Paul Sanchez
USAA is a highly-rated insurance company that provides insurance to military and veteran families. While it offers insurance in all 50 states, USAA has stopped writing new homeowners' insurance policies in Florida due to unsustainable market conditions and legislative challenges. The company has incurred significant financial losses in Florida, with policyholders contributing only 12% of premiums while accounting for 49% of risk. However, USAA continues to provide auto insurance, life insurance, and banking products in the state.
| Characteristics | Values |
|---|---|
| Availability in Florida | Available to military and veterans, and their families. |
| Customer Satisfaction | 96% of customers surveyed said they would recommend the company to others. |
| Customer Loyalty | 97% of customers surveyed said they plan to renew their policy. |
| J.D. Power Ranking | Not ranked due to eligibility requirements, but earned the highest score of any company in the 2025 claims satisfaction survey (746/1000). |
| USAA's Financial Losses in Florida | Paid $220 million more in claims than collected in premiums over the last decade. |
| Florida's Contribution to Risk Exposure | 49% of natural disaster risk exposure comes from Florida policyholders, who contribute only 12% of premiums. |
| Number of Policies Impacted by USAA's Decision to Halt New Policies | Approximately 27,000. |
| Percentage of USAA's Florida Portfolio Impacted | 10%. |
| USAA's Reasoning for Halting New Policies | Excessive losses, significant natural disaster risk exposure, unsustainable market conditions, and legislative challenges. |
| USAA's Current Offerings in Florida | Auto insurance, life insurance, and banking products. |
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What You'll Learn
USAA's Florida insurance market challenges
USAA has stopped writing new homeowners, fire, and renter insurance policies in Florida due to unsustainable market conditions. This decision affects around 27,000 existing policies, primarily non-primary homes. The company cited excessive losses and significant natural disaster risk exposure as primary reasons for this change. While current policyholders will maintain coverage for now, the implications of these shifts are broad.
USAA's Florida portfolio is disproportionately exposed to natural disasters. Policyholders in the state account for 49% of the company's natural disaster risk exposure, while only contributing 12% of premiums. As a result, USAA has paid $220 million more in claims than it collected in premiums over the last decade.
The company's decision to halt new policies in Florida is also influenced by rising claims costs and a restrictive regulatory environment. Many insurance companies are leaving the state due to these challenges. Florida homeowners face an insurance crisis, as major insurers limit coverage or increase rates due to severe weather and litigation expenses.
USAA's cautious approach to the Florida market includes significant financial losses and restrictions on new homeowner and renter policies. The company's CEO, Bob Davis, has indicated a potential reconsideration of these limitations if the Florida insurance market stabilizes. USAA remains committed to serving military families through auto and life insurance products in the state.
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USAA's eligibility requirements
USAA homeowners insurance is available in all 50 states, including Florida. However, USAA membership is required to be eligible for homeowners insurance from the company. Membership is limited to active and veteran military members, their spouses, and their children. USAA also offers special coverage for military members at no additional cost.
USAA is highly rated for its affordable rates, excellent coverage, and added perks. However, it is not the cheapest insurer. USAA's rates have been increasing in response to increased claim costs and inflation. Despite this, USAA customers are loyal, with a high percentage planning to renew their policies.
To get a USAA homeowners insurance quote, you can either go online or call a USAA representative. They will be able to answer any questions about eligibility.
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USAA's customer satisfaction
USAA is a highly-rated insurance company that provides services in all 50 states and Washington, D.C. It is primarily available to U.S. military members, veterans, and their immediate families. USAA has been recognised for its exceptional customer satisfaction.
In 2024, USAA was ranked #1 in overall customer satisfaction in the J.D. Power U.S. Individual Annuity Study. The study measured the experiences of 3,914 customers of the largest individual annuity companies in the United States across eight core dimensions: trust, value for price, ability to get service, ease of doing business, people, product offerings, digital channels, and problem resolution. USAA received an overall score of 780 out of 1000, surpassing the industry average of 645.
USAA has also consistently topped customer satisfaction surveys conducted by The Zebra, achieving a rating of 4.6 out of 5. In 2025, USAA received a score of 8.9 out of 10 in The Zebra's Customer Satisfaction Survey, ranking first among insurance providers.
According to a survey by Insurance.com, USAA customers exhibit strong loyalty, with 97% planning to renew their policies. Additionally, 96% of surveyed customers stated that they would recommend the company to others.
While USAA's eligibility criteria limit its availability to military-affiliated individuals and their families, it has built a solid reputation for customer satisfaction within this community.
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USAA's financial losses in Florida
USAA offers homeowners insurance in Florida, but only to active military personnel and veterans. In 2022, USAA suffered its first annual loss since 1923, the year after the company was founded. The loss was attributed to high inflation, which increased the cost of repairing and replacing cars, as well as higher claims due to natural disasters. USAA paid out nearly $2.5 billion for losses incurred during more than 60 major catastrophes in 2022, including Hurricane Ian in Florida. The hurricane alone is estimated to have cost the company between $20 billion and $47 billion.
The high inflation rates in 2022 also impacted USAA's financial losses in Florida. Inflation affected the company's varied lines of business, particularly the costs of car repairs, car prices, and home construction materials. The increase in these costs put a strain on the company's ability to satisfy claims made by its members. Additionally, higher inflation and interest rates widened the margins between what USAA earned in interest on loans and what it paid in interest on deposits, further contributing to its financial losses.
In response to the financial losses, USAA implemented several measures to strengthen its financial foundation. The company increased auto and homeowners insurance rates, with a 14.7% increase in homeowners insurance rates in 2023, according to S&P Global Market Intelligence. USAA also laid off around 220 employees in April 2023, with nearly 1,000 employees let go by the end of the year, as part of an effort to reprioritize positions and reduce costs.
Despite the financial losses in 2022, USAA was able to turn a profit in 2023. The company reported a net income of about $1.2 billion, with revenue increasing by 17% year-over-year to $42.5 billion. This turnaround was attributed to management actions, investments, and disciplined execution of efforts to strengthen the company's financial foundation.
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Cheaper alternatives to USAA in Florida
USAA homeowners insurance is available in all 50 states, including Florida. However, USAA insurance is only available to current and former military members and their families. If you are looking for cheaper alternatives to USAA in Florida, there are several options to consider.
Firstly, it is recommended that you get at least three quotes from different insurance providers and review all discount options. You can also increase your deductible, as this will typically reduce your premium. Additionally, consider bundling your insurance policies, as some companies offer multipolicy discounts.
Now, let's look at some specific insurance providers that offer cheaper alternatives to USAA in Florida:
- Allstate: Allstate is a close second to USAA in Florida, according to US News. They offer specific discounts to Floridians, such as a discount for wind damage mitigation. They also have other discounts like multi-policy, responsible payer, claim-free, and early signing.
- Chubb: According to US News, Chubb is the cheapest home insurance company in Florida, with an average annual premium of $1,756.
- Erie: Erie has been mentioned by some as an alternative to USAA, with savings of up to 20%. However, there have been mixed reviews regarding their claims process.
- Progressive: Progressive has been mentioned by several people as a cheaper alternative to USAA, with savings of up to 20%. They have also received positive reviews for their claims process.
- Geico: Geico has been described as significantly cheaper than USAA, especially for young drivers. They have also been praised for their customer service.
- State Farm: While State Farm may not be cheaper than USAA in all cases, it is worth considering. They offer a range of insurance products and have a strong presence in Florida.
Remember, when choosing a homeowners insurance provider, it is important to consider not only the cost but also the quality of service and the ease of making claims. It is also a good idea to read reviews and compare quotes from multiple providers before making a decision.
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Frequently asked questions
Yes, USAA homeowners insurance is available in Florida. However, it is only available to active military members and their families.
USAA has stopped writing new homeowners insurance policies in Florida due to unsustainable market conditions and excessive losses. The company has cited significant financial losses, rising claims costs, and legislative challenges as reasons for this decision.
Only active military members, veterans, and their families are eligible for USAA homeowners insurance in Florida. USAA membership is limited to those affiliated with the military.
USAA is considered one of the best homeowners insurance providers in Florida. It offers highly-rated and affordable coverage, with 96% of customers saying they would recommend the company to others. USAA provides additional benefits, such as automatic replacement cost coverage for personal belongings, which other insurers may charge extra for.
