Homeowners Insurance Premium Increases Threaten Customer Loyalty, J.D. Power Study Finds – ProgramBusiness

Almost half of homeowners insurance customers in the United States have experienced a premium increase in the past year, marking the highest rate of insurer-initiated price hikes in more than a decade, according to the J.D. Power 2025 U.S. Home Insurance Study released on Sept. 16, 2025.

The study highlights that 47% of homeowners faced a rate increase, with the trend particularly pronounced among high lifetime-value customers. These policyholders represent the most profitable segment of the property and casualty insurance market, yet they are also more likely to switch carriers when faced with repeated price increases.

Key Findings

• Rising premiums erode loyalty: Among homeowners who experienced a premium increase and are unlikely to renew, 43% cite the recent price hike as the reason. Trust levels are also lower among this group, and they are less likely to say their insurer is easy to work with.
• High-value customers at greater risk: Nearly half (45%) of high-value customers unlikely to renew point to repeated price increases as their reason for leaving, compared with 30% of low-value customers.
• Clear communication reduces negative impact: When insurers explain the reason for a rate increase and provide options to help customers lower premiums, satisfaction rises significantly. Customers in this group reported an average satisfaction score of 721 (on a 1,000-point scale) — 184 points higher than those who did not understand the reason and were not given options, and 33 points higher than customers who experienced no premium increase.

Study Rankings

In the 2025 study, Amica ranked highest in both homeowners and renters insurance. In the homeowners insurance segment, Amica scored 705, followed by Chubb (677) and Erie Insurance (676). In the renters insurance segment, Amica scored 711, followed by Erie Insurance (705) and CSAA Insurance Group (AAA) (689).

Study Overview

The U.S. Home Insurance Study measures customer satisfaction across seven core dimensions: product and coverage offerings, problem resolution, digital channels, people, price for coverage, trust, and ease of doing business. The 2025 findings are based on responses from 14,511 homeowners and renters via online interviews conducted between July 2024 and May 2025.

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