Anyone here had any luck with negotiating covered value of a home with their insurance company? USAA has my home overvalued, and instead of shopping carriers I would really like to try and negotiate down to a agreeable value for the replacement cost of the home.

Am I just a fool for not knowing how, or is negotiation with a carrier a real option?

You can get a stated value policy which you pick what amount you want if you don't like the replacement value policy - but usually the insurance company will waive/exclude their increased dwelling endorsement (extended replacement cost)- state farm calls this "option id" but you have to be at their calculated value or at least 80% of to get that extra 20% coverage.

if you have a mortgage though you will need to make sure your coverage appeases them if you are going lower.

I've lowered mine below their calculated amount in the past and they have no problems adjusting to that number (wasn't really anything to negotiate you can get coverage for whatever you want but there are pros and cons and the insurer will likely require at least 80% of their replacement cost if you are going with a replacement cost policy). I do not currently have that in place though because the cost of materials and labor concern me so i just go with their calculated replacement cost.

I've got a second property where I have a stated value policy because I would not rebuild a similar property.

ETA - I've shopped USAA back in January and it was higher than all the major carriers. you really should be shopping insurance every year especially if you think its overvalued on replacement cost.

Two thoughts come to mind:

1. Shop like others mentioned. I have USAA too and it feels high but have not had luck getting better rates. I'm up 260% since I bought my house 5 years ago. Liere could not provide me a homeowners quote from any of their 7 providers this year. Amica would have saved me about $50 a year. Several other noteworthy companies wouldn't give me a quote. This is very location dependent so I hope you have more luck than I did.

2. Is your replacement cost really too high? The cost to rebuild your home if it burned to the ground is much higher than what it would sell for on the open market today. I believe most people are under insued for a catastrophic scenario. $200 to $250 PSF is fairly normal for a one off custom build.

The problem is you don't have a real agent with USAA so don't have a real advocate who can help you. I would recommend shopping your insurance with an independent agent. There are definitely limitations with any insurance company on how low or high you can insure you home. And that varies from one insurance company to the other. But most agents can manipulate that a degree.

All that being said USAA wont "negotiate" as they work off what their system will allow them to value the house at.

And I would estimate more than 50% of homeowners right now are underinsured given todays cost of materials and labor. So keep that in mind while you work on this.

Lastly, if your goal is to save money I think you would be surprised how little it would save even if you knocked off $50k from your dwelling value. Usually risk vs reward doesn't make sense. Just my $.02 though.

USAA will drop it to 80% if you ask. You'll have to stay on top of it in the future though.

Appreciate all of the responses. I already for the past several years have re-worked the quote to cover 80% of the total value estimated for the rebuild. I really just cant believe their underwriting team can have my total replacement value so far off. They've got that priced at $250 PSF currently, and I live in a neighborhood full of homes built for $150-175 sales price.

Just seems like a way for USAA to inflate their premium rates with no recourse.

It doesn't help that I deal with construction work and inflated estimates all day long. I know too much (which is almost never the case for everything else). LOL

PuryearAg98 said:

---

Appreciate all of the responses. I already for the past several years have re-worked the quote to cover 80% of the total value estimated for the rebuild. I really just cant believe their underwriting team can have my total replacement value so far off. They've got that priced at $250 PSF currently, and I live in a neighborhood full of homes built for $150-175 sales price.

Just seems like a way for USAA to inflate their premium rates with no recourse.

It doesn't help that I deal with construction work and inflated estimates all day long. I know too much (which is almost never the case for everything else). LOL

---

Sorry.

My experience 10+ years ago was that they were very affordable for new houses and went up quick within three years. Wouldn't negotiate, weren't friendly at all when discussing how much my premiums went up despite no adverse events in my part of Texas. It was clear they had a risk profile and if I wanted to keep them I was going to pay a premium. They were easily a grand more when I moved into my next house which was 40+ years old (compared to Allstate and other majors). Sounds like they haven't changed.

PuryearAg98 said:

---

Appreciate all of the responses. I already for the past several years have re-worked the quote to cover 80% of the total value estimated for the rebuild. I really just cant believe their underwriting team can have my total replacement value so far off. They've got that priced at $250 PSF currently, and I live in a neighborhood full of homes built for $150-175 sales price.

Just seems like a way for USAA to inflate their premium rates with no recourse.

It doesn't help that I deal with construction work and inflated estimates all day long. I know too much (which is almost never the case for everything else). LOL

---

Puryear, to clarify a market value or sales price would have nothing to do with the cost to rebuild your home. Works both ways where it may cost more to rebuild your home than what its worth, or for people who live in prime areas (lakefront, land, desirable areas) their market value can far exceed the rebuild cost.

But even if there are production builders who build at $150/ft in your neighborhood that doesn't mean you can. All that being said it is entirely possible that you are overinsured but you need an agent you can actually talk to instead of a call center to get anything outside the box done.

CS78 said:

---

USAA will drop it to 80% if you ask. You'll have to stay on top of it in the future though.

---

LOL I'm already at the 80% and USAA is way too high. On the Q1 to do list to shop house insurance.

BCOBQ98 said:

---

CS78 said:

---

USAA will drop it to 80% if you ask. You'll have to stay on top of it in the future though.

---

LOL I'm already at the 80% and USAA is way too high. On the Q1 to do list to shop house insurance.

---

How's this going? My neighbor and I are tag-teaming our search and buddy it is a nightmare out there. Germania isn't writing new policies, travelers & progressive are bailing on SE Texas, USAA & Farmers are crazy expensive. Homeowner's of America is all but bankrupt and on the Texas naughty list.

This was my experience a month ago. A broker said none of his 7 companies would give me a quote / write a policy so I stayed with USAA.