My dad had USAA his entire career and loved them. I was covered by USAA auto insurance starting when I turned 16. This year I finally cut all connections to the company due to shitty service and lousy rates. Here are the details.
1. In 2000, while PCSing from Pensacola to Abilene, my moving truck rolled over on the interstate and smashed a bunch of our furniture. We called the company and were told that our situation would not be covered because it wasn't a military move. It was - set up through TMO. The fact that I had to explain this to them and fight them on it pissed me off (my wife hated them after this point.)
2. in 2004, we bought a rental home that was 1 year old for around $90k. We tried to insure it through USAA. They refused to insure it for less than $120k and said we could not rebuild for less than that. At the time, new houses were going up for about $90k across the street. At that point, we changed our home insurance and our rental insurance to Armed Forces insurance.
3. in 2008 we moved to Colorado Springs. We asked USAA again about home insurance. Once again, they would not insure our home for less than $40k above the appraised value of the home. Bottom line is they don't want my business. We also dropped our car insurance with them when we found that Allstate would charge several HUNDRED dollars less for my three vehicles.
My dad dropped USAA for home insurance several years ago because of their requirement for additional riders for gun ownership. Their standard homeowner policy only covered about $1000 in firearms. It isn't to hard to hit that limit these days.
USAA used to be a awesome company built on a reputation for customer service and excellent prices. Their customer service, in my experience has been very poor, and they no longer offer a good value compared to other companies. I've heard many old timers say that it was because they let enlisted personnel or family join, but I don't think that is the root of the problem. They just became a big company that lost sight of the fact that they were taking care of people who were taking care of the country. Currently, the company is only interested in taking care of the bottom line.
Thats my 2 cents.