USAA Home Insurance Review (2024) (2024)

FAQs

Will homeowners insurance go down in 2024? ›

How much will home insurance rates increase? The firm's Home Insurance Projection Report foresees a 6% rise in annual premiums in 2024. The increase will put the national average at $2,522 at the end of the year.

Starting in March 2024, four USAA companies plan to only sign new homeowners policies if the home in question has a wildfire risk score of 1 on a scale of 32, where a higher number signifies greater risk, according to the filing.

Its nationwide availability, comprehensive coverage, targeted discounts and added perks make USAA homeowners insurance our top pick for military members. It also boasts a high financial strength rating from the credit rating agency AM Best.

Disadvantages of USAA home insurance include limited extra coverage options and availability since the company only writes policies for homeowners with military affiliations.

There is no shortage of reasons your home insurance rates may have gone up, but the likely culprits in 2024 remain higher-than-average labor and construction costs due to inflation and expensive natural disasters.

USAA homeowners' insurance tends to be more expensive due to its commitment to high standards for comprehensive coverage, superior customer service, and consideration of location-specific risk factors.

Let's start with the bad news. For 2022, USAA reported a net loss of $1.3 billion, its first loss for a full year since 1923 — 100 years ago. Also, USAA said its net worth — basically, the difference between what it owns and what it owes — declined dramatically from $40.1 billion in 2021 to $27.4 billion in 2022.

USAA is often the cheapest option even though it offers fewer car insurance discounts in total. Keep in mind that car insurance costs are highly variable and depend on factors like your vehicle, location, credit score, driving history, deductible and more.

San Antonio-based USAA recently reported its first full loss for a year since 1923 and has laid off more employees. TPR's Jerry Clayton spoke with Michael Taylor, a business and finance columnist for the San Antonio Express-News who recently penned a column about the troubles at USAA.

State Farm, Geico, and Progressive are better than USAA, based on factors like average premiums, number of discounts available, and customer service record. Of the 10 largest car insurance companies, only Geico is cheaper than USAA, on average.

Is USAA good at paying claims? ›

Additionally, respondents also rated the company a 4.1-star rating for satisfaction with the claim outcome or settlement. In the J.D. Power 2022 U.S. Auto Claims Satisfaction Study℠, USAA even made fourth place in customer satisfaction for claims, with 890 out of 1,000 points.

USAA is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $487 per year, the average USAA car insurance policy is actually cheaper than coverage from most competitors. In fact, USAA is one of the cheapest car insurance companies nationally.

A Washington class action lawsuit claims USAA uses a computer program made by a CCC company to arbitrarily reduce or deny personal injury protection and/or medical payments, Washington Superior Court for Clark County documents say.

State Farm is not only the most popular insurer overall — it is the top home insurance company in 39 states and Washington, D.C.. The 10 largest home insurance companies account for 62% of the market, with nearly $69 billion in business.

Overall, USAA auto insurance is cheaper than Allstate auto insurance in more states across the country. Average pricing is based on national rates and could vary depending on your location. In 47 states, USAA is cheaper than Allstate. Allstate isn't cheaper than USAA in any state.

States with the highest home insurance rates

Oklahoma, Kansas, Nebraska, Florida, and Colorado are the most expensive states for homeowners insurance. Oklahoma has the highest average cost of homeowners insurance at $5,858 per year. Below, you'll see the top five most expensive states for homeowners insurance.

Over the next five years (2024‒28), we forecast that total insurance premiums will grow by 7.1% in real terms, well above the global (2.4%), emerging (5.1%) and advanced (1.7%) market averages. At this rate, India will have the fastest growing insurance sector of the G20 countries.

At closing, once the buyer officially owns the home, you can cancel your coverage. Until that time, your homeowners insurance policy should remain in place to provide protection should anything happen to the home.

Why homeowners insurance rates are rising. Several factors are making homeowners insurance more expensive: The increase in the number and severity of hurricanes, floods, tornadoes and other harsh weather has led to a spike in claims in many parts of the country.