20 years of loyalty destroyed by the complete mishandling of our first HOI property claim

I'll spare the exhausting details of our 8 month ordeal (since I have already spent HOURS reading these sad posts on USAA's mishandling of other members' claims), and I'll cut right to the chase. For 2 decades we have used USAA exclusively for ALL OF OUR Insurance and Financial needs (e.g. Home/Auto/Windstorm/Flood/Life; Mortgages; Banking/Savings; Investments; Kid's college 529s; Credit Cards; etc.), and have been 100% satisfied.


However, we recently filed our FIRST EVER claim when a nearby refinery exploded and damaged our home (this is a 3rd party claim where liability HAS BEEN established and the LOSS IS COVERED per our HOI policy).  USAA sent out an incompetent Independent Adjuster who showed up on the wrong day; then an hour late on correct day, unprepared, uncooperative and refused to inspect all of the damages, which resulted in an entirely inaccurate report. As soon as we lodged a formal complaint about the adjuster's ineptitude, USAA closed the claim and cut us a check for a fraction of the amount needed to complete repairs and return our property to its pre-loss condition. We requested USAA send another adjuster to conduct a reasonable inspection of ALL damages, but USAA refused. We demanded USAA address the discrepancies between their inspection and settlement claim, but USAA refused. We requested our Desk Adjuster review additional evidence we submitted (video, photos, and another Adjuster's findings) but he refused. We requested our Desk Adjuster simply give us his manager's contact information to escalate the matter, but he refused!  In fact, our Adjuster has refused to respond to any of our requests for updates.  USAA claims this is because we are suing the liable 3rd party refinery (which we are). Regardless, the insanity is that since this is a 3rd party liability claim, USAA has the Right of Subrogation (meaning USAA will be reimbursed for every penny they pay this claim...USAA will be made whole before we will).


After consulting an Insurance Attorney it is clear that USAA is in Breach of Contract having not attempted in Good Faith to effectuate a reasonable settlement of our claim, having refused to conduct a reasonable inspection of the damages, and thus is in violation of the Texas Prompt Payment of Claims Act. Our only recourse is to invoke the Appraisal Clause of our policy and battle it out, or file a lawsuit against USAA. Regardless of how we proceed, we will be taking ALL of our business elsewhere (and I mean ALL of it).


In addition, we feel compelled to file a formal complaint with the Texas Department of Insurance against USAA and against the individual Adjusters involved as an attempt to hold them accountable. This mistreatment of loyal customers and Veterans isn't simply disappointing and sad, it is abhorrent and wholly unacceptable.


@PNGnDn16, I am terribly sorry to hear that you have had this type of experience with your homeowners claim. I am escalating your situation to a specialist that will be able to look into your concerns. Please allow 2-3 business days for this to occur and they will reach out to you.

Thanks Robo-response, but I wont hold my breath.

In my 50 years as a USAA customer (only a "Member" in my first 15 years) USAA's service has deteriorated to the level, or below, of that of its 3 biggest competitors.  Lower rates come with a price.  USAA Customer Service Reps. have no authority to settle problems, managers seldom if ever respond, management is totally unreachable, the company is controlled by the attorneys and bean counters and realistically, USAA now exists for the betterment of "upper management".  After all, the more you advertise and simultaneously lower customer qualifications, the more customers and higher revenues and earnings are achieved, resulting in ever higher management salaries and bonuses.  As more and more of its customers will discover, loyalty to USAA is totally wasted and frankly, quite foolish!

Incredible!  I just received an unsolicited phone call from USAA that I was told was being recorded.  Why recorded?  Was this recording going to be used for some purpose totally unknown to me or my being advised of?  Humm... this doesn't do anything to foster a level of trust.


I was told the topic of the call concerned my post as related to my insurance.  Why?  As my post primarily dealt with the deterioration of USAA's customer service, my less than positive experiences with the company and with management's  overall isolation from its customer base.  I never brought up the topic of insurance or any insurance problems.  


Guess it all boils down to, "You get what you pay for".  Then again, YMMV  -----


I just received a call from a representative of the USAA Customer Advocacy Group who assured me that she will contact my adjuster and claims manager to further explain my situation (which I've done already ad nauseam) and she will try to help negotiate a settlement agreement.  So let me get this straight...USAA would rather spend money and resources on an entire Customer Advocacy Group to mediate between customer and adjuster/management rather than just have their own employees work with us towards an amicably resolution...makes perfect sense. We will see what comes of this, if anything. Fingers crossed.

"Customer Advocacy Group " sounds impressive, right?  I've had previous dealings with USAA's Customer Advocacy Group.  What a TOTAL waste of time.  I can't help but believe it is their function to extend the problem as long as possible so that whatever solution is proposed, it is accepted by the customer out of sheer disgust.  For a personal example, I was told USAA shipped out two 2019 RMD checks TWICE, with none of them ever being received by me.  Seemed each time they disappeared without a trace!  Curious!  To make matters worse, I had to finally have USAA wire transfer the two RMDs to my bank which in turn the bank charged me $20 for each wire transfer for $40 total.  USAA flatly refused to accept any responsibility or liability for this fiasco.  It took 1 1/2 months to receive my money and cost me $40. 

While USAA no longer manages any of my IRA and Roth retirement funds, I have transferred them from Victory Capital.  When asked why by Victory Capital, I explained that they are guilty by association with USAA.  Due to USAA's total lack of customer service, I wasn't going to take an chance on them.  Victory's response was to the effect of 'but, but, but, but  ...... '

PNGnDn16, I sincerely wish you the best of luck!  Sometimes it's best to move on  -----


Just a quick update:

USAA hasn't responded despite the Customer Advocacy Group's lip service.  In fact, USAA has refused to acknowledge the issues entirely and is just seeing how far they can push us before we:


A.) Take the low settlement offer and walk away defeated, or

B.) Sue them for Breach of Contract, Bad Faith, and violations of the Texas Prompt Payment Act


USAA must be held accountable, and Justice must prevail.