• Report: #256988

Complaint Review: USAA Homeowners Insurance

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  • Submitted: Tue, June 26, 2007
  • Updated: Sun, September 23, 2012

  • Reported By:Marietta Georgia
USAA Homeowners Insurance
9800 Fredricksburg Rd San Antonio,, Texas U.S.A.

USAA Homeowners Insurance ripoff - won't honor word or policy -deceptive practices San Antonio, Texas

*Consumer Suggestion: Estimates vs Claims Assistance

*Consumer Comment: They were ripped off

*Consumer Suggestion: Are you serious?

*UPDATE Employee: You don't understand your insurance policy.

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After a recent hailstorm we contacted USAA since we have homeowners insurance with them. USAA sent out an adjustor who gave us an estimate and since the roof was 10 years old, it was also depreciated 1000. (Other people on the street who have USAA were sent an adjustor along with a roofer who was giving high estimates.) We only had an adjustor.

The adjustor gave us an estimate and told us that we would receive our depreciation after we had the work done. We received a check minus our deductible and minus the depreciation and again were told that we would recieve our depreciation check when we had the work done.

Meanwhile, we had 4 estimates from roofing companies. The first three estimates were pretty close to what USAA gave us. By the time the 4th estimate was made, competition was at a peak and we found a reputable roofing company who would do it for what USAA sent us plus the anticipated and promised 1000 depreciation. We had the roof replaced and informed USAA and told the adjustor how much we paid. He told us to fax him the invoice and we would get our 1000. We did and he called back and said that "we don't deserve the 1000 since we had it done for cheaper than they estimated." They refuse to honor what they said and won't pay us what they promised and what we feel they owe us. We made no money on the claim.

The roofing company absorbed the deductible in the cost of the roof and USAA got mad and probably is embarassed that we shopped around and that their estimator did not. So, in essence, we are being punished for being honest and for taking advantage of the price competition that was going on in our neighborhood. We had to pay the roofer 1000 out of our own pocket since USAA refused to give us our "recoverable depreciation". Take heed: apprise your roofer of this practice that USAA uses and he will know how to deal with USAA. Other people on our street did not have any out of pocket expenses --even USAA insured people---- USAA is not about to let anyone get a roof without being penalized some amount of money. And don't count on them sending you your "recoverable depreciation". They will find a way to cheat you out of it.

Mary
Marietta, Georgia
U.S.A.

This report was posted on Ripoff Report on 06/26/2007 12:53 PM and is a permanent record located here: http://www.ripoffreport.com/r/USAA-Homeowners-Insurance/San-Antonio-Texas/USAA-Homeowners-Insurance-ripoff-wont-honor-word-or-policy-deceptive-practices-San-Ant-256988. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Consumer Suggestion

Estimates vs Claims Assistance

AUTHOR: VP - Largest GC in Texas - (United States of America)

Very important fact here is that you began at the wrong end of the straw. You should have found a reputable General Contractor and chose them to do the work and talk to the Insurance company as your advocate. USAA is near the top of the list as the best insurance companies to have when wind or hail damage occurs on your house.  However, almost typically insurance companies Deny, Delay, Depreciate and intentionally remove / reduce items to save billions. DO NOT START WITH COMPETITIVE ESTIMATES. Find a reputable General Contractor that will represent you well, has high level prestige in the community, has been in the area for at least 10 years (4 years is the average life of a roofing company), is insured at least 3x the amount of your entire homes value, BBB a+, and preferably doesn't charge you a DIME until the roof is completed.

Unless USAA had payed you the entire scope, fair market value and covered all damages then you needed representation to get the funds they left out. Literally 93% of all insurance estimates are at least 20% below the actual damages and 60% are more than 50% less that actual damages. 35% of denied claims / partial replacement actually warrant , without any speculation, full replacement and repair. 

If I was asking for estimates I would have probably gone with the HIGHEST one. Then filed for depreciation.  If the damages were actually $10,000 and you got someone to do it for $6000 and insurance paid you $7000 you not only owe the insurance company $1,000 but you devalued your home. If you were to have identical damage 5 years from now you "suggestively" have capped out your claim to that level. They will look at the difference in Cost of Materials and Labor costs and there you go, that's your next check payment.  Not to mention the "cheaper" install could be viewed by your insurance as a mechanical installation, neglect or other issues and your roof is not covered at all because the install wasn't done correctly!
 
 There was no rippoff here from the insurance company when it comes to what you did. They were following to protect their assets (capital and your business), but what you got was probably a bad roof and pissed off. 

Hire a General Contractor, let them sort it out.. it's turnkey and will provide your home with the best repairs and warranty.  
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#2 Consumer Comment

They were ripped off

AUTHOR: Tcm - (U.S.A.)

People seems to be mis understanding what this consumer is saying. They shopped as every good consumer should for a price in line with what the insurance company said was the cost. They said they were NOT trying to put money in their pocket. They say they did not end up making money. They didn't say they tried to make money they were pointing out that they were only trying to abide by the rules not profit. Insurance companies saying they will "make you whole" less the deductible after the repairs are completed is normal practice. The 1000 depreciation check should have been sent to them once the repairs where done. Some insurance companies will also want to inspect the repairs. This office should be reported to the insurance commision along will all documentation from the homeowners from the insurance company and the repair documents from the roofer. That is what the insurance commision is for. If results are not forthcoming proceed with small claims court.
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#3 Consumer Suggestion

Are you serious?

AUTHOR: W. - (U.S.A.)

Going by your own words in your report : "We made no money on the claim." Insurance is NOT there to make you money, it is there to MAKE YOU WHOLE and put you in the same position you were before the hailstorm: a roof w/ a depreciated value, or the value of the depreciated roof to offset the cost of the new roof. They aren't going to replace your 10 year old roof w/ a brand new one, making you money because that's not how insurance works, period. The fact that you KNOWINGLY went and tried to get a cheaper estimate to MAKE MONEY is hilarious and ironic, since in the end you are now stuck with a sub-standard roof. In many industries, including construction, you get what you paid for and if this guy was cheaper than the previoud 3, there is a good reason for it.

You tried to RIPOFF the insurance company and profit from their wanting to use a high-quality roofer, and here you are claiming they ripped you off? I'm sure there is more to this story, but from what YOU provided the insurance company followed the law and their own policy and you unnecessarily went through a bunch of work and hassle getting a cheaper roof in order to make money. You can respond saying thats not true, etc. etc. but the simple fact that everyone sees when they read this is that, yes, you did try to profit and in the end it backfired and you are pissed you didn't make money.

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#4 UPDATE Employee

You don't understand your insurance policy.

AUTHOR: cs80918 - (United States of America)

Read your insurance policy it says you are responisble for the dedutible and if a contractor absords your deductible he is committing insurance fraud.

I doubt that you got a quality roof on your house for such a low price and worse you take a chance when dealing with a cheap roofing company like that.  If he is willing to committ insurance fraud, because he feels he can get away with it is he might willing to take short cuts on your roof.

 Lady you just admitted to committing insurance fraud, you are the scam artist.

You need to look up the definition of a deductible.  You made a big mistake, you shopped around for a cheap roofer and go what you paid for.  When you file a claim it is suppose to COST you money.  When you go to your doctor you have to pay a co-pay or deductible.  Unless you are on welfare you pay money when you go to the doctor.

The roofing business is not regulated like Doctors, so fraud of this sort is more common in roofing.

Do you go to your doctor and say can you ABSORB my deductible?

 

 

 

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