Regular Contributor

Just got my new homeowners policy, a whopping 14% increase on top of the 33% increase last year.  I have been a member for over 27 years and this may be my last.  I simply cannot continue to pay these increases. If you look back at the last 15 years in Florida, you will notice that there have been no significant losses since 2004, yet the increases continue.  Yes I know that USAA files with the state, but the Florida State Insurance Commissioner is a rubber stamp for the insurers as long as they keep the increases below 34%.  


From my 2013 conversation with USAA concerning my rate increase, I understand that USAA has started to write new policies on houses to make USAA ‘stronger’.  While new members are always welcome, I fail to see how adding new homes will help.  Logic would dictate that more homes means more risk.  More risk is the primary reason that USAA increases premiums.     


Of course if USAA were a for profit company, I would understand these increases.  Profit driven companies have a fiduciary duty to their shareholders to increase profit.  USAA is not profit driven.  They only have to show that incomes and expenses match.  What these expenses are of course are up to the organization.  It would be interesting to see how our premium increases offset the increases by spending more on advertising, salaries, operating costs, etc. and how these benefit the members. 


Final point, there really was a time when USAA stood for their members, I no longer believe that to be true.  My reasoning for this is simple – USAA follows the same practices as for profit insurance companies.  They wrap themselves in Mom, apple pie and the American flag claiming they are there for military members.  Their actions over the last few years in Florida put that image in doubt.  For this long time member, this year will be the first that I have I to seriously consider leaving USAA because of the cost.  I simply cannot afford the Mom, apple pie story anymore. 


For those that may wonder, no I have not had any claims. 

May be time to take a closer look at the association's CEO and Board of Directors.

I totally agree as USAA has increased my premium 33% for the past several years and I have "NEVER" had a claim auto or homeowner since I have been bith them for many years. I will have another company for sure next year.

It is, but as on active duty, Generals and Sergeants Major may never be questioned or opposed. What a relief it would beif there was a way to remove the current cabal and replace them with the long-term members, perhaps even one or two that were not "Academy Graduates". "Ring-Knocking" is not a lost art here.

The CEO is a retired ARmy General, and his replacement after retirement will be a former Air Force Pilot. There may not be anything going on with you or in your immediate area. Something must be going on in FL industry wide. If you do switch, be sure the other guys quote you for the same policy. I remember when I switched HO policies the new company did not quote exactly what I asked for and I saved just a little for bad coverage peril wise. I hope you find affordable HO insurance, because it can be hard. Good Luck!

There is an issue in Florida as far as HO insurance. Has been for over 10 years. My complaint is that USAA has lost touch with the member. They act exactly like All State, State Farm, Liberty, etc. with their 'justification' for raising rates. Every year I review their 'justification', and except for the name of the company being USAA vs another, the wording is almost exactly the same as the other companies. There has not been any major losses in Florida in over 10 years. Even during the housing downturn, which hit Florida very hard, our rates increased. Not sure how that is possible since many houses saw 30-50% decreases in value.

To be clear, I have a modest house, replacement cost of around $200K, my new premium will be over $4,700 for 2015. I do not live on a beach, I do not have water front property. I do live along the east coast, so I understand that my rates will be higher than member in Orlando. USAA claims to make adjustments to rates based on risk that they must cover. They even quit writing HO policies in Florida for many years to mitigate the risk of new policies. However, over the past year or so they have started a ma$$ive advertising campaign and started to write in Florida again, even along the coast. To celebrate this new event, USAA raised every Florida policy holders HO rates by 33%. The primary reason given is to cover potential costs due to losses! This is the part where lost touch with members comes in to play – you stop writing because it is too risky, rates continue to climb, you start writing new policies, rates continue to climb AND you have added risk.

As I have posted before, I will be looking for new HO insurance. I cannot pay to be a member anymore.

USAA has increased the value of my home (for premium coverage) 35% over current property value. Their reason is for "REPLACEMENT VALUE" which is totally misleading as seldom does a home burn to the ground and the land is not "hurt". This must stop as property values are very low and their rational as to replacement cost is extreemly mis-leading and used for them to get more money from clients.....

I hear you and second the motion.  I've been with USAA for auto insurance since I graduated from college (35 years) and have had a homeowner's policy in Florida now for 15 years.  During those 15 years, my homeowner's premiums have quadrupled!  I've never made a claim (even during the hurricanes of 2004) and am wondering why prices are rising so high when we haven't even had a mjor storm since 2004, let alone a hurricane.  Like you, I don't live in a mansion on the beach, or even within a couple miles of the beach,  At some point (I'm close but not there, yet), I'm going to have to switch because I just don't think an insurance policy monthly premium should be almost half of my monthly mortgage cost.  FYI, here's some info I found on the web:  "The company registered a $3.4 billion profit last year, up $684 million — or 25 percent — from $2.7 billion in 2013. Revenue topped $24 billion last year, up almost $3.1 billion from $21 billion in 2013. That was a nearly 15 percent increase."   You're welcome, USAA.

Dear FloridaVet,

Your membership is extremely important to us! USAA considers many factors when determining premiums; claims activity is just one factor. I have asked a specialist to look into your concerns further and then contact you to review both your homeowners and auto policies. Please keep us posted here in the community. Thank you!