USAA is seeking a 2.7% overall rate increase for its homeowners program in New Jersey (SERFF #USAA-134509422), with proposed effective dates in August for new business and October for renewals.

The insurer cites inflation-driven growth in non-catastrophe losses as the primary driver and is revising base rates across all entities. Loss development is based on paid losses, reflecting changes in case reserving practices. Catastrophe provisions are modeled using AIR, CoreLogic, KCC, and Verisk, with demand surge included and warm SSTs excluded.

The company notes distributional shifts in its book of business, including members opting for higher deductibles, increasing dwelling amounts due to rising rebuild costs, and a slight decrease in auto-home bundling, which USAA attributes to a competitive marketplace. “The inforce distribution is slowly seeing a smaller share of members benefitting from our Auto/Home Combination discount. 92.2% of members took advantage of this discount in March 2023, while this dropped to 90.5% in March 2025. We believe the more competitive insurance marketplace is the reason for this trend. While we would prefer to write all offered lines of business for all our members, we understand that this is not realistic in a competitive marketplace and are not concerned with the trend of this metric.”

The filing follows a 6.4% increase approved in May 2025.