Alyssa Lane
USAA homeowners insurance is available to active-duty service members, veterans, members of the National Guard and Reserves, ROTC cadets, and their families. It is available in all 50 states and Washington, D.C., including California. USAA is consistently named the best insurance company for military members, and its homeowners insurance policies cover most weather-related damages, theft, vandalism, sudden and accidental water damage, and mold. However, USAA has recently faced challenges in California's insurance market due to the threat of wildfires, leading to concerns about the financial risk of insuring properties with a higher wildfire risk score.
| Characteristics | Values |
|---|---|
| Availability | USAA homeowners insurance is available in all 50 states and Washington, D.C. |
| Eligibility | Only available to current and former military personnel and their families |
| Coverage | Covers weather-related damage, theft, vandalism, water damage, mold, personal liability, personal belongings, dwelling, other structures, and loss of use |
| Cost | Average policy costs $1,270 annually for $350,000 dwelling coverage |
| Customer Satisfaction | Highly trusted with a 96% customer trust rating and a low NAIC complaint ratio |
| Financial Strength | Rated A++ (Superior) by AM Best |
| California | USAA has increased home insurance rates in California and will limit its business in the state due to wildfire risk |
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What You'll Learn
- USAA's home insurance is available in all 50 states and Washington, D.C
- USAA's insurance is available only to veterans, military members, and their families
- USAA's home insurance policies cover most weather-related damages, theft, vandalism, and water damage
- USAA's home insurance rates are increasing due to inflation and increased claim costs
- USAA's home insurance in California is subject to wildfire safety requirements
USAA's home insurance is available in all 50 states and Washington, D.C
USAA homeowners insurance is available in all 50 states and Washington, D.C. It is one of the best homeowners insurance companies, especially for military members, veterans, and their families. USAA offers low prices, quality service, and a variety of discounts through its perks program.
USAA's home insurance policies cover most weather-related damages, theft, vandalism, sudden and accidental water damage, and mould. They also cover personal liability, personal belongings, dwelling, and other structures, as well as loss of use. USAA also includes special coverage for military members at no additional cost.
USAA has a good reputation for home insurance and is highly trusted by its customers. It has high ratings with J.D. Power and every other agency and has received the best possible financial rating from AM Best, an A++. USAA's average home insurance policy costs $1,270 annually for $350,000 of dwelling coverage.
USAA's home insurance rates have been increasing in response to rising claim costs and inflation. In California specifically, USAA implemented an average homeowners insurance rate increase of 25.9% as of December 1, 2024, with some policyholders facing hikes of up to 48.5%. This increase is due to the ongoing challenges and complexities in California's insurance market, particularly regarding the threat of wildfires. Despite this, USAA still writes new home insurance policies in California.
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USAA's insurance is available only to veterans, military members, and their families
USAA homeowners insurance is available in all 50 states and Washington, D.C. It is considered one of the best homeowners insurance companies, especially for military members and veterans. USAA insurance is only available to military members, veterans, and their families. This includes current military members, retired or honorably discharged veterans, and the spouses and children of military members or veterans. Grandchildren of military members or veterans can also be eligible if their parents and grandparents are or were USAA members.
USAA offers low prices and quality service to its customers. It also offers a variety of discounts through its perks program, including hotels, rental cars, sports, concerts, theme parks, cruises, car care, home security, retail stores, gym memberships, wellness coaching, meal delivery, and prescription medications. USAA has a low complaint ratio to state insurance departments, indicating high customer satisfaction. The company also allows customers to file claims and get quotes online.
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USAA's home insurance policies cover most weather-related damages, theft, vandalism, and water damage
USAA's home insurance policies are available to current and former service members and their families. They cover most weather-related damage, theft, vandalism, and water damage.
USAA's home insurance policies are highly rated, receiving 4.9 out of 5 stars overall. The policies are affordable and comprehensive, costing an average of $193.44 per month, which is well below the national average. They include perks such as $5,000 in identity theft coverage and replacement cost coverage. This means that USAA will calculate the current replacement cost of your belongings without depreciation. For example, if your 45-inch television from 2017 is damaged, USAA will pay enough to buy a new 45-inch television made in the current year.
USAA's policies cover personal belongings such as furniture, clothing, and electronics. However, expensive items like jewelry, art, or other high-value items will likely require additional valuable personal property insurance. USAA also offers $5,000 of identity theft protection, though this isn't available in North Carolina.
USAA's standard policy does not cover damage caused by water or sewage backing up through outside plumbing. However, you can purchase add-on coverage for this, which will also cover any damage and overflow from a sump pump. USAA also offers earthquake insurance as an add-on to your homeowners insurance policy.
In the case of vandalism, USAA homeowners insurance typically includes coverage. Policyholders can file a claim with USAA to seek reimbursement or repairs for the damaged property. It is important to review the policy details, including any limitations or exclusions, to fully understand the extent of protection.
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USAA's home insurance rates are increasing due to inflation and increased claim costs
USAA is a popular option for homeowners insurance, especially for military members, veterans, and their families. The company offers low prices and quality customer service, with a very low complaint ratio to state insurance departments.
However, USAA's home insurance rates are increasing, and this can be attributed to a combination of inflation and increased claim costs. Inflation has led to rising labor, construction, and building material costs, making homes more expensive to build and repair. This is particularly evident in states like Utah, where insurance rates have soared by 59% due to the increased number of homes being built in wildfire-prone areas.
The increase in claim costs is a result of the rising number and severity of severe weather events, such as the recent climate-related crisis in Los Angeles. From 2018 to 2022, consumers living in the 20% of ZIP codes with the highest expected annual losses from climate-related perils paid $2,321 in premiums on average, 82% more than those in the lowest-risk areas. This has also contributed to higher policy non-renewal rates in these high-risk areas.
The rising cost of homeowners insurance is not unique to USAA. The average annual cost of homeowners insurance has increased from $2,656 in 2021 to $3,303 in 2024, a 24% increase. This has outpaced the rate of inflation during the same period.
USAA's home insurance rates are increasing due to the combined effects of inflation and increased claim costs associated with severe weather events. While USAA continues to offer competitive rates and benefits, the impact of these factors is being felt across the industry, leading to higher premiums for homeowners.
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USAA's home insurance in California is subject to wildfire safety requirements
USAA, or the United Services Automobile Association, is the seventh-largest provider of homeowners insurance in California as of 2022. However, in a filing to the California Department of Insurance, USAA outlined new restrictions for new California property insurance policies. These changes are in response to costly wildfires and will take effect in March 2024.
USAA's home insurance in California is now subject to wildfire safety requirements. The new rules state that homeowner applicants must have a wildfire score of 1 on a scale of 32 to be eligible for new policies. A higher score indicates a greater risk. Properties with a score of 2 or higher are deemed unprofitable. Contra Costa and Solano counties were ranked with a score of 16, indicating a high risk of wildfires. Unfortunately, homeowners cannot improve their scores by mitigating the risk.
USAA Casualty Insurance Company and Garrison Property and Casualty Company, which are part of the USAA group, have stated that people seeking new policies must be replacing an existing homeowners policy and meet the fire-scoring eligibility requirements. USAA has also offered discounts for fire mitigation strategies such as debris removal and improved roofing. These discounts will need state approval.
The changes have been blamed on "expected rate inadequacy" by USAA. In 2022, the company had about 2.7% of the market share for California Property and Casualty insurance. With these new restrictions, USAA joins other major insurers like State Farm and Allstate, who have also announced plans to stop issuing new homeowner policies in California. These developments are contributing to an insurance crisis in the state, making it more challenging for homeowners and buyers to obtain coverage for their residences.
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Frequently asked questions
Yes, USAA is writing new homeowners insurance policies in California. However, as of March 2023, four subsidiaries under the USAA umbrella will only underwrite new homeowners' policies for residences with a low risk of wildfires.
USAA homeowners insurance is available to current and former military personnel and their families. This includes active-duty service members, veterans, members of the National Guard and Reserves, ROTC cadets, and their spouses and children. Grandchildren of military members or veterans may also be eligible if their parent and grandparent have or had USAA policies.
USAA homeowners insurance covers most weather-related damage, theft, vandalism, sudden and accidental water damage, and mould. It also covers personal liability, personal belongings, dwellings, and other structures, as well as loss of use and additional living expenses. USAA also includes special coverage for military members at no additional cost.
USAA is consistently named the best insurance company for military members, offering some of the lowest home insurance rates available. USAA also has high ratings from agencies such as J.D. Power and AM Best, which gave USAA an A++ financial strength rating. USAA's low rates, quality service, and various discounts through its perks program make it a top choice for eligible customers.
