J.D. Power’s best and worst homeowners insurance companies for claims and customer satisfaction

The best and worst homeowners insurance companies for overall satisfaction

The 2023 J.D. Power U.S. Home Insurance Study found that overall satisfaction with home insurance hasn't changed much in the past year. The study found that people who have been with their insurance company for at least eight years are more satisfied. Home insurance satisfaction is affected by rate increases and the ongoing home insurance crisis in states like Florida and California, where companies are leaving the market.

The headlines have focused on states like California and Florida where catastrophic weather claims have been at an all-time high, causing insurance companies to back away, but this pattern is playing out nationwide, affecting thousands of homeowners in every state,” Breanne Armstrong, director of insurance intelligence at J.D. Power says in a press release.

The larger overall home insurance study surveyed 11,221 homeowners on five factors: interaction, policy offerings, price, billing process and policy information, and claims.

Amica, which has led the pack in this study for over a decade, was pushed into second place by Erie, which bumped Amica out of the top spot for claims in 2023 as well.

Below is a list of J.D. Power's best insurance companies for overall satisfaction. 

Ten-time award winner Amica dropped to second place this year, with Erie Insurance rising several spots to land at No. 1. The report also pointed out that USAA received the second-highest score (906) but wasn't included on the list because it only sells insurance to military personnel and their families.

The study found that overall satisfaction with claims is up slightly from last year, with an overall rating of 874 out of 1000. That’s only an increase of three points from 871 in 2022. Claims took, on average, four days longer to have repairs completed than the year before, with an average time of 22 days.

The 2023 study had several other important findings, including:

• Companies that saw the most improvement were those that limited the need for customers to contact them for information and limited contact to one or two representatives.
• Customers who prefer a phone call to digital processes reported a much lower level of satisfaction with the claims process, 60 to 70 points lower. 
• When claims take longer than average, satisfaction was higher when customers received status updates without having to contact the company, were given accurate claim length estimates and were able to access a representative quickly and easily.

The best and worst homeowners insurance companies for overall satisfaction

The 2023 J.D. Power U.S. Home Insurance Study found that overall satisfaction with home insurance hasn't changed much in the past year. The study found that people who have been with their insurance company for at least eight years are more satisfied. Home insurance satisfaction is affected by rate increases and the ongoing home insurance crisis in states like Florida and California, where companies are leaving the market.

The headlines have focused on states like California and Florida where catastrophic weather claims have been at an all-time high, causing insurance companies to back away, but this pattern is playing out nationwide, affecting thousands of homeowners in every state,” Breanne Armstrong, director of insurance intelligence at J.D. Power says in a press release.

The larger overall home insurance study surveyed 11,221 homeowners on five factors: interaction, policy offerings, price, billing process and policy information, and claims.

Amica, which has led the pack in this study for over a decade, was pushed into second place by Erie, which bumped Amica out of the top spot for claims in 2023 as well.

Many top companies from last year, like American Family and The Hartford, dropped significantly. Meanwhile, Auto-Owners climbed from the eighth spot up to the third spot. USAA, which was not ranked due to its eligibility requirements, scored 894.

A few other findings of the home insurance study include:

• Most of those who switched carriers (57%) did so for a better price.
• Auto and home bundle rates among those who switched dropped by 10%.
• Bundling is less common in the states where carriers are leaving and rates are rising, especially Florida, California and Louisiana.

How to file a homeowners insurance claim

The Insurance Information Institute (III) suggests taking these steps when filing a homeowners insurance claim:

• Report any burglary or theft to the police.
• Contact your agent or company immediately. Insurance policies place a time limit on filing claims. Ask questions. Am I covered? Does my claim exceed my deductible? How long will it take to process my claim? Will I need to obtain estimates for repairs to structural damage?
• Follow up the initial contact with an explanation of what happened in writing, at your agent's or company's request.
• Make temporary repairs and take other steps to protect your property from further damage. Save receipts for your spending and submit them to your insurer for reimbursement.
• Prepare a list of lost or damaged articles. Save receipts from any additional living expenses you incur if your home is so severely damaged that you must find other accommodations while repairs are being made.
• Provide needed information to the insurance representative assigned to handle your claim.