USAA Renters Insurance Review 2021
- Financial Strength A++
- BBB Rating A
- Coverages 5/5
- Discounts Bundling discount
- Support available 24/7
- User Ratings Fewer complaints than average
- Availability All states
- Pricing affordable
According to many home insurance reviews, USAA (United States Automobile Association) is undoubtedly among the best insurance providers in the country. It offers great rates and excellent discounts and packages. Moreover, its customer satisfaction ratings are impressive. However, there is a catch. USAA only provides insurance coverage to serving or retired army personnel and a few of their eligible family members. If you are one of the few eligible ones, consider yourself lucky. Wondering why? Stay with us to find out in our USAA renters insurance review.
USAA is nearly 100 years old. The company was founded to help serving veteran military members and their families. All these years, it has been making life a little easier for its target market. In fact, eligible members can get coverage for as low as $10 per month.
USAA’s revenue is more than $35 billion, and it has around 13 million members. It is a privately owned company with more than 36,000 employees that offers several types of insurance, including USAA renters insurance.
Let’s start our detailed USAA renters insurance review.
How We Reviewed
We have a very extensive reviewing process. We not only browse through the offers to check rates and discounts, but we also look into reviews to find out what customers think of the website. We also look at USAA renters insurance rating across multiple platforms to determine the company’s financial strength.
In this review, you will find all the info you need to know about the way USAA operates, the rates it offers, who it is ideal for, its pros and cons, as well as insight into the company’s market reputation and common customer complaints.
Where Is It Available?
USAA renters insurance is available in all states. No matter where you live, if you qualify for its coverage, you can easily get it.
The insurance provider is headquartered in San Antonio, Texas, US. It also has several regional offices nationwide. Having started as an auto insurance company serving military members and their families, USAA expanded to one of the US’s largest and leading insurance companies.
Renter Insurance Review
Renters insurance, also called tenants insurance, is a version of homeowners insurance as it technically provides the same benefits, excluding coverage for the structure and dwelling. With renters insurance, you can get protection for your personal belongings, liability, and additional living expenses.
USAA renters insurance offers more or less the same benefits and coverage as most other insurance providers. The standard renters insurance policy includes:
- Liability coverage
- Additional expense coverage
- Personal property coverage
- Medical coverage
You can use USAA renters insurance coverage in case of:
- Building collapse
- Flood — referring to water damages incurred by tidal waves or quick water accumulation on the property from any source. You will have to check with your company as coverage varies by area. Note that water seepage is not covered.
- Damage caused by a volcanic eruption or the tremors before the eruption
- Wildfire breakout or damage by smoke (agriculture and industrial activities not included)
- Wind or hailstorm
- Robbery and theft
- Damage caused by sudden fluctuations in electric current
The coverage varies by location and includes specific terms and conditions. Let’s now look in detail at four basic types of coverage.
Personal Property Coverage
As the name suggests, it covers personal property damage, including your clothes, books, furniture, and electronic items such as mobile phones, laptops, etc.
In case of damage to you or another person in an accident or covered incident in your household, liability coverage will help you cover the legal expenses if the person harmed files a lawsuit against you. It also covers damages to the property if incurred during the incident.
Medical Payments Insurance
Medical payments insurance will cover the cost of medical treatment for you or another individual that got harmed while on your property.
Additional Living Costs
Suppose you are forced out of your abode due to property damage by one of the covered incidents. In that case, the additional living costs coverage will help you pay for rent or hotel expenses until the home is inhabitable again.
Extra Coverage Options
Consider including some extra coverage if you live in a high-risk area or have some specific needs. Let’s review some of the additional options below.
You may need to get renters and auto insurance from USAA in order to qualify for umbrella insurance. It is a personal liability insurance that provides extra liability coverage in case your renters insurance is not sufficient. Umbrella insurance covers injury to other individuals or damage to their possessions.
Flood Insurance Coverage
Unlike USAA, some insurance providers do not cover flood damage under basic renters insurance. If you’re living in a flood-prone area, you may need to opt for flood coverage to protect your belongings. However, note that flood coverage does not offer protection from damage caused by water seepage in the basement or the walls. It is a fundamental construction problem, and that’s why it is not covered by renters insurance.
In case you have valuable collectible items such as baseball cards, trophies, stamps, military badges, sports cards, model trains, legos, figures, vintage dolls, wine, etc., you should consider getting collectibles insurance. Any item that classifies as a special collectible item is covered by USAA.
Small Business Insurance
If you own a small business, you should consider investing in small business insurance. It can help you cover property damage, lost income, lawsuit costs against your company, etc. The exact terms and conditions and coverage options vary by coverage type. Make sure you analyze the extent of coverage you need before selecting one for your business.
Mobile Phone Insurance
Mobile phone insurance can cover your phone in case it gets damaged, lost, or stolen. If you find yourself a little clumsy or if you tend to lose your phone, this type of coverage might help you out. Also, if you have a costly device that might not be easy to replace, consider signing up for mobile phone insurance. The cost of full yearly USAA mobile phone coverage is $99.99. You can even get your mobile replaced within 48 hours if you are willing to pay a $199 fee.
Commonly Asked Questions Regarding USAA Renters Insurance Coverage
Does Renters Insurance Cover Moving?
No, renters insurance does not cover moving costs. However, you can get coverage for damages to personal property while moving. There are certain stipulations here, and damage incurred due to weather-related activities is not included in the USAA renters insurance.
Does Renters Insurance Cover Storage Units?
Yes, USAA renters insurance does cover storage units. No matter where you are — your belongings are safe, even if they are in a storage unit miles away. However, some storage units require proof of valid storage insurance, so make sure you have it handy.
Can I Add Renters Insurance to My Homeowners Policy?
You can add renters insurance to your homeowners insurance policy, but you don’t need to in most cases. Refer to your provider to know whether it’s necessary before making a decision.
Do College Students Need Renters Insurance?
It’s not mandatory to have renters insurance for college students. However, you should definitely consider this option, especially if you are a first-time renter. The insurance policy covers all your belongings if they get damaged or stolen. Thus, it is an essential option for most people. It also covers all legal expenses in case you are found responsible for someone’s injury or damage to your property.
How Can I Save Money on My Premium?
The lower the deductible on your renters insurance, the higher the premium you will pay. A deductible is a sum the policyholder has to pay before the insurance kicks in. If you wish to lower the premium, you should consider increasing your deductible. You could also shop around and compare rates of other companies, but that may not prove very fruitful because USAA is known for extremely low insurance rates.
What Is Not Covered in Renters Insurance?
Quite a few situations are not covered by renters insurance. They include:
- Damage from some types of water leaks
- Damage to the roof
- Damage to the building structure
- Vehicle theft or damage
- Theft or damage of personal possessions of an uninsured resident such as the policyholder’s roommate
- Damage due to pest or insect infestation
USAA Renters Insurance Pricing
As mentioned earlier, you can get renters insurance for as low as $10 per month. Even though several factors affect the pricing, one thing is certain — USAA offers some of the lowest rates.
The range of coverage you can get with the insurance policy is:
- Personal property coverage: $25,000–$750,000
- Liability coverage: $100,000–$1,000,000
- Medical payment insurance: $5,000
The average USAA renters insurance cost of monthly premium is $19 with a $500 deductible. You can obviously get a lower premium by increasing the deductible. Furthermore, you may end up paying way more than the average if you include supplemental coverage, such as collectibles or umbrella insurance. At the same time, you can avail of discounts on bundles and packages. For example, you could get a great deal on auto and renters bundled insurance.
Customer Satisfaction and Financial Strength Review
The company has excellent customer satisfaction ratings as well as incredible financial strength.
- USAA AM Best rating is A++.
- USAA is not BBB accredited, but it has fewer complaints on the platform than most other insurance providers.
- The company has a 3.8/5 rating in terms of customer satisfaction, which is better than most other companies.
USAA renters insurance customer service is available 24/7. There have been no complaints regarding service quality. In fact, the team is highly praised for being extremely responsive to inquiries and complaints.
Ease of Buying and Claims Handling
The claims handling process through the USAA application is extremely easy. You should log in to the mobile app and file a claim. The app now provides access to visually impaired individuals through voice-guided technology. There is also the USAA renters insurance claim portal on the website. Additionally, you can call a customer service representative to help you out.
Comparison With Competitors
USAA aims at making the lives of its customers easier by providing excellent insurance services. In terms of pricing, it stands out among other companies. We’d like to compare USAA to a few other leading insurance providers.
USAA vs. GEICO Renters Insurance
USAA offers better coverage than GEICO, even though both companies boast a great market reputation. With USAA, you get flood coverage and additional coverage options at discounted rates, which is a major plus. USAA also has better ratings than GEICO.
USAA vs. State Farm Renters Insurance
State Farm, too, is among the top insurance service providers in the country. But when compared to USAA in terms of ratings, insurance rates, and other factors, State Farm does not come close. However, State Farm offers various tools and services to its customers that make the insurance handling process a little easier and more enjoyable.
USAA vs. Lemonade Insurance
Lemonade provides its customers with an interactive app that simplifies the insurance purchase and claims handling process. However, Lemonade’s app is not enough to beat USAA, which definitely takes the crown when it comes to the value it provides to its clients. Moreover, USAA has better ratings and reviews than Lemonade, one more time proving its superb services.
Pros & Cons
- Earthquakes, floods, and storms are covered under the basic policy. Standard renters insurance usually does not provide coverage for the above-mentioned natural disasters. However, basic USAA renters insurance has you covered. Therefore, if you live in a high-risk zone prone to earthquakes, floods, or storms, consider opting for USAA.
- The USAA renters insurance app is useful and popular. The app is user-friendly and functional. You can use it to get an ID card, pay bills, or file a claim. Moreover, if you decide to cancel your USAA renters insurance, you can always do it through the app without hassle.
- Damaged items' value is estimated at the current cost. In case your belongings get damaged or stolen, USAA will generally reimburse the cost to replace them with brand-new items rather than the depreciated value.
- It is designed to provide coverage for serving or retired army personnel and a few eligible family members.
- Insurance is only available to a specific category of people. As we’ve mentioned before, USAA renters insurance is only available to serving or retired military staff.
- Roommates are required to have a separate policy if they want to be covered. The insurance only covers the policyholders and their family members who live with them. Unrelated roommates need to purchase separate insurance.
- Little replacement costs are offered for certain items. Even though renters insurance is available in all the states, the variety of services and products vary. Contact your local USAA agent to know all the details.
- Unfortunately, it’s not accessible to individuals who don’t belong to one of the eligible categories.
USAA renters insurance is one of the leading insurance providers on the market today. With its coverage available in all 50 states, it provides a wide range of policies. If you’re eligible for this insurance, you should consider it while shopping around for the best renters insurance.
Am I eligible for USAA renters insurance?
You are eligible for USAA insurance if you belong to one of the following categories:
- People currently serving in the US Air Force, Army, Coast Guard, Marines, National Guard, Reserves, and Navy
- Individuals who retired or separated from the US military with “Honorable” discharge type
- Eligible family members
- Cadets and midshipmen
Does USAA renters insurance cover broken windows?
If the damage to the windows occurred due to a storm or accident, they are covered by the house owner’s insurance. In case the damage is caused by negligence or destructive behavior, most likely broken windows won’t get covered.
Does USAA renters insurance cover pet damage?
No, it does not. USAA renters insurance does not provide coverage for damage caused by pets and insects.
Does USAA renters insurance cover cell phones?
Yes, USAA renters insurance can cover cell phones. However, note that you’ll have to pay a deductible. Moreover, certain limitations to the policy will apply. You can also look into mobile phone protection offered by the USAA.
Does renters insurance cover bed bugs?
Bedbugs and certain other pests occur due to a lack of maintenance. Therefore, they’re not covered by renters insurance.
How can I cancel USAA renters insurance?
You can cancel USAA renters insurance through your USAA account. Alternatively, you can call a service representative or email the company.
Does renters insurance cover flooding?
Usually, standard renters insurance policies do not provide coverage for flooding. However, USAA includes floods into their covered perils under the basic policy.
Does renters insurance cover mold damage?
It covers mold only if it occurs due to a covered event. For example, if you get mold in your house after flooding or water damage — USAA renters insurance will cover it.
Does renters insurance cover temporary housing?
Yes, renters insurance usually covers temporary housing expenses in case your house gets damaged in a covered event.
Does renters insurance cover dog bites?
Yes, it does. Personal liability protection provides coverage for dog bites.
Does renters insurance cover property damage?
Absolutely. If your property is damaged due to one of the covered perils, it will be covered by renters insurance.
Does renters insurance cover fire?
Yes, it does. If your possessions are destroyed by fire, be sure renters insurance will get you covered.
Does renters insurance cover car theft?
No, renters insurance doesn’t cover car theft. However, it covers personal property inside the car during the theft.
Does renters insurance cover moving costs?
No, renters insurance does not cover moving costs. However, you can get coverage for damages to personal property while moving. Certain limitations apply.