According to the J.D. Power 2024 U.S. Home Insurance Study, home and renters insurance costs are now outpacing inflation and the average increases seen in auto insurance over the past year.

The report said the price hikes have led to a significant increase in customers looking for new policies due to high costs.

“The average shopping rate among home insurance customers reached a record 6.8% in the second quarter of 2024, up from 5.9% two years ago,” said Brianne Armstrong (pictured above), director of insurance intelligence at J.D. Power.

While many customers are exploring alternatives, the lack of choice has led many to stay with their current providers, Armstrong added. However, consistent price increases could impact policy retention and customer satisfaction.

Among customers who experienced a price increase initiated by their insurers, 37% are likely to look for new policies. The main reason they cited for looking for new policies was higher prices. Customer satisfaction among those who received a price increase was 594 on a 1,000-point scale, about 92 points lower than among those who did not receive a price increase.

While 6.8% of all home insurance customers are actively looking for new policies, only 2.2% have actually changed insurers, down from 2.5% two years ago.

Read more: Amica tops new JD Power list

Home and auto insurance collections are down in 2024 compared to the previous year. However, more customers are considering switching auto insurance without changing their home insurance. A fifth (21%) of customers said they would “definitely” change their home insurance if they changed their car insurance, down from 24% in 2023.

Clear communication from insurers can help mitigate the impact of price increases. Customers who fully understand the reason for a price increase are 14 percentage points less likely to buy a new policy. They are also 21 percentage points more likely to agree that their insurer puts their customers’ interests first.

JD Power Homeowners Insurance Rating

Chubb ranked highest in the homeowners insurance sector, with a score of 688, followed by AIG (680) and Amica (679).

Erie Insurance ranked highest in the renters insurance sector for the second year in a row, with a score of 713. Amica (695) and Lemonade (682) rounded out the top three.

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