Best Homeowners Insurance for Veterans
Veterans likely won’t have trouble finding a homeowners policy from any insurer. Still, choosing an insurance provider with a special homeowners insurance program for military veterans or other former service members can result in a better policy at a lower price.
The United Services Automobile Association (USAA) is well known as the best financial institution and insurance carrier for anyone affiliated with the military, including veterans. Because USAA only works with active-duty military personnel, former military, and military families, their products and services are specifically geared for the needs of such people. What’s more, USAA’s premiums on auto and homeowners insurance for veterans are often lower than comparable policies from other carriers (but don’t forget to compare rates, just in case).
As the carrier’s name implies, USAA started as an automobile insurance company and expanded to other types of insurance products and financial services, including bank products. USAA’s home insurance coverage is specialized for military and ex-military policyholders, providing some perks not available elsewhere. For example, the typical USAA home insurance policy will cover damage or loss to uniforms in your home as part of its personal property coverage.
GEICO partners with a number of military professional organizations to offer members of those organizations up to a 15 percent discount on insurance. Covered military associations include the Association of the United States Army, the Navy League of the United States, and the Armed Forces Benefit Association.
But before you get too excited, be aware that GEICO does not directly provide homeowners insurance—rather, it will set you up with a policy through one of its partners. You’ll need to confirm that the chosen insurer will honor this discount on your homeowners policy.
Armed Forces Insurance
Like USAA, Armed Forces Insurance (AFI) is a military-specific insurer. The company provides homeowners insurance, auto insurance, and a number of specialty products like flood insurance. Any active-duty, retired, or honorably discharged military members are eligible to get a policy through AFI.
While AFI is similar to USAA, it’s a much smaller company. That could potentially be an issue for an insurer since the company’s smaller size means it has fewer reserves to draw on in case of a major disaster. For example, if a severe hurricane or earthquake led to a lot of simultaneous claims, a smaller company like AFI might not be able to afford to cover them all. A.M. Best gives AFI a rating of B++, which is good but much lower than USAA’s AA+ rating.