Attention Florida homeowners. Check your latest renewal for shenanigans USAA just pulled on one of my properties' policy. Despite my Total Premium decreasing for my renewal, my out-of-pocket cost INCREASED. Here's the email I sent to the CEO:
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Mr. Peacock,
It saddens me that, yet again, I feel compelled to contact you directly concerning insurance coverage for one of my properties. I just received the renewal notice for one of my rental properties in Florida. I saw that the Total Premium Prior to Savings decreased from last year (from $1,226.05 to $1,141.06; a difference of ~$85). At first, I was surprised and pleased. But then I saw the Premiums After Discounts & Savings. It INCREASED from the previous year (from $367.96 to $454.06; a difference of ~$86). This, to say the least, baffled me. How can my Total Premium go down but my Premium After Discounts & Savings go up? Further investigation of the numbers revealed my Building Code Credits were reduced ~$200 (from $553.80 to $360.35; that's a 35% reduction!).
I scoured the policy documents looking for an explanation/breakdown to understand why this happened. I found nothing.
On page 22 of the renewal policy, it (indirectly) identifies the Building Code Credit as "Windstorm Loss Reduction (FBC)" (the Discount amount for both is $360.35). The building this unit is in did not change Windstorm Mitigation characteristics from when I last submitted my latest WMI inspection. As such, I contacted USAA for an explanation.
When I spoke with your CSR today, she gave me a roundabout answer about "lots of calculations/inputs (whatever) go into this calculation". Since I was not satisfied with her indirect answer, I requested to speak with a Supervisor. Your Supervisor said, in my interpretation, that the reduction was because "you can". He attempted to frame it as "...insurance cost is based on futures" (this is directly contradicted by my earlier paragraph: my Total Premium went down, not up, meaning lower risk and/or lower cost to rebuild). I explained to him that, to me, it looks like USAA simply wanted to make sure my out-of-pocket cost went up, despite my Total Premium going down. I demanded he get me a detailed breakdown of the ~$200 reduction (I want to know, specifically, what part of my Windstorm Mitigation for this building is now ~35% less effective, justifying a 35% reduction in the credit).
It is my opinion this is deceit. After speaking with a CSR AND a Supervisor, I still don't have a direct answer as to why my Building Code Credit was reduced. Unless your company can clearer explain why that credit was reduced, and reduced by THAT MUCH, I'm demanding that credit be restored to its comparable value from what it was last year.
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I just got off the phone with one of the CEO's "Customer Advocates". Her explanation: USAA filed for rate increases and would not explain more. When I requested for said documentation, she told me to get a hold of the Department of Insurance for FL (wow, I have to go the government to get an answer from you...). Obviously, they are not changing the credit value back to what it is (nice job USAA convincing everyone that improving your home's Windstorm protection isn't worth it; just leave the home as is and let you guys rebuild the whole thing, since you change the value of the credits on a whim (Advocate: we reevaluate these credits, at times, twice a year).
So, in summary, USAA will make certain your out-of-pocket premium will ALWAYS GO UP.
Thanks again for the INCREASE in out-of-pocket costs, despite a DECREASE in the Total Premium.
