USAA Home Insurance - Get it if you can get it
Written: Sep 13 '00
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Pros: Inexpensive, quality service
Cons: must be affiliated with military or another member
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| mrisch's Full Review: USAA Group - Home |
USAA home insurance is the best insurer I have dealt with.
Coverage
You can get all the basic coverage. I have homeowner and earthquake on a house worth $330,000, with a “rebuild” value of $142,000. USAA determines rebuild by figuring out the “cost” of the dwelling and adding a 10% “overage”. In case of total loss, this is the maximum USAA will pay to rebuild.
Here is the breakdown:
Dwelling: $142,000
Personal property: $106,500
Loss of use (hotel during rebuild): $28,400
Total cost: $572 annually.
This is for zero deductible. If you get a $250 deductible (and I do), then you get a “credit” of $116 annually. I figure that one claim every two years is likely, so I might as well save the money now. I had no claim last year, so this was a good choice. So, the total “basic” coverage was about $450 a year. Dirt cheap, in my view.
Replacement coverage
The default coverage is “actual value”. This is bad, because your old TV that burns up in a fire may have a depreciated value of zero, but you would have to pay to replace it.
USAA offers replacement coverage, and I recommend it. This coverage will replace any damaged dwelling or personal property with a reasonable replacement. You get this for $52 a year. Well worth it.
Home protector
USAA knows that the true cost to rebuild thee home on rebuild may be more than the “rebuild” cost - the “rebuild” cost is based on old construction. For $58 a year, I get “Home Protector”, which adds 25% to the dwelling and personal property coverage. Thus, I can rebuild knowing that more expensive materials will be paid for.
Water backup
I pay $32 a year for “water backup” coverage, for sump pump overflow (which I don’t have) or city sewer backup. An unlikely event, but hey, the damage would be aweful (and not covered) if it ever happened.
Computer coverage
The default computer maximum is low, so for $6 a year, I pay for a $3000 limit and coverage of my computer for loss caused by almost all perils, including Coke on the Keyboard.
Earthquake
I pay another $600 for earthquake insurance. Still a very good price, but this is regulated, so there is not much movement here. I have a separate opinion on earthquake insurance, so I won’t dwell on it here.
Claims
The claims process is easy and quick. You simply call a toll free number (24 hours a day) and make your claim. I have never had to hold for more than a minute. USAA has inspectors that come out and look at the damage and “adjust” the claim.
I have never actually made a claim, so I don’t know how quickly the check comes, but if it is as efficient as the auto insurance, I am sure there is no problem. My mother made a claim recently, and received her payment quite quickly.
Customer service
USAA customer service is very helpful and quick. I have always been able to consult them to get coverage on new cars even while at the dealership (or at least to find out about the cost) and when my wife and I separated, they were very helpful in facilitating my wife’s new account and transfer of an auto to the new account.
Getting in
Here’s the rub - you have to be affiliated with the military somehow, or be related to someone who is either affiliated with the military or who is also a member of USAA. My grandfather is a veteran. Good enough for me.
Oh, and the rebates...
USAA rebates back to its customers a small (and sometimes large) portion of its premiums. This rebate was more than 20% three years running. That’s a pretty nice rebate.
Recommended:
Yes
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