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Consumers Beware!
Disclaimer: The information contained within this site is based on my experience, including statements of opinion, and are shared with the general public from my perspective as the consumer. Some facts and opinions contained here may be disputed by USAA.
Who am I?
Who am I?
I'm an 11-year USAA member with experience using most of their product offerings. In my 11-years as a loyal member, I have carried and actively used USAA-branded:
Checking Accounts
Savings Accounts
Credit Cards
Auto Loans
Bill Payer Service
Brokerage Accounts
Homeowners Insurance
Auto Insurance
Valuable Personal Property Insurance
Car Buying Service
Extended Auto Warranties
Contractor Service
USAA Website Screenshot
Picture of the saturated wall prior to repairs in 2019
The 2019 Leak
The 2019 Leak
In May 2019, I discovered a water leak behind my washer and dryer. The wall was covered in wallpaper, and the leak was in an outside-facing wall in which the water was running outside of the house. This made the leak nearly impossible to detect from inside.
Upon discovering the leak, I called my insurer, USAA, to inquire about next steps. The USAA representative advised me to contact a local plumber to repair the leak, and that my homeowner's policy would not cover anything if the cost of repairs was below my $2000 deductible. I thought that sounded perfectly reasonable, so I contacted my local plumber.
The plumber was dispatched to repair the damages, and upon arrival he removed all saturated material, discovering that prior plumbing work was unsatisfactory. A copper T was installed and pinched off, then filled with solder instead of installing a cap. Over time, this section of pipe failed and created a slow leak.
The plumber proceeded to replace all of the affected copper tubing with new PEX, and removed all saturated material from the wall. After the repair, the plumber informed me that there was no evidence of mold damage in the area behind the material that had been removed, and recommended thoroughly drying the wall interior before conducting further repairs. I was billed $721.10 for the plumbing repairs -- far below my insurance deductible, so no claim was filed. There was no evidence of mold inside the wall after the area had thorougly dried.
The Contractor
The Contractor
Since the wall still needed to be repaired, I opted to use a service available through USAA called Contractor Connection. This service is provided through the USAA website for members to find licensed contractors, and the work performed by these contractors is guaranteed by USAA for 5-years.
After requesting service through the USAA website, I received an email from the Contractor Connection service confirming a contractor had been assigned to my job, which included a link to the USAA website to track job progress.
When the contractor arrived, he proceeded to inspect the affected area, recommending that I replace all of the flooring in the house. I thought this was peculiar, as the only affected flooring was a handful of vinyl planks directly beneath the leak area., so I asked why the entire floor had to be replaced.
The contractor informed me that he doubted he would be able to find matching flooring, so all of it would have to be replaced. Fortunately, I happened to have enough spare flooring to replace the affected area, so I felt this would be unnecessary. Once I provided this bit of information, the contractor became visibly upset, and advised me to find a handyman to do the repairs.
Since the contractor refused the job and two professionals had informed me that the damage was not significant, I opted not to replace the drywall. I'd practically forgotten about the whole ordeal until I started preparing to sell my house.
Screenshot of the Contractor Connection Web Portal from USAA
The 2021 Mold
The 2021 Mold
In August 2021, I was replacing all of the flooring in the house to prepare for a sale. When I pulled the washer and dryer out, I discovered what appeared to be a small 6" patch of mold on the existing drywall along the baseboard. This was immediately alarming to me, so I proceeded to remove the drywall up the wall until I reached areas that did not appear to be affected.
Once I had removed all drywall with evidence of mold, I checked my homeowner's policy to see if I had any type of mold coverage. To my delight, I had purchased a separate mold endorsement on my homeowners policy covering up to $50,000 of mold damage. I immediately logged on to my USAA account and filed a claim.
The Claim
The Claim
The next business day, I was contacted by a USAA representative to acknowledge my insurance claim, and I was informed that I would be contacted by a claims adjuster. I waited over 1-week for an adjuster to contact me, at which time he explained that he had been "busy" with other claims.
Upon reviewing my claim, the adjuster proceeded to search for exclusions in my policy that he could use to deny coverage, never once exercising any compassion or evidence of desire to help me in a time of need. It was clear that his objective was to find a reason to deny coverage, which he did.
The adjuster's first comment was that mold would not be covered unless it was the result of a "covered peril" such as a plumbing or roof leak. Since the mold appeared to be caused by the 2019 plumbing leak, I provided him with pictures and documentation from a licensed mold inspection service to confirm that the leak existed and that it had been repaired by a licensed plumber. Reluctantly, the adjuster finally agreed that the mold was the result of the 2019 plumbing leak.
His next approach to denial was to claim that USAA was never notified (this word is important, because it is the specific word used in the policy) of the original plumbing leak, which fell into a 1-year reporting exclusion in the policy. Because the mold was reported 2-years after the plumbing leak, it would not be covered. When I explained to him that USAA had dispatched a contractor to repair the damages in 2019, he replied that "USAA would not have any record of that fact because a claim was not filed" (as previously mentioned, the policy doesn't require a claim to be filed for coverage).
My proof of notification came from the Contractor Connection email sent by the USAA-branded service in May 2019, confirming that a contractor was dispatched to my home for repairs. My question is this: How can USAA claim ignorance after they had dispatched a contractor to my home for repairs? Are they in the business of randomly sending contractors to homes for repairs they don't know about?
The Dispute
The Dispute
My Position
My Position
I purchased a mold endorsement on my homeowner's insurance policy. This endorsement covers mold if it is the result of a "covered peril" (such as a plumbing leak). It doesn't matter how much time has passed since the covered peril occurred (the policy doesn't explicitly state a maximum time lapse between covered perils and mold claims), as long as the covered peril is established to be the direct cause of the mold.
Plumbing leaks are covered perils, whether a claim is filed or not (this is explicitly stated in the policy by using the term notify).
Notification occurs when the consumer provides information about damages to the insurer. The mode of delivery is irrelevant if the consumer can prove delivery occurred because mode of delivery is not explicitly specified in the policy.
Using a USAA-branded contractor service is a valid mode of delivery for notification because USAA has not informed the consumer of disassociation of services.
A confirmation of contractor assignment from a USAA-provided service is valid proof of notification because USAA does not explicitly specify anywhere in the services they provide to the contrary.
USAA has engaged in deceptive practices by diverting customers to a USAA-branded 3rd-party service for home repairs, and disassociating that service from eligibility for insurance claims. Consumers are not informed of the disassociation of the USAA-branded Contractor Connection service and USAA homeowners insurance policies.
USAA has denied valid insurance claims on the basis of failure to notify because consumers have used the USAA-branded Contractor Connection service in lieu of an actual insurance claim without knowledge that use of the service may void their policy.
USAA Position
USAA Position
Homeowners are responsible for knowing that claims may be invalid if notification is conducted through USAA-branded services.
USAA is not responsible for informing consumers that USAA-branded services are not valid forms of notification for the purpose of insurance claims.
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