Nationwide vs USAA: Homeowners Insurance Coverage Comparison
A coverage-first, independent comparison of Nationwide and USAA — based on public policy forms and carrier disclosures, not premiums or marketing. Coverage details vary by state and change frequently; confirm at bind.
Information reflects public sources as of January 2025.
At-a-glance comparison
| Coverage feature | Nationwide | USAA |
|---|---|---|
| Carrier structure | Mutual | Reciprocal |
| Distribution | Hybrid (multiple channels) | Direct-to-consumer |
| AM Best rating | A+ | A++ |
| States written | All 50 states | Eligibility is restricted to active and former military members and their eligible family. |
| Policy form | Proprietary form | Proprietary form |
| Roof settlement (default) | Varies by state | Varies by state |
| Wind/hail deductible | Varies by state | Varies by state |
| Water backup | Available as endorsement | Available as endorsement |
| Ordinance or law | Included (standard) | Included (standard) |
| Service line | Available as endorsement | Available as endorsement |
| Equipment breakdown | Available as endorsement | Available as endorsement |
| Extended replacement cost | Available as endorsement | Available as endorsement |
| Guaranteed replacement cost | Not offered | Not offered |
| Online quote | ||
| Mobile claims app |
Coverage breakdown
Policy form
Nationwide: Nationwide offers a Brand New Belongings option and an Better Roof Replacement option in many states.
USAA: Proprietary form
Why it matters: the policy form is the contract. Two carriers can both call a product "homeowners insurance" and have meaningfully different definitions of "covered peril," "actual cash value," and how losses are settled.
Roof settlement
Nationwide: Nationwide offers a Better Roof Replacement endorsement in many states that pays to rebuild with stronger, safer materials after a covered loss. Default settlement basis varies by state. Confirm at bind.
USAA: USAA's standard homeowners policies historically settle roof losses on a replacement-cost basis subject to policy terms; settlement basis varies by state and endorsement. Confirm at bind.
Why it matters: on a 15-year-old asphalt roof, an ACV or schedule-by-age settlement can leave the homeowner with five-figure out-of-pocket costs after a hailstorm. Read more about RCV vs ACV.
Wind / hail deductible
Nationwide: Varies by state and program.
USAA: Varies by state and program.
Why it matters: percentage deductibles (1%–5% of Coverage A) are common in hail- and hurricane-prone states. On a $500,000 dwelling, a 2% wind/hail deductible is $10,000 — the first $10,000 of any wind or hail loss.
Water backup
Nationwide: Available as endorsement
USAA: Backup of sewers, drains, and sump pumps is offered as an endorsement.
Ordinance or law
Nationwide: Included (standard)
USAA: Typically included at 10% of Coverage A; higher limits available.
Which policy fits which homeowner
We don't rank carriers. The right choice depends on your home, your roof, your state, and the specific endorsements you add. A few coverage-driven considerations:
- If you have a roof over 10 years old, the roof settlement basis matters more than the premium difference.
- If you live in a hail- or hurricane-prone state, check the wind/hail deductible structure on both quotes.
- If your home was built before 1990, default 10% ordinance or law coverage is often insufficient — ask about higher limits.
- If you have a finished basement, sump pump, or septic, water backup coverage is worth pricing on both quotes.
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Get a quoteFAQs
Is Nationwide or USAA better for homeowners insurance?
Neither carrier is universally "better." The right policy depends on your home's age, your roof, your state, and the specific endorsements you add. Nationwide uses proprietary form; USAA uses proprietary form. Compare them on roof settlement basis, wind/hail deductible, water backup, and ordinance or law — not just premium.
What's the main coverage difference between Nationwide and USAA?
The biggest practical differences are usually (1) how roof losses are settled (replacement cost vs actual cash value vs payment schedule by age), (2) whether wind/hail uses a flat or percentage deductible, and (3) which endorsements are included by default vs sold as add-ons. Nationwide offers as an endorsement water backup; USAA offers as an endorsement it.
Does Nationwide or USAA cover roof replacement?
Both carriers cover roof damage from covered perils, but the settlement basis varies by state and program. Nationwide offers a Better Roof Replacement endorsement in many states that pays to rebuild with stronger, safer materials after a covered loss. Default settlement basis varies by state. Confirm at bind. USAA's standard homeowners policies historically settle roof losses on a replacement-cost basis subject to policy terms; settlement basis varies by state and endorsement. Confirm at bind.
Is Nationwide or USAA cheaper?
We don't quote premiums on this page because they vary dramatically by state, home characteristics, prior claims, and credit. The more useful question is which policy actually pays out the way you expect after a claim — which is what coverage form differences determine.
Is Nationwide a good company?
Nationwide holds an AM Best rating of A+ and writes in all 50 states. Financial strength matters, but coverage quality and claims experience matter more at claim time. Read the actual policy form and endorsement list before binding.
Sources & methodology
Coverage details above are drawn from the carriers' public-facing product disclosures and policy summaries. Policy forms, endorsements, and roof settlement schedules vary by state and change frequently. The summaries here are not policy advice and are not a substitute for reading the actual policy you are offered.
Nationwide Mutual Insurance Company and United Services Automobile Association are trademarks of their respective owners. RateMyPolicy is not affiliated with, endorsed by, or sponsored by either carrier listed on this page. This page is for general informational purposes only and does not constitute insurance advice. Coverage terms are governed by the actual policy issued.