USAA Homeowners Insurance Requiring Inspection? (Houston: rental, discount, farm)

[ged_782]

Originally Posted by sapphire

I wonder how much of it is really due to the market? Our home's value has gone up ( depending on who you ask) anywhere from $15-25,000.

The insurance agent that handled my Homeowners insurance years ago cautioned me not to equate market value with insured value. He said insured value is based on replacement cost, and in the case of a dwelling, they use a per-square-foot factor based on prevailing local building cost for a dwelling of similar construction and amenities.

[smitty12]

Originally Posted by ged_782

The insurance agent that handled my Homeowners insurance years ago cautioned me not to equate market value with insured value. He said insured value is based on replacement cost, and in the case of a dwelling, they use a per-square-foot factor based on prevailing local building cost for a dwelling of similar construction and amenities.

Market usually value also includes the value of the land a house sits on. In a lot of cases for small suburban lots that isn't big, but for lots in denser urban areas it can be a big deal. No need to insure the land value, fire/wind/rain isn't going to destroy that.

BCAD does separate appraisals for structure and land value, so you can get an idea of how much your house market value is land vs structure value.

[sapphire]

Our land value hasn't changed since 2006.

[CLR210]

Allstate does the same type of inspection

[KathrynAragon]

Many insurance companies do this - it's not unusual, and actually it's the smart thing to do in many markets. I for one like doing business with "smart companies."

A few years ago we got insurance on a home (can't remember what company - I think it was Allstate). Anyway, they sent an inspector out. Lo and behold, they noticed that we didn't have a railing around our deck (we weren't finished with building it), and they would not insure the home till we built the railing. They wouldn't "take our word for it" either. This was no problem for us, because we were in the process of building it anyway and planned on putting a rail in place, so we didn't mind it. After thinking about it, it made perfect sense to us and we were appreciative of a company that was as thorough as that.

In Texas, there are two factors at play here. 1) Texas has extreme weather and therefore ANY structure is generally at a higher risk here than in some other states. 2) Home values, as well as home building costs, have gone up significantly over the past few years.

USAA is simply practicing due diligence. Yet another reason I like them so much.

My parents have a very old home insured with USAA. Though the actual value of the home is probably only about $85,000, the REBUILDING price would probably be about $200,000. That's because of the construction of this home which was built in 1890. USAA would replicate the construction, so that's what the house is "valued" at in their eyes.

[bianca324]

I have a similar question, I have USAA and I noticed some cracks by a window, the land we are on just plain sucks, and I know we will need foundation repair if we stay in this house. I want to call USAA and see if our policy covers any foundation work, etc, but am worried they will say oh, your having problems and then raise my insurance or make a change. Would just calling in to inquire warrant them sending someone out to inspect our house just by the mention of it?

[Hedgehog_Mom]

Originally Posted by bianca324

I have a similar question, I have USAA and I noticed some cracks by a window, the land we are on just plain sucks, and I know we will need foundation repair if we stay in this house. I want to call USAA and see if our policy covers any foundation work, etc, but am worried they will say oh, your having problems and then raise my insurance or make a change. Would just calling in to inquire warrant them sending someone out to inspect our house just by the mention of it?

They don't cover foundation work. They also don't cover another place to stay while the foundation work is being done. My sister called to ask before her foundation was done and USAA told her no, so I didn't call before my foundation was done. You could still check with them in case you have different coverage than she does.

I don't think all foundation problems mean you have to have repairs right away...if it's just one crack by a window and you house has been there a long time, it's probably not something urgent. In my case, the foundation was changing pretty fast and we had damage throughout most of the house. The front of the house was 5" lower than the back of the house.

[01Snake]

Originally Posted by bianca324

I have a similar question, I have USAA and I noticed some cracks by a window, the land we are on just plain sucks, and I know we will need foundation repair if we stay in this house. I want to call USAA and see if our policy covers any foundation work, etc, but am worried they will say oh, your having problems and then raise my insurance or make a change. Would just calling in to inquire warrant them sending someone out to inspect our house just by the mention of it?

You're seeing settlement cracks which are VERY common here. The ground will always expand and contract thus resulting in the hairline cracks at door and window openings.

As the OP stated, settlement (ground movement) is NOT covered by homeowners insurance.

[ged_782]

I think foundation coverage in Texas has been a renewal-only option for several years, if you continuously had the endorsement on your policy. If your policy was issued more recently, or if you didn't have the foundation endorsement on an older policy, you probably can't get the coverage any longer.

[JTC Mom]

The inspection is really not a big deal. I had USAA for more than 20 years and I agree that in many ways the service is good , but I had numerous difficult experiences with them related to homeowners insurance...ironically not related to filing a claim (which I have never done) but just related to getting coverage.

First House: built in 1950's, 2/1 starter home in an established, upscale neighborhood...USAA made me go through a 2 hour "interview" about the condition and location of the house, including making me physically measure the distance to the nearest fire hydrant (approx 400 ft...it was only a few houses away on my block.

Second and third houses - both were in upscale neighborhoods where the lot value was 50-75% of the total market value of the property. It was extremely difficult to get someone to listen to and understand this concept and why it was important for them to provide a quote related to the value of only the dwelling. I had lots of data but they just didn't get it. Took forever to find someone who would listen and in both cases they finally understood and agreed to insure the dwelling rebuild value, which was a fraction of the purchase price/market value.

Fourth home: required inspection because of the home's age. That's fine but they also said they may not be able to insure the house at all and would not be able to confirm that for sure until they inspected it. They would not inspect it until after we purchased it. So- we could have ended up buying a house that they subsequently would decline to insure. I told them that put me in a tough spot but they said there was nothing they could do. Ultimately went with another highly rated national company that offered 35% lower premiums. When I called to cancel, USAA kept me on the phone for two hours trying to talk me into staying before they finally Agreed to cancel my policies.

I know they work hard to cultivate a perception that differentiates them. For me, the differences have not been positive. But...back to OP question...not a big deal for them to inspect.