Choosing homeowners insurance involves more than finding the lowest annual premium. Homeowners need to consider how much it would cost to rebuild their property, how personal belongings are covered, which risks are excluded, and how much they would have to pay out of pocket after a loss.
USAA and Farmers are two established names in the U.S. insurance market, but they serve customers differently. USAA focuses on the military community and eligible family members, while Farmers offers homeowners insurance through its insurance products and agent network. Both offer ways to customize coverage, but eligibility, policy options, discounts and prices depend on the homeowner’s circumstances and location.
For homeowners deciding between the two, the most useful comparison is not which brand sounds more familiar. It is which company can offer the appropriate protection for the property at a competitive price, with terms the homeowner understands.
Here are seven things to know before choosing between USAA and Farmers homeowners insurance.
1. USAA Eligibility Is a Major Difference Between the Two Companies
Before comparing premiums or policy features, homeowners should determine whether they can obtain coverage through USAA.
USAA is designed to serve eligible members of the military community and their families. Its membership eligibility categories include active duty military personnel, National Guard and Reserve members, honorably served veterans and certain eligible family members, including military spouses. Other categories and eligibility rules may apply.
This means USAA is not a straightforward option for every homeowner. Someone with no qualifying military connection may not be eligible for membership or the associated insurance products.
Farmers, by comparison, markets homeowners insurance to a broader consumer market. Prospective customers can request a quote and find out whether the company is willing to insure their property under its current underwriting rules. Availability and eligibility still depend on the state, property characteristics and the insurer’s requirements.
The distinction is important because homeowners should not spend time comparing detailed policy options from a company they cannot use.
What homeowners should check:
- Whether they meet USAA’s current membership eligibility requirements.
- Whether their existing USAA membership makes them eligible for the homeowners product they want.
- Whether Farmers offers coverage for their property in their state and location.
- Whether either insurer has property specific requirements that could affect approval.
A homeowner who qualifies for USAA can compare both companies directly. Someone who does not qualify should focus on Farmers and other insurers available to them rather than treating USAA as an attainable quote option.
2. Compare the Actual Premiums Instead of Assuming One Company Is Cheaper
Price is an important consideration, especially as homeowners face changes in construction costs, severe weather risks, and insurance premiums. However, there is no single premium that applies to every home insured by USAA or Farmers.
The price a homeowner receives depends on factors such as the home’s location, rebuilding cost, age, roof condition, claims history, selected deductible and coverage options. Insurers can also use different underwriting and pricing methods, so two companies may quote different amounts for the same property.
USAA advertises several potential savings opportunities, including bundling homeowners and auto insurance, a claims free discount and savings through its Connected Home program for eligible customers. Its published terms indicate that the availability and amount of savings depend on restrictions and state specific conditions.
Farmers also offers homeowners discounts. Its published options include potential savings for bundling policies, certain protective devices and other qualifying characteristics. The company states that discounts vary by policy and state.
The advertised discounts should not be compared in isolation. A larger potential discount does not necessarily mean a lower final premium. One insurer might start with a different base rate, apply different deductibles or include different coverage features in the quote.
An illustrative premium comparison
Consider a homeowner who receives these hypothetical offers:
| Quote detail | USAA | Farmers |
| Annual premium | $1,800 | $1,650 |
| Dwelling coverage | $400,000 | $400,000 |
| Personal property coverage | $200,000 | $200,000 |
| Personal liability coverage | $300,000 | $300,000 |
| Standard deductible | $2,000 | $2,000 |
These are illustrative figures, not actual quotes from either insurer.
In this example, Farmers would cost $150 less per year. But the homeowner should still check whether the policies have the same exclusions, roof settlement terms, additional living expenses limits, water backup protection and other relevant provisions.
If one policy includes a valuable coverage feature that the other does not, the premium difference may not tell the whole story.
What homeowners should check: Request quotes using the same property information, dwelling limit, liability limit and deductible. Compare the final premiums after applicable discounts and confirm whether each price includes the same optional coverage.
3. Review Dwelling Coverage and Rebuilding Protection Carefully
The amount of dwelling coverage is one of the most important decisions a homeowner makes when buying insurance.
Dwelling coverage helps pay to repair or rebuild the insured home’s structure after a covered event, subject to the policy’s terms and limits. The coverage amount should generally reflect the estimated cost of reconstructing the home rather than its market value or the amount remaining on the mortgage.
USAA provides homeowners with assistance in estimating rebuilding costs and explains that the calculation depends on factors such as location and reconstruction expenses. Its homeowners insurance information also describes additional dwelling coverage for eligible policies, subject to conditions and restrictions.
Farmers similarly recommends estimating rebuilding costs using local construction expenses, the home’s age, renovations, materials and other property characteristics. Depending on the policy and availability, Farmers offers options such as extended replacement cost coverage and guaranteed replacement cost coverage.
These options are worth examining because rebuilding expenses can rise after a major disaster. Construction labor and materials may become more expensive, particularly when many homes in the same region require repairs at once.
However, homeowners should not assume that every USAA or Farmers policy includes the same replacement cost protection. The applicable policy form, endorsement, coverage limit and eligibility conditions matter.
Why rebuilding cost matters more than market value
Suppose a home could sell for $500,000, but the estimated cost to rebuild its structure is $380,000. The difference may reflect land value, location and other real estate market factors.
The homeowner should not automatically select $500,000 in dwelling coverage simply because that is the home’s market value. Instead, the dwelling limit should be based on a reasonable rebuilding estimate, taking account of the home’s construction and any additional coverage needed.
Underinsuring the structure can create financial difficulties after a major loss. Overestimating the rebuilding cost can also result in paying for a higher limit than necessary without guaranteeing a corresponding financial benefit.
What homeowners should check:
- Whether the dwelling limit reflects current rebuilding costs.
- Whether the policy includes replacement cost protection and how it works.
- Whether extended or guaranteed replacement cost coverage is available.
- Whether ordinance or law coverage can help with eligible additional costs from building code requirements.
- Whether recent renovations or custom features have been included in the estimate.
The goal is to compare the rebuilding protection each insurer is actually offering, not simply the dollar figure printed on the declarations page.
4. Examine Personal Property, Liability and Additional Living Expenses
Homeowners insurance protects more than the physical structure. A useful comparison should examine personal belongings, liability protection, and expenses that may arise if a covered loss makes the home temporarily uninhabitable.
Farmers describes its standard homeowners coverage in terms of dwelling protection, other structures, personal property, loss of use, personal liability and medical payments to others. Optional coverage can add protection for certain risks or property types.
USAA also provides homeowners coverage information and guidance on selecting appropriate protection for the home, belongings and liability exposure. Its published materials explain that coverage is subject to policy limits and conditions and that additional policies may be needed for risks such as flooding.
When comparing the companies, homeowners should review the following categories.
Personal property coverage
This coverage can help repair or replace eligible belongings after a covered loss. Furniture, clothing, electronics and household equipment may fall within this category, subject to the policy’s terms.
Homeowners should check whether personal property is settled at actual cash value or replacement cost. Actual cash value generally accounts for depreciation, while replacement-cost coverage generally pays the eligible cost of replacing an item with one of similar kind and quality, subject to policy requirements.
Special limits may apply to categories such as jewelry, art, collectibles and certain electronics. People with valuable belongings may need scheduled coverage or another appropriate endorsement.
Personal liability coverage
Liability protection can help with eligible costs when the homeowner is legally responsible for bodily injury or property damage to someone else.
Homeowners should compare liability limits and consider whether those limits are appropriate for their assets and financial circumstances. A personal umbrella policy may provide additional liability protection beyond the limits of an underlying homeowners policy, subject to its own terms.
Additional living expenses
If a covered loss makes a home uninhabitable, additional living expenses coverage may help pay eligible extra costs while the home is repaired.
These expenses might include the additional cost of temporary accommodation and certain other necessary living expenses, depending on the policy. Homeowners should compare the available limit, how long benefits may be available and which expenses qualify.
Other structures
Detached garages, sheds, fences and similar structures may be covered separately from the main dwelling. Homeowners with substantial outdoor structures should check whether the standard limit is sufficient.
What homeowners should check: Compare the coverage limits and settlement terms for all major categories, not just the dwelling limit. A policy that appears less expensive may provide less protection for belongings, liability or temporary living expenses.
5. Do Not Assume Flooding, Water Backup and Other Major Risks Are Included
One of the most important parts of comparing homeowners insurance is understanding what the policy excludes.
A standard homeowners policy typically covers certain sudden and accidental losses, but it does not cover every type of damage. Flooding from external water sources is generally excluded from standard homeowners insurance and may require separate flood insurance. Coverage for sewer or drain backups, sump pump overflow and other water-related losses depends on the policy and any applicable endorsements.
This matters because two policies with similar premiums may differ in their treatment of particular risks.
Farmers identifies water backup and sump overflow coverage as an optional protection that may help with certain losses involving backed up sewers, drains or sump pumps. Availability and terms depend on the policy.
USAA also advises homeowners to consider the limitations of their standard policy and notes that additional coverage, including flood insurance, may be necessary.
Homeowners should examine the policy’s wording rather than relying on broad statements that a company offers water or storm protection.
Important risks to compare
- Flooding: External floodwater may require a separate flood policy.
- Sewer and drain backup: Check whether an endorsement is available and what limits apply.
- Wind and hail: Review exclusions, restrictions, and any separate wind or hail deductible.
- Earthquake damage: Separate coverage may be needed.
- Roof damage: Check how roof losses are settled and whether age or material affects coverage.
- Building-code upgrades: Consider ordinance or law coverage where rebuilding may require code related improvements.
The relevance of these risks depends on the home. A property in a flood-prone area may require a different coverage review from a home primarily exposed to hail, wind or wildfire.
What homeowners should check: Ask each insurer for a list of important exclusions and endorsements. Confirm the deductible and coverage limit that apply to each major risk rather than assuming the standard policy covers it.
6. Compare Discounts and the Cost of the Deductible Together
Both USAA and Farmers offer ways for eligible homeowners to reduce premiums, but the savings depend on individual circumstances.
USAA advertises potential discounts for bundling, monitored protective devices, claims-free periods, and participation in its Connected Home program. Its published information includes a potential Connected Home discount of up to 8% and a claims free discount of up to 15% after five years without a claim, subject to the program’s terms and availability.
Farmers lists potential savings for eligible customers who bundle insurance policies, use certain home security or fire protection devices, and meet other qualifying conditions. Its published materials also describe discounts related to home safety and certain loss-prevention improvements.
The figures are not directly interchangeable. Each company may use different eligibility rules, starting premiums, and discount structures. A homeowner should obtain an actual quote rather than estimate the final price by adding up advertised maximum discounts.
The deductible also deserves attention. A deductible is the amount the homeowner must pay toward a covered loss before the insurer pays the eligible remainder, subject to the policy’s terms.
Choosing a higher deductible may lower the premium, but it also increases the amount the homeowner must be prepared to pay after a claim. Some policies use a separate percentage based deductible for certain catastrophes, such as wind or hail, so homeowners should check whether more than one deductible applies.
Example: How a deductible changes the financial outcome
Imagine a homeowner has $10,000 in eligible covered damage.
| Item | Policy A | Policy B |
| Annual premium | $1,900 | $1,750 |
| Deductible | $1,000 | $2,500 |
| Eligible covered damage | $10,000 | $10,000 |
| Homeowner’s share before other policy adjustments | $1,000 | $2,500 |
| Insurer’s payment before other policy adjustments | $9,000 | $7,500 |
This is a simplified illustration, not a quote or claim estimate from USAA or Farmers. It assumes the same covered loss, no special deductible, and no other policy limitations.
Policy B saves $150 in annual premium in this example, but the homeowner would pay $1,500 more toward the illustrated loss.
Whether the lower premium is worth that additional exposure depends on the homeowner’s emergency savings and willingness to accept the risk.
What homeowners should check: Compare the final premium after discounts, the standard deductible, any separate catastrophe deductibles and the amount of cash available to cover an unexpected loss.
7. Evaluate the Claims Process, Agent Support, and Policy Service
Homeowners insurance becomes especially important when something goes wrong. The claims process, access to assistance, and clarity of policy information can therefore be as important as the initial quote.
USAA provides online homeowners account tools and claims resources. Its homeowners support information also explains how policyholders can review coverage, update home characteristics, and request an inspection when necessary.
Farmers provides claims resources and guidance through its insurance representatives. Its claims FAQs explain that a claims representative reviews the policy’s coverages and how they apply to the reported loss. Farmers also notes that claims history can be one factor considered when calculating premiums.
These published service descriptions show how the companies support policyholders, but they do not establish that every claim will be handled in the same way or that one company will always settle claims faster.
Actual claim outcomes depend on the circumstances of the loss, the evidence available, the policy wording and the review required. Homeowners should also consider how they prefer to communicate with an insurer.
Some people value managing documents and routine tasks online. Others prefer speaking with an insurance representative who can explain coverage options and help them review policy changes. The practical value of either approach depends on the homeowner’s preferences and the support available for the specific policy.
Before selecting a company, homeowners can investigate complaint information and consumer resources through their state insurance department. The NAIC also provides guidance on comparing insurers and understanding homeowners policy provisions.
What homeowners should check:
- How to report a claim and submit supporting documents.
- Whether online account tools meet their needs.
- How to contact an agent or representative.
- How the insurer explains exclusions, deductibles and settlement terms.
- What the policy requires after a loss, including prompt notification and reasonable steps to prevent further damage.
- Whether consumer complaint information raises questions worth investigating.
Rather than relying on a single review or marketing claim, homeowners should look for consistent, relevant information and read the actual policy before making a decision.
USAA vs. Farmers: A Side by Side Comparison
The following table summarizes the main differences homeowners should investigate when comparing the two companies.
| Comparison factor | USAA | Farmers |
| Eligibility | Membership eligibility is focused on the military community and eligible family members | Broader consumer market, subject to underwriting and availability |
| Premiums | Quote-specific; discounts may apply for eligible customers | Quote specific; discounts may apply for eligible customers |
| Homeowners coverage | Offers dwelling, belongings, liability and other homeowners protection subject to policy terms | Offers dwelling, belongings, liability, loss of use, and other homeowners protection subject to policy terms |
| Rebuilding protection | Review the selected dwelling limit and any additional replacement cost protection | Review the selected dwelling limit and available extended or guaranteed replacement-cost options |
| Discounts | Potential savings for bundling, claims free periods, protective devices, and Connected Home participation | Potential savings for bundling, protective devices, home safety, and other qualifying conditions |
| Optional coverage | Availability depends on the property, state, and policy | Availability depends on the property, state, and policy |
| Service approach | Online account and claims resources are available | Online resources and agent-based assistance are available |
| Best comparison method | Obtain an eligible quote with matching coverage limits and deductibles | Obtain a quote using the same property information and coverage assumptions |
Sources: USAA homeowners and discount information, Farmers homeowners coverage and discount information, and NAIC consumer guidance.
The table should be treated as a starting point rather than a substitute for reviewing actual policy documents. Coverage options, endorsements, discounts and underwriting requirements can vary by state and product.
How Homeowners Can Compare USAA and Farmers Quotes Fairly
A fair comparison begins with consistent information. If one insurer is given an outdated roof age or a different rebuilding estimate, the resulting quotes may not be comparable.
Homeowners can use this checklist before choosing between the two companies.
- Confirm that the home is eligible for coverage with each company.
- Use the same property details and accurate renovation history.
- Compare dwelling coverage based on rebuilding cost.
- Match personal property and liability limits as closely as possible.
- Compare additional living expenses coverage.
- Check whether personal belongings are covered at actual cash value or replacement cost.
- Review roof settlement terms and wind or hail deductibles.
- Ask about flood, water-backup, and earthquake coverage where relevant.
- Identify all applicable discounts and the conditions attached to them.
- Compare annual premiums after discounts.
- Confirm the deductible and make sure it is affordable.
- Review the policy’s exclusions, endorsements and claims requirements.
It can also help to ask each insurer to explain any major difference between the quotes. If one policy costs significantly less, find out whether the difference comes from a lower dwelling limit, a higher deductible, fewer endorsements, or a different underwriting assessment.
Homeowners should not cancel an existing policy until replacement coverage is confirmed and the new policy’s effective date is clear. This is particularly important when a mortgage lender requires continuous insurance coverage.
Final Thoughts
USAA and Farmers offer homeowners insurance, but the right comparison starts with eligibility and continues through price, coverage, deductibles, discounts and service.
USAA’s military community focus is the first consideration for prospective customers. Farmers provides another option for homeowners who meet its underwriting requirements and want to explore its available coverage and discount structure.
Neither company’s name alone establishes which policy will provide the better value for a particular home. A competitive premium matters, but so does having enough coverage to rebuild the property, replace eligible belongings, address liability risks and manage temporary living expenses after a covered loss.
The most reliable way to decide is to compare actual quotes with similar limits and deductibles, read the exclusions, and ask questions about any differences that could affect a future claim.
Ultimately, homeowners should choose the policy whose terms, protection, and cost fit their property and financial circumstances, not simply the company with the lowest advertised price.
