GEICO Homeowners Insurance is one of many products the online giant offers. But, unlike its auto insurance, GEICO provides homeowners coverage through non-affiliated insurance companies. In other words, GEICO acts as a broker between you and the insurer who underwrites your home insurance policy. So, while GEICO still handles the sales and customer service aspects, you will likely be dealing with a third-party insurer to handle claims.
Business Insider compared GEICO homeowners insurance to the best homeowners insurance companies and found it to be a standard offering. GEICO offers home insurance coverage nationwide, and its online quoting tools make the buying insurance process easy.
GEICO Homeowners Insurance Pros and Cons
GEICO Homeowners Insurance Pros
- Available in every state and Washington, D.C.
- Discounts for bundling coverage
GEICO Homeowners Insurance Cons
- Doesn't offer its own homeowners insurance
- Can't file homeowners insurance claims on the mobile app
GEICO Home Insurance Quotes
GEICO Homeowners Insurance Overview
Although GEICO is typically known as an auto insurance provider, the company also sells several insurance products, including homeowners, renters, boat, and business insurance.
GEICO homeowners insurance does not function like other providers. Its policies are underwritten by non-affiliated partners, though you obtain quotes and purchase your policy through GEICO's platform.
Every home insurance company works with other insurers to a certain degree. Just like many competitors, GEICO homeowners insurance insurers have their own interests. However, it's more open about its partnerships and roles. For example, companies like Lloyd's of London or Liberty Mutual underwrite GEICO home policies. However, GEICO still guarantees these policies.
On the other hand, GEICO acts as more of a broker for specialty products like hurricane insurance. For example, it partners with providers like the Hawaiian Hurricane Group. Policyholders may manage policies through the GEICO customer portal or another vendor website, depending on the partnership.
Below, we'll go into more detail about its business model and what it means for you. Still, before signing up for a policy, you should research whether one of GEICO's policies is right for you.
GEICO Homeowners Insurance Plans and Coverage
GEICO HO-3 Insurance
Standard homeowners insurance policies from one of GEICO's partners will provide some combination of the following:
- Dwelling coverage: Provides coverage for rebuilding or replacing your home, plus any attached structures like a garage. GEICO agents can help you understand your replacement cost estimate and why you need a certain amount of dwelling coverage.
- Additional structures: Coverage for any additional structures on your property, like a shed, gazebo, or detached carport
- Loss of use: Pays for your living expenses, like hotel bills, meals, and other extra costs accumulated while you cannot live in your home due to a covered loss. A GEICO agent can help you determine when you qualify for loss of use coverage.
- Personal possessions: Covers the cost of repairing or replacing damaged belongings. For single-family residences, $300,000 in coverage or more is common. However, if you have expensive items like jewelry, art, or collector items, you may need extra scheduled items coverage for those individual items.
- Personal liability: Covers legal expenses and damages from lawsuits brought against you by someone injured while on your property.
- Medical payments: Covers someone else's medical expenses if they are accidentally injured while on your property. Some limits may apply for certain dog breeds, swimming pools, etc. We recommend speaking to your GEICO agent about any exclusions.
GEICO HO-4 Insurance
GEICO renters insurance policies often come with the following coverage:
- Personal property: Protects your belongings inside your rental unit from named perils, such as fire, smoke, and theft.
- Loss of use: Provides financial assistance in the event you need to live somewhere else temporarily while your unit is being repaired.
- Personal liability: Covers you if someone else is injured in your rental and you're found liable.
GEICO HO-6 Insurance
Condo insurance from GEICO usually includes protection such as:
- Unit coverage: This protects everything inside your condo unit, like the floors, interior walls, ceilings, and cabinets.
- Personal property coverage: This covers your personal possessions inside the condo unit, such as furniture, clothes, and electronics.
- Personal liability coverage: This type of coverage helps you if someone else is injured in your condo or you cause damage to someone else's property. It may also cover medical expenses for people who don't live in the condo.
- Loss of use coverage: This helps pay for additional living expenses if you temporarily need to live somewhere else while repairs are being completed to your unit.
HO-7 Insurance
Here's what you can expect to be included in a standard mobile home insurance policy from GEICO:
- Dwelling coverage: This protects the physical structure of your mobile or manufactured home.
- Other structures coverage: This provides protection for unattached buildings, such as a shed or garage.
- Personal property coverage: This covers your personal belongings, such as clothes, electronics, small appliances, and furniture.
- Liability coverage: Liability coverage helps you pay for medical and legal fees if someone who does not reside in your home is injured on your property.
Landlord (DP-3) Insurance
There are different landlord policies available depending on the type of rental units you have. Common scenarios include long-term rentals (for six months or longer), short-term rentals (one to three months), and frequent short-term rentals like Airbnb.
Here's a list of what's typically covered in a landlord policy from GEICO:
- Structural damage
- Liability costs
- Furnishings and appliances
- Additional out-of-pocket expenses
Additional Cover Options (Riders) Offered by GEICO Homeowners Insurance
In addition to your base policy, you can add riders to extend your coverage. Despite its diverse partnerships, the riders available through GEICO are predictable. Common examples include:
- Increased dwelling coverage: provides extended coverage if your repair costs exceed the current market value of your home. This could be especially helpful after a natural disaster, market shortages, or other factors that temporarily increase repair costs.
- Water backup damage: covers damages caused by a clogged sewer or sump pump overflowing. Whether it's a broken pipe, a leaky washer, or something else, a few dollars monthly could save you thousands in a single claim.
- Appliance coverage: covers the cost of repairing or replacing your appliances, such as your refrigerator, water heater, or air conditioner.
- Earthquake coverage: provides coverage for damage caused by earthquakes.
- Identity theft restoration: covers you against identity fraud, cyber attacks, and cyber extortion claims. This additional coverage can help you protect or restore your identity after it's been compromised.
GEICO Homeowners Insurance Cost
The exact pricing for your policy will depend on many factors. Common factors include location, size of your home, and claims history, which are just a few of the things its partners consider. While most consumers agreed that GEICO offers lower-than-normal introductory pricing, many felt rates increased substantially once their policy was implemented.
GEICO Homeowners Insurance Discounts
GEICO offers a few different discount opportunities when it comes to homeowners insurance, including:
- Bundling discount: You could qualify for a reduced rate on your auto insurance when you bundle home and auto policies with GEICO.
- Home security discount: When you install cameras and alarm systems to protect your home, you may be eligible for a discount from GEICO.
- Home safety discount: GEICO may give discounts to homeowners when they install smoke detectors and fire extinguishers in their homes.
How to Purchase and Manage a GEICO Homeowners Insurance Policy
GEICO sells home insurance policies in all 50 states, as well as Washington, D.C.
You can start a quote online through GEICO's official website, or call a sales agent at (800) 841-3005. Agents are available Monday through Friday from 7 a.m. to 11 p.m. ET and weekends from 8 a.m. to 10:30 p.m. However, if you're in Hawaii, agents are only available from Monday through Friday from 8 a.m. to 4:30 p.m. HT.
You can view your policy details online in your GEICO account or on the GEICO mobile app. However, if you need to file a claim, you'll need to contact the GEICO Insurance Agency partner that provided your policy.
Here are some examples of GEICO homeowners insurance partners:
- AIG
- All Risks
- American Modern
- Arrowhead
- Assurant
- Cabrillo
- Chubb
- Hippo
- Safeco
- Travelers
How to File a Claim with GEICO Homeowners Insurance
Policyholders won't file a claim directly through the customer website. Instead, GEICO's partner (if any) will be listed on your policy documents, and you can contact the partner or GEICO's phone line for assistance.
In our highly tech-friendly world, GEICO is not one to be left behind. If you prefer to work online or through an app, you can set up logins once you know which company will service your policy on a day-to-day basis. This will help with both policy management and claims.
GEICO Homeowners Insurance Customer Reviews and Ratings
GEICO has somewhat mixed reviews online. The company is highly rated by the Better Business Bureau, with an A+ rating. The BBB rates companies based on their customer complaint history, transparency in business practices, as well as other factors.
On Trustpilot, GEICO received bad ratings, with only 1.3 stars out of five. Customers commonly complained that the company didn't approve claims as expected and frequently raised policy premiums.
One reviewer said that GEICO misled them with misleading quotes. "They hook you with a low rate, then they call you days later asking for more information, increasing your initial premium from $1,700 to $3,500."
GEICO received a 1.95 Customer Complaint Index score from the National Association of Insurance Commissioners. This means the insurer receives almost double the amount of expected complaints for companies in the insurance market.
However, the insurer received an AM Best rating of A++ (Superior), which is the highest possible AM Best rating. This indicates that GEICO is financially strong and should be able to meet its insurance obligations to policyholders, including paying out claims.
GEICO Homeowners Insurance Alternatives
See how GEICO compares to three other options for home insurance coverage: Liberty Mutual, State Farm, and Lemonade.
GEICO vs. Liberty Mutual Homeowners Insurance
Liberty Mutual Homeowners Insurance is a GEICO partner in some states. However, GEICO focuses on connecting customers to home insurance online. Policies are more generic and designed to offer cheap coverage for buyers on a budget.
On the other hand, Liberty Mutual offers online, phone, and agent support. Its licensed insurance agents can provide quotes to ensure you get all the discounts you qualify for. More importantly, agents verify buyers have sufficient coverage. Especially for buyers who are unsure about the home insurance process, Liberty Mutual offers a little more personalization and support.
Read our Liberty Mutual homeowners insurance review.
GEICO vs. State Farm Homeowners Insurance
State Farm Homeowners Insurance and GEICO are similar in that both cover all 50 states. However, again, GEICO focuses on online quoting, policy management, etc. Again, GEICO backs all policies, but other partners underwrite. State Farm handles underwriting and backing, and policyholders manage everything online or through a State Farm agent.
State Farm goes to the polar opposite end. Online quotes are unavailable and must be run through a licensed agent who works for the company. The benefit of this is that an experienced professional can ensure you get all the necessary coverage and discounts. But it'll take longer, and agents cannot run quotes for other insurers. Reports often indicate State Farm homeowners premiums are more predictable and stable.
Read our State Farm homeowners insurance review.
GEICO vs. Lemonade Homeowners Insurance
Lemonade Homeowners Insurance and GEICO differ primarily in the companies' commitment to technology. Both companies have mobile apps, but GEICO focuses on its website and customer service phone line. The exact methods of communication may vary depending on which company is underwriting the policy.
Meanwhile, Lemonade's user experience is entirely online, meaning you can buy a policy and submit claims online or from your phone. It encourages policyholders to fill out claims forms, submit documents, and follow their claims on its mobile app as much as possible. Unlike GEICO, Lemonade is only available in a limited number of states, and GEICO has a more extended history, but Lemonade claims it is expanding.
Read our Lemonade homeowners insurance review.
Why You Should Trust Us: What Went into Our GEICO Homeowners Insurance Review
In reviewing GEICO's homeowners insurance offerings, we did our best to compare it against other top providers within the industry. As part of our research, we compared the following factors:
- Breadth of coverage: We compared what GEICO's partners include in their standard homeowner insurance policies to that of its competitors. We also considered the options for additional coverage.
- Prices: Finding coverage that fits your budget is important. We compared quotes and researched discount opportunities to determine affordability.
- Customer service: We looked at customer review sites like the Better Business Bureau and Trustpilot to learn more about the customer experience. We also reviewed recent studies from JD Power to evaluate customer satisfaction.
- Financial stability: We referred to AM Best ratings to determine GEICO's financial strength and ability to pay claims.
Ultimately, selecting the right insurance provider for you and anyone else in your household is about educating yourself on how the process works and choosing a policy with suitable coverage and sufficient coverage limits. You should also ensure the premium fits comfortably into your budget and that the provider enables you to submit a claim quickly.
Read more about how Business Insider rates homeowners insurance.
FAQ
Does GEICO homeowners insurance underwrite its own policies?
No, instead of underwriting its policies, GEICO matches its customers with a policy from one of the third-party providers in its partner network.
How can I contact GEICO's customer service team?
If you wish to speak to a sales representative about purchasing a home insurance policy through GEICO, call 800-841-2964.
Does GEICO homeowners insurance cover California?
Yes, GEICO homeowners insurance partner network of providers extends to all 50 states, including California.
Does GEICO homeowners insurance offer bundling discounts?
Yes, GEICO homeowners insurance offers a bundling discount if you have a GEICO car insurance policy and buy a homeowners insurance policy through GEICO.
Does GEICO homeowners insurance pay claims?
GEICO homeowners insurance just acts as a broker, so they won't actually be the company that pays out your policy.
The post GEICO Homeowners Insurance Review: Pros, Cons, and Alternatives appeared first on Business Insider