Paul Sanchez
J.D. Power is a consumer insights and analytics company that provides valuable data and ratings for a variety of industries, including insurance. Its homeowners insurance ratings are particularly important for consumers and businesses alike. For consumers, J.D. Power's ratings offer a comprehensive overview of the best and worst home insurance companies, helping them make informed decisions about their insurance choices. The ratings evaluate key factors such as customer satisfaction, price, coverage options, and claims handling. For insurance companies, the ratings serve as a benchmark for performance, highlighting areas for improvement and providing insights into emerging trends and customer expectations. J.D. Power's studies also delve into the impact of rate increases, bundling practices, and customer retention, offering valuable intelligence to insurers aiming to enhance their products and services. With its extensive data and analysis, J.D. Power's homeowners insurance ratings play a crucial role in shaping the insurance landscape, influencing consumer choices, and driving industry improvements.
| Characteristics | Values |
|---|---|
| Date | 2025 |
| Sample size | 5,178 homeowner insurance customers |
| Survey period | January 2024–December 2024 |
| Dimensions of satisfaction measured | 8 |
| Dimensions | Fairness of the claim settlement; level of trust; time it took to settle the claim; people; digital channels; communicated with me how and when I want; ease of starting the claim process; and ease of resolving the claim |
| Common failure points in communication | Needing to leave voicemails; needing to call with questions repeatedly; and not receiving timely follow-up emails and text messages |
| Top-rated providers | Chubb and AIG |
| Satisfaction among digital users | 903 when claim settled in under three weeks; 727 after 31 days |
| Average claims cycle time | 23.9 days |
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What You'll Learn
Customer satisfaction
The J.D. Power U.S. Home Insurance Study assesses overall customer satisfaction with homeowners and renters insurance. The study examines seven core dimensions: trust, price for coverage, people, digital channels, problem resolution, product/coverage offering, and ease of doing business. The 2024 study found that Chubb ranked highest in the homeowners insurance segment, followed by AIG and Amica.
J.D. Power's 2025 U.S. Property Claims Satisfaction Study highlights the importance of effective communication in maintaining customer satisfaction. The study revealed that overall satisfaction scores are significantly higher when customers find it very easy to communicate with their insurer compared to those who face difficulties. Common communication pain points include leaving voicemails, repeatedly calling, and delayed responses.
Additionally, the study found that digital tools enhance customer satisfaction, particularly among younger generations. Customers who use digital channels, such as apps, to file claims and receive updates tend to have higher satisfaction levels. This trend is prominent in Gen Z and Millennial cohorts, with 87% of respondents preferring digital claims management.
J.D. Power's studies also shed light on the impact of rate increases on customer satisfaction. Insurer-initiated premium increases can negatively affect customer satisfaction, with customers experiencing such increases reporting lower satisfaction scores. The likelihood of customers shopping for new policies increases with rate hikes, especially when the increases are not adequately communicated or explained.
Overall, J.D. Power's homeowners insurance ratings are essential as they provide customers with valuable information about the quality of service offered by different insurance companies. The ratings allow customers to make informed decisions, ensuring they choose a company that meets their unique needs and provides a satisfactory experience.
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Catastrophic events
The J.D. Power 2025 U.S. Property Claims Satisfaction Study found that the high number of catastrophic events, a history of widespread premium increases, and slow repair cycle times have contributed to declining customer satisfaction with the homeowners insurance claims experience. There were 27 catastrophic events in 2024, and insurers are losing money on every premium they collect. Events like the California wildfires have been extremely costly, and the total cost is still being assessed.
The study also revealed that insurer-initiated premium increases negatively impact customer satisfaction. When insurers increase premiums without a claim being made, overall satisfaction scores drop significantly. Customers who experience these increases are more likely to have higher deductibles for catastrophic weather events, which further impacts their satisfaction.
Communication is critical in mitigating the negative effects of higher prices and longer claim cycle times. Customers who find it very easy to communicate with their insurer report much higher satisfaction scores than those who find it difficult. Digital tools, such as apps, can improve communication and satisfaction, especially among younger customers. However, common failures in the communication process, such as needing to leave voicemails or not receiving timely responses, can frustrate customers.
The study also highlighted the strain on resources for insurers and contractors during catastrophic events, leading to longer claim cycle times. When claims last beyond three weeks, satisfaction declines, as customers tend to have more questions and expectations management becomes more challenging.
Overall, the high frequency of catastrophic events, rising premiums, and slow repairs have negatively impacted customer satisfaction with homeowners insurance claims.
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Premium increases
These increases are often attributed to a history of widespread catastrophic events, such as the California wildfires, and the strain on insurers to cover the costs. The frequency and severity of claims in high-risk areas have led to a "ripple effect", with companies seeking premium increases in some states to balance their risk exposure.
The impact of premium increases is evident in customer satisfaction scores. When insurers initiate premium hikes unrelated to claims, overall satisfaction scores drop significantly (629 vs. 730). This dissatisfaction is further exacerbated by communication challenges, with 82% of customers interacting through their non-preferred channels.
However, insurers face their own challenges. Climate change and severe weather events, such as storms, floods, and wildfires, have increased the cost of claims and made it more difficult for insurers to operate profitably. As a result, insurers are forced to seek rate hikes to cover their expenses, which further strains their relationships with policyholders.
To mitigate the negative impact of premium increases, insurers can improve communication channels and digital tools. Customers who find it very easy to communicate with their insurer report significantly higher satisfaction scores (777). Additionally, younger customers express a preference for digital tools and app usage, which can help streamline the claims process and enhance overall satisfaction.
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Ease of communication
J.D. Power is a consumer insights and analytics company that provides insights into auto, homeowners, life, commercial, and other insurance products. Its annual surveys cover various insurance verticals, including homeowners insurance, and rank top insurers out of 1,000 points based on several factors, including ease of communication.
The J.D. Power U.S. Home Insurance Study examines overall customer satisfaction with homeowners and renters insurance based on performance across several dimensions, including "ease of doing business". The study also takes a deep dive into bundled and non-bundled customers to examine emerging retention issues and how insurers can retain their most valuable customers.
The larger overall home insurance study, redesigned in 2024, surveyed 14,122 homeowners and renters on five factors: trust, price for coverage, people, digital channels, problem resolution, product/coverage offering, and ease of doing business.
The J.D. Power U.S. Property Claims Satisfaction Study, redesigned for 2025, surveyed 5,178 homeowners insurance policyholders on their claims experience in key areas, including interaction with representatives. The study found that customers who use digital tools are more satisfied, especially younger customers. Overall satisfaction is higher among customers who use digital tools when filing a claim, submitting photos, and receiving proactive updates. App usage results in the highest levels of satisfaction throughout the process.
The study also found that common failure points in the communication process include often needing to leave voicemails, needing to call with questions repeatedly, and not receiving timely follow-up emails and text messages. The one thing insurers can do to blunt the negative effects of higher prices and longer claim cycle times is to make it easier to communicate with them. Overall satisfaction scores are more than twice as high (777) when customers say it is very easy to communicate with their insurer than when they say it is very difficult or somewhat difficult to communicate with them (337).
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Digital tools
The J.D. Power U.S. Home Insurance Study examines overall customer satisfaction with two distinct personal insurance product lines: homeowners and renters. The study also takes a deep dive into bundled and non-bundled customers to examine emerging retention issues and how insurers can retain their most valuable customers.
Gen Z and Millennial cohorts are the most comfortable using digital tools, with 87% of customers in these generations indicating they are comfortable managing the entire claims process digitally. In contrast, nearly 40% of Boomers and Pre-Boomers say they are not comfortable doing the same.
In addition to digital tools, the J.D. Power U.S. Home Insurance Study also examines other factors that influence customer satisfaction, such as price, trust, communication, problem resolution, and ease of doing business.
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Frequently asked questions
J.D. Power is a consumer insights and analytics company that provides data on a variety of industries, including insurance, automobiles, mortgages, banking, healthcare, and travel.
J.D. Power releases two main reports on homeowners insurance each year. The U.S. Home Insurance Study surveys policyholders on overall customer satisfaction, incorporating factors such as trust, coverage options, pricing, digital channels, and problem resolution. The U.S. Property Claims Satisfaction Study measures satisfaction with the property claims experience among insurance customers who have filed a claim, examining factors such as settlement, claim servicing, and repair process.
J.D. Power's ratings provide key insights into homeowners insurance products and are used by consumers and businesses to evaluate and compare different insurance providers. The ratings can help identify areas for improvement and enhance brand image.
J.D. Power's ratings can be a starting point when searching for a homeowners insurance company. Look for companies with high rankings in overall customer satisfaction and claims satisfaction. However, it's important to also consider other factors such as your unique needs, regional companies, and additional evaluations from organizations like the National Association of Insurance Commissioners (NAIC) and AM Best.
