Consumer complaint received 2020-10-31
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: OK
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Other transaction problem

Complaint:
We had an accident occur at our home that destroyed it and our homeowners insurance is denying our claim. We have appealed it and also filed complaints with the oklahoma insurance commissioner, but are still being denied. We have paid our premiums faithfully and should receive the benefits that are included in the policy. I have included the verbiage from the complaints/appeals below. Please feel free to reach out with any questions at XXXX or XXXX. 

I am writing to appeal the bad faith denial on our homeowners claim XXXX. I have read the denial letter stating that this is considered a losses you dont cover and that in their opinion it is due to earth movement/shifting, etc. I strongly disagree! 
Help me understand how this would NOT be eligible for coverage under the collapse provision. USAAs wording states that The policy defines a collapse as a sudden falling or caving in or sudden braking apart of deformation such that the building or part of a building is in imminent peril of falling or caving in and is not fit for its intended use That is EXACTLY what has happened with our home. Furthermore, the collapse provision specifically says one of the covered clauses under the collapse provision is decay that is hidden from view, meaning damage that is unknown prior to collapse or that does not result from a failure to reasonable maintain the property. Again, this is EXACTLY what has happened with our property. This was a SUDDEN act. Our homes foundation, walls, floors, ceilings, windows, doors, etc. were ALL structurally sound until this occurred. 
The property now is non-repairable as is, uninhabitable and will likely be condemned. I dont see how this contract wording will be upheld if this goes to court as our circumstances clearly fall under this collapse provision. 
Denying our claim after being provided specific wording and reasons in which it SHOULD be covered is despicable and what gives insurance companies such a terrible reputation to begin with. I am deeply saddened that USAA, of all companies, is practicing such similar antics. I expected they would honor their contract for their customers. We have been loyal and longstanding customers for 15 years now. To be treated in such a way after paying our premiums and now being left with this unrepairable home that can no longer be lived in is complete financial ruin. And this was of NO FAULT of our own. We arrived at our home one day and it was in imminent peril of falling or caving in due to decay that was hidden from view and completely unknown to us as homeowners. According to our contracts wording, this should be overturned and covered immediately. 
We appreciate you taking the time to re-review our claim. This is clearly something that should be covered by the insurance we pay for. This is abuse and it is disgusting to have to go to such great lengths to simply be provided the coverage that we deserve and have paid for. Please call me directly at XXXX with any questions. I can also be reached at XXXX.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation