Nearly half, 47%, of homeowners insurance customers received a premium increase this year, according to the J.D. Power 2025 U.S. Home Insurance Study. This is the highest rate of insurer-initiated rate raises in over a decade and especially impacts high lifetime-value customers, which the study identifies as causing an” increased likelihood of customer defection and critical loss of long-term revenue streams.”
Of homeowners insurance customers who experienced a premium increase and say they are unlikely to renew, 43% cite the rising rates as the reason for switching carriers. High lifetime-value customers, those with higher average premiums and multiple insurance products, are more likely to cite repeated price increases as their top reason for nonrenewal. The study found that 45% of high lifetime -value customers were not likely to renew with their current carrier due to price increase, versus 30% of low lifetime-value customers
According to the J.D. Power study results, customers who experience an insurer-initiated rate increase also have significantly lower levels of trust in their insurer and are less likely to say their insurer is easy to work with.
“In a year marked by inflation, severe weather and tightening reinsurance markets, home insurance premiums have risen sharply in many parts of the country. While these increases often reflect real cost pressures, they’re also eroding trust and driving customers to shop for alternatives,” said Craig Martin, executive director of global insurance intelligence at J.D. Power, in the press release. “The issue is particularly acute in the high-value customer segment, where 49% of customers have experienced an insurer-initiated rate increase. These customers represent the most profitable segment of the property and casualty insurance market, and they are far more likely to take their business to a competitor when they experience repeated rate increases.”
The 2025 study examines overall customer satisfaction of homeowners and renters, measured across seven categories: product/coverage offerings, problem resolution, digital channels, people, price for coverage, trust and ease of doing business. The study is based on responses from 14,511 homeowners and renters via online interviews conducted from July 2024 through May 2025.
Amica ranked the highest in the homeowners insurance segment at 705 points, out of a thousand-point scale, with Chubb following second at 677 points and Erie Insurance at 676 points. In the renters insurance segment, Amica ranked the highest at 711 points, followed by Erie Insurance with a score of 706 and CSAA Insurance Group with a score of 689 points.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.