- USAA Home Insurance Overview: Founded in 1922 by Army officers, USAA now serves 14 million members, offering strong customer satisfaction, financial strength, and military-specific benefits, but is exclusive to military members and veterans.
- Pros and Cons of USAA Home Insurance: USAA is known for its excellent claims experience, competitive pricing, and military-specific benefits, but it has limited eligibility, no local agents, and fewer endorsement options, with flood insurance requiring separate purchase.
- Coverage Options and Extras: USAA’s standard HO-3 policy covers core areas like dwelling, personal property, and liability, with added benefits such as replacement cost, identity theft coverage, wildfire response, and optional endorsements like earthquake and water backup.
- Pricing and Discounts: USAA offers lower-than-average premiums, often around $1,243 to $1,954 annually for $300K coverage, with discounts for bundling, claims-free history, smart home devices, and long-term membership, though bundling discounts are smaller than competitors.
- Customer Experience and Financial Stability: USAA ranks highly in claims satisfaction and digital experience, operating without local agents, and boasts a top-tier financial strength rating (A++), backed by over $32 billion in net worth and 14 million members.
USAA Home Insurance Overview
USAA was founded in 1922 when 25 U.S. Army officers in San Antonio got together to insure each other’s cars because no one else would. A hundred years later, the company serves 14 million members and manages $221 billion in total assets. It’s a mutual association, meaning it’s owned by its members rather than outside shareholders, and it distributes profits back to them. In 2025, that meant roughly $3.7 billion returned to members, the largest amount in the company’s history.
USAA consistently tops customer satisfaction rankings across the insurance industry. It earned the highest J.D. Power claims score of any company (746/1,000), the highest trust score (92%), and the highest renewal intent (95%) in recent surveys. It also carries the highest possible financial strength rating from AM Best (A++, Superior).
The catch, of course, is that USAA is only available to military members, veterans who served honorably, and their qualifying family members. If you’re eligible, it’s almost certainly the best homeowners insurance option available to you. If you’re not, you’ll need to look elsewhere.
Pros and Cons
Pros
- Best claims experience in the industry: J.D. Power claims score of 746/1,000, the highest of any company surveyed. 87% of members report satisfaction with claims handling.
- Competitive pricing: Average premiums range from ~$1,243 to ~$1,954/yr for a $300K dwelling, depending on the source, well below the national average of ~$2,584.
- $3.7 billion returned to members in 2025: As a mutual company, USAA sends profits back to its members through dividends, discounts, and rewards. That’s real money.
- Military-specific benefits built in: Deductible-free coverage for personally owned military gear and clothing on active or reserve duty. Up to $10,000 for belongings destroyed in a war zone.
- Replacement cost and identity theft are included: Both are standard in USAA policies. Many competitors charge extra for one or both.
- Wildfire response program: USAA sends certified firefighters to help protect eligible homes when a wildfire threatens. Enrollment is automatic if your home qualifies.
- A++ financial strength: The highest possible AM Best rating, backed by $32.1 billion in net worth and $221 billion in total assets.
Cons
- Military eligibility required: If you’re not a military member, veteran, or qualifying family member, USAA is not available to you.
- No local agents: USAA operates entirely through phone, web, and mobile app. There are no local agent offices to visit in person.
- Smaller bundling discount: The multi-policy discount maxes out at about 10%, compared to 25% at State Farm and Allstate.
- Fewer endorsement options: The add-on list is shorter than Allstate’s. Options like green improvement reimbursement, yard and garden, and sports equipment aren’t available.
- No flood insurance sold directly: You’ll need to buy flood coverage through the NFIP or a private insurer separately. USAA can’t sell it to you.
Coverage Options
Standard Coverage
USAA’s standard HO-3 policy covers the six core categories, with a few extras baked in that other insurers charge for:
Coverage Type | What It Covers | Notable Details |
Dwelling (A) | Your home’s structure, walls, roof, built-in appliances, and attached structures | Home Protector endorsement available: 25% extra above your dwelling limit |
Other Structures (B) | Detached garages, sheds, fences | Typically, 10% of dwelling coverage |
Personal Property (C) | Furniture, clothing, electronics, belongings | Replacement cost included standard (not just depreciated value) |
Loss of Use (D) | Additional living expenses if the home is uninhabitable | Covers temporary housing, meals, and related costs |
Personal Liability (E) | Lawsuits for bodily injury or property damage | Starts at $100,000; higher limits available |
Medical Payments (F) | Medical bills for guests injured on your property | No-fault pays regardless of who caused the injury |
Built-In Extras
These come standard with USAA policies at no additional cost:
- Replacement cost for personal property: You’re reimbursed for the cost of buying new items, not the depreciated value of what you lost. Most competitors charge extra for this.
- Identity theft coverage: Up to $5,000 included in the standard policy to help pay for identity recovery services.
- Military gear coverage: Active-duty and active Reserve members pay no deductible on covered losses of personally owned military gear, uniforms, insignia, flight cases, headsets, and body armor.
- Wildfire response program: USAA monitors wildfire threats and dispatches certified firefighters to help protect eligible homes. Automatic enrollment if your home qualifies.
Add-Ons and Endorsements
USAA’s endorsement list is shorter than some competitors’, but it covers the most important add-ons:
- Water backup coverage: Covers damage from sump pump overflow or plumbing backup from outside the home. Not included in the standard policy.
- Home Protector (extended replacement cost): Adds 25% above your dwelling and other structures limits. Useful if rebuilding costs exceed your policy limit after a major loss.
- Earthquake coverage: Available as an endorsement in most states.
- Electronics endorsement: Extra coverage for electronics beyond standard personal property sub-limits.
- Valuable personal property: Separate policy for high-value items like jewelry, art, and collectibles.
- Personal injury endorsement: Extends liability coverage to include claims like libel, slander, or invasion of privacy.
What’s Not Covered
Standard exclusions apply: flood (must be purchased separately through NFIP or a private insurer), earthquake (unless added), normal wear and tear, pest damage, mold from negligence, mechanical breakdowns, nuclear hazards, and war/terrorism damage. USAA cannot sell flood insurance directly.
Pricing and Cost
USAA is consistently among the cheapest homeowners insurance options, though exact averages vary by source and methodology.
The wide range in averages comes down to methodology: different sources use different sample profiles, coverage levels, and deductibles. Regardless of the source, USAA consistently lands at or near the bottom on price.
On top of lower base rates, USAA returned $3.7 billion to members in 2025 through dividends, subscriber account distributions, and bank rewards. That effectively reduces your net cost of insurance further.
Discounts and Savings
USAA’s discount lineup is solid but not as extensive as Allstate’s. The bundling discount is notably smaller than what you’d get from State Farm or Allstate.
Discount | Estimated Savings | Details |
Multi-policy bundling | Up to 10% | Bundle home and auto; smaller than the 25% offered by State Farm and Allstate |
Claims-free | Up to 15% | Discount for maintaining a claim-free history |
Connected home | Up to 8% | Discount for qualifying smart home and security devices |
Multi-product | Up to 9% | Discount for holding multiple USAA products (banking, investments, etc.) |
Loyalty | Up to 5% | Discount for long-term USAA membership |
Protective devices | Up to 5% | Fire alarms, burglar alarms, security systems |
The real savings story: USAA’s base rates are low enough that the smaller bundling discount matters less. When your starting premium is already 25–50% below the national average, a 10% bundle discount still gets you to a very competitive total.
Claims Experience
The Data
This is where USAA separates itself from every other insurer:
- J.D. Power Property Claims Satisfaction: 746/1,000, the highest score of any company in the 2025 study. The industry average is 682.
- Claims handling satisfaction: 87%, the top score among all companies surveyed by Insure.com.
- NAIC complaints: Consistently below the industry average for its size. USAA receives fewer complaints than expected.
- Customer satisfaction overall: 91% satisfaction, 92% trust, 87% would recommend, 95% plan to renew.
How to File a Claim
Since USAA has no local agents, all claims are filed through digital or phone channels:
- USAA mobile app (most common method)
- Online at usaa.com
- By calling 1-800-531-8722
USAA’s app is well-regarded for claims filing, with photo upload, digital tracking, and direct messaging with your adjuster. The company also provides advance payments for immediate needs during catastrophic events.
Catastrophe Response
USAA’s wildfire response program is unique in the industry. The company monitors wildfire threats and sends certified firefighters to help protect eligible homes before fire reaches them. During Hurricanes Helene and Milton in 2024, USAA mobilized response teams and provided advance claim payments to affected members. In 2025, the company also offered nearly $450 million in zero-interest loans, payment extensions, and fee waivers during the government shutdown.
Customer Service and Digital Experience
No Agents, No Problem?
USAA operates without local agent offices. Everything runs through phone, web, and mobile app. For some homeowners, this is a dealbreaker. For others, it’s a non-issue.
The numbers suggest most members are fine with it: 91% report overall satisfaction, 92% trust the company, and 95% plan to renew. USAA staff are available by phone (1-800-531-8722), and the company employs over 38,000 people to support its 14 million members.
Mobile App
USAA’s app is one of the highest-rated insurance apps on both iOS and Android. It handles homeowners’ policy management, claims filing, banking, investments, and military benefits all in one place. If you’re already a USAA banking customer, the integration is seamless.
Insure.com rated USAA’s digital experience as the best among all companies surveyed, even ahead of Allstate and Lemonade.
Financial Strength
USAA’s financial position is rock solid:
- AM Best Financial Strength Rating: A++ (Superior), the highest possible
- Net worth: $32.1 billion (10% increase from 2023)
- Total assets: $221 billion
- Revenue: $48.6 billion (14% increase year-over-year)
- Net income: $3.9 billion (2024)
- Mutual association: Owned by its 14 million members, not shareholders
- In business for over 100 years (foundedin 1922)
Who Is USAA Good For?
Best For
- Military families who want the best overall homeowners insurance package. USAA leads on claims, pricing, satisfaction, and financial strength. If you’re eligible, it’s hard to justify going elsewhere.
- Active-duty service members who need military-specific coverage for gear, uniforms, and deployments.
- Homeowners who are comfortable managing insurance through phone and app. No local agents means everything is digital or over the phone.
- USAA banking customers. The app integrates insurance, banking, and investments, which makes managing everything in one place easy.
Not Ideal For
- Anyone without a military connection. USAA’s eligibility requirements are strict: military members, veterans with honorable discharge, and qualifying family members only.
- Homeowners who want to meet with a local agent in person. USAA does not have agent offices.
- Discount stackers. The bundling discount caps at about 10%, and the add-on menu is shorter than Allstate’s.
- Homeowners who need flood insurance through their carrier. USAA can’t sell flood policies directly; you’ll need the NFIP or a private insurer.
How to Get a Quote
You can get a USAA homeowners insurance quote in two ways:
- Online at usaa.com (available 24/7)
- By calling 1-800-531-8722
You’ll need to verify your military eligibility before getting a quote. Have these ready:
- Property address and year built
- Square footage, construction type, and number of stories
- Roof material and age
- Current insurance details (if switching)
- Desired coverage amounts and deductible
- Military status and service dates
How USAA Compares
USAA | State Farm | Allstate | |
Overall Rating | 4.5 / 5 | 4.0 / 5 | 3.5 / 5 |
Avg. Annual Premium ($300K) | ~$1,548 | ~$2,133 | ~$2,049 |
AM Best Rating | A++ (Superior) | A+ (Superior) | A+ (Superior) |
J.D. Power Claims | 746 / 1,000 | 661 / 1,000 | 665 / 1,000 |
Bundling Discount | Up to 10% | Up to 25% | Up to 25% |
Local Agents | None | 19,200+ | ~6,000 |
Eligibility | Military only | Anyone | Anyone |
Best For | Military families | Budget + agents | Customization |
USAA vs. State Farm
USAA wins on claims satisfaction (746 vs. 661), overall customer satisfaction (91% vs. 89.9%), and financial strength (A++ vs. A+). Pricing is comparable, with USAA slightly cheaper in most comparisons. State Farm’s advantages are its 19,200+ agent offices and larger bundling discount (25% vs. 10%). If you’re eligible for USAA and don’t need a local agent, USAA is the better deal.
USAA vs. Allstate
USAA beats Allstate on claims (746 vs. 665), pricing, and customer satisfaction across the board. Allstate’s strengths are its wider range of endorsements, bigger bundling discount (25% vs. 10%), and availability to anyone. If you’re eligible for USAA, it’s the better option. If you’re not, Allstate’s customization options are a solid alternative.
Final Verdict
USAA earns a 4.5 out of 5 and is, by most measures, the best homeowners insurance available in the United States. It leads on claims satisfaction, customer trust, renewal intent, and pricing, while carrying the highest possible financial strength rating. The military-specific benefits (gear coverage, wildfire response, $3.7 billion in member rewards) are icing on the cake.
The tradeoffs are real but manageable for most eligible members: no local agents, a smaller bundling discount than competitors, and fewer endorsement options than Allstate. If those matter to you, you’ll want to weigh them. But for the vast majority of military families, USAA is the best deal in homeowners insurance, and it’s not particularly close.
If you’re eligible, get a quote at usaa.com or by calling 1-800-531-8722.
Our Methodology
This review uses a weighted scoring system: coverage options (25%), pricing and value (20%), claims experience (20%), customer service (15%), discounts and savings (10%), and digital experience (10%).
Frequently Asked Questions
Answers to your questions about USAA home insurance.
It’s the best-rated homeowners insurance in the country by most measures. USAA earned the highest J.D. Power claims score (746/1,000), the highest trust rating (92%), and the highest renewal intent (95%) of any company surveyed.
USAA has been in business since 1922, when 25 Army officers founded it in San Antonio, Texas. It holds the highest possible financial strength rating from AM Best (A++, Superior), manages $221 billion in total assets, and serves 14 million members. It’s a mutual association, meaning members own the company rather than outside shareholders. USAA is regulated by state insurance departments and licensed in all 50 states plus D.C.
Eligibility is limited to active-duty military, National Guard and Reserve members, veterans who served honorably, officer candidates, and their immediate family members (spouses, children, and in some cases widows/widowers). If you’re not sure whether you qualify, you can check on usaa.com or call 1-800-531-8722.
Averages vary by source but generally fall between $1,243 and $1,954 per year for $300,000 in dwelling coverage, well below the national average of ~$2,584. On top of that, USAA returned $3.7 billion to members in 2025 through dividends and rewards, which effectively reduces the net cost further.
USAA does not sell flood insurance directly. Flood damage is excluded from all standard homeowners’ policies. If you need flood coverage, you’ll need to purchase it through the National Flood Insurance Program (NFIP) or a private flood insurer. Your USAA agent can help point you in the right direction.
You can file through the USAA mobile app, online at usaa.com, or by calling 1-800-531-8722. The app supports photo uploads, digital tracking, and direct messaging with your adjuster. USAA can also provide advance payments during catastrophic events to help with immediate needs like temporary housing.
Yes, though the bundling discount is smaller than that of competitors at about 10% (compared to 25% at State Farm and Allstate). That said, USAA’s base rates are low enough that the total cost is still very competitive even with a smaller bundle discount.
