Is USAA really this bad or am I just unlucky?

Here’s my latest experience with these terrible people…

I sold my house but was allowed to stay in it for 30 more days. The buyer verbally agreed to extend it.

Two weeks after the sale, a burglary happens and steals my home recording studio stuff, worth about $10,000.

I report it to the police and USAA right away. 18 of the 28 items were replacements from a claim I made two years ago. USAA already has the receipts and approved them from that earlier claim. I sent them the list showing the already approved items, and they agreed to get the pricing from the earlier receipts.

Then nothing for 30 days. No calls, no messages, no emails.

Then I get a call from a fraud investigator. Great.

Ten days later, I finally get the initial claims packet… 39 days after the theft.

10 days after that, I get a letter saying they are denying my claim because I was “uncooperative.”

So, it took them 39 days to even send me the forms. I submitted my claim within the first week, on notepad paper, but they said I didn’t use their forms. Apparently, they couldn’t handle the fact that I sent the claim before they sent me their forms.

I sent a letter explaining their 39-day delay, the fact that they still hadn’t sent me the items that already had receipts (the fraud guy blamed it on an “IT issue” – really? 40 days to pull jpgs from an old claim?) and the six unreturned calls I made. Still, nothing.

112 days later, I get the denial letter. By then, I’ve only had four conversations with them.

“Hi, I’m Ashley, I’m your adjuster. Tell me what happened.”

“Hi, I’m Jason, you’re under investigation for fraud. Tell me what happened.”

“Hi, I’m Diana, your new adjuster. Tell me what happened.”

“Hi, I’m Diana’s boss. Tell me what happened.”

They denied my claim because I sold the house on 7/19 but didn’t switch to a renter’s policy until September. Since I was still living in the house, I thought I should keep the policy as is. When I switched in September, there was no mention of any problem. The sale of the house was discussed on Day 1 and during every call after that.

They didn’t reimburse me for the two months I paid for.

So, I paid $700 a month instead of $30. They said if I had paid the $30 rate, I would have been covered. But they took the higher premium and won’t honor the policy I paid for or refund my money.

112 days later, they tell me this.

I’ve been with them for 34 years and have only filed three claims over that time. Total settlements? Under $60k.

Bonus rant…

One of those claims was for a storm-damaged roof. They inspected it, arranged repairs, and paid the roofing company. Then they doubled my premium. When I pointed out that my roof was only 30 years old, not the 30-year-old roof they listed, and I wasn’t getting a “new roof” discount, I asked for credit for the two years they didn’t apply it.

“You never told us about the roof. No refund, no credit.”

“How’d you know to double the premium? You dishonest, unethical, lying company.”

The amount of money they are stealing from people through denied or reduced claims, lowballing, delaying settlements, and “mistakes” in calculations (like tax rates, number of items, etc.) is almost criminal.

My last claim took 11 checks over a 12-month nightmare to settle.

The fact that they claim to be doing this to “keep premiums down” makes it even worse.

I’ve been resisting filing a complaint with the AZ Department of Insurance & Financial Institutions because I didn’t think it would help the claim and the fine would just go to the state. But now, I’ve changed my mind. I’m filing tonight and getting a lawyer tomorrow.

I’m also canceling all my accounts with them – credit cards, car insurance, life insurance, everything. I’m done.

Rant over…

And I haven’t even gotten into the 2020 refi that took six months to sort out because of a “clerical error” involving a free and clear neighboring lot being listed as an easement.

These clowns have ruined what was once the gold standard in the financial and insurance industries. Now, they’re a sweatshop to work for and a fraud of a company to deal with. I’m embarrassed that I used to recommend them.

Their phone system alone is reason enough to leave.

“What’s your call about?”

“Homeowners claim.”

“Okay… is that correct?”

“Yes” (press 1 fifty times)

“Next time, just say ‘homeowners claim.’”

And then, I get sent to the voicemail I was trying to avoid. The cycle just repeats until I lose my mind.

And I’m not alone. This is happening to so many others.

Sorry, but your post sounds like fraud to me.

Two thefts in two years of the same stuff? That seems off.

A recording studio sounds like a business setup, which isn’t usually covered under homeowners insurance.

Also, you sold your house and didn’t tell your insurance company it wasn’t yours anymore? You should’ve notified them. You didn’t have any insurable interest in the house after the sale.

Again, $10k worth of recording equipment stolen twice in two years? Did you improve security or get an alarm system? What was your plan to protect it?

@Avery
If it screams fraud, let them investigate… which they did.

And guess what? They found that the theft happened exactly as I said.

And you’re making my point. USAA believed I had no insurance interest after the sale.

I didn’t have an agent, I dealt directly with them. I thought, since I was still living in the house, I should keep the policy. I paid $700 a month instead of reducing it to $30.

That’s the reason they denied the claim.

For me, after 34 years of membership, that feels like a loophole and a betrayal of their supposed “customer-first” approach.

You might be right that they legally can deny my claim, but I still think it’s wrong. And I think they shouldn’t be allowed to keep that $1400 for insuring nothing.

The company I’ve been loyal to for decades is just looking for any way to avoid their responsibility.

You may see it differently, but I don’t think that’s how you treat loyal customers.

Thanks for sharing your story. It’s really frustrating to hear how they’ve treated you.

Rant averted…

By the time I got to the end, it was way too late for me to avoid the rant!