The Best Home Insurance for Veterans

Hello, my friend, hello again; today we come together to talk about The Best Home Insurance for Veterans and hope the blog can help you.

The best homeowners insurance for veterans can offer low rates, discounts, and other perks for policyholders who have served in the military.

Homeowners insurance provides much-needed protection for one of the biggest investments people make in their lifetime. For former members of the military, choosing the right homeowners insurance company can offer even more benefits, as insurance providers may reward their service with lower rates, extensive coverage options, and online resources to make managing their coverage easy. Some companies tailor their services specifically to military veterans and some offer military discounts, but this isn’t always true for every homeowners insurance company. Therefore, shoppers looking for the best homeowners insurance for veterans will need to do some research in order to discover the companies that will serve them well. Taking the time to find those companies could result in big savings for veterans as well as quality service.

1. BEST OVERALL: USAA
2. RUNNER-UP: Armed Forces Insurance
3. BEST MILITARY DISCOUNTS: GEICO
4. BEST COVERAGE LIMITS: Farmers Insurance
5. ALSO CONSIDER: Liberty Mutual

What to Consider When Choosing One of the Best Homeowners Insurance Companies for Veterans

When searching for the best homeowners insurance, veterans may want to look for companies that are experienced in working with service members, offer generous discounts, and have strong AM Best ratings that demonstrate their financial strength. Finding companies that make it easy to file claims if the need arises may also be very important.

Coverage Area

While many homeowners insurance companies advertise across the country, that does not necessarily mean they provide coverage in every state. Even within specific states, availability may vary from one area to another. Homeowners insurance coverage may be harder to come by for homeowners who live near the coast, for instance. Therefore, when veterans are researching companies, the first step may be finding out if the company offers coverage where the home is located. Insurance companies may outline their coverage area on their websites, but that won’t always be the case. Homeowners may need to go through the online quote process and input their ZIP code to see if coverage is available. If no coverage information is available online, veterans may need to call the company and speak to an insurance agent directly. Regardless of the method a shopper uses, finding out if coverage is available in a specific location could save time when veterans are vetting insurance providers.

Coverage Amount

The maximum coverage amount available for the different types of coverage included with a homeowners policy is also an important consideration for veterans. Most companies should be able to meet veterans’ dwelling coverage needs—although an additional fee may be assessed for properties with high replacement values—but other coverage amounts could vary quite a bit from one provider to another. For instance, veterans looking for extensive other structures or loss of use coverage may need to seek out homeowners insurance providers that offer higher limits for that type of coverage. As they review their options, it may be helpful for them to look at all coverage terms including coverage limits to determine which companies are the best fit. In addition, veterans may want to ask insurance agents if their coverage amount will automatically increase each year to match increased inflation along with other costs.

Policy Options

A standard homeowners insurance policy typically includes coverage for the repair or replacement of the home’s structure and the policyholder’s personal belongings, liability protection for bodily injury or property damage to a third party, and coverage for additional living expenses if the homeowner is displaced during repairs or replacement covered by their insurance. However, it can be very important to find out what policy options are available for additional coverage to protect the home. This could include protection against water damage due to sewer backups, extended coverage limits for high-value items such as jewelry and artwork, or coverage for specific perils such as earthquakes. Finding a homeowners insurance company that offers a wide range of policy options can help veterans get all the insurance they need even if they have specific requirements that extend beyond typical coverage terms.

Insurance Premiums

Insurance premiums are the costs homeowners pay to keep their homeowners insurance policy in effect. Homeowners insurance rates depend on several factors, including how much coverage is purchased, the home’s location, the type of construction materials used (brick masonry, metal shingles, slab foundations, etc.), and the deductible chosen for the policy. Veterans looking to lower their homeowners insurance cost may want to consider adjusting the amount of coverage in their policy, raising their deductible, or asking their insurance agent about any discounts they are eligible to receive. Insurance rates typically vary from one company to another—sometimes to a significant degree—so it may be worth it for veterans to get several quotes before making a decision.

Quote Process

In order to find cheap homeowners insurance, it can be important to shop around and get homeowners insurance quotes to compare rates. Many homeowners insurance companies have online quote tools such as a homeowners insurance calculator wherein homeowners input some basic information such as the age and location of the home, the type and amount of coverage needed, and their own claims history. The quote tool then generates an approximate rate quote for the policy. Some companies may require homeowners to call and speak with a homeowners insurance agent to get a rate quote. While this may be inconvenient, speaking with an agent actually could result in a more accurate estimate because the agent can gather more details than the online quote tool. In addition, agents may be able to point out certain coverage options or discounts that can improve policies while also making coverage more affordable for veterans.

Claims Process

Filing a homeowners insurance claim can sometimes be a time-consuming, tedious, and frustrating process, so it may be worthwhile for veterans to find a company that offers a streamlined claims process from start to finish. Homeowners insurance companies may offer the ability to file a claim through the company website, by using a dedicated mobile app, or by speaking with homeowners insurance agents directly over the phone. When using a website or app, policyholders can often upload supporting documents such as photographs and receipts to speed along the claims process.

After the claim is filed, policyholders typically want to know how long it will take to process the claim, so it may be a good idea to ask the insurance companies what the typical processing time looks like. Also, veterans may want to consider checking online customer reviews to find out what other policyholders have experienced when filing a claim. Of course, talking with family members and friends who have experience with a specific insurance company also could provide insight into its claims process.

Deductibles

The insurance deductible is the amount an insurance company will deduct from a claim payout before disbursing funds to the policyholder. For instance, if the deductible is $5,000 and the claim is approved for $20,000, the insurance company pays $15,000 after deducting $5,000 to account for the customer’s deductible. The deductible amount depends on the type and amount of coverage. In some cases, it can be either a fixed amount, such as $1,000, or a percentage of the dwelling coverage limit, but this will vary across insurance providers and coverage options. Some homeowners insurance policies also require a separate deductible for specific perils, such as wind and/or hail damage. The amount of the deductible affects the insurance premium on the policy, with higher deductibles resulting in lower insurance premiums and vice versa.

Additional Policies

When shopping for homeowners insurance, many homeowners would prefer to work with the same insurance company they use for their other insurance needs. Doing so can make managing multiple insurance policies much simpler for the policyholder. Therefore, veterans may want to look for insurance companies that sell not only homeowners insurance but also car, life, pet, RV, and other insurance policies they may be interested in purchasing. Working with the same company could make it much easier to manage these different policies because the policyholder can work with the same agent and use the same account for all of their insurance needs. This includes making payments, adding or changing coverage, renewing policies, and filing claims. Working with just one insurance company is not only convenient, but it could also lead to cost-saving opportunities such as bundling and loyalty discounts.

Discounts

All homeowners want to save money on their insurance, and leveraging discounts provides a great way to lower rates and make coverage affordable. Many insurance companies offer a variety of discounts, so it’s important for veterans to ask for a complete list so they don’t miss out on savings. A common discount homeowners may come across is a bundling discount for purchasing multiple policies—homeowners, auto, life, etc.—from the same provider. Veterans who are interested in saving money by combining their coverage may want to consider one of the best home and auto insurance bundle options available in their market.

In addition to a multipolicy discount or bundling discount, other cost-saving opportunities could include:

• Claim-free discounts for homeowners who have never filed a claim or have not filed a claim in several years.
• Loyalty discounts for customers who stick with the same insurance provider year after year.
• New or renovated home insurance discounts for customers who have just purchased a new home or have completed major renovations.
• Disaster preparedness home insurance discounts for customers who have made upgrades to their home to prevent damage from storms (such as reinforced roofs or hurricane shutters on windows).
• Automatic payment discounts for customers who set up their accounts to pay their insurance premiums automatically each payment period.
• Multihome discounts for customers who insure both their primary residence and a second home, such as a lake house or vacation property, through the same company.

Of course, veterans will also want to ask if the insurance company offers a military discount. Not all companies offer military discounts, but those that do could help veterans save money on their homeowners insurance.

AM Best Ratings

Finding a homeowners insurance company that veterans can trust to continue providing stellar coverage and service for years to come can be challenging. One way to determine if an insurance company is reliable is to look at its AM Best rating. AM Best researches insurance companies to evaluate their creditworthiness and rates their financial strength. AM Best ratings range from A++ (Superior) to D (Poor), so it can be important to find companies that have high ratings. Ideally, companies will have a rating of A+ or A++, but ratings of B+ (Good) and higher could also be worthy. Companies that don’t have an AM Best rating may have the ability to pay claims; it’s possible they simply haven’t applied for evaluation yet.

Our Top Picks

When searching for the best homeowners insurance companies for veterans, shoppers may want to look for companies that provide exceptional coverage, low rates, exclusive discounts, and high AM Best ratings, along with other perks that may benefit veterans in particular.

Best Overall

USAA

Why It Made the Cut:

USAA specializes in providing insurance to service members and veterans and offers standard replacement cost and identity theft coverage, an exclusive contractor network, and a high AM Best rating.

USAA caters exclusively to active and former military members and their families, so its agents are extremely experienced in working with veterans. Although the company has limited information online for those who aren’t already a member, USAA offers both replacement cost coverage and, except in North Carolina, identity theft coverage with all homeowners insurance policies. Replacement cost coverage is especially notable because it does not account for depreciation when determining the value of covered items for a claim payout. This could lead to larger payout amounts if veterans need to file a claim on their homeowners insurance.

Boasting a A++ AM Best rating, which is the highest grade possible from the credit-rating agency, USAA could be seen as a very reliable insurance provider for veterans. USAA also has a Contractor Connection service that matches policyholders with local contractors who are vetted, licensed, and insured. This service could take the legwork out of finding contractors to handle repairs after a covered loss or to take on home renovation jobs, among other scenarios. USAA also provides a 5-year warranty on any job completed through Contractor Connection, giving policyholders added peace of mind.

 

Specs

• Coverage area: 50 states and Washington, D.C.
• Quote process: Online (for USAA members), phone
• Claims process: App, online, phone
• Deductibles: Unknown
• AM Best rating: A++

Pros

• Specialty in insurance policies for service members
• Standard replacement cost coverage
• Standard identity theft coverage for most policies
• Exclusive contractor network
• A++ AM Best rating

Cons

• Limited policy information online

Runner-Up

Armed Forces Insurance

Why It Made the Cut:

Armed Forces Insurance (AFI) focuses on insurance products for veterans, offers various discounts to lower insurance costs, and has online resources tailored to the needs of service members and veterans.

Although not currently rated by AM Best, Armed Forces Insurance may be a terrific option for veterans looking for homeowners insurance. The company works exclusively with active service members and veterans as well as their family members, so employees may be particularly well suited to working with veterans and helping build a homeowners insurance policy. In fact, one of the perks of AFI membership is that the parents and children of current and former customers are also eligible to purchase a policy from the company. To make those policies more affordable, AFI offers a variety of discounts, such as for living in gated or guarded communities, having fire alarms or security systems installed, and buying a new home.

Another perk is the company’s website, which has a wide range of online resources to help educate veterans about their insurance options as well as offer assistance in other ways. In addition to resources that cover the basics of homeowners insurance, the company provides a wealth of information on protecting against identity theft and managing permanent change-of-station moves, among other topics. It even provides a digital post-traumatic stress disorder (PTSD) card that can be printed out and carried by veterans.

 

Specs

• Coverage area: 50 states and Washington, D.C.
• Quote process: App, online, phone
• Claims process: App, online, phone
• Deductibles: $500 to $10,000; Wind/hail: $500 to $10,000 or 1 percent to 10 percent of dwelling limit
• AM Best rating: Not rated

Pros

• Specialty in insurance policies for service members
• Eligibility extended to parents and children of Armed Forces Insurance members
• Many free online informational resources specifically designed for veterans
• Wide variety of discount opportunities available

Cons

• Not currently rated by AM Best

Best Military Discounts

GEICO

Why It Made the Cut:

GEICO offers high water backup coverage options, a generous military discount, an additional discount for emergency deployments, and a high AM Best rating.

While GEICO does not underwrite its property insurance policies directly, the company does offer a generous 15 percent military discount for both active and former service members, including those who served in the National Guard or Army Reserves. This offer could help veterans save money on their homeowners insurance.

Also noteworthy, GEICO policyholders can select a water backup endorsement with coverage up to $50,000, which is quite high for this type of coverage. Policyholders may prefer to have higher coverage limits for this kind of endorsement to help pay for water damage repairs that wouldn’t otherwise be covered by a standard homeowners insurance policy.

Carrying an AM Best rating of A++, GEICO also offers a discount to military members who are deployed into imminent danger pay areas, as designated by the Department of Defense. Although veterans may not be able to take advantage of this discount directly, they may have family members on active duty who could. Regardless, former service members may prefer to work with an insurance provider that supports the military in this fashion.

 

Specs

• Coverage area: 50 states and Washington, D.C.
• Quote process: Online, phone
• Claims process: Online, phone
• Deductibles: $500 to $10,000 or 0.5 percent to 2 percent of dwelling limit; Wind/hail: $1,000 to $10,000 or 0.5 percent to 5 percent of dwelling limit
• AM Best rating: A++

Pros

• High $50,000 water backup endorsement
• Generous 15 percent military discount for active and former service members
• Emergency deployment discount available
• A++ AM Best rating

Cons

• Policies underwritten by a third party

Best Coverage Limits

Farmers Insurance

Why It Made the Cut:

Farmers Insurance offers high coverage limits for other structures and personal liability coverage, and every homeowners insurance policy includes a declining deductible.

Farmers Insurance offers some elevated coverage options that may appeal to veterans. For instance, policyholders can select other structures coverage up to an amount equal to 40 percent of their dwelling coverage. This is relatively high, and it could be appealing to homeowners who have detached garages, gazebos, tool sheds, or other structures on their property that require a significant amount of insurance. Honorably discharged veterans and retired service members, along with active duty and active reserve members, can also qualify for a military discount.

Although Farmers Insurance offers homeowners insurance in only 42 states, eligible policyholders can purchase up to $2 million in personal liability coverage, which is a fairly high coverage amount. This may be appealing to homeowners who want more coverage in the event they are found liable for property damage or injuries to a third party. Liability damages can include medical bills, legal fees, and repair costs, among other expenses. In addition, Farmers Insurance policies come with a standard declining deductible, which reduces the policyholder’s deductible for every year they go without filing a claim.

 

Specs

• Coverage area: 42 states
• Quote process: Online, phone, agent
• Claims process: Online, phone, agent
• Deductibles: $1,000 to $10,000 or 1 percent to 5 percent of dwelling limit; Wind/hail: $1,500 to $5,000 or 1 percent to 5 percent of dwelling limit
• AM Best rating: A

Pros

• Relatively high other structures coverage available that’s equal to 40 percent of dwelling coverage
• High $2 million personal liability coverage amount available
• Standard declining deductible included

Cons

• Relatively small service area covering 42 states

Also Consider

Liberty Mutual

Why It Made the Cut:

Liberty Mutual has various endorsements available for purchase as well as a generous discount for anyone who buys an insurance policy online through the company’s website.

Liberty Mutual customers can receive a sizable discount on their homeowners insurance just by purchasing a policy online, which may help offset the company’s relatively high insurance rates. Receiving 12 percent off without any eligibility requirements beyond buying online could mean that just about anyone can get a lower rate on their insurance. It may also help lower insurance costs for those veterans who live in areas of the country where Liberty Mutual does not offer a military discount.

Liberty Mutual offers a number of endorsements for policyholders to purchase so they can build upon a standard homeowners insurance policy. These endorsements can include earthquake coverage, mine subsidence coverage, and extended coverage options for water leakage, as well as enhanced belongings protection, and enhanced home protection. Having these options available allows policyholders to customize their coverage according to their needs.

 

Specs

• Coverage area: 50 states and Washington, D.C.
• Quote process: Online, phone, agent
• Claims process: Online, phone, agent
• Deductibles: $500 to $10,000 or 1 percent to 5 percent of dwelling limit; Wind/hail: $1,500 to $5,000 or 1 percent to 5 percent of dwelling limit
• AM Best rating: A

Pros

• Wide range of endorsements available
• Generous 12 percent discount for online policy purchases

Cons

• Relatively high insurance premiums
• Military discount may not be available in all locations

Our Verdict

We chose USAA as Best Overall because it caters to current and former members of the military and their families, plus it offers standard coverage that could save veterans money. We gave the Runner-Up award to Armed Forces Insurance because it, too, focuses on veterans and offers a variety of discounts to save them money.

How We Chose the Best Homeowners Insurance Companies for Veterans

When determining the best homeowners insurance for veterans, we looked at insurance providers that could offer benefits that would specifically appeal to former service members, whether that be discounts, exclusive membership offers, or other perks. Availability was a key consideration, as insurance companies may not always offer all of their insurance products in all areas of the country. Coverage options were heavily weighed as well, including standard coverage terms, endorsements, and enhanced coverage limit options. Our research looked at the quote and claims process for each company, as well as its AM Best rating, to get a better understand