Orlando Harmon
AAA offers homeowners insurance in Florida, but it has recently limited its coverage in the state. In July 2023, AAA announced it would non-renew some customers' policies, citing high reinsurance rates and the risk of hurricanes. Despite this, AAA remains in Florida's home insurance market, and its policies are generally cheaper than the national average. AAA's Bankrate Score is 4.0 out of 5.0, and it has a rating of 1.6 out of 5 stars on Trustpilot.
| Characteristics | Values |
|---|---|
| Home insurance availability | Available throughout the U.S. |
| Home insurance provider | Auto Club Group |
| Home insurance cost | $1,949 per year for $300,000 in dwelling coverage (compared to a national average of $2,466 per year for the same amount of coverage) |
| Discounts | Bundling, mature homeowner, protective device, new or renovated home, claims-free, loyalty, paperless, smoke-free, home buyer, retired homeowner, prior insurance, roof age verification, smoke detector and home alarm, new home, hail-resistant roof, new home renovations, no claims |
| Ratings | 1.6 out of 5 stars on Trustpilot |
| Additional benefits | Roadside assistance, travel discounts |
| Limitations | Home insurance is only available as a package with auto insurance, may have to switch insurers if you move states, restricts coverage for certain dog breeds, may have a membership fee, coverage and availability depend on the regional club |
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What You'll Learn
Discounts and coverage options
AAA offers a variety of insurance policies, including homeowners insurance, and is well known for its auto insurance and roadside assistance. The company is divided into regional offices or "clubs", each of which has its own contact information, coverage options, and discounts.
AAA home insurance is available throughout the US, but it organizes its markets across several association insurance companies, so coverage and pricing vary based on which club holds your membership. The policy underwriter varies by club, and individual clubs outsource homeowners insurance policies to third-party providers.
Discounts
AAA offers several discounts on its home insurance policies. Some of these include:
- Bundling discount: Save when you insure both your home and vehicle through AAA.
- Mature/retired homeowner discount: Available to homeowners above a certain age (often 55+).
- Protective device discount: May apply if your home has a burglar alarm, smoke detectors, or a monitored security system.
- New or renovated home discount: Homes that are recently built or significantly updated may qualify.
- Claims-free discount: If you haven’t filed any recent claims, you might earn a lower rate.
- Loyalty discount: Some clubs offer savings if you’ve been a member or customer for a certain number of numbers.
- Paperless discount: You could earn a discount if you sign up to receive bills and other documents electronically.
- Smoke-free discount: You could qualify for this discount if all household residents are non-smokers.
- Home buyer discount: This discount offers savings for those buying a policy when purchasing a new home.
- Roof age verification discount: If you have documented proof of the age of your roof, you could earn a discount.
Coverage Options
AAA homeowners insurance covers damage to your home, your personal possessions, and liability. Coverage options vary by club, but some standard types of coverage include:
- Dwelling coverage: Protects your investment in your home’s structure if a covered peril damages or destroys it, such as roof damage from hail or a fallen tree.
- Other structures coverage: Pays to repair or rebuild structures other than your main home, including attached and detached structures like garages and sheds, as well as pools and driveways.
- Personal property protection: Covers your belongings, including those stored somewhere other than your home. Insurance companies usually limit personal property coverage to a percentage of your dwelling coverage or a specific dollar amount.
- Liability coverage: Protects your assets in certain lawsuits.
- Service line coverage: Standard policies exclude sewer backup and other problems stemming from underground utility lines. This option covers those damages and losses.
- Home systems protection: Covers faulty central air conditioning units, furnaces, or hot water heaters.
- Green upgrades coverage: Protects your investment in equipment and systems that increase your home’s energy efficiency or reduce its carbon footprint.
- Earthquake insurance: Earthquakes are a common exclusion, but you can add the coverage to some homeowners insurance policies.
In Florida, AAA homeowners insurance is provided by the Auto Club Group, which also covers several other states. This insurance includes coverage for underground utility lines, major appliance breakdowns, and flood damage in lower-risk areas.
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Customer reviews
On Trustpilot, AAA insurance receives a low rating of 1.6 out of 5 stars, with customers complaining about issues such as misinterpreted drone images leading to policy cancellation and unexpected increases in premiums. Similarly, customers posting negative reviews on the Better Business Bureau website have expressed disappointment with the company's handling of their claims, stating that they received less compensation than expected for major damage to their homes.
On the other hand, WalletHub gives AAA insurance a rating of 3.7 out of 5, with customers praising the company's affordable rates and the availability of various discounts. However, it is worth noting that AAA's NAIC rating is 1.05, indicating that the company has received more complaints than the average car insurance provider of its size. The J.D. Power rating for AAA is 3.3 out of 5.
Some customers have shared positive experiences with AAA homeowners insurance, particularly highlighting the convenience of bundling their auto and homeowners insurance, resulting in significant savings. They also appreciate the company's quick response to claims, with one customer mentioning that a representative was at their home evaluating the damage just a day after a windstorm caused extensive damage.
However, other customers have had negative experiences with AAA homeowners insurance, citing issues with uncooperative and deceptive behaviour, delays in claims processing, and difficulties in cancelling their policies. Some have also expressed frustration with the company's insistence on roof replacement despite the roof being in good condition.
Overall, while AAA homeowners insurance may offer competitive rates and discounts, particularly for AAA members, there seem to be varying levels of satisfaction when it comes to customer service and claims handling, as evident from the mixed reviews across different platforms.
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AAA's rating on Trustpilot
AAA homeowners insurance is available in Florida as a package with auto insurance. AAA is rated :"Bad" with 1.5/5 on Trustpilot, with 3,663 people having reviewed the company. The reviews highlight poor customer service, inefficiency, and deceptive practices.
One reviewer mentioned that they had been an AAA member with auto and homeowners insurance but dropped the auto insurance when they sold their car. When they tried to file a claim for their home insurance, AAA claimed that their policy was inactive, even though they had been keeping up with their premiums. The reviewer also mentioned that AAA's adjuster only offered $1,000 for damage that cost them several thousand dollars.
Another reviewer shared that they had been waiting for over an hour for a tow truck driver from AAA. When they called, they were told that they would have to wait for a minimum of 5-6 hours. The reviewer ended up calling a private tow company but was forgotten about. After multiple calls and demands from the reviewer's father, AAA informed them that they were doing their best and would get in touch soon.
Other reviews mention issues with AAA's travel services, with one reviewer stating that their accommodations were "filthy and infested."
It is important to note that AAA comprises more than 30 separate regional motor clubs in the US, and each club offers its own coverage options and discounts. As such, experiences with AAA may vary depending on location.
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AAA's position in the market
AAA is well known for its auto insurance, but it also offers homeowners insurance through a few of its clubs. Each of these clubs covers a select group of states, so your coverage options and rates depend on your state and the insurer that covers it.
AAA homeowners insurance is available throughout the US, but rather than write policies through a single insurance company, it organizes its markets across several association insurance companies. AAA comprises more than 30 separate regional motor clubs in the US, and which club issues your home insurance depends on your location. For example, a homeowner in Los Angeles would get a policy through the Automobile Club of Southern California, while someone in Virginia would be insured by the CSAA Insurance Group.
AAA has some of the cheapest homeowners insurance quotes available. The cost of a homeowners policy through AAA depends on several factors, including location, coverage amounts, home condition, and home features. AAA offers several different discounts, including bundling home and auto insurance, mature homeowner, protective devices, new or renovated homes, claims-free, loyalty, paperless, smoke-free, home buyer, retired homeowner, prior insurance, and roof age verification.
AAA has confirmed that it is staying in Florida's home insurance market, but it is looking to mitigate risk in the state, meaning some policyholders can expect non-renewal notices. In Florida, homeowners insurance is available only as a package with auto insurance.
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Pros and cons of AAA home insurance
AAA home insurance offers several benefits, or pros, to its customers. Firstly, AAA members can access various perks and discounts, such as travel discounts and lower rates when bundling home and auto insurance policies. AAA home insurance also covers damage to your home, personal possessions, and liability, with additional coverage options like valuable items protection, equipment breakdown, and extended replacement cost coverage. Furthermore, AAA has some of the cheapest homeowners insurance quotes, with annual rates lower than the national average.
However, there are also some drawbacks, or cons, to consider. AAA is composed of multiple regional clubs, each with its own coverage offerings, discounts, and third-party providers, which can make it challenging to obtain consistent information and experiences across different regions. For example, some clubs may not offer full coverage for mold or certain dog breeds. Additionally, a membership fee may be required, and switching insurers when moving to another state may be necessary.
In terms of ratings, AAA home insurance received a Bankrate Score of 4.0 out of 5.0. While the Automobile Club of Southern California and CSAA Insurance Group ranked above average for overall customer satisfaction in the J.D. Power 2024 U.S. Home Insurance Study, the Auto Club Group scored below average. It's important to note that AAA as a whole received high marks for financial strength from AM Best, but customer satisfaction ratings were mixed across different regional clubs in the J.D. Power assessments.
Overall, AAA home insurance can be a good option for those seeking standard coverage and looking to take advantage of membership perks and discounts. However, due to regional variations in offerings and the potential need to switch insurers when moving states, it is essential to research the specific AAA club serving your region.
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Frequently asked questions
In 2023, AM Best raised AAA’s Florida-based insurance company Auto Club Insurance Company’s Financial Strength Rating from A- (Excellent) to A (Excellent). AAA homeowners insurance in Florida has received mixed reviews, with some customers reporting bad experiences and others claiming they were pleased with the service. On Trustpilot, customers give AAA 1.6 out of 5 stars.
The cost of homeowners insurance in Florida is influenced by various factors, including the location of the home, its condition, and the level of coverage needed. The average cost of Florida home insurance is $2,030 a year for a typical house with $350,000 in dwelling coverage.
AAA offers several discounts for homeowners insurance, including:
- Bundling discount: Insuring both your home and vehicle through AAA.
- Mature homeowner discount: Available to homeowners above a certain age (often 55+).
- Protective device discount: For homes with a burglar alarm, smoke detectors, or a monitored security system.
- New or renovated home discount: For newly built or recently renovated homes.
- Claims-free discount: For customers who haven't filed any recent claims.
- Loyalty discount: Offered by some clubs for long-standing members.
