USAA home and condo insurance policyholders in Texas are facing another rate increase, the third announced hike in the past 12 months.
The San Antonio-based insurer on Friday announced it plans to raise rates an average of 5.7 percent, starting May 14. The increase is being implemented to offset rising noncatastrophic claims costs, USAA spokesman Paul Berry said.
Rates will rise an average of $84 a year for homeowners and $24 a year for condo owners.
USAA's most recent increase, which took effect last month, boosted rates an average of 4.8 percent - an average of $70 a year for homeowners and $25 a year for condo owners. Before that, USAA increased rates, effective March 31, an average of 4 percent - an average of $55 annually for homeowners and $20 a year for condo owners.
The three rate increases combined represent a 15.2 percent jump, Berry said.
"As a membership association, USAA is committed to helping our members recover when they suffer a loss," Berry said. "So our property insurance rates must reflect the cost of our members' claims. Those claims are projected to increase 7 to 8 percent annually in Texas .?.?. This rate increase is in line with those claims-cost increases."
In the last couple of years, Berry said the projected cost of claims from fire, wind, water and freezing temperatures have continued to increase.
Despites the increase, Berry said, USAA's rates remain competitive.
USAA has about 313,000 members with a homeowners policy and 9,700 customers with a condo policy in Texas, making it the fourth-largest insurer in the state, he said.
The actual amount each individual member will pay will depend in part on their claims history, he said.
For Harris County policyholders, the latest increase will average 5.6 percent. Homeowners' rates will climb an average of $144 a year, while condo owners' rates will rise an average of less than $36 a year.
USAA has 32,000 customers with a homeowners policy and about 2,000 customers with a condo policy in Harris County.
"The data clearly shows that claims costs are increasing," Berry said. "We need to be there when our members file their claims. We need to make sure that we are able to help them get their lives back together when they have a claim."
pdanner@express-news.net
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