Effective immediately, military personnel insurer USAA said it will “significantly restrict” the number of new homeowner, fire, and renter insurance policies it sells in Florida.
USAA will only sell new homeowner or renter insurance policies for the primary residences of active military members required to move to the state pursuant to military orders.
The insurer said it will continue to underwrite a member’s primary residence in Florida, as long as it is currently insured by USAA and will underwrite one existing homeowner, fire, or renter policy in Florida for members whose primary residence outside of Florida is insured by USAA.
“We regret that we have been forced into this position, but recent legislative and regulatory actions in Florida leave no other option,” said USAA Chairman and CEO Bob Davis. “We find ourselves in an untenable insurance market, where we are not allowed to charge the appropriate amount for the risk the association bears on behalf of our Florida members. If we do not take immediate action to limit our exposure to loss, we risk jeopardizing the viability of our entire association, and the financial security of all those we serve – the men and women of the U.S. military and their families.”
According to USAA, over the past 10 years, the company has paid approximately $220 million more in Florida homeowner insurance losses and expenses than it has collected in premiums. Florida property policyholders account for 49 percent of USAA’s exposure to natural disaster risk, yet make up only 9 percent of policyholders, who pay 12 percent of USAA’s property insurance premiums.
“If the Florida insurance market becomes more rational in the future, we will most certainly reconsider our position,” Davis said.
USAA will continue to provide auto insurance, life insurance, banking, and investment products to its members in Florida, as long as the state permits it to do so.
Source: USAA
Topics Florida Carriers Homeowners
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FAQs
If you live in the Sunshine State, USAA offers a combination of coverage and service fit for Florida. Whether you're perusing the Panhandle or cruising the Keys, USAA can be there for you.
Did USAA leave Florida? ›
USAA will continue to provide auto insurance, life insurance, banking, and investment products to its members in Florida, as long as the state permits it to do so.
Why is USAA limited to military? ›
Why does USAA only work with veterans and their families? USAA (United Services Automobile Association) was founded in 1922 as an inter-insurance association by a group of Army officers who could not get automobile insurance from “tradional” insurance companies because they were thought to be too high a risk.
Why am I not eligible for USAA insurance? ›
Anyone besides a current or former spouse and children will not be eligible for USAA auto insurance. If you are not eligible for USAA, you can still shop around and find comparable coverage by looking into the best car insurance companies.
Does USAA have a branch in Florida? ›
Browse USAA office locations in Florida
Jacksonville, FL. Largo, FL. Port Saint Lucie, FL. Riverview, FL.
Can you open a business account through USAA? ›
USAA offers excellent deals for service members, but there's no business account, unfortunately. If you're in the military, and you're trying to find the best account for your business, there are alternatives. Here are some of the other military banking options to consider for your business.
Why is insurance pulling out of Florida? ›
In simple terms, insurance companies are leaving Florida because it's best for their bottom line. When an insurance company is paying out more in claims than it's taking in, they run the risk of not being able to pay out any claims at all.
What is causing the insurance crisis in Florida? ›
Three primary factors are driving the insurance challenge. First, natural disasters are becoming more common and costly. Second, the price of reinsurance is skyrocketing. And finally, Florida's litigation-friendly environment compounds the issue by making it easy for customers to sue their insurers.
Are people leaving Florida because of insurance? ›
"Many people are leaving the state. Our Michigan neighbors had a second home in Florida, on Pine Island, and their insurance went up to over $18,000 for one year this year after [Hurricane] Ian. They sold the house and left Florida."
Why does USAA have an F rating? ›
A check of the BBB website provides a few answers. The failing grade is due to two stated reasons. The first is that the company agreed this year to a $15 million settlement with the U.S. Consumer Financial Protection Bureau over how USAA's banking arm mishandled thousands of personal checking accounts.
Cons
- Not all homeowners can qualify for USAA.
- Customer service hours are limited.
- May not offer as many discounts as some carriers.
They accused USAA of violating the federal Servicemembers Civil Relief Act, Military Lending Act and Truth in Lending Act by failing to cap interest rates at 6% during active duty and permanently forgive interest above 6%.
Can I join USAA if my deceased father was a veteran? ›
Children of deceased military members may or may not be eligible. If the military-serving parents held a USAA policy before they passed away, their children would be eligible for coverage. If they did not have a USAA policy, their children cannot be insured through USAA, despite their parents' military status.
Can you lose USAA eligibility? ›
Once eligibility is established, it is generally ongoing. Eligibility may change based on factors such as marital status, rank, or military status.
Do all veterans qualify for USAA? ›
This is a fairly common question, as USAA is well-known for its customer service and often lower-than-average insurance rates. The downside is that USAA requires its members to be active, retired, or honorably separated officers of the U.S. military.
Is USAA available in all states? ›
USAA offers auto insurance coverage in all 50 states. USAA has been in operation since 1922 and is currently headquartered in San Antonio. USAA has an A+ from the Better Business Bureau. AM Best gave USAA an A++ rating for its financial strength and ability to pay out claims.
Why doesn't USAA have physical locations? ›
Maintaining buildings and staff is expensive when you can accomplish the same results without those constant costs. As a result, USAA has decided to close all but four financial centers.
Is USAA only open to military? ›
Non-Military Eligibility for USAA Insurance
Even un-remarried ex-spouses are eligible for coverage, as are widows and widowers. Many people don't realize that children and stepchildren of current and former military members are also eligible. Even adult children can apply for coverage.
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