Property owners are feeling less satisfied with their insurance companies, according to the latest findings from J.D. Power’s 2025 U.S. Property Claims Satisfaction Study. Higher premiums and longer wait times for claims are key factors contributing to this decline in satisfaction.
The study shows that the average time for a homeowner to receive final payment after filing a claim has reached 44 days, the longest wait since 2008. Mark Garrett, a director at J.D. Power, highlighted that customers are essentially paying more for slower service. The average time from filing a claim to completing repairs is now 32.4 days. When claims are resolved in under ten days, satisfaction scores are significantly higher, averaging 762 points on a 1,000-point scale. However, for claims that take more than 31 days, satisfaction plummets to just 595 points.
The study surveyed over 5,000 homeowners who filed claims within the past nine months. It found that half of the respondents experienced premium increases initiated by their insurers in the past year. Those who faced such increases reported satisfaction scores that were 101 points lower than those who did not see a hike in their premiums.
The insurance industry is facing challenges, with 27 catastrophic events recorded in 2024. Insurers are currently losing about five cents for every dollar they collect in premiums, raising concerns about the sustainability of homeowners’ insurance.
To improve satisfaction, J.D. Power emphasizes the importance of communication. Customers who find it easy to communicate with their insurers report satisfaction scores of 777, while those who struggle with communication only score 337. Many customers express frustration over leaving voicemails and not receiving timely updates.
The study also found that younger generations, particularly Gen Z and Millennials, prefer using digital tools for managing claims. About 87% of these age groups feel comfortable handling the entire claims process online, compared to only 60% of older generations.
This year’s study is redesigned, making it difficult to compare scores with previous years. It was conducted from January to December 2024, reflecting the current state of homeowner insurance claims and customer experiences.