USAA multifamily homeowners insurance experience?

18 Replies

Hello BP!

Just curious if anyone has any positive or negatives experiences with their homeowners insurance. Some people say avoid their auto insurance but wasn't sure on their HI. Got a quote from them and it seemed reasonable for a 3 unit. Going to try and get other quotes but seemed pretty good so far. Just under $1400 for the year in a good area of NJ suburbs. Thanks!

@Mark F. been a USAA member for decades. I found they were competitive in any state but Texas where they are based. State laws or some such they would always explain to me. But based on my experience I would get recommendations from other investors in your area for insurance brokers that can underwrite landlord polices. Mine here works with Travelers and I have had good success with them. But as far as claims if there is an issue USAA is #1. Based on mine and fellow veterans experience using USAA.

@Joe Funari Thanks Joe. I'll keep looking for local brokers as well. I'm waiting for our local RE meeting to ask for recommendations.

Hi Mark!

I work with an agency that actually specializes in landlord, dwelling and homeowners policies. We have been helping people with their dwelling insurance all across the country and recently expanded into Texas. We're really passionate about getting people properly insured at an affordable price; so they can protect their assets as well as their wallets. We're an independent agency so we have MANY carriers that offer great products. PM me for my contact info and I would love to chat!

@Mark F. I have USAA insurance on 4 properties in 2 states. I’ve made claims to wind and hail and never had a problem. They were quick to respond and process my claims. Easy to work with. For me, insurance is chosen based on who has a good track record to actually pay. So many of my clients who have gone the super cheap route, have learned the lesson that you get what you pay for.

...the mortgage banking side is a whole other story. I only mention this because people think just because the banking with them is so easy that everything else must easy, too. All these divisions are on their own and operated differently from one another.

@Mark F. I have all my personal insurance and SFR insurance with USAA. They are average to above average on price, but I have had nothing but a terrific experience.

I agree with @Priscilla Swantner about the  lower cost insurance being a pain to deal with and slow to pay when it comes to claims. I have never seen/heard that about USAA. I have only seen them come with their checkbooks out at claim time. In my mind that makes them well worth the marginal higher cost.

A fringe benefit of having more insurance with them is that you get more cash in your subscribers account at the end of the year. 

@Priscilla Swantner thank you. Is that for multis or SFR? I'm unfamiliar with multi insurance but I assumed there were other things that go into it. @Bill F. Good to know. And I agree and that's why if USAA is priced well and covers multis good enough I'd go with them.

@Mark F. I have a duplex with them as well as all my personal auto etc. Competitive price (im sub $1k a year on the duplex) and everyone is correct nothing but easy when putting in a claim (that said for the personal side of things I haven't put in a claim for anything on my duplex. How've they were super helpful looking through my policy when I had to evict and the tenant did damage. We couldn't find anything in the policy that would reimburse that damage but it wasn't for lack of effort on their part).

@Priscilla Swantner thank you to you both for the input. I'll have to seriously look at usaa and figure out what differences is in multi and SFR insurance policies.

@Mark F. ,

Like @Joe Funari mentioned, we are finding that most of our clients are getting great rates for landlord insurance from Traveler's Insurance. I would contact your agent in the area you are purchasing and ask them to shoot you a quote. Then compare that with USAA.

There are differences between homeowners, SFR, and Multifamily policies. You want to make sure you get the right one. We recently looked at the coverage a client had on an investment property. This property was financed as an investment and the client was upfront with everyone on the transaction that it was an investment.

The insurance agent made the mistake of writing coverage for a homeowner.  That is not going to cover our client correctly.

It is pretty important to make sure you are getting the correct coverage for the property type you need.  Once there is a problem or a claim, it can get messy to correct it.

Good luck with your investing!

@James Call thanks for that info. I knew there was a difference but dont know exactly what all is different yet. I definitely still have research to do this topic.

So landlord insurance is something to get or look into? Again thanks for your input and sharing your experience.

I have been with USAA for 30+ years.  They were fine but when I got over 10 properties it was clearly out of their norm. I then had to put the properties over 10 with some subsidiary company of theirs.  I was very unimpressed with the overall experience. 

@John P. How so? As in they couldnt meet specific needs on investment properties and coverage? Still learning the basics when it comes to HI on multis.

Originally posted by @Mark F. :

@John P. How so? As in they couldnt meet specific needs on investment properties and coverage? Still learning the basics when it comes to HI on multis.

I got the impression investment properties were not their strong suit.  They are great with personal insurance needs, in my opinion, but it felt like it wasn't their strong suit dealing with investments. I don't remember all the details now as it was a few years ago.  Back then they had a 10 unit limit with the main USAA.  If you leave USAA they have restrictions about umbrella coverage. They require all personally owned assets to be insure by USAA.  In fact, they tried to cancel my umbrella after I took my investments to another company. I had to establish they were a separate entity. It was a big hassle.  I love USAA otherwise.

I've used USAA my entire life. I currently own 2 duplexes and have both insured through USAA. They have always provided prompt service and given me the time to answer any questions I have. I've never worked any claims with them, but everyone I know personally who has had a claim has had good things to say about USAA. The only bashing I've heard is from people who don't use them.

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