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National Study Ranks Best Home Insurers In The United States

By Mike Heuer

In general, homeowners in the United States are essentially satisfied with the home insurance rates and customer service they receive from their insurance providers, according to an annual study by J.D. Power and Associates.

The annual study shows a high satisfaction rate with homeowners insurance firms, particularly among those policyholders who bundle their auto and home insurance plans with the same company. Bundling coverages generally leads to lower homeowners insurance rates as well as auto insurance rates and can generate long-term loyalty among consumers.

“The increase in satisfaction with policy offerings is directly related to customer perceptions that insurers are doing a better job in offering the right coverage options at competitive prices when policies are bundled,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. “Bundled policies not only may provide a reduced premium for customers, but may also be advantageous to both parties as it allows customers to interact with a single insurer, potentially streamlining both billing and payment.”

J.D. Power and Associates have conducted its annual U.S. National Homeowners Insurance Study for a dozen years. For the past 11 years, one insurer has ranked at the top each year regarding customer satisfaction. That insurer is Amica Mutual, which underwrites auto and homeowners insurance coverage in most states. But most insurers also generated a great deal of positive affect among their customers by such a margin that customers reported their highest overall rates of satisfaction with their respective home insurance companies in 2012.

With most home insurers receiving high marks for satisfaction among their customers, it means it is much easier to compare homeowners insurance rates to determine which firm should get the opportunity to underwrite coverage for single family homes and other properties in the United States.

During the 2012 study, homeowners insurance firms posted a combined satisfaction rating of 785 out of 1,000 potential points, which was the highest level ever attained in the survey. For those who bundle their policies with the same insurer, the satisfaction rating rant nearly 20 points higher than those who just had their homes insured through an insurance company. And the more coverages a customer bundled with his or her insurance firm, the higher the satisfaction score.

A potential reason satisfaction scores rise as more coverages are bundled through the same insurer would be the obvious notion that if someone is happy with his or her insurance company, he or she is that much more likely to want to do yet more business with them for other insurance needs.

Bowler would seem to agree.

“Insurance companies have a tremendous opportunity to create loyal customers by delivering a satisfying bundling experience and deepening their penetration into the household,” he said. “Once established, customers are inclined to keep their policies bundled. Additionally, they are more likely to add more products to their policy in the future.”

With average homeowners insurance rates at about $909 across the United States, generating a great deal of customer satisfaction and loyalty can pay off big for many insurers. That means it pays for them to offer the lowest home insurance rates to draw new business as more people use the Internet and other resources to compare homeowners insurance rates and find the best deals (check ).