Pros and Cons of USAA Renters Insurance
Comparing the pros and cons of renters insurance from USAA can help you decide if it’s the right policy for you.
Pros
Flood insurance and earthquake coverage come standardPolicies are designed for military membersOption to add spill and drop electronics coverage
Cons
Only available to military members and their familiesLimited discounts
USAA Renters Insurance at a Glance
Our rating: 4
Year founded: 1922
J.D. Power rating: 894/1000
AM Best rating: A++*
State availability: 50 states and Washington, D.C.
*AM Best rating is accurate as of June 2023.
USAA State Availability
USAA renters insurance provides coverage in 50 states and Washington, D.C. In addition, USAA coverage includes overseas insurance for members who are deployed or are moving abroad, based on eligibility requirements.
Cost of USAA Renters Insurance
The average monthly insurance cost of a USAA renters policy is $14.33, or $172 a year. That’s lower than the national average costs of $180 a year and $15 per month. According to USAA, some members can get renters insurance coverage for as little as $10 per month.
Cost of USAA Renters Insurance by State
USAA Discounts
You can save on USAA renters insurance premiums through discounts, although eligibility may vary. Several of USAA’s biggest insurance discounts are only available to certain members, such as:
- Bundle renters and USAA auto insurance policies
- Claims-free discount
- Protective devices like security systems
- Living on base, including in barracks and other on-base housing
- Service academy enrollment, a discount for members residing at a U.S. military academy
USAA Policy Coverage
- Liability insurance: This coverage protects you from the cost of being liable — legally responsible — for an accident. Liability coverage can pay for medical bills or repair costs if you cause an accident that results in injuries or property damage. For example, if your pet bites a guest and the visitor needs stitches, your personal liability coverage helps cover the medical payments for the injured person’s medical bills. Liability coverage also covers the cost of defending yourself in court (up to your coverage limit) if someone sues you for a covered accident.
- Personal property insurance: Personal property coverage is one of the primary reasons military members get renters insurance. It covers all or part of the cost to replace personal belongings following an accident that’s covered by the policy. USAA even covers your belongings in case of flooding or earthquakes, something most renters insurance policies exclude. Policyholders can opt for replacement cost coverage to help cover the total cost of replacing their damaged items.
- Additional living expenses: If your rental turns unlivable because of a covered accident, additional living expenses coverage (called loss of use coverage) can help you pay for temporary housing. For instance, if a burst pipe in your barracks and water damages the walls to the point that you have to vacate until a restoration crew can clean it up, you’re covered. You may have to live in a hotel temporarily, which costs a lot more than living on base. Your USAA renters insurance policy will pay for the extra cost of your temporary living arrangements.
Additional Coverages
- Valuable personal property (VPP): This add-on insurance coverage option helps protect expensive personal property that may fall outside the limits of your basic renters coverage. You could include jewelry, guns and fine art, for example, in a VPP policy. VPP coverage doesn’t have a deductible, and you might be eligible for a discount on your renters insurance when you bundle VPP.
- Technology coverage: Most renters insurance policies don’t pay to repair or replace your electronics if you spill liquids on them or drop them. These are non-covered accidents. However, USAA lets members add an endorsem*nt to their policy to protect electronics from everyday accidents. The endorsem*nt covers most electronics, including smartphones, desktop and laptop computers, TVs, gaming consoles and stereo systems.
USAA Renters Insurance Reviews
We wanted to get a better idea of how customers feel about their experience with USAA renters insurance. We looked through hundreds of reviews on the Better Business Bureau, Trustpilot and other sites. We also took into account ratings from the 2022 JD Power Home Insurance Study. Although USAA doesn’t qualify for a ranking through JD Power, the insurer’s customer satisfaction score was 886 out of 1,000.
While overall ratings on review sites were low, many reviewers seemed genuinely surprised by the overall rating. Most positive reviews mention excellent customer service and below-average rates. Many positive reviewers have been customers for several generations.
However, negative reviews came from long-time customers who are unhappy with recent service. A majority of the negative reviews we found mention long customer service wait times and rates no longer being competitive. Several negative reviewers have no problems with the products but aren’t happy with the cybersecurity on the website and mobile app.
Check out a few reviews from real customers to get an idea of how they see USAA renters insurance:
"USAA is the single best company I have ever worked with… The customer service and speed are incredible. In fact, the reason I even started working with them is because my friend lost her home in a fire and they paid full insurance immediately. They are a great company to work with. You hope to never need them, but when you do, they don't nickel and dime and fight you.” — Adeline C via BBB
"I personally hold USAA renters and car insurance, and the rates I receive are excellent compared to competing companies. I've also called in several times for maintenance on my rates, so I have first-hand positive experience with customer service representatives. I understand that there are regulatory requirements that USAA has to abide by, and they do just that! From speaking with their customer service representatives, it's clear they have no ill will toward their clients and will work diligently to provide them the best experience possible. I enjoy being a member at USAA, and will continue to do so moving forward!” — Alexandria M via BBB
"I have been a customer for several years, and I have had no issues with customer service, financing or anything, really. The issue I have is that the security of the site leaves much to be desired. Passwords are limited to 12 characters, and the two-factor authentication methods available are either insecure (SMS, e-mail) or are on a proprietary app/platform that I would only use for this account. I think USAA should take a look at what is happening in the cyber realm right now and bump up [security].” — Steven N via BBB
"They’ve always made my life simple, but I feel like their rates aren’t any better than the competitors anymore.” — Milly N via Trustpilot
The Bottom Line
USAA is one of the best renters insurance options for members of the military, veterans and their families. The company offers deep discounts on renters insurance for those living on base or residing at a military academy. If you qualify for these discounts, USAA is likely to be one of the most affordable options available.
Even if you’re not living on base or at an Academy, USAA offers renters insurance for military members at a rate that’s often comparable to or lower than competitors. Additionally, all USAA renters policies include coverage for earthquakes and flooding, which is usually excluded from coverage. USAA coverage could be the right fit if you live or are stationed in an area prone to either natural disaster.
Not everyone qualifies for USAA coverage. You won’t be able to get a policy if you’re not a qualified service member, veteran or certain family member. Even if you qualify, it’s always a smart move to get insurance quotes from a couple of different carriers. If you’re looking for technology-driven, efficient service, you might want to check out Lemonade. For affordable coverage and a human touch, State Farm uses a network of agents to provide insurance products for renters.
Frequently Asked Questions About USAA Renters Insurance
USAA has an AM Best rating of A++ — the highest financial strength rating available from AM Best. This typically shows that USAA has the financial stability and funding to pay out claims to policyholders. Additionally, many of the positive reviews from real USAA customers mention great claims experiences, including fast payouts.
Renters insurance from USAA will cover mold in certain situations. The mold must have formed because of water damage that was sudden and accidental. For example, if a pipe bursts suddenly in your apartment and sprays water all over the walls and floors, mold could develop before your landlord can clean up the moisture. In this case, mold damage would likely be covered.
However, if the mold forms because of negligence, like a slow leak you keep forgetting to fix, your renters insurance likely won’t cover it.
Yes, like most renters insurance providers, USAA renters insurance has a deductible you have to pay after filing an insurance claim. You can choose your deductible amount based on your needs. Choosing a lower deductible typically means you’ll pay higher premiums while a higher deductible could lower your insurance rates.
USAA also offers Valuable Personal Property (VPP) insurance for high-value items such as jewelry or fine art which doesn’t have a deductible.
If you’re eligible for USAA membership, you can request a quote online and apply to be a USAA member. Once you have a quote, you can fill out an insurance application. After receiving your insurance offer, you’ll pay your first premium to officially get USAA renters insurance.
Methodology: Our System for Ranking the Best Renters Insurance Companies
Through in-depth research of the industry, we created a comprehensive rating system to rank renters insurance providers. We researched each company by gathering cost information and requesting quotes, combing through policy information, secret shopping and reading customer reviews to understand the customer service experience, and accessing financial reliability scores.
We used these rating factors to determine the best renters insurance companies to help with your decision when looking at policies:
- Cost: 40%
- Availability and ease of use: 25%
- Coverage: 20%
- Brand trust:: 15%
We routinely monitor and update data on a regular basis to ensure the reviews reflect the most up-to-date information and advice. See our full methodology here
A.M. Best Disclaimer
How We Gather Cost Data
We at the MarketWatch Guides Team gathered renters insurance quotes for the providers in this article using data from Quadrant Information Services. Quadrant is a leading source of property and casualty insurance solutions and data.
The sample renter our quotes are based on is a 30-year-old single male with good credit and no prior claims history. Our sample policies featured a $1,000 deductible and the following coverage and limits:
- Personal property: $30,000
- Loss of use: $9,000
- Liability: $100,000
- Medical payments: $1,000
For each provider, we gathered a quote for 50% of the ZIP codes in every state the provider is licensed in. We used the most populous ZIP codes for our study. We took the average of these individual quotes to calculate a national average premium per provider.
In some cases, cost data for a top renters insurance company isn’t offered in Quadrant’s database. To gather price information for these providers, we manually pulled quotes directly from insurers’ websites or representatives. We used the same sample homeowner demographics and comparable policy details for more than 20 ZIP codes across the U.S.
Our sample rates are for informational purposes only. Actual premiums will vary.
*AM Best rating accurate as of May 2024.AM Best disclaimer
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
Tara SeboldtContributing Writer
Tara Seboldt is a writer specializing in insurance and personal finance. Prior to writing full-time, Tara spent several years in the financial advisory and life insurance industry. She uses her professional background to help readers better understand complicated (and sometimes boring) topics. When she’s not writing, you’ll find Tara hiking with her dog, riding her horse or planning her next ski trip.
