USAA To Increase Rates For 3rd Time This Year

According to reports, Texas USAA home and condo insurance policyholders are facing the third rate increase in the past 12 months. Reportedly, the San Antonio based company has announced it plans to raise rates an average of 5.7 percent beginning on May 14, 2012. According to USAA spokesman Paul Berry, the rate increase is being implemented to offset rising non-catastrophic claim costs.

Sources say USAA rates will rise an average of $84 a year for homeowners and $25 a year for condo owners. Further, USAA's most recent increase boosted rates an average of 4.8 percent which equals on average of $70 a year for homeowners and $25 a year for condo owners. Sources say the rate increase prior to that averaged out to $55 a year for home owners and $20 a year for condo owners. Critics of the increase note that the hike represents a 15.2 percent jump.

USAA has stressed that the rate increase is only reflective of the cost of its member's claims. Further, USAA claims that despite the rate increase the rate remains competitive. Reportedly, USAA has about 313,000 members with a homeowner's policy and 9,700 customers with a condo policy in Texas, making it the fourth-largest insurer in the state.