Homeowners are more inclined to renew their home insurance policy with a provider that offers exceptional customer service, as revealed by a recent study from J.D. Power. More than two-thirds (67%) of those who selected an insurance carrier based on positive service experiences indicated that they would "definitely" renew with their insurer.
A solid reputation (64%) and convenience (64%) also ranked among the top reasons homeowners remain loyal to their insurance carrier.
COUNTRY Financial secured the highest score in customer satisfaction in the homeowners insurance category, achieving 855 out of 1,000 points. COUNTRY Financial offers various insurance products across 19 states.
Amica Mutual took second place with a score of 853, followed by Auto-Owners Insurance at 843.
Millennials and Home Insurance
When it comes to millennials, 38% of those surveyed stated that they chose their homeowners insurance company based on the quality of service they experienced. Millennials are also more likely to engage with insurer-provided tools, such as inventory management for their possessions. This increased engagement offers insurers more opportunities to deliver excellent customer service.
Key Areas of Customer Satisfaction
Customer satisfaction was assessed by examining five areas: interaction, policy offerings, billing process and policy information, price, and claims handling.
Top Homeowners Insurance Companies
According to the J.D. Power 2020 U.S. Home Insurance Study, here are the leading homeowners insurance companies based on overall customer satisfaction ratings:
COUNTRY Financial
Amica Mutual
Auto-Owners Insurance
Erie Insurance
The Hartford
Allstate
State Farm
CSAA Insurance Group
MetLife
Segment Average
American Family
Auto Club of Southern Ca. Insurance Group
Farmers
AIG
Nationwide
Liberty Mutual
Travelers
Safeco
ASI Progressive
Chubb
Homesite
UPC Insurance
National General
Evaluating Homeowners Insurance Companies
In addition to J.D. Power surveys, which provide insights into insurance companies, several other independent platforms rate insurers.
AM Best evaluates insurers based on their creditworthiness, which reflects their ability to settle claims, debts, and other financial obligations promptly. AM Best rates over 16,000 insurance companies globally.
Other organizations that assess insurers' financial stability include Moody’s, Fitch Ratings, and Standard & Poor’s.
The Better Business Bureau (BBB) offers ratings and reviews on homeowners insurance companies, where a company's BBB rating indicates how they are likely to interact with customers. These ratings are significantly influenced by public complaints.
Consumer Reports members can access ratings of homeowners insurance companies based on customer satisfaction regarding claims handling.
Factors Influencing Homeowners Insurance Rates
No two homes are identical, and several factors contribute to determining your homeowners insurance rate. Insurance companies aim to assess the risk exposure associated with insuring your specific home, resulting in potentially different rates even between neighboring properties.
Here are some common factors affecting homeowners insurance costs:
Size (square footage) and layout
Current condition, including age
External risk factors such as a pool or trampoline
Home security features
Type of building materials used
Roof type
Property location
Proximity to fire safeguards, such as a fire hydrant or fire station
Additionally, factors like your claims history, credit score, and chosen deductible amounts will influence your homeowners insurance premiums.
Comparing Homeowners Insurance
Finding the right homeowners insurance is crucial. Beyond selecting a company with excellent customer service, you want an affordable policy that offers comprehensive coverage. You can switch your homeowners insurance anytime if you’re not satisfied with your current provider.
When shopping for homeowners insurance, consider the annual cost, available discounts, valuation type, reputation, financial stability, and customer service.
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