Rising customer dissatisfaction with homeowners insurance claims: J.D. Power

Extreme weather events, widespread premium increases, and long repair cycle times have strained customer satisfaction with the homeowners insurance claims experience, according to the J.D. Power 2025 U.S. Property Claims Satisfaction Study.

Mark Garrett, Director of Insurance Intelligence at J.D. Power, said, “There were 27 catastrophic events in 2024 and 28 the year before. Homeowners insurers are currently losing roughly one nickel on every dollar of premium they collect, and with the total cost of events like the California wildfires still being assessed, there seems to be no end in sight.

“Customers are, in essence, paying higher prices for slower service. The average claimant does not receive final payment on a claim until 44 days after the first notice of loss, and unless insurers are communicating frequently and clearly along the way, customer satisfaction suffers.”

The study found that claim cycle times have reached record highs, with the average claim now taking 32.4 days to complete. The average time from first notice of loss to final payment has surpassed 44 days, the longest recorded since the study began in 2008.

Claims completed within 10 days receive an average satisfaction score of 762 (on a 1,000-point scale), but that score drops 167 points to 595 when repairs take more than 31 days.

Half of surveyed customers saw their insurance premiums increase in the past year. Those whose rates rose without filing a claim reported significantly lower satisfaction (629) than those whose rates remained unchanged (730).

J.D. Power noted that improved communication can help offset frustration over higher costs and longer claims processing times. Satisfaction scores more than double (777 vs. 337) when customers find it easy to communicate with their insurer.

Common complaints include needing to leave voicemails; needing to call with questions repeatedly; and delayed responses to emails and text messages.

Garrett added, “In fact, 82% of customers are interacting often with their insurer via their non-preferred communication channels.”

The study also found that satisfaction is higher among customers who use digital tools for filing claims, submitting photos for estimates, and receiving proactive updates. Among digital channels, app usage results in the highest satisfaction levels throughout the process.

Among insurers, Chubb ranked highest in property insurance claims experience with a score of 773, followed by Amica (745) and The Hartford (725).