USAA vs. State Farm Home Insurance Review

USAA vs. State Farm Home Insurance Review 2024

Your home is an asset. That’s where you go every day after work to meet your family. Your home is also where you keep your properties for safety. No wonder it deserves the best homeowner’s insurance coverage.

Choosing between two insurance companies can be a whole lot of work. People are scared of losing their money to an insurance company that doesn’t have good customer support and a stressful claim process.

USAA Insurance and State Farm are two reputable insurance companies in the United States that will definitely come to mind whenever you think of home insurance. Apart from homeowners insurance, they also offer car and rental insurance.

Although these companies are known for having excellent customer support, there are some important differences between them. You should know these differences before you get home insurance quotes online from them.

USAA vs. State Farm: A Comprehensive Review

Let us start the comparison of USAA vs. State Farm Home Insurance by understanding the two giant insurance companies.

USAA Homeowners Insurance

USAA shares the No. 3 spot with Allstate in our 2024 rankings for the best homeowners insurance companies in the USA. It’s reassuring to know that the company is in solid financial shape since they have an impressive A++ financial strength rating from AM Best.

Being a homeowner doesn’t qualify for USAA homeowners insurance. Not every homeowner is eligible to apply. It’s exclusively available to the United States military, their family members, and veterans.

Due to its military focus, USAA offers insurance coverage for military equipment and uniforms. These features are unique to USAA since it is the only insurance company that is exclusive to the military.

Furthermore, the USAA standard home insurance policy has home-sharing coverage, including the cost of dwelling or personal property replacement. In fact, it is one of the very few insurance companies to offer this type of coverage.

At USAA, you won’t find agents. Everything happens online or over the phone, with a toll-free number for any questions or transactions.

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State Farm Homeowners Insurance

State Farm secured the second spot in our analysis, and one big reason is their competitive pricing. At only $88.83 per month for our sample home, State Farm comes out as the cheapest option among all the competitors we’ve got data on.

On the other hand, it’s worth noting that State Farm isn’t as big on discounts compared to most competitors that offer homeowner insurance, and they don’t offer green reimbursement coverage.

This is a reminder that State Farm provides insurance policies in only 47 states in the USA and the District of Columbia.

As per State Farm’s website, they’ve stopped providing new home insurance coverage in states like California, Rhode Island, and Massachusetts. However, they made it clear that standing policies in these three states are still valid and will be honored.

State Farm’s standard policy covers a lot of the same things as USAA, except for cost of replacement, identity theft, and coverages that are limited to the military, like uniform coverage. However, State Farm has some additional coverage options that USAA doesn’t offer, including home systems, service lines, and extended home business property coverage limits.

USAA vs. State Farm Home Insurance: Pros and Cons

Pros of USAA home insurance

  • Military focus with specialized coverage
  • Excellent customer service reputation
  • Strong financial stability
  • Various discounts are available
  • User-friendly online tools and mobile apps

Cons of USAA home insurance

  • Membership is limited to the military and their families.
  • Availability may be restricted to specific demographics.
  • Limited local agent presence.
  • Standardized coverage options.
  • Some individuals may find premiums slightly higher.

Pros of State Farm home insurance

  • Financial stability for policyholders’ peace of mind.
  • A wide range of coverage options are available.
  • Strong customer service with positive reviews.
  • Discounts and bundling options for cost savings.
  • Convenient online tools and mobile app.

Cons of State Farm home insurance 

  • Potential for higher premiums compared to rivals.
  • Limited availability in certain geographical regions.
  • Policy complexity requires careful understanding.
  • The possibility of a premium increases over time.
  • Occasional delays have been reported in claim processing.

USAA vs. State Farm Home Insurance: Which is Better?

Choosing between USAA and State Farm for homeowners insurance is promising, given their competitive range of standard and optional features. USAA covers all 50 states plus Washington, D.C., while State Farm offers policies in 47 states. In addition, the two companies are financially strong. It shows in their impressive A++ rating from AM Best.

The main difference lies in availability: USAA exclusively serves military members, members of their families, and veterans whereas State Farm opens its policies to everyone who is interested in buying insurance.

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State Farm offers low home insurance rates. Their rates are the cheapest among all the insurers we’ve got data on. Furthermore, State Farm has a feature called Ting. If you don’t know what it means, Ting is a device that monitors the electrical system in your home and finds connection faults that can ignite fire.

Do State Farm and USAA Cover Roof Leaks?

Good news: both USAA and State Farm usually cover water damage caused by a leaking roof under their home insurance policies. Keep in mind that whether necessary roof repairs are covered or not depends on the cause; it’s a variable that may differ between policies from USAA and State Farm.

Just to clarify, if your roof takes a hit from a storm, you’re likely covered. However, leaks due to neglect in maintenance might not be covered by either USAA or State Farm. It’s worth noting that your policy might still cover the damage caused by the leak. For a clear picture, it’s best to contact your insurer to get the specifics on what’s covered.

Do State Farm and USAA cover Termite Damage?

Termite damage typically isn’t covered by standard home insurance policies, and this holds true for most, including those offered by State Farm. USAA might provide coverage for certain termite damage, but keep in mind that there could be specific exclusions and limits to consider.

Do State Farm and USAA Cover Water Damage?

Homeowners insurance typically doesn’t cover water damage stemming from maintenance issues like a preventable leaking roof or pipe.

If you want coverage for water damage caused by external factors like an overflowing river, you’ll need a separate flood insurance policy. It’s not usually included in standard homeowner’s insurance.

Both USAA and State Farm, like many other insurance companies in the USA, provide flood insurance through the National Flood Insurance Program (NFIP). It’s a good option for safeguarding against flood-related damages.

USAA and State Farm Homeowner’s Insurance: Costs and Discounts

Homeowners Insurance Rates for USAA and State Farm

What’s the average cost of USAA and State Farm homeowners insurance? Data from Quadrant Information Services reveals that the average annual home insurance premium for USAA is $2,196, slightly lower than State Farm’s $2,215. Both USAA and State Farm fall below the national average home insurance premium, which stands at $2,417. You can read the factors that affect homeowner’s insurance rate to help you understand more about rates.

Home Insurance Discounts for State Farm and USAA Auto Insurance Policyholders 

Both State Farm and USAA give mouth-watering discounts to their customers to help them save money on their insurance expenses. Let’s analyze the costs of the two insurance companies and the discounts that you can enjoy if you buy their policies.

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USAA Homeowners Insurance Discounts

Some homeowners insurance discounts available to USAA customers include:

  • Bundling Discount: Combine policies like home and auto for a discount.
  • Protective Device Discount: Install security systems or smoke detectors.
  • Claims-Free Discount: Maintain a record without insurance claims.
  • Home Security System Discount: Have a monitored security system.
  • Impact-Resistant Roof Discount: Install a roof resistant to impacts for reduced risk.
  • Multi-Policy Discount: Combine home insurance with other USAA policies.
  • New Home Discount: Newly constructed homes may qualify for a discount.

State Farm Homeowners Insurance Discounts

  • Multiple Line Discount: Bundle your State Farm homeowner’s insurance with other policies, such as auto insurance, to receive a discount.
  • Home Alert Protection Discount: Install security systems, smoke detectors, or other safety features to qualify for this discount.
  • Roofing Discount: If you have impact-resistant roofing materials, you may be eligible for a discount on your home insurance.
  • Claim-Free Discount: Maintain a claims-free history to qualify for reduced premiums.
  • Discounts for Energy-Efficient Homes: Homes with energy-efficient features may be eligible for additional discounts on State Farm home insurance.

USAA vs. State Farm Home Insurance: Customer Service and Claims

It’s worth noting that both State Farm and USAA boast complaint rates that are lower than the average, signaling a positive customer satisfaction trend. State Farm’s NAIC complaint index sits at 0.53, while USAA’s NAIC complaint ratio is even lower at 0.30.

These figures from NAIC compliant ratio reinforce their commitment to customer satisfaction with notably low complaint rates.

State Farm offers assistance and claims handling through various channels, such as online/mobile app, through the phone, and with the help of local insurance agents near you. According to a 2023 MarketWatch Guides survey, the average wait time for response and claim processing with State Farm is 12 days, with an impressive 95% approval rate.

USAA provides policy servicing through both a mobile app and an online customer portal for convenient access and management. Policyholders can expect a response within 15 days with USAA, and an impressive 93% of the total claims get approved.

So, in the 2023 J.D. Power study on property claims satisfaction, USAA nailed it with a super impressive score of 886 out of 1,000 points on the customer satisfaction scale. USAA’s score of 886 in the 2023 J.D. Power U.S. Property Claims Satisfaction study surpasses the national average of 874 but falls below State Farm’s higher score of 829.

Conclusion

Have you made up your mind yet about the best homeowner’s insurance company for you between USAA and State Farm? I am sure that this guide will lead you shop for home insurance and make a decision that you will forever be proud of.

Check the advantages and disadvantages of each company and see which one aligns with your insurance goals. If you are not a member of the military, a veteran, or not related to military personnel, you have already been ruled out of getting USAA homeowners insurance.

Your only option is to purchase State Farm homeowner’s insurance. Secure your peace of mind and protect your home, sweet home! Buy homeowners insurance today, because safeguarding your haven should never be an option but a certainty. Get a quote now and shield your home against the unexpected.

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