USAA review: Unsatisfactory property insurance settlement

28 August 2023, we experienced a broken water pipe and notified USAA insurance. Our claim was started and we could not have been happier with how the claim was settled. Roto-Rooter in Huntsville, AL did the water cleanup and remediation and USAA paid them in full with no issues.

Unfortunately, on 28 September 2023, we experienced another broken water pipe. Another claim was started and we used Roto-Rooter again for the water cleanup and remediation. From the start, communication was lacking on behalf of the USAA adjuster, with both us and Roto-Rooter.

The adjuster did state to us and Roto-Rooter about two-three weeks after the claim was started that Roto-Rooter's rates were too high, but did not provide specific information on the disputed rates to myself or Roto-Rooter. He also stated to the Roto-Rooter Director of Water Operations in our city, and I, separately, that if Roto-Rooter's rates were "a little closer" that USAA might be able to pay the full amount. When I brought to his attention that Roto-Rooter's rates were not disputed for the previous claim, which occurred exactly thirty days earlier, his response was that each claim is different.

I then contacted the adjuster's manager, who also said Roto-Rooter's rates outside the industry standards and the matter would have to be handled by dealing with the assigned adjuster.

Finally, after a week of back-and-forth between Roto-Rooter, the USAA adjuster and I, my wife and I requested a conference call between all parties on 2 November 2023. During the call, the adjuster continued to state Roto-Rooter's rates were too high, even after I pointed out that Roto-Rooter was paid in full by USAA for the first claim. The Roto-Rooter director of water operations in our city also pointed out to the USAA adjuster that Roto-Rooter's rates had not changed in two years. During the call the adjuster finally provided the breakdown of the disputed rates to myself and Roto-Rooter via email. The adjuster also refused to negotiate when Roto-Rooter offered to do so. His refusing to negotiate, when earlier the adjuster told Roto-Rooter and I separately he was willing to do so, is in my opinion, a sign of bad faith.

Since we were under contract to Roto-Rooter to pay any amount owed to them 30 days after they submitted their bill to USAA on 5 October 2023, we paid the balance on 3 November 2023 before it came due on Sunday, 5 November 2023.

I requested another adjuster examine our claim and one was assigned but USAA still refused to reimburse us the difference in what we paid to Roto-Rooter.

Bottom Line: USAA refused to pay the full amount charged by Roto-Rooter for water cleanup and remediation, stating their rates were too high even though they paid Roto-Rooter in full for a claim that was filed exactly 30 days before.

So much for being with them for over 36 years! I would not recommend USAA!