Top home insurance companies for high-risk policyholders

Homeowners and renters insurance costs have surpassed the rate of inflation and increases for auto insurance policies over the last year. According to a recent study by J.D. Power, the rate hikes have driven a sharp increase in customers shopping for new policies. “‘The average shopping rate among home insurance customers has climbed to a record high of 6.8% through the second quarter of 2024, up from 5.9% two years ago,” said Breanne Armstrong, director of insurance intelligence at J.D. Power. “Many shoppers have ended up staying put because there are so few alternatives available, but carriers need to recognize that steady rate increases put policy retention at risk and has a negative effect on customer satisfaction.” Other key insights from the study include:

• Rising prices drive increased shopping, decreased satisfaction: Among home insurance customers who receive an insurer-initiated rate increase, 37% are likely to shop for a new policy. The top reason given among those actively shopping new home insurance carriers is high rates.
• Shopping does not always result in switching: While a record 6.8% of all home insurance customers are actively shopping for new polices, just 2.2% of homeowners switched policies as a result, down from 2.5% two years ago.
• Bundling declines as intent to unbundle increases: Bundling home and auto policies has declined significantly in 2024 compared with 2023, but there is growing intent to switch auto insurance without switching home insurance. Specifically, 21% of customers say they “definitely will” also switch their home insurance if they switch their auto insurance, which is down from 24% a year ago.

Meanwhile, U.S. property insurance rates are down for the first time in almost seven years, with the average rate falling 0.94% in the second quarter of 2024 from the same time in 2023. However, some consumers still struggle to manage their finances. Just over 3% of consumers are currently delinquent on credit cards, Lending Tree reports. And as of June 2024, personal bankruptcies were up 16.2% year-over-year. Some of those consumers will still need to buy insurance. The slideshow above illustrates the best insurance companies for high-risk homeowners as selected by Forbes Advisor. See also: