Nearly half of U.S. homeowners insurance customers faced premium increases over the past year — the highest rate in more than a decade — according to the newly released J.D. Power 2025 U.S. Home Insurance Study℠. The report highlights how these price hikes are affecting customer trust, retention, and long-term profitability for insurers.

Premium Increases and Customer Loyalty

The study found that 47% of homeowners insurance customers experienced a premium increase in the past year. This surge is especially significant among high lifetime-value customers, where 49% reported insurer-initiated rate hikes. Rising costs are driving dissatisfaction and prompting many to explore alternative carriers.

Among customers who experienced a premium increase and are unlikely to renew, 43% said the recent price hike was their main reason for considering a switch. The study also noted that trust and perceptions of ease of doing business decline significantly when premiums rise without clear communication.

High-Value Customers at Greater Risk

High-value customers — defined as those with higher annual premiums and multiple insurance products — are particularly sensitive to repeated rate hikes. Of those unlikely to renew, 45% cited multiple price increases as their reason for leaving. By comparison, only 30% of low lifetime-value customers pointed to repeated increases as their reason for nonrenewal.

Communication Can Reduce Negative Impact

Clear explanations and options to manage costs can make a measurable difference. The study revealed that when insurers explain the reasons for a premium increase and offer ways to lower costs, customer satisfaction averages 721 on a 1,000-point scale. This is 184 points higher than among those who do not understand the reason and are not given options, and even 33 points higher than the satisfaction of customers who experienced no rate increase at all.

Study Rankings

Amica earned the top ranking in both homeowners and renters insurance segments. In homeowners insurance, Amica scored 705, followed by Chubb (677) and Erie Insurance (676). For renters insurance, Amica led with a score of 711, with Erie Insurance (705) and CSAA Insurance Group (AAA) (689) rounding out the top three.

The U.S. Home Insurance Study measures satisfaction in seven areas: product and coverage offerings, problem resolution, digital channels, people, price for coverage, trust, and ease of doing business. Findings are based on 14,511 online interviews with homeowners and renters conducted from July 2024 through May 2025.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services, and analytics, providing more than 55 years of industry intelligence. The company helps organizations understand consumer behavior using data, artificial intelligence, and algorithmic modeling.

For further details, visit J.D. Power’s U.S. Home Insurance Study.