USAA wants to hike rates 40%

[Smiling JOe]

[font=Verdana,Arial]USAA asks to raise homeowner, condo insurance rates by 40 percent[/font]​

[font=Verdana,Arial][font=Verdana,Arial]FORT LAUDERDALE, Fla. (AP) -- Aug. 15, 2006 -- USAA Casualty, which primarily insures military personnel and their families, has asked the state to increase its homeowner and condominium premiums by an average of 40 percent.[/font]



[font=Verdana,Arial]The company made the request Friday to the state Office of Insurance Regulation (OIR). USAA insures more than 280,000 people in Florida, according to the OIR.[/font]



[font=Verdana,Arial]USAA and two of Florida's five largest insurers -- State Farm Florida Insurance Co. and Nationwide Insurance Co. of Florida -- have previously asked to raise premiums because of reinsurance. Reinsurance is insurance coverage for insurance companies, to help pay claims after a catastrophe.[/font]



[font=Verdana,Arial]State regulators approved State Farm's rate hike last month. USAA received an average 8 percent rate increase earlier this year.[/font]



[font=Verdana,Arial]''Reinsurance plays into the equation, but (the new increase is) also looking at anticipated future losses and rising construction costs,'' said USAA spokeswoman Lynne McChristian.[/font]



[font=Verdana,Arial]Reinsurance prices skyrocketed and coverage availability shrank after Hurricane Katrina last year, and the market is unlikely to improve soon, said Bob Lotane, a spokesman for Insurance Commissioner Kevin McCarty.[/font]



[font=Verdana,Arial]''That being said, a couple of years of good weather will probably make things a lot brighter,'' Lotane said.[/font]



[font=Verdana,Arial]Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.[/font]

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[Beachlover2]

[font=Verdana,Arial]''That being said, a couple of years of good weather will probably make things a lot brighter,'' Lotane said.

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Let's hope this is correct!!!! (and happens)

 

[SHELLY]

Let's hope this is correct!!!! (and happens)

I'm glad "Spokesman" Bob chimed in with that gem....folks will feel much, much better about forking over the 40% increase.

As the saying goes, If "ifs" and "buts" were candy and nuts, wouldn't it be a Merry Christmas? Happy Holidays Bob!

 

[TooFarTampa]

We have USAA for our primary home insurance (as well as auto, life, credit cards, banking, etc). USAA is as fine a large company as you will find, IMO. They have been VERY conservative in raising rates so far -- we had almost no increase in April 2005 and about a 15 percent increase in April of 2006 -- but I knew they would have to boost us eventually given the costs of reinsurance and the higher construction costs. They are adamant that their clients be fully covered so the costs of rebuilding are an issue also. USAA has become in the past decade very selective about what homes it covers (even within its membership) and does not cover any second or investment homes in Florida from what I recall. I honestly believe that they had no choice but to ask for this rate boost. Much of the yearly profit goes back to their members anyway.

It's baaaaad out there folks.

 

[SHELLY]

It's baaaaad out there folks.

Come on...turn that frown upsidedown because Bob says, "a couple years of good weather will probably make things a bit brighter!"

 

[TooFarTampa]

Come on...turn that frown upsidedown because Bob says, "a couple years of good weather will probably make things a bit brighter!"

SHELLY your attitude is so inspiring.

 

[Bob]

What did I say??? You talkin to me? I too, have USAA. I was told that they would be happy to insure my second home in Walton provided Citizen's takes the wind coverage. Not good. Self Insurance is looking more the alternative every day.

 

[TooFarTampa]

What did I say??? You talkin to me? I too, have USAA. I was told that they would be happy to insure my second home in Walton provided Citizen's takes the wind coverage. Not good. Self Insurance is looking more the alternative every day.

Aha. I knew they would definitely not insure us as a rental property, so they must distinguish between the two. Except for the wind part.

Are you sure you're not the "Mr. Sunshine" Bob that SHELLY is referring to?

 

[Smiling JOe]

Maybe people should start building small (<1400sf) beach homes and self insure. Keep it simple (no granite) and not too costly to rebuild, and you may come out much better if it is destroyed.

Wait, I forgot my audience for a moment. What was I thinking?

 

[SHELLY]

Maybe people will start building small (<1400sf) beach homes and self insuring.

Yeah, maybe folks will build simple, cute clapboard houses, with screen doors, little wooden shutters, and a cozy wooden porch dusted with white sand and dotted with seashells--where you can kick back in the evening and hear the gentle whoosh of the waves and share a refreshing glass of lemonade with family and friends... :shock: ....hey, wait a minute....