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?
