USAA shocked me today on homeowners

I have been insured by USAA for 35 years.  They are not even remotely the company I remember.   All that said here is my experience to share and let folks make up their own mind.  I called approximately 6 weeks ago for a new homeowners quote on a house I wanted to buy.  I got the numbers and it was high and I knew it but I was loyal.   Loyalty is a 2 way street and with these shenanigans I'm certainly not seeing it from them..  Anyway back to the quote.  They calculated a rebuild cost on this house at that time I felt was at least 200k too high but figured lumber was high so whatever.  They offered to lower it to 80% but I'd lose the inflation protection.  I said fine leave it at the ;ridiculous number.  Fast forward to today when I called to give a start date and they claimed they had to requote the policy and didn't do anything but remove 1 extra fireplace they had listed incorrectly.  That ridiculous number had gone up over 100k in 6 weeks.  No explanation and again offered to remove the inflation protection which you lose if you go below 95%. I asked it be reviewed by a supervisor same result. You could probably rebuild the house almost twice for what they claim it will cost.   So I called my father and asked him what his experience in this area has been.  His house much nice build quality, larger and built to hurricane standards (mine is not in a different part of the country) was almost 300k less than my quote today.   His house would sell today for almost twice what I paid for mine.  This experience has led me to start shopping ALL my insurance needs. Do yourself a favor and do the same.  

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I agree with you totallly.  I have 26 years and my parents had USAA 1953.  I was upstate NYS where things are more laid back.  My 2 accidents up there:  backing into a creek accidentally and I was forced out of my lane into the cement divider.  The claims officer told me from the beginning that I could be kicked off my insurance.  He didn't believe me about the 2 accidents since police reports are not given out upstate.  He never listened to what I said.  He got all the info wrong.  Every correspondence indicated I could be kicked off my insurance but no one had ever told me if there are 5 or more accidents and you will be kicked off.  Well, he kicked me off and now I cannot get any insurance from any insurance company since they want to know why you left your old insurance co.  As soon as they saw the reason for my insurance throw away they all refused coverage.  But none of that was ever explained to me.  And my claims officer seemed to actually enjoy kicking me off no matter what I triedx to tell him.  He always cut our phone calls very short.  None of it.  I was under the assumption that I would be told what I needed to know in that  moment and in the future.  As a result of their  callous actions I can only get liability through my state (NJ).  This event has upset me so much that I am seriously considering all my accounts and oinsurance away from them to Navy Federal Credit Union.  I'm fighting not to but at 66  and our family being USAA members for 69 years total.  I only seem to get patience and a real regard for me when I call the banking Department.   Yes they have gone down in courtesy and many of their reps are in a rush and basically like robots.  For every letter there are 100 more people not writing you.  Consider me one of the 100.  

@AVMTC, I can definitely understand your concerns with your auto insurance experience. I am escalating your concerns so that we may have an opportunity to address them. Once reviewed you will be contacted directly with further assistance. Thank you. -Cynthia

The same thing happened to my Homeowners. I can understand inflation and all. However, inflation does not provide an adequate reason why my homeowners increased over 20%.

Remember those insurance refunds we got last year and also the account refunds that have been going out that the Consumer Financial Protection Bureau made USAA pay for violations. USAA is recouping all the money refunded by raising premiums.

I am filing a grievance of USAA with the CFPB.

Shop around.  USAA can easily be beaten on every product they offer.

I agree. USAA makes it impossible to spend more than 3k at a time and there are so few locations for regular banking services that you become a slave to their wishes. Their online account updates are slower by days than my other banks. RBFCU and SSFCU and MACU. The service is terrible. You know what you have to do to get a certified check from them? You don't. The auto voice lady when you call will hang up on you if it can't figure out what you're calling for or if you can do it online. By online they don't mean the app, they mean the web site although the customer service chatters and callers think you can do anything on the app.
My home owner's insurance is double what other insurances are quoting. There's no help with it at all. These guys have no empathy while speaking with you and I've been told many times that they are doing this or that for me " as a favor". That boils my blood. I have sold one of my homes and the one I live in will be sold in the next week or two. Then I am going to close all my accounts with them. I'll take my average balance 30k and home insurance and auto insurance and forget these corporate clowns that are preying on military and veterans making them think they are being treated special and hiking there products through the roof.

I have to agree with you—I too was shocked when I received my homeowners policy renewal. USAA claims a “total loss/rebuild” amount that is almost 3 times the amount I could ever sell my home for at this time. I called USAA as well, inquiring as to why there was such a dramatic rebuild cost jump from last year. I was told USAA is now using “new software” to compute rebuild estimates. They claim it is “more accurate” than what they used to use. Like you, I also inquired about ways to lower my premium. I was told basically the same as you were: I could lower the amount of coverage for a total loss/rebuild, but I would have to sign a waiver acknowledging I was choosing the lower amount against their advice, would loose the “inflation protection”, and be “putting myself at risk” if the unthinkable happened. I had the rep run the numbers for me, and the really sad part is that it would have lowered my premium by a minuscule amount. I too decided it was not worth the risk. <br>I think there is a much bigger issue, however, which is a problem with the entire industry, not just USAA. Almost everybody’s homeowners insurance costs have jumped the last few years, way beyond the yearly increases we have habitually seen. I am paying almost three times the amount of premiums that I paid 7 years ago. The entire property insurance industry has had to pay out major claims, for major losses, the past few years, and I do not think it will be getting better any time soon. We are seeing catastrophic “100 year” events more and more often: huge, uncontrollable wild fires, major hurricanes, droughts, then sometimes almost record setting rain, causing flooding, landslides, the unexpected appearance of sink holes, etc. My biggest gripe is that I live in an area which sees none of those disasters (other than low rainfall/semi-drought conditions), but all of us are having to pay more and more in premiums, due to all of the losses. A large part of this is the denial by a certain political party, and powerful industries, who still want to pretend they are ostriches regarding climate change. I’m also starting to question why us taxpayers should have to bail out and pay for rebuilding homes in coastal areas that are destined to be flooded again. We dropped the ball on climate change decades ago, and continue to do so. These catastrophic events are only going to get bigger, more frequent, and more costly, even if we attempt to start and try to move away from fossil fuels in earnest now. We are rapidly approaching the tipping point, if we have not already passed it. <br>This is our “new reality”—like COVID-19. I think you would be surprised and disappointed to find that if you shop around for lower premiums, with comparable coverage, you are most likely going to have sticker-shock wherever you go. Also, don’t forget, the insurance industry is regulated by each state, and the regulatory commissions are allowing these huge increases. We wouldn’t want to impose on any giant company’s profit margin, right?

My understanding is we are all separate pools by state and at one time customer type (officer, dependent etc but that may have changed now given some articles I've read.). Anyway if we go by state pool our rates should be calculated based on payouts in that state if I understood their explanation correctly some time back.  I've lived in the same house 16 years and for the most part my rates were fairly stable with a little creep.  They were higher than other companies but I always felt secure with USAA insurance which may have been naive but it was how I felt. It was a privilege I appreciated when they weren't the big conglomerate they've become.  I live in the Midwest where we don't see hurricanes, fires, earthquakes and the like.  Usually we see wind and hail at worst.  I'm sure they have had to pay out a lot in states out west and hurricane prone areas.  Supposedly that shouldn't affect me though if I understood and retained their explanation accurately.


The experience above just floored me.  I tried to get it fixed and basically no one could which was why I resorted to this forum.   As it stands I have quotes that were 50% of the premium they had quoted all open perils and as close to apples:apples comparison.  Car insurance was about ~35% reduction.  Their new software iis ridiculous and in my opinion trying to over insure people for no good reason for the member at least.  We would just be paying higher premiums for a level of insurance that would never pay out which is good for the company bottom line I suppose. 


I did receive a call from the office of the ceo sometching or other today with a promise my contact (name and number given) would call once they have researched the problem.  We will see how that goes.  I will post a follow up just to complete the saga.  

Even if the rates are determined by state, I still feel it is unfair when living in a state like Texas (I'm in San Antonio).  Yes, there are areas along the gulf coast which have major hurricanes, with the accompanying floods, wind and rain damage, and so on.  However, over 3/4ths of the state do not have any hurricane threats. Even with the largest hurricanes that have occurred, effects from them in San Antonio and surrounding areas (including everything north of here), are heavy, but not damaging, rains, and increased (but not damaging) winds. I assume rates are somewhat determined by zip codes and/or county of residence, but even so, it is quite obvious that at some level, all of us are pay more for the high risk of a minority of locations.  Even letters and news releases from USAA (and other insurance companies), and from state insurance boards, often quote the "unexpected, large payouts the industry has incurred due to extreme weather and other disasters", which are inevitably used to justify large premium increases across the board.  It's clear that this influences the rates everyone pays so that the industry can protect their bottom line.  I'd love to live on the beach too, but would never consider investing in ocean front real estate.  I suspect that in the next few decades, it will become so apparent to everyone how ocean level rising and extreme weather is making these areas more and more risky.  Eventually, those beautiful homes will begin to lose value, and become more and more difficult to sell, a far cry from the "investment" they have historically been viewed as.  Interestingly, the insurance industry has been factoring in climate change when determining risk and projecting potential payouts for decades.  Notably, even the military now considers climate change as a national security threat, one that requires and justifies inclusion in budgeting projections.  In other areas though, government reports and projections are still often altered so as not to include these scientifically proven factors, primarily so that a certain political party can continue to deny it, and protect certain other industries, to all of our peril.  Hopefully, the latest Administration will reverse this trend.

Hello @LSHLSH, I appreciate you reaching out and can see how a higher homeowners insurance premium is concerning. Your concerns are important to us and I'm providing your comments to the appropriate area for further review. We truly appreciate your membership and the opportunity to serve your insurance needs. -Paula 

@justme8675, thank you for reaching out with this info. I understand the frustration with your policy. I want to confirm I do see your account was forwarded for review. I'll send this follow up message to be included as well. We'll reach out as quickly as possible to discuss more info together. I appreciate the opportunity to assist further. - Lori

( Thank you for that suggestion ) mine was 380,000 for a year and now it's 400,000 next year it will probably 450,000. and that just rebuild cost.

Hello, @justme8675. I am saddened to read about your experience. I am going to forward your account with your concerns for review. While I can't provide a specific time, I appreciate your patience while waiting for a response from this area. -Nick

Nick, unfortunately I am closing on this property and don't have time to waste.  All other quotes figured the rebuild around what I did which is over 40% less than what USAA claims.  That is well past ridiculous.  I tried to get it fixed for several hours on the phone.  I'm not overinsuring my new house just to beef up salaries at a company that has changed so much I don't recognize it.  If someone calls me I'm willing to talk but if they work on 'when they get to it' time they won't like my answer.  You guys are hemorrhaging badly losing a lot your long time (15+ yrs) clientele for very valid reasons.  First and foremost the business core philosophy flipped almost 180*.  The rates used to be competitive and aren't any longer and you're trying to overinsure people by almost 90% which is legal theft in my book.  That's just raising my premium for no valid reason.  I'd love to talk to senior management.