Both homeowners and renters insurance premiums have exceeded the rate of inflation, and this surge in costs has led to a sharp increase in the number of customers who are shopping for new policies, J.D. Power reports.

"'The average shopping rate among home insurance customers has climbed to a record high of 6.8% through the second quarter of 2024, up from 5.9% two years ago," Breanne Armstrong, director of insurance intelligence at J.D. Power, said in a release. "Many shoppers have ended up staying put because there are so few alternatives available, but carriers need to recognize that steady rate increases put policy retention at risk and has a negative effect on customer satisfaction."

These insights come from the company's recently released 2024 U.S. Home Insurance Study.

The study also showed that increased premiums have an impact on customer satisfaction. J.D. Power uses a 1,000-point scale to rate customer satisfaction, and the report shows that customers who received an insurer-initiated rate increase had a satisfaction level of 594, which is 92 points lower than customers who did not receive an insurer-initiated rate increase.

Despite an increase in policy shopping, J.D. Power found that the number of customers actually switching homeowners carriers has decreased from 2.5% in 2022 to 2.2% in 2024.

In the slideshow above, we'll look at the ten carriers J.D. Power ranked at the top of the list for customer satisfaction in 2024. The study is based on responses from more than 14,000 homeowners and renters, with satisfaction measured across seven core dimensions: trust, price for coverage, people, digital channels, problem resolution, product/coverage offerings and ease of doing business.

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