Is Homeowners of America a Good Insurance Company?

Homeowners of America (HOA) is a regional insurance company that provides home insurance in 21 states across the U.S. But is it a good option for your home insurance needs? In this comprehensive guide, we’ll explore the pros and cons of Homeowners of America insurance so you can decide if it’s the right fit.

Overview of Homeowners of America

Homeowners of America Insurance Company (HOAIC) is headquartered in Irving, Texas and has been in business since 2006. Here are some quick facts about the company:

• Provides home insurance in 21 states, predominantly in the South and Midwest. Not available nationwide.

• Rated “A Exceptional” by Demotech, which indicates strong financial stability.

• Offers standard home insurance coverages plus additional options like identity theft, pet injury, and inland flood.

• Specializes in insuring newer homes and has discounts for accredited builders.

• Received fewer customer complaints than expected based on its size, according to NAIC data.

• Offers quotes through local independent insurance agents. No direct online quotes.

Now let’s take a deeper look at the pros and cons of Homeowners of America insurance.

Pros of Homeowners of America Insurance

Here are some of the advantages that Homeowners of America offers policyholders:

Strong Financial Ratings

HOAIC has strong financial ratings from insurance rating agencies like Demotech. This suggests the company is financially stable and has the ability to pay out claims even after major catastrophes or disasters. Many homeowners want reassurance that their insurer will be around for the long haul.

Good Customer Service Reputation

Analysis of complaint data shows that HOAIC receives fewer complaints than average for an insurance company of its size. This suggests customers are generally satisfied with their policy and service from Homeowners of America. Fewer complaints is a good sign.

Specialized Discounts

HOAIC offers specialized discounts tailored toward newer homes and certain mortgages. Discounts include:

• New Home Discount: Savings for newly constructed homes.

• New Roof Discount: Savings for roofs less than 10 years old.

• Accredited Builder Discount: Savings if your home was built by one of HOAIC’s partner builders.

• VA Loan Discount: Savings if you have a VA mortgage.

This can help make the rates more affordable for certain homeowners.

Unique Add-On Coverages

In addition to standard homeowners insurance, HOAIC offers some less common add-ons:

• Inland Flood Insurance: Covers flood damage from rivers, streams, or excessive rain.

• Pet Injury Coverage: Covers vet bills if your pet is injured on your property.

• Mortgage Extra Expense: Helps pay additional mortgage costs if your home is completely destroyed.

These optional protections help customize your policy.

Cons of Homeowners of America Insurance

However, Homeowners of America does have some downsides to consider as well:

Limited Availability

The biggest drawback is that HOAIC only offers coverage in 21 states. It’s not an option for homeowners nationwide. The states where it does operate are predominantly in the South and Midwest.

May Decline Older Homes

Since the company specializes in newer dwellings, they may decline to insure older homes or homes with outdated electrical, plumbing, etc. Their criteria seems to be stricter for older houses.

No Bundling Discounts

HOAIC only sells homeowners insurance. It doesn’t offer any other lines like auto or life insurance. This means you can’t bundle multiple policies together for a discount. Other insurers that do bundle can provide homeowners discounts of 10% or more.

Higher Rates for Lower Credit

Your credit score and history plays a significant role in determining your HOAIC premiums. Applicants with poor credit tend to see much higher rates. Those with excellent credit get the best rates.

Limited Online Support

HOAIC does not offer online quotes or account management like some other insurers. You have to call an agent or visit their website for information. The lack of online tools can be inconvenient for some.

As you can see, there are good reasons to choose Homeowners of America but also drawbacks to consider before signing up. It works very well for certain homeowners but not as well for others.

Homeowners of America Insurance Coverages

Now let’s take a look at the types of coverages available from HOAIC. Here are the main protections offered:

Dwelling Coverage: Covers damage to the physical structure of your home. Pays to repair or rebuild your house if damaged.

Other Structures Coverage: Covers detached garages, sheds, and other structures on your property.

Personal Property Coverage: Pays to repair or replace your personal belongings like furniture, clothes, and electronics.

Loss of Use: Pays additional living expenses if you are displaced from your home after a covered loss.

Personal Liability: Covers injuries for which you are legally liable that happen to others on your property.

Medical Payments: Pays medical bills for guests injured on your property regardless of fault.

These are the typical coverages included in any standard homeowners insurance policy. HOAIC also offers the following optional add-ons for additional premium:

• Inland Flood Insurance

• Identity Theft Expense Coverage

• Equipment Breakdown Coverage

• Pet Injury Coverage

• Mortgage Extra Expense

• Scheduled Personal Property Coverage

The ability to customize with add-ons is a nice perk.

Cost of Homeowners of America Insurance

So how much does HOAIC homeowners insurance cost compared to competitors? Here are a few factors that impact your premiums:

• Location: Your rates will be lowest in rural areas and small towns. Higher property crime in cities leads to more expensive premiums.

• Age of Home: Brand new houses qualify for the biggest discounts. Premiums are higher as homes age, especially over 50 years old.

• Credit Score: HOAIC relies heavily on your credit when setting rates. Excellent credit earns the lowest rates. Poor credit leads to higher premiums.

• Claims History: Prior HOAIC claims will drive up your costs. But you can qualify for claim-free discounts after some time claim-free.

• Discounts: Taking advantage of discounts for new homes, roof age, accredited builders etc. can significantly lower your costs.

Average costs can vary quite a bit based on these criteria. On average though, HOAIC tends to be competitively priced for newer homes in their markets. Their rates are likely to be higher for older dwellings.

Is Homeowners of America Right for You?

Homeowners of America insurance offers solid protection for many homeowners, especially those with newer houses. But it also has some limitations like availability and older home criteria. So is it a good fit for your situation?

Here are a few final pros and cons to consider as you make your decision:

Pros

• Strong financial stability ratings

• Specialized discounts and coverages for newer houses

• Lower customer complaint rates

• Unique add-on options like pet coverage

Cons

• Only operates in 21 states

• Limited support for older dwellings

• No bundling or online quotes offered

• Credit impacts costs more than some competitors

If you live in one of their 21 states and have a newer, well-maintained home, HOAIC is likely a good option to consider. But if your home is older or you want more of an online experience, other insurers may be a better fit.

Be sure to compare rates from multiple companies before choosing. This ensures you get the best deal. But for many homeowners that meet their criteria, Homeowners of America provides quality insurance protection at a competitive price.