USAA hit with lawsuit over bad faith claims handling
USAA Casualty Insurance Company faces a federal lawsuit accusing the Texas insurer of underpaying a water damage claim at a Los Angeles condominium. Robert Spector, Kandis Spector, and Samantha Spector filed the complaint in the United States District Court for the Central District of California after a leak damaged their property on May 30, 2025.
The insureds say USAA offered $38,317 to repair the residence but their contractor estimated actual costs at $568,362. USAA later revised its assessment to $56,516 and withdrew temporary housing support with 48 hours’ notice. The plaintiffs claim the company uses low initial estimates to pressure customers into inadequate settlements.
The lawsuit alleges that USAA links employee compensation to claim payouts and frequently reassigns adjusters to delay resolution. The complaint seeks policy benefits, damages, legal fees and punitive awards for breach of contract and elder abuse under California law.
