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Geico Home Insurance Review: Is It From Geico or Another Company?

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Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency...

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Reviewed byJoel Ohman
Founder, CFP®https://res.cloudinary.com/quotellc/image/upload/insurance-site-images/truthaboutins-live/2020/03/joel-ohman.jpg

UPDATED: Jul 21, 2020

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Things To Know

  • Geico home insurance is actually sold through Geico’s insurance agency and is underwritten by other companies
  • Geico home insurance claims are handled by the company responsible for underwriting, and not Geico directly
  • While you can’t buy home insurance from Geico directly, you may still be able to get a bundling discount

You have probably seen commercials for Geico homeowners insurance and wondered if Geico home insurance really exists. While Geico advertises that they sell home insurance, they don’t actually underwrite it. so if you’re looking for Geico home insurance quotes, please be advised Geico has its own insurance agency that sells home insurance, but they don’t write the policy.

What company does Geico use for homeowners insurance? What types of home insurance are available? There is more than one, and as a result, Geico home insurance reviews may actually refer to a number of different companies, one of the Geico portfolio home insurance affiliates.  We know that’s confusing, and we are going to clear it all up.

Read on for Geico homeowners insurance reviews that cover how it works and which companies will handle your policy and claims. But before you start, enter your ZIP code to compare home insurance rates right now.

Where does a Geico home insurance policy actually come from?

When you contact Geico to get a home insurance quote, you are actually contacting an agency. Policies come from Geico insurance partners.

Dig out your homeowner’s insurance policy and read it carefully. You will likely see the name “Geico General Insurance Agency” or something similar on the top or bottom of the page in large letters and a different company’s name in smaller font somewhere else.

You may see the name of a familiar insurer, such as AIG, Chubb, Homesite, Liberty Mutual, or Travelers, or an unfamiliar one for that matter, which are just some of the many companies Geico Insurance Agency “places business.”

For the record, Esurance renters insurance and many of its other lines of business are also outsourced to companies like Homesite, so it’s not an uncommon practice.

You see, the fine print on Geico’s website mentions something about homeowners coverage actually being written through non-affiliated insurance companies, such as those listed above. That means Geico claims for homeowners are also handled by someone else.

And Geico’s website actually has a page with all of their homeowners insurance partners should you need to pay a bill, make a change, file a claim, or gather some information. There are about 30 insurers on that list. Some are even big names. Take a look at the top ten home insurance companies by market share below, courtesy of the National Association of Insurance Commissioners (NAIC).

RankCompaninesDirect Premiums WrittenMarket Share
1State Farm$18,177,462,00018.50%
2Allstate$8,262,445,0008.36%
3Liberty Mutual$6,655,452,0006.74%
4USAA$6,170,558,0006.24%
5Farmers$5,795,044,0005.86%
6Travelers$3,766,277,0003.81%
7American Family Insurance$3,276,280,0003.32%
8Nationwide$3,184,627,0003.22%
9Chubb Ltd$2,832,082,0002.87%
10Erie Insurance$1,675,976,0001.70%
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Several Geico portfolio companies make the list.

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A Geico Home Insurance Review Won’t Carry Any Weight

If someone is attempting to review Geico Home Insurance, they are either misinformed or simply making something up because ultimately such a company doesn’t exist, and your policy could come from dozens of different companies.

If you’re looking for a Geico Home Insurance review, it’s going to be all over the place. One individual may have received their policy from AIG, while another got a policy from Travelers, even though both were sold by a Geico rep.

Obviously these are two different carriers, so the only thing you could really gauge was the customer service experience in applying for the insurance, not the actual policy experience thereafter.

How each company handles claims could be completely night and day, though you would hope each company Geico chooses to work with is of a certain quality.

When it comes to rates, that too will vary based on the company Geico places you with, which may be dependent on the state where the property is located.

This means pricing could be great for certain people in specific states, but not so good in others. The upside is that Geico might have the ability to shop your rate with a variety of carriers at once to find you the lowest price.

But even after doing this, you may still want to call up some carriers that sell homeowners insurance directly to see what they can offer. Or visit a local independent agent to see if they have access to even more carriers with discounted rates.

However, Geico home insurance and auto may still offer you a bundling discount on your car insurance, even though it’s written by another company, so be sure to find out what Geico auto insurance discounts are available.

Does Geico write life insurance or renters insurance?

Geico does the same thing with other business lines, including life and renters insurance. In fact, they pitch 24 different lines of insurance, but then direct you to an unaffiliated company in which they earn a commission

For the record, Geico refers to policies from these affiliated companies as a “GEICO Portfolio Policy.”

They also happen to sell life insurance, renters insurance, umbrella insurance, travel insurance, ridesharing insurance, and many other non-auto policies this way. At last glance, Geico was pitching 24 different types of insurance on their website, which is pretty impressive. Who knew that many lines existed?

However, there’s a distinction between these policies and the auto policies Geico actually issues themselves. In reality, Geico life insurance doesn’t exist, nor does a Geico renters insurance policy.

They simply partner with affiliated companies to get a piece of the action. That’s why you’ll also see a lot of disclaimers about not having control and not assuming responsibility for these providers when gathering insurance quotes.

Geico probably feels the companies offering umbrella insurance or travel insurance will be solid choices for you, but they have to let you know it’s a different company actually providing the coverage, or that it’s secured through the GEICO Insurance Agency.

While this doesn’t constitute insurance fraud by any stretch of the imagination, you may feel somewhat slighted, which is a common reaction when people find out they bought an insurance policy from some “no-name” insurer who doesn’t choose to advertise on television or radio.

Heck, if you end up saving money by switching homeowners insurance companies to what you thought was Geico or Progressive, you can still consider it a “win,” because at the end of the day, insurance is becoming somewhat of a commodity anyway.

Even if it’s not actually Geico’s home insurance, the specific company the policy is with may provide excellent service (or even better service than what you would expect from Geico) at a decent price. And that may be all that matters to you

Insurance Company vs. Insurance Agent

Insurance companies create and sell their own products, an example being Geico auto insurance, whereas insurance agents sell insurance products for either one or several insurance companies.

An insurance company, also referred to as an insurer, is an organization that develops and distributes an insurance product for a profit. See types of auto insurance companies for more information on this. If the insurance product they sell is not profitable (i.e. they pay out more in claims than they generate in insurance premium dollars) they have an overall loss of income for a given time period.

An insurance agent, on the other hand, sells insurance to the public for a commission, but may not have a direct tie to the amount of money made by the insurance company they represent (see captive agent versus independent agent).

Regardless of the overall profitability of the insurer(s) they represent, the agent gets paid and is not on the hook for paying insurance claims out of the money they earn for selling the policy. Sounds pretty good, doesn’t it?

Well, that may explain Geico’s latest tagline, “More than just car insurance.” So, can independent agents sell Geico? As a general rule, no, but an independent agent may offer policies from the samve companies that Geico’s agency offers.

Enter your zip code below to view companies that have cheap auto insurance rates.

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Insurance Is a “Distribution” Game

At the end of the day, an insurance policy is a contract between two parties who exchange “consideration,” in this case a promise to pay for a covered claim (the insurer) for a paid premium (the person who buys the policy).

The types of coverage, policy limits, customer service and insurance premiums may vary widely by company, but every insurer must play by the same rules as every other insurer in a particular state.

Liability limits of 25/50/25 mean the same thing on every policy, whether it’s issued by Geico, Progressive or State Farm.

One of the only true differences between insurance companies that sell the same product, standard auto insurance for example, is how the product is marketed. Don’t believe us?

Ask yourself why many insurance companies have billion-dollar advertising budgets that bombard us with constant advertising on television, radio and through the mail.

They are trying to give us the “warm fuzzies” or connect with our sense of what’s cool in order to sell us something…it’s how advertising in a free market works. Capitalism at its finest!

Geico Home Insurance: The Bottom Line

Because Geico has an amazing distribution network they can offer other products alongside their own even if they aren’t willing to make those products themselves. It’s kind of like how retailers put candy and other cheap items at the checkout

This explains how and why Geico acts as an insurance agent for homeowners insurance companies.

Geico (and Progressive homeowner’s insurance for that matter) have some of the best insurance distribution channels in the United States, but are not willing, for whatever reason, to develop a homeowner’s insurance product of their own (which may be VERY expensive).

There’s a reason they’re sticking to auto insurance and nothing else.

Progressive has tried it before and were not successful with the venture. Both Geico and Progressive, which are car insurers, sell you “someone else’s” homeowner’s insurance product.

That “someone else” is likely a company you have never heard of…but you don’t care because you bought a product from the friendly Gecko or Flo, who are both “people” you trust because they are funny and on television!

We all want to make purchases from people or organizations that we trust, even if that trust is based only on advertising. So, if the question is “Is geico a good home insurance company”, the answer is no, because they aren’t a homeowners insurance company.

So now that it’s clear what a Geico home insurance review really means, it’s time to compare rates. Enter your ZIP code for free quotes now.

References:

    1. https://content.naic.org/article/news_release_naic_releases_report_homeowners_insurance.htm

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