- How has home insurance customer sentiment changed in the past year?
- Are people less satisfied with their home insurance companies?
- How do insurance customers feel about rate increases?
- Have home insurance rates really gone up that much?
- Are people satisfied with their home insurance claim experience?
- Where did home insurance satisfaction decrease the most?
- Takeaways from the survey: How can home insurance companies improve customer satisfaction?
How has home insurance customer sentiment changed in the past year?
In most areas, ranging from the buying process to claims handling, home insurance customers are less satisfied with their insurance companies this year than last year. Satisfaction increased in several categories, with a notable rise in trust. Our annual survey asks people to rate their satisfaction with their company in 12 different areas, as well as asking these questions:
- Do you trust your insurance company?
- Would you recommend your insurance company to others?
- Do you plan to renew with your insurance company?
Here’s how responses in late 2025 compared to late 2024:
| Survey category | 2024 | 2025 | +/- Change |
|---|---|---|---|
| Customer Satisfaction | 86% | 84% | -2% |
| Ease of Service | 87% | 88% | 1% |
| Policy Offerings | 84% | 85% | 1% |
| Claims Handling | 81% | 79% | -2% |
| Digital Experience | 85% | 80% | -5% |
| Buying Process | 82% | 78% | -4% |
| Billing Process | 87% | 86% | -1% |
| Discounts | 68% | 63% | -5% |
| Fair rate increases | 62% | 57% | -5% |
| Older homes | 73% | 68% | -5% |
| Exceptional standard coverages | 67% | 64% | -3% |
| Bundling | 80% | 82% | 2% |
| Renewing? | 90% | 93% | 3% |
| Recommend? | 83% | 86% | 3% |
| Trustworthy? | 86% | 89% | 3% |
Are people less satisfied with their home insurance companies?
Customer satisfaction has decreased by 2% over the past year. In 2024, 86% of customers reported being satisfied with their home insurance company, but this figure dropped to 84% in 2025.
However, other categories show some improvement:
- More customers feel that their insurer is trustworthy and are willing to renew with them than they were before.
- While in 2024, 86% of customers trusted their insurer, this increased to 89% in 2025.
- Similarly, the number of customers planning to renew with their insurer rose to 93% in 2025 from 90% in 2024.
Although overall home insurance satisfaction fell slightly in 2025, our survey indicates that more customers plan to remain with their current provider. Why?
People may be staying with their insurance companies because they can’t find a better rate elsewhere. However, increased trust scores suggest that customers are staying for reasons beyond the rates.
How do insurance customers feel about rate increases?
Satisfaction with the fairness of rate increases declined sharply, from 62% in 2025 to 57% in 2025, underscoring the need for insurers to address customer frustrations over rising premiums, even when driven by factors beyond their control.
Inflation, labor shortages, and natural disasters are among the factors that drive higher home insurance rates and are beyond homeowners' control. This can be a frustrating reality even for homeowners who choose to pay for minor home repairs themself and avoid filing a claim.
For example, if a hurricane hits Florida and causes significant home damage, your insurance rates may climb to help fund the insurer’s increased claims payouts even if your home avoided damage.
J.D. Power, in its 2025 U.S. Home Insurance Study, also reports that customers are less satisfied with rate increases.
“According to the J.D. Power U.S. Home Insurance Study, overall satisfaction dipped between 2023 (average score of 647) and 2024 (average score of 640) but had a slight recovery in 2025, rising to an average score of 642,” says Craig Martin, executive director of Insurance Intelligence.
“That said, we have seen a material increase in the percentage of customers reporting that their premium has increased in the last 12 months due to the carrier's actions from 33% in 2021 up to 47% in 2025. This is notable because satisfaction among customers who report their premium increased is nearly 100 points lower (on a 1,000 point scale) than those who did not have a change.”
Not all rate increases have been implemented yet, as companies continue to appeal to regulatory agencies to allow significant rate increases. That means some people have yet to see the full extent of the rate hikes.
“Based on market data, the likelihood is that a much larger percentage of customers have actually had a premium increase in the last year than are aware, so there is a good chance that awareness will continue rising, which is likely to negatively impact satisfaction scores,” Martin says.
OF NOTE:
Our rate data show that not all insurance companies’ rates have gone up. In fact, several carriers have lower average rates nationwide than they did in 2023. Regional rate changes may differ significantly, but this is a good sign that shopping around is still a valuable way to save.
Have home insurance rates really gone up that much?
Yes, insurance rates have climbed significantly in recent years. Some areas are harder hit than others.
According to a U.S. Department of the Treasury report (2025), home insurance rates increased at an average annual rate of 8.7% faster than inflation from 2018 to 2022. This report shows that the cost of repairing or rebuilding a home has increased more than other expenses.
Additionally, a 2025 report from the National Association of Insurance Commissioners (NAIC) shows that average home insurance rates increased 10.5% from 2021 to 2022.
It is worth noting that home insurance rates in certain areas, particularly those affected by natural disasters, increase at a significantly higher rate than the average.
These reports indicate that home insurance rates may continue to rise, particularly in high-risk areas, driven by higher material costs and an increase in more frequent natural disasters, suggesting ongoing challenges to customer satisfaction.
Are people satisfied with their home insurance claim experience?
Claims handling is another area where customer satisfaction has declined. In 2025, 81% of homeowners were satisfied with their claims experience; however, this satisfaction rate decreased to 79% by 2025.
“In terms of the impact of claims, the volume of consumers that filed a claim on average hasn't materially changed over the last 5 years,” says Martin. “On average, when customers do have a claim, their satisfaction is higher than those who don't, so this part of the experience is less likely to influence customer satisfaction.”
One reason homeowners may find the claims process challenging is the additional time and inconvenience of repairing their homes after a major catastrophe. An influx of home insurance claims can bog down an insurer’s process, and it can take much longer for repairs if hundreds of homes are damaged at one time.
Additionally, repair and labor costs can increase significantly after a natural disaster, as materials and workers are required across multiple sites simultaneously. Insurers face rising costs and, in turn, increase home insurance rates across the board to offset them.
The decline in claim satisfaction may signal homeowners' growing unease with higher rates and longer claim processing times.
When shopping for home insurance, customers should compare rates and satisfaction ratings to find a carrier that offers peace of mind and meets their financial needs.
Where did home insurance satisfaction decrease the most?
A few areas stood out for the most significant overall decrease in satisfaction. All of these areas experienced a 5% drop in customer satisfaction.
- Fair rate increases over time. Not surprisingly, homeowners feel less satisfied with how rate increases have been applied over the past year. When rates increase dramatically without an apparent reason — such as a claim — it can feel unfair to the customer.
- Discounts. Customers reported less satisfaction with the discounts offered by their home insurance companies, perhaps because those discounts aren’t bringing down rates as much as they’d like.
- Older homes. Fewer customers reported that their insurers are suitable for older homes than last year. That may reflect insurance companies backing away from the risk presented by older houses.
- Digital experience. Customers are less satisfied with their insurers’ mobile app and website experience. That may reflect higher expectations from consumers in an increasingly digital world, or it could simply reflect the overall decrease in satisfaction with the customer experience.
Takeaways from the survey: How can home insurance companies improve customer satisfaction?
Lower rates would go a long way towards improving how people feel about their home insurance companies. It’s hard to see the positives of a company’s service when you think you’re being overcharged.
Two out of four of the areas where satisfaction decreased the most are directly related to rates, and dissatisfaction with what you’re getting for your money can easily drive dissatisfaction in other areas. But that doesn’t mean cheaper rates alone will boost satisfaction, nor are those decreases likely to happen soon.
That means that insurance companies will need to ensure that people feel they’re getting what they are paying for — an excellent digital experience, easy access to the services and coverage they need and a stellar experience when they need to file a claim.
Sources
- https://home.treasury.gov/news/press-releases/jy2791
- https://content.naic.org/article/naic-releases-homeowners-insurance-report-2022
Helpful home insurance tools and calculators
