Does USAA Offer a Home Warranty?
No. USAA offered home warranty products for several years but has since discontinued the program.
What Kind of Home Protection Does USAA Offer?
While it does not provide home warranty service, USAA still offers several coverage options to protect your home and belongings. USAA members can take advantage of the following types of insurance:
- Homeowners insurance
- Renters insurance
- Life insurance
- Auto insurance
- Umbrella insurance
USAA’s financial strength, evidenced by its top A++ rating from credit rating agency AM Best, shows it has the means to pay insurance claims.
USAA Homeowners Insurance Coverage
USAA home insurance coverage includes the following:
- Dwelling: This coverage pays to repair or replace your home after a covered loss, such as a fire or hail storm. You can choose from actual value coverage, which pays for items minus depreciation, or replacement cost coverage, which pays the full value without a depreciation deductible. Choosing full replacement coverage can save you more money after a covered loss.
- Other home structures: USAA home insurance includes other structures on your property, such as barns, sheds and detached garages. A percentage of your dwelling coverage is dedicated to other structures.
- Loss of use: This portion of your USAA home insurance pays for some living expenses, like short-term housing and meals, if your house requires repairs after a covered event.
- Personal liability: Liability insurance covers costs associated with injuries or damage that occur on your property. Personal liability coverage may help cover repairs, medical expenses or legal costs.
- Personal property: If a covered event damages or results in a loss of your personal belongings, the personal property portion of your homeowners policy will pay to repair or replace those items. This coverage extends beyond the walls of your home, like if someone steals your laptop from your vehicle.
- Identity theft: USAA home insurance includes identity theft protection to help you recover costs associated with restoring your credit if your identity is stolen.
USAA members can also purchase additional coverage. For example, the company offers earthquake coverage, home-sharing coverage and protection for valuable personal property items. Policyholders in flood-prone areas may also want to consider adding flood insurance to cover water damage, which USAA may provide through the National Flood Insurance Program.
Unlike a home warranty, USAA home insurance does not cover systems or appliances unless damaged by a covered event. While homeowners insurance is an important financial tool, it does not provide complete home protection. You can fill coverage gaps by investing in a home warranty policy.
USAA home insurance has an average annual premium of $2,195, according to information obtained from Quadrant Data Services. Members can save on insurance rates by bundling multiple USAA policies or taking advantage of other available discounts. Additional ways to save on your home insurance cost include remaining claims-free and installing safety devices or security systems.
Our Top-Recommended Home Warranty: American Home Shield
Home warranties can help offset the cost of repairs or replacements if a major appliance or home system breaks unexpectedly. If you want to purchase a home warranty, we recommend American Home Shield (AHS).
An industry leader with over 50 years of experience, AHS offers multiple coverage plans and add-ons to customize your home warranty plan to your needs and budget. Higher-than-average coverage limits give AHS a competitive advantage over other home warranty providers. Monthly rates range from $30 to $90, and you can choose a service fee or deductibles of $100 to $125. AHS is available in every U.S. state, except for Alaska and Hawaii. The company also does not service New York City.
Home Warranty Plans and Coverage
An American Home Shield home warranty covers a variety of home appliances and systems. The company offers three plans: ShieldSilver™, ShieldGold™ and ShieldPlatinum™.
You can also purchase the following add-on coverage:
- Roof leak repairs (including with ShieldPlatinum™)
- Sump and well pumps
- Electronics protection
- Pool and spa
- Guest unit
Cost
Home warranty costs vary depending on your chosen coverage and location. In general, you can expect to pay the following prices for American Home Shield coverage:
- ShieldSilver™: $30–$40 per month
- ShieldGold™: $50–$60 per month
- ShieldPlatinum™: $80–$90 per month
While American Home Shield offers comprehensive coverage, it may be more expensive than other home warranty providers in your area. Check out our guide to the cheapest home warranty providers if you are on a budget. Request free quotes from each provider you research to find out exactly what is covered and how much a home warranty costs in your area.
Additional Benefits
American Home Shield customers also benefit from several perks, including:
- Premium discounts for being an AARP member
- Premium discounts for covering multiple properties
- Referral bonuses
- Discounts on certain brands of appliances
- Discounted smart home products and technology installation
The Bottom Line
USAA is a financial services company that offers various products to members of the military, veterans and their families. While USAA no longer offers a home warranty program, it has several home insurance products that can help protect personal assets and pay for repairs after a covered loss. However, you may have to look elsewhere to protect your home systems and appliances against breakdowns due to everyday use.
We choose American Home Shield as our top pick for home warranty coverage. It is widely available throughout the U.S., making it an excellent choice whether you are searching for a home warranty in Texas, Connecticut, Oregon or anywhere in between. Customizable coverage and competitive costs make it an attractive option for budget-conscious shoppers.
Bradford Cuthrell is a meticulous researcher and writer specializing in pet and home finance topics. He’s surveyed thousands of pet owners and homeowners, listened to hundreds of customer service calls from various home service companies and spoken with dozens of industry experts to understand homeowners’ common pain points and needs. When he’s not helping his readers make informed decisions, he’s reading a book a week, planning a camping trip or working on his novel draft.
Ryan Lasker is a financial writer and editor with bylines in Morning Brew, The Motley Fool, and several more. As a certified public accountant, he leverages his technical expertise in personal finance and tax to fuel his passion for teaching financial literacy. When he’s not writing, editing or working in a spreadsheet, he’s biking the D.C. trails or reading.
