Homeowners of America Insurance Company (HOAIC) is an affordable home insurance company with limited availability, weak endorsement options and restricted discounts. However, if you’re only interested in finding the lowest priced insurance company and you live in Texas, Arizona, South Carolina, Georgia or Virginia, then HOAIC can be a decent option for you.
Homeowners of America: A Young Company Offering Competitive Rates
Homeowners of America Insurance Company’s best feature is its competitive pricing across a wide set of coverage limits. For those who live in one of the company’s coverage states—Texas, Arizona, South Carolina, Georgia or Virginia—it’ll be one of the cheapest insurance companies in the area. Below, we compare annual home insurance rates between HOAIC and the average of three competitors: State Farm, Allstate and Texas Farm Bureau.
Home insurance is meant to protect you from losses and damages to your home, which is likely the largest purchase you’ll ever make. HOIAC was founded in 2005, meaning that it is a relatively new company. To put its age into perspective, both Farmers and State Farm are around 100 years old. Since there are indications of HOAIC dropping customers after they file a claim, the company’s reliability comes into question—which isn't necessarily due to its age. However, Homeowners of America Insurance Company’s relative youth combined with concerning customer reviews make it difficult to recommend the company to most people.
Consumers who prefer to work online should be aware that Homeowners of America Insurance Company doesn’t provide direct quotes to customers. However, prospective policyholders in Texas can receive quotes directly through HOAIC’s website. But, if you prefer to work with an in-person agent, you can contact HOAIC directly to be referred to an independent agent in your area.
Bottom Line: HOAIC provides great rates and all the other home insurance basics for consumers who do not mind that it's an unproven insurance company. All other prospective policyholders should look for a more reputable company.
Homeowners of America Insurance Policy Coverage Options and Discounts
Homeowners of America Insurance Company offers a standard set of coverage with its home insurance policies, outlined in the table below. The company offers coverage limits that should be enough for most people who are looking for a home insurance, with limits ranging from $50,000 to $750,000. HOAIC bolsters its standard coverage with various endorsements—such as full animal liability, identity theft, increased replacement cost and increased jewelry, watches and fur coverage.
Full Animal Liability: If you’re worried about your pet attacking someone, consider adding the full animal liability endorsement to your policy. The endorsement covers the entire cost of injuries that your pet may cause to others. A standard homeowners policy only covers up to your policy’s limit. Animals with a previous record of bites are excluded from the coverage. Most dog breeds are accepted, but pit bulls and Rottweilers are not eligible under the full animal liability coverage.
Identity Theft: Consider adding this endorsement to your home insurance policy if you’re concerned about identity theft. The endorsement provides policyholders with up to $15,000 in reimbursements for applicable expenses, such as legal fees. A $100 deductible will apply before any reimbursements are made.
Increased Replacement Cost: The increased replacement cost endorsement provides coverage for a rise in construction costs after a loss, such as an increase in the cost of materials or labor. The endorsement coverage is capped at 25% of your dwelling coverage limit and to qualify your home must be insured at 100% replacement cost. The 25% coverage is lower than what other competitors offer—such as Esurance—who offers the endorsement for up to 40%. The increased replacement cost ranges in price depending on the value of your home, but you can expect to pay anywhere from $75 for a $150,000 home to $200 for a $250,000 home.
Increased Jewelry, Watches and Furs: This endorsement provides coverage for your valuables up to $5,000 on top of your basic coverage in the event of a covered loss. The increased jewelry, watches and furs endorsement is lackluster when evaluated among comparable offerings from other companies. Both State Farm and Farmers provide an endorsement that reimburses policyholders for the entire value of the aforementioned items in the event of a covered loss. Depending on the value of your items, HOAIC’s endorsement might only cover one or two mid-range items.
|Dwelling Coverage||From $50,000 to $750,000|
|Personal Property||Up to 75% of your dwelling coverage (for an HO-3 policy)|
|Loss of Use||20% of your dwelling coverage (for an HO-3 policy)|
|Medical Payments||From $500 to $5,000|
|Personal Liability||From $25,000 to $500,000|
|Other Structures||2% of your dwelling coverage (10% in Texas)|
Discounts Offered by Homeowners of America
Homeowners of America Insurance Company offers a typical number of discounts to its policyholders. However, the availability of the discounts will depend on the state where you reside. For example, Texas homeowners have all but one discount available to them, while South Carolina homeowners are limited to five discounts.
How Do You Receive it?
|Advanced Shopper Discount||TX||Receive a quote at least one day before the effective date of the policy you sign-up for.|
|Companion Product||TX, AZ, SC, GA, VA||Purchase another form of insurance from HOAIC at the same time you purchase home insurance.|
|Hail Resistant Roof||TX||Automatically applied if your home’s roof meets certain standards.|
|Accredited Builder||TX, AZ, SC, GA, VA||Added to your home policy if your home is less than five years old and was constructed by an accredited builder. Currently, there are over 340 builders that HOAIC deems accredited.|
|Security Features Discount||TX, AZ, SC, GA, VA||Receive a discount if your home has a central alarm for burglary, a fire alarm, or if your home is in a gated community. Only one discount is available, regardless of how many of these conditions apply to your home.|
|New Purchase||TX, AZ, SC, VA||Purchase a home insurance policy on the same date on which you purchase a new home.|
|New Roof Discount||TX, VA||Save 15% if your home is at least ten years old and the roof is less than two years old. The discount stays on your policy until the roof is six years old.|
|Claim Free Renewal Discount||TX, AZ, SC, GA, VA||Automatically receive a discount on your first and second home insurance policy renewals if you’re claim-free.|
|Fire Department Tax Credit||AZ||Receive a 1.35% discount if you live in the cities of Carefree or Fountain Hills.|
Homeowners of America Insurance Quotes Comparison
HOAIC’s home insurance rates become increasingly competitive the higher the limit on the policy that you’re looking for is. The company quoted an annual home insurance rate that was $1,121 less than the average of its competitors for a policy with a limit of $350,000. For a $200,000 coverage limit, the difference between Homeowners of America Insurance Company’s quote and the average of its competitors dropped to $283. The only company in our sample that offered more competitive rates was Allstate. We recommend gathering quotes from multiple companies since home insurance quotes vary by state, among other factors.
Homeowners of America Reviews and Insurance Ratings
Customer reviews of HOAIC are largely negative. Customers complain about a slow and unresponsive claims department. Policyholders that submit a claim commonly state that their insurance coverage was canceled shortly after. While customer complaints about the claims process are common among most insurance companies, the frequency of occurrences in Homeowners of America Insurance Company’s customer reviews lends credence to the statements.
Filing a Claim with Homeowners of America
If you need to file a claim with Homeowners of America, you can do so by calling 1-866-407-9896. You can also e-mail the claims department or submit an online form through the claims center. An HOAIC representative will follow up with you in regards to the claim.
Homeowners of America Customer Complaints and Financial Strength Ratings
HOAICy has a below average number of customer complaints. The National Association of Insurance Commissioners (NAIC) gave HOAIC a complaint rating of 0.49, approximately 0.51 less than the national median. Meaning that, in the last year HOAIC received substantially less complaints than the typical insurance company.
An insurance company's financial strength is important for prospective policyholders because it points to the company’s ability to pay out claims. HOAIC isn’t currently rated by A.M. Best Rating Services, the rating service used by most insurers. However, in a recent financial statement filing, the company states that is has ever applied for a rating, as it believes it would be rated poorly at its current size.
The NAIC also publishes a liquidity ratio, which is a calculation that measures a company’s ability to meet its financial obligations. For policyholders, this translates to a company’s ability to pay out claims. The higher a company’s ability to meet its financial demands, the higher its liquidity ratio will be. HOAIC currently has a liquidity ratio of 74.1, which is greater than its competitors’ ratios. State Farm has several liquidity ratios since it uses multiple underwriters, but most have a liquidity ratio in the range of 40 to 60.