Filed Under:Risk Management, Loss Control

13 renters’ insurance companies ranked highest for customer satisfaction

Results from J.D. Power's 2017 Home Insurance Study on customer satisfaction scores

J.D. Power's 2017 U.S. Home Insurance Study found that both homeowners and renters insurance customer satisfaction scores have reached an all-time high, but price and direct customer service interactions remain the lowest-performing factors. (Photo: Shutterstock)
J.D. Power's 2017 U.S. Home Insurance Study found that both homeowners and renters insurance customer satisfaction scores have reached an all-time high, but price and direct customer service interactions remain the lowest-performing factors. (Photo: Shutterstock)

U.S. homeowners and renters’ insurance customer satisfaction scores have reached an all-time high, according to the new 2017 J.D. Power Home Insurance Study.

Improvements in policy offers have driven these high scores: 808 (on a 1,000-point scale) among homeowners, and 834 among renters.

J.D. Power researchers say these record numbers come after a multi-year run of declining catastrophic losses and relatively stable pricing. 

Related: 20 homeowners' insurance companies ranked highest for customer satisfaction 

Threats to insurers


Researchers note insurers face a critical test maintaining these high scores among customers following this season’s devastating string of catastrophic natural disasters that created historic property losses and profit strains. 

“Although property insurers have made great strides in overall customer satisfaction over the past several years, the areas where they consistently see the lowest satisfaction scores are price and direct customer service,” said Greg Hoeg, Vice President of U.S. Insurance Operations at J.D. Power. “Those two areas in particular will be under enormous stress as insurers address losses from the recent hurricanes.”

J.D. Power researchers say rising insurance technology innovators also pose a threat to traditional insurers. The study notes that InsurTech companies have raised over $7.1 billion globally since 2012.

This is particularly important information when considering millennials customers, who, according to the report, are the most aware and interested in purchasing from one of these InsurTech companies in the future.

Related: 5 reasons why renters need insurance 

Renters’ demographics


According to the National Multifamily Housing Council (NMHC), 63% of U.S. households are owner-occupied, and 37% are renter-occupied. Of these two groups, a 2016 Insurance Information Institute poll reports that 95% of homeowners had homeowners’ insurance, but among renters, only 41% said they had renters’ insurance.

The NMHC reports that 50% of renters are under the age of 30.

Related: Renter households reach 50-year high

Study rankings


The results of the U.S. Home Insurance Study are based on responses from 15,909 online interviews. To conduct this annual study, satisfaction among homeowners and renters’ insurance customers was measured by examining 5 factors:

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

Satisfaction is calculated on a 1,000-point scale.

Here are the top 13 renters insurance companies ranked highest for customer satisfaction, according to J.D. Power’s 2017 U.S. 2017 home insurance study: 

Travelers insurance logo

13. Travelers

Total customer satisfaction score: 806.

Safeco insurance logo

12. Safeco

Total customer satisfaction score: 812

Metlife insurance logo

11. MetLife

Total customer satisfaction score: 815.

Farmers insurance logo

10. Farmers

Total customer satisfaction score: 819.

The Hartford logo

9. The Hartford

Total customer satisfaction score: 823.

Auto Club of Southern California Insurance Group logo

8. Auto Club of Southern California Insurance Group

Total customer satisfaction score: 824.

Nationwide Insurance logo

7. Nationwide

Total customer satisfaction score: 825.

Liberty Mutual insurance logo

6. Liberty Mutual

Total customer satisfaction score: 826

Allstate insurance logo

5. Allstate

Total customer satisfaction score: 827.

 CSAA Insurance Group logo

4. CSAA Insurance Group

Total customer satisfaction score: 828.

State Farm logo

3. State Farm

Total customer satisfaction score: 833.

American Family Insurance logo

2. American Family

Total customer satisfaction score: 844.

Erie Insurance logo 

1. Erie Insurance

Total customer satisfaction score: 862.

Related: Reters insurance: Here are 5 key facts that all agents & brokers need to know

Related

20 homeowners' insurance companies ranked highest for customer satisfaction

The J.D. Power 2017 Home Insurance Study lists the top 20 insurance companies ranked highest in customer satisfaction.

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