Homeowners Insurance Premium Increases and Customer Loyalty

This report presents findings from the J.D. Power 2025 U.S. Home Insurance Study, which examines the impact of homeowners insurance premium increases on customer loyalty and long-term profitability. The study reveals that 47% of homeowners insurance customers in the United States have faced premium increases in the past year, marking the highest rate of such increases in over a decade. This trend is particularly concerning for high lifetime-value customers, as 49% of them reported experiencing rate hikes, leading to a higher likelihood of switching insurers. The report highlights that 43% of customers who experienced a premium increase are unlikely to renew their policies, citing the price hike as a primary reason. Additionally, it notes that proactive communication from insurers regarding rate increases can mitigate negative customer reactions. The study ranks Amica as the highest in customer satisfaction for both homeowners and renters insurance segments, based on responses from over 14,500 customers.