a large percentage of building materials from other nations.
Biscay says that weather, inflation and the availability of construction workers may also drive home insurance costs in the coming years.
“The severity and frequency of large storms, availability of workers who do construction, lack of materials and general contractor inflation will all have a severe impact on insurance rates,” he says.
Does USAA Home Insurance Have Good Customer Service
In our Consumer Sentiment Index of 8,728 customer insights and reviews, Forbes Advisor found a largely negative view of USAA customer service, while the company received an overall “neutral” rating.
The company ranked last in customer service out of seven home insurance companies we analyzed. The high points cited by customers include the company’s military focus and its bundling discounts.
The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
On the other hand, USAA has a very low complaint ratio to state insurance departments, which can signify strong customer satisfaction.
What is USAA’s Financial Strength Rating?
AM Best gave USAA insurance a financial strength rating of A++ (Superior). AM Best said the rating reflects USAA’s “balance sheet strength” and also praised the company’s “strong operating performance, favorable business profile and appropriate enterprise risk management.”
Why Is This Important?
An insurance company’s financial strength rating is important because you want to make sure your insurer is stable and will be around if you need to file a claim down the road. You don’t want to buy coverage from a home insurance company that might go belly up and not pay out.
What Types of Coverage Does USAA Home Insurance Offer?
USAA’s home insurance policies provide the standard types of coverage you’d expect:
Does USAA Offer Policy Add-ons?
USAA offers multiple policy add-ons that can provide coverage beyond a standard policy.
What Discounts Are Available With USAA Home Insurance?
Maximizing home insurance discounts is one way to save on coverage. Here is a list of home insurance discounts from USAA.
| Discount type | Details |
|---|---|
| Bundling policies | Bundling home and auto policies with USAA can lead to a 10% discount. |
| Claims-free | Not having a claim for five or more years can result in a 15% discount. |
| Connected Home | Installing smart devices, such as ones that detect smoke or water leaks, can lead to savings through the Connected Home program. |
| Early quote | Provides a lower rate if you get quotes before your policy’s effective date. |
| Loyalty | Reduces your home insurance costs if you’ve been a long-time USAA customer. |
| Protective device credit | You can receive a 5% credit if you install an ADT home security system. |
| Roof age discount | Having a newer roof can result in lower home insurance premiums. |
Other Types of Insurance Offered by USAA
In addition to homeowners insurance, USAA sells:
- ATV insurance
- Auto insurance
- Aviation insurance
- Boat insurance
- Classic car insurance
- Condo insurance
- Farm and ranch insurance
- Landlord insurance
- Life insurance
- Mobile home insurance
- Motorcycle insurance
- Pet insurance through Embrace
- Renters insurance
- Small business insurance
- Travel insurance
Methodology
To identify the best home insurance companies, we analyzed costs around the country, policy information and complaints against insurers. We scored companies based on these factors:
Home insurance rates (40% of score): We analyzed average rates for each insurance company for homes with dwelling coverage of $200,000, $350,000, $500,000 and $750,000 with 50% personal property coverage, 10% loss of use coverage, a $500 deductible, $1,000 guest medical coverage and $100,000 liability coverage for a 40-year-old woman with good credit.
Source: Quadrant Information Services.
Complaints (20% of score): We used complaint data from state insurance departments across the country. Most home insurance complaints center on claims, including delays, unsatisfactory settlements and denials.
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.
Digital experience (10% of score): We analyzed the quality of each company’s mobile app and website. We evaluated home insurers on:
- If there’s a mobile app.
- If you can submit claims online.
- If you can pay online.
- If there’s a useful website search function.
- If there’s a live chat that provides helpful information.
- If the company has a Facebook account that is updated regularly.
- If you can get a quote online.
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.
Read more: How Forbes Advisor rates home insurance companies
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