Jeffrey Wade
Veterans and active military personnel have access to unique homeowners insurance options that are often unavailable to civilians. These include exclusive policies and discounts. USAA and Armed Forces Insurance (AFI) are two companies that exclusively serve the military community, with policies tailored to their unique needs, such as no-deductible protection for gear and uniforms, and coverage for uninhabited structures during deployment. Other companies, such as Geico, Farmers Insurance, and Liberty Mutual, offer discounts for military members and veterans, although these vary by state and may not be available everywhere. It is important to note that deployment can impact homeowners insurance coverage and premiums, with most policies containing an occupancy clause and a war zone exemption. Therefore, it is crucial for service members to carefully review their policies to understand their coverage fully.
| Characteristics | Values |
|---|---|
| Discounts | Military members and veterans could get home insurance discounts of up to 15% from companies like USAA, Geico, Farmers Insurance, Liberty Mutual, and Armed Forces Insurance. |
| War zone exemption | Home insurance generally doesn't cover damage caused by acts of war. However, USAA and Armed Forces Insurance offer coverage for personal belongings damaged in a war zone. |
| Occupancy clause | Home insurance policies typically only apply to primary residences where at least one person is living at all times. |
| Specialized policies | Military-specific insurance companies offer low-cost policies designed for active-duty and retired members of the military. |
| VA loans | VA loans do not require a down payment or mortgage insurance, but borrowers are still required to have homeowners insurance. |
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What You'll Learn
Companies offering veteran discounts
Veterans and active military members can access unique homeowners insurance options that are often unavailable to the general public. Some companies exclusively serve the military community, while others offer military and veteran discounts.
USAA and Armed Forces Insurance (AFI) are two companies that exclusively serve the military community. USAA offers insurance, bank accounts, credit cards, mortgages, and other financial products for military families. Membership is open to all U.S. military members, veterans, their spouses and children, and pre-commissioned officers. AFI offers a range of coverage add-ons, including water backup, valuable items, flood insurance, and earthquake insurance. It also gives back to the military community by supporting local food banks and providing resources for individuals with post-traumatic stress disorder.
Several other companies offer home insurance discounts specifically for veterans and military members, including:
- Liberty Mutual: Available in all 50 states and Washington, D.C., Liberty Mutual offers savings on homeowners insurance for active, retired, or reserve members of the military in some states. They also offer discounts for members of the Navy Federal Credit Union.
- Farmers Insurance: Farmers Insurance offers a discount of 2% to 8% to active, retired, reserve, and honorably discharged members of the military. The discount varies by state and is not available everywhere.
- Geico: Geico does not sell homeowners insurance directly but partners with many companies that offer discounts of up to 15% to members of the military. They also offer Emergency Deployment Discounts to military members deploying to imminent danger pay areas.
It is worth noting that even if a company does not have a stated military discount, it is always worth inquiring about any discounts that may help reduce your premium. Additionally, it is important to compare rates and coverage amounts between different insurers to find the best option for your needs.
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Deployment and its impact on insurance
Deployment can have a significant impact on insurance for military personnel and veterans. Here are some key considerations:
Homeowners Insurance:
Homeowners insurance policies typically include an occupancy clause, requiring that the property is a primary residence with someone living in it at all times. If a home remains vacant for an extended period (often 60 days), coverage may be affected. Therefore, those facing deployment should clarify their insurance company's definition of vacancy and whether coverage is provided for vacant homes. Additionally, most policies do not cover damage in a war zone. Military members should carefully review their policy's war zone exemption and understand the limitations on coverage during deployment overseas.
Auto Insurance:
When it comes to auto insurance, military personnel have several options during deployment:
- Maintain Insurance: Continuing insurance coverage is the most expensive option, but it maintains protection and can lead to reduced rates in the future.
- Cancel Insurance: Cancelling insurance may be a financial relief, especially if family members have their own coverage. However, it leaves the policyholder vulnerable to incidents and may result in higher rates or denied coverage upon return.
- Suspend Insurance: Suspending coverage is possible in some states and with certain insurers. This option helps keep premiums low but may not cover damage due to specific events like weather, "Acts of God," or acts by another person. Comprehensive coverage is necessary for such protection.
Life Insurance:
Deployment is a crucial time to evaluate life insurance needs. The Department of Veterans Affairs offers a life insurance needs calculation tool and information on plans. Military personnel should consult their agents to discuss their unique circumstances and ensure adequate coverage during deployment.
Choosing Insurance Providers:
Insurance providers like USAA, Armed Forces Insurance, and Lemonade specialize in offering competitive rates and benefits for military families. These companies often provide exclusive discounts, additional coverage options, and policies tailored to the unique needs of active-duty and retired service members. When selecting an insurer, it is essential to compare quotes, evaluate discounts, and understand the specific coverage provided during deployment.
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Occupancy clauses
Homeowners insurance is a requirement for veterans and military members who have taken out a VA mortgage loan. While the VA does not directly provide home insurance, it can help connect veterans with the right insurance company and choose the appropriate coverage.
Veterans and military members can get home insurance discounts of up to 15% from companies like USAA, Armed Forces Insurance, Lemonade, and Geico. Military-specific insurance companies also offer low-cost policies designed to fit the unique needs of active-duty and retired military personnel.
However, military insurance companies are less likely to have this clause, so it is recommended that veterans and military personnel choose a policy without an occupancy clause or one that makes an exception for active duty. Alternatively, an endorsement can be added to the policy to insure the home during a period of vacancy.
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War zone exemptions
When taking out a homeowner's insurance policy, it is important to understand the terms of the contract, especially if you are a member of the military with the potential to be deployed. One of the key considerations is the war zone exemption clause.
Most homeowner's insurance policies cover personal belongings anywhere in the world. However, many insurers have a war zone exemption, meaning that if your belongings are damaged while in a designated war zone, your insurance policy will not cover the cost of replacing them. This is a standard exclusion that applies to all insurers, including military-specific companies such as USAA and AFI.
If you are a member of the military or a veteran, it is important to be aware of this clause and how it may impact your coverage in the event of deployment to a war zone. While your belongings will generally be covered worldwide, there may be specific locations where your insurance policy does not apply.
To ensure that your belongings are covered in a war zone, you may need to purchase additional coverage or choose a military-specific insurance provider that does not have this exemption. Military-specific insurance companies, such as USAA and Armed Forces Insurance, offer policies tailored to the unique needs of military personnel and veterans, including coverage for military gear and apparel.
It is also worth noting that official deployment can affect your homeowner's insurance coverage and premium. Some insurers may have an occupancy clause, requiring that someone lives in the home for the policy to be valid. Therefore, it is crucial to review the specific terms of your insurance policy and understand how deployment may impact your coverage.
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Comparing quotes to get the best deal
Veterans and active military members have access to unique homeowners insurance options with exclusive discounts. These are offered by companies like USAA, Armed Forces Insurance (AFI), Lemonade, Liberty Mutual, Farmers Insurance, and Geico.
USAA and AFI exclusively serve the military community, with policies tailored to their unique needs. For example, USAA covers military uniforms without a deductible for service members on active duty and protects personal belongings even if they are damaged by an act of war. AFI offers valuable coverage add-ons, including water backup, earthquake insurance, and flood insurance.
Other companies like Liberty Mutual, Farmers, and Geico offer military discounts without requiring military membership. Geico offers discounts of up to 15% on home insurance policies for active-duty and retired military members. Liberty Mutual also offers savings for active, retired, or reserve members of the military in some states. Farmers Insurance provides a discount of 2% to 8% for active, retired, reserve, and honorably discharged members, although this varies by state and is not available everywhere.
When comparing quotes to get the best deal, it is important to understand the specific needs of military personnel and ensure that the policy accommodates those needs. For example, if there is a possibility of deployment, certain limitations may apply to your coverage. Most homeowners insurance policies have rules regarding occupancy, requiring someone to live in the home for it to be covered. Additionally, standard policies often have limited coverage for high-value personal belongings like firearms, military collectibles, or specialized gear, which may require scheduled property insurance. It is also essential to understand how war zone exclusions will impact your coverage, as most insurance policies do not cover damage caused by acts of war.
To find the best deal, it is recommended to compare quotes from multiple insurance companies, including those that offer military discounts and those that do not. Bankrate's research suggests that USAA, Armed Forces, and Lemonade are some of the best military homeowners insurance companies. Policygenius recommends USAA for veterans, highlighting its high marks for pricing, customer service, and coverage options. However, it is worth noting that rates can vary based on factors such as location, coverage needs, and individual circumstances. Therefore, shopping around, comparing rates, and adjusting coverage levels and deductibles can help veterans secure the lowest possible rate.
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Frequently asked questions
Yes, veterans can get good deals on homeowners insurance. Companies like USAA, Armed Forces Insurance (AFI), Lemonade, Liberty Mutual, Farmers Insurance, and Geico offer discounts for veterans.
The amount saved on homeowners insurance varies depending on the insurance company and other factors. Veterans can save up to 15% on homeowners insurance with Geico. Farmers Insurance offers a discount of 2% to 8% to veterans.
In addition to the companies mentioned above, there are other insurance companies that offer good deals for veterans, including Travelers, which offers the cheapest annual home insurance on average.
Veterans should consider the potential impact of deployment on their insurance policy. Official military deployment can affect both homeowners insurance coverage and premiums. Home insurance policies typically include an occupancy clause, requiring that someone is living in the home for it to be covered. Additionally, veterans should pay attention to war zone exclusions, as most policies do not cover damage due to war.
