Insurance Guide for VA Loan Homeowners

As a veteran-owned agency, Total Quality Insurance has a special connection to the military community. We understand the unique benefits and requirements that come with VA loans — and we're here to help you navigate them.

VA Loan Insurance Requirements

The VA requires all VA loan borrowers to maintain adequate homeowner's insurance, but the requirements are actually quite straightforward:

• Dwelling coverage must equal at least the loan amount or the replacement cost of improvements, whichever is less
• No specific carrier requirements — you're free to shop for the best rate
• No PMI — unlike conventional and FHA loans, VA loans don't require private mortgage insurance, saving you $100–$300/month
• Flood insurance required if the property is in a Special Flood Hazard Area

The VA Funding Fee and Your Insurance

While VA loans don't require PMI, most borrowers pay a one-time VA funding fee (1.25%–3.3% of the loan amount). This fee can be rolled into the loan but does not affect your insurance requirements. Disabled veterans are exempt from the funding fee entirely.

Military Discounts on Insurance

Many insurance carriers offer exclusive discounts for military members:

• Active duty discounts — 5–15% off for current service members
• Veteran discounts — Available from select carriers we represent
• USAA isn't your only option — While USAA is well-known, we often find competitive or better rates from other carriers. We'll include USAA in your comparison if you're eligible.
• Deployment considerations — Some carriers offer premium freezes or reduced rates during deployment

Common VA Loan Insurance Mistakes

1. Assuming USAA is always cheapest — It's a great company, but not always the best rate. Always compare.
2. Not considering replacement cost — Make sure your dwelling coverage reflects today's rebuild costs, not your original purchase price.
3. Skipping umbrella coverage — With the equity building in your VA-financed home, an umbrella policy provides extra liability protection.
4. Forgetting to update after renovations — If you used a VA renovation loan, update your coverage to reflect improvements.

Fort Eisenhower (Formerly Fort Gordon) Area

For military families stationed at Fort Eisenhower in the Augusta area, we offer:

• Free PCS insurance reviews when you arrive or depart
• Coverage for both your Georgia and any additional properties in other states
• Quick proof-of-insurance letters for housing offices

Get Your Free Military Insurance Review

As a veteran-owned agency, we treat every military family like our own. Read our VA Loan Insurance Guide or request your free review today. Thank you for your service.