At about 1M policy holders that’s about $14 per policy. Not bad for a couple months work.

Most of the issues here stem from problem the sales as opposed to the claims process. Customers are, structurally, under-educated on what their policies actually cover and this produces unrealistic expectations about what they should file claims for.

Emphatically, this is not their fault but an industry-wide issue that has complex causes like brokers/salespeople getting increasingly squeezed to produce as well as the intense time pressure under which many folks purchase their homeowners insurance policy (folks are often sprinting to check this box to secure a mortgage). Sadly, there is also a strong correlation between consumers experiencing worse socioeconomic conditions and failed claims. This, to me, generally suggests that some behavioral insights should be brought into the sale and management of the financial product to better protect these buyers' interests.

It is important to highlight and understand this point of failure because: 1) claims (even failed ones) are one of the easiest ways to get your rates jacked up as this is a category that insurers are allowed to price on. 2) The common response to articles like this is that "of course insurance should cover more things" but this counterintuitively risks creating more dead-weight loss for consumers broadly in the form of coverage for things that we simply shouldn't be insuring (and instead should be maintaining and replacing).

All that is to say: ask your broker / agent what's in your contract. Do it BEFORE you have a claim to file as in some cases speaking to them (especially captive agents) may in and of itself trigger a claim.

AI-native brokerages (like what we've built) are part of the solution to this problem since well-constrained LLMs can help buyers and users get a much better sense of what their contracts actually cover, and whether or not they should submit a claim.

In one case dealing with our house, I discovered a calculation error in my favor and submitted the corrected documentation to them. After examining that data they agreed and modified the claim to correct that error.

With the exception of the adjuster visits, all contacts with USAA were managed over the telephone or thru texts and emails. They are efficient and easy to reach.

I can see where USAA's statements that the numbers are off. From the article:

>In a statement, USAA said the association’s data is misleading because it lacks context about why a claim may be closed without payment. Those factors could include claims that were later reopened, claims covered under separate policies or multiple claims from a single event that are consolidated into one case.

USAA had a great run of building trust and is speedrunning torching it.

“When all factors are included, less than 6% of USAA homeowner claims were denied without payment,” USAA said. “Most claims closed without payment involve losses below a member’s deductible or claims the homeowner chooses not to pursue.”

The biggest scam I've seen in real estate is mandatory windstorm insurance (TWIA & friends). I've been through multiple hurricanes where claims were involved and it would have been significantly better if the premiums were simply left in a savings account to compound over time.

Any kind of disaster that would require complete reconstruction of your home would likely violate whatever "act of god" clause happens to exist in literally every policy. Not having insurance is not equivalent to being at risk for the total property value (in any practical sense). $10k goes a long way when you are repairing wood and plastic that is mostly still standing. If you are fortunate enough to have a few years between catastrophes (as typically you do), then it's generally never a problem.

A simple rule for today's economy: If you cannot afford the property on cash basis, you should probably try to find a cheaper property. The risk of mandatory insurance premiums creeping up into the danger zone is too high. Even if it starts out OK, you may find that your escrow account requirements start to outpace your principal and interest obligations over the years.

Car insurance premiums grew 3.8% to 5.4% annually over 30 years, compared to 2.4% average inflation rate. Why?

Complex technology and labor required to fix cars.

Costly claims for rising medical bills, increased litigation, severe climate weather damage, and distracted driving accidents from smartphones

The last 3 years, profit is way up from excess cash after post-pandemic rate increases. Before that, profit wasn't great.

United Services Automobile Association - Officers and senior NCOs

USAA Casualty Insurance Company - Enlisted (E-1 to E-7) and children of the above

USAA General Indemnity Company - National Guard, Reserve

Garrison Property and Casualty - Extended family of the above

I can't get past the article's paywall to view the 51% rate, but I expect your claim process experience will vary based on which company is insuring you.

I have noticed that the quality of service has declined over the past 5 years or so (which lines up with Peacock's being CEO). It sometimes takes 2 or 3 calls to answer a question with my policies these days, as they now have high turnover in the call center.

My car insurance is above $4k/yr for two family cars, rising annually despite no accidents.

Meanwhile, "normal" countries are solving these problems in reasonable ways. Back home in Central Europe, you get state mandated car insurance at pre-negotiated rates that are based on the car, not the driver.

US insurance is a scam.

I still have their awful jingle stuck in my head played over hours of holding on the phone, I'll probably turn into a Manchurian candidate if I ever hear it again.

After realizing I've really stopped buying insurance except a core of home, car and liability with high deductables. If you're a responsible person who is careful insurance really isn't worth the cost.