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20 home insurance companies ranked highest for customer satisfaction

Overall customer satisfaction with homeowners' insurers is on the rise. (Photo: Shutterstock)
Overall customer satisfaction with homeowners' insurers is on the rise. (Photo: Shutterstock)

Everyone appreciates companies and people that are easy to work with — a pleasant experience builds loyalty and trust.  

With homeowners' insurance premiums remaining stable, insurers are focusing on the customer experience to differentiate themselves from the competition, according to the J.D. Power 2016 U.S. Home Insurance Study

On average, customers report an annual premium charge of $1,186 for homeowners' insurance in 2016, remaining relatively unchanged over the past few years.

Customer satisfaction more important than ever

The shift in insurers’ strategic priorities has resulted in a significant increase in satisfaction, according to Costa Mesa, California-based market research company J.D. Power. Overall customer satisfaction with homeowners' insurers is 804 (on a 1,000-point scale), a 17-point increase from 2015. 

Related: Insurer customer satisfaction tied to online buying experience

While homeowner satisfaction with price is up (+16 points) because rates are stable, the increase in satisfaction with policy offerings (+25) is actually a much larger driver of the overall annual change in satisfaction. Improved communication is helping customers to see the value in the products they purchase, according to J.D. Power.

Among homeowner customers, satisfaction also improves significantly in claims (+19 points) and interaction (+10).

“Although many insurers have made great strides in improving the customer experience, there is still significant opportunity to improve customer perceptions of both products and services,” said Valerie Monet, director of the insurance practice at J.D. Power. “New entrants into the market, such as on-demand insurance, will likely result in shifts in customer expectations. Customer satisfaction is going to be more important than ever before for competitive position and growth.”

Agent and broker interactions critical

The J.D. Power report found that while high-net-worth Gen Y customers are more satisfied overall with their homeowners' insurance than are high-net-worth baby boomers, they are less satisfied with interaction with their insurer, specifiically with their agent experience. Focusing on improving agent and broker interactions will be critical for insurers looking to attract and retain customers, according to J.D. Power.

Satisfaction in the homeowners segment was measured by examining five factors:

    1. Interaction.
    2. Policy offerings.
    3. Price.
    4. Filing process and policy information.
    5. Claims.

Here are the top 20 homeowners' insurance companies for customer satisfaction based on J.D. Power's 2016 rankings: 

MetLife homeowners insurance

20. MetLife

Total customer satisfaction score: 801.

Nationwide Insurance

19. Nationwide

Total customer satisfaction score: 802.

CSAA Insurance Group

18. CSAA Insurance Group

Total customer satisfaction score: 805.

Farmers Insurance

17. Farmers

Total customer satisfaction score: 807.

Country Financial logo

16. Country Financial

Total customer satisfaction score: 807.

Auto Club Group

15. Auto Club Group

Total customer satisfaction score: 807.

The Hartford

(Photo: Shutterstock)

14. Hartford Financial Services Group

Total customer satisfaction score: 811.

Encompass insurance

13. Encompass

Total customer satisfaction score: 811.

Allstate Insurance

12. Allstate

Total customer satisfaction score: 812.

Shelter Insurance logo

11. Shelter Insurance

Total customer satisfaction score: 815.

Chubb

10. Chubb

Total customer satisfaction score: 816.

Progressive Insurance logo

9. Progressive

Total customer satisfaction score: 817.

American Family Insurance

8. American Family

Total customer satisfaction score: 817.

State Farm Insurance sign

(Photo: iStock)

7. State Farm

Total satisfaction score: 818.

Erie Insurance logo

6. Erie Insurance

Total customer satisfaction score: 819.

Auto-Owners Insurance logo

5. Auto-Owners Insurance

Total customer satisfaction score: 824.

Geico insurance logo

4. Geico

Total customer satisfaction score: 826.

Cincinnati Insurance logo

3. Cincinnati Insurance

Total customer satisfaction score: 828.

Auto Club of Southern California

2. Auto Club of Southern California Insurance Group

Total customer satisfaction score: 835.

Amica Mutual

(Photo: Amica Mutual Insurance 2015 Annual Report screenshot)

1. Amica Mutual

Total customer satisfaction score: 864.

Amica Mutual ranks highest in the homeowners insurance segment for a 15th consecutive year. Amica Mutual performs particularly well in the billing process and policy information, interaction, policy offerings and price factors, according to J.D. Power.

Related:

Infographic: Top 5 ways things can go wrong at home

6 things you need to know about insuring a condo — before buying one

7 ways to mitigate home fire risk

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