J.D. Power’s 2023 Property Claims study puts Erie Insurance, Amica and Nationwide in the top three slots for property claims satisfaction. Automobile Club of Southern California (AAA) and Homesite are the bottom two companies in the research firm’s rankings.
The overall home satisfaction survey, last released in 2022, found Amica at the top of the list, followed by American Family and The Hartford. Farmers and Homesite landed in the bottom two.
For the claims survey, J.D. Power asked 5,343 homeowners insurance policyholders how they felt about recent claims experience in key areas, including the final settlement, interaction with representatives, and the estimate and repair process. J.D. Power releases its claims satisfaction survey annually in February.
The larger overall home insurance study surveyed 11,630 homeowners on five factors: interaction, policy offerings, price, billing process and policy information, and claims. J.D. Power releases its overall satisfaction survey annually in September.
Amica regularly tops J.D. Power’s rankings for both homeowners insurance satisfaction overall and for claims, and took the top spot in both surveys in 2022, although it tied with The Hartford in the overall score. Erie Insurance bumped Amica out of first place in the 2023 claims survey. The 2023 overall satisfaction report is expected in the fall.
In general, Mark Garrett, director of insurance intelligence at J.D. Power, reports that home insurance companies struggled with claims satisfaction again in 2023, although some companies did see marked improvement.
Overall satisfaction is also down, especially among those that bundle their insurance.
Read on to learn how the top insurance companies ranked and what affected claims satisfaction in 2023, and take a look at the overall satisfaction scores for 2022 ahead of the new survey.
- Erie Insurance, Amica and Nationwide top the list for consumer satisfaction with property claims, according to a 2023 study by J.D. Power.
- Automobile Club of Southern California and Homesite are at the bottom for poor customer service during the claims process.
- Amica, American Family and The Hartford took the top three spots for overall home insurance satisfaction in J.D. Power's 2022 survey.
- Farmers and Homesite are the bottom two companies in the overall satisfaction survey.
The best and worst home insurance companies for claims
The 2023 J.D. Power U.S. Property Claims Satisfaction Study found that insurance companies had a hard time with customer satisfaction in the past year. Severe damage claims resulting in less use of digital claim reporting tools, Garrett says in a press release. Customers have found frustration with the digital claims process.
“This is the first year J.D. Power has ever seen declining use of digital claims reporting, digital used as a primary channel for status updates and for submitting photos that were used for the estimate. This is a worrying sign for the industry, as digital tools are apparently not meeting customer needs." he says.
Here are J.D. Power's homeowners insurance rankings, on a 1,000-point scale, with 871 being the industry average:
| Ranking | Company | Score out of 1000 |
|---|---|---|
| 1 | Erie Insurance | 912 |
| 2 | Amica | 903 |
| 3 | Nationwide | 884 |
| 4 | The Hartford | 883 |
| 5 (tie) | Chubb | 880 |
| 5 (tie) | State Farm | 880 |
| 6 | American Family | 875 |
| 7 | Liberty Mutual | 870 |
| 8 | Allstate | 868 |
| 9 | Travelers | 867 |
| 10 | CSAA Insurance Group | 863 |
| 11 | Safeco | 857 |
| 12 | Auto-Owners | 853 |
| 13 | Progressive | 851 |
| 14 | Automobile Club of Southern California | 842 |
| 15 | Homesite | 844 |
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 managed to limit 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 2022 J.D. Power U.S. Home Insurance Study found that in general, satisfaction with home insurance has gone down. Increases in car insurance premiums as a result of high losses drove much of the dissatisfaction. Furthermore, people who bundle their auto and home had the greatest decrease in satisfaction.
“Sky-high auto loss costs and resultant auto premium increases are creating ripple effects throughout the insurance industry and, as a result, one area that is being severely disrupted is the home and auto insurance bundle,” Robert M. Lajdziak, director, global insurance intelligence at J.D. Power, says in a press release.
Amica, which has led the pack in this study for over a decade, still landed in the number one spot.
| Ranking | Company | Score out of 1000 |
|---|---|---|
| 1 | Amica | 849 |
| 2 | American Family | 842 |
| 3 | The Hartford | 839 |
| 4 | AAA (Southern California) | 838 |
| 5 | Country Financial | 830 |
| 6 | State Farm | 829 |
| 7 | Erie | 827 |
| 8 | Auto-Owners | 825 |
| 9 | AAA | 817 |
| 10 | Nationwide | 816 |
| 11 | Allstate | 815 |
| 12 | Chubb | 809 |
| 12 (tie) | Safeco | 809 |
| 13 | Liberty Mutual | 805 |
| 14 | Progressive | 801 |
| 14 | CSAA | 794 |
| 15 | Travelers | 794 |
| 16 | Farmers | 792 |
| 17 | Homesite | 753 |
Many of the top companies dropped significantly down the list, including State Farm and Allstate. Meanwhile, American Family jumped to number two overall.
A few other findings of the home insurance study include:
- Home and auto bundlers reported a 10-point decline in price satisfaction, compared to only one point for non-bundlers.
- The retention rate for bundlers is 95% and for non-bundlers it's 82%.
- Increases in auto rates are driving dissatisfaction among bundlers, with one-third saying they will switch home insurers if they switch auto to save money.
- The popularity of Insurtech companies like Lemonade is rising, with 34% of saying they "definitely will" or "probably will" purchase a Lemonade policy if it's offered in their state.
Tips for filing 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 the request of your agent or company.
- Make temporary repairs and take other steps to protect your property from further damage. Save receipts for what you spend 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 have to find other accommodations while repairs are being made.
- Provide needed information to the insurance representative assigned to handle your claim.
