Challenges in Homeowners Insurance Claims

The J.D. Power 2025 U.S. Property Claims Satisfaction Study highlights the increasing challenges faced by homeowners when dealing with insurance claims. This has been exacerbated by extreme weather events, significant hikes in premiums, and prolonged repair cycles, all contributing to a decline in customer satisfaction.

Mark Garrett, the Director of Insurance Intelligence at J.D. Power, emphasized, “With 27 catastrophic events in 2024 and 28 in the preceding year, insurers are under immense pressure. Homeowners insurers are losing approximately five cents on every dollar of premium collected. As we continue to assess the costs of disasters like the California wildfires, the financial strain shows no signs of abating.”

Impact on Customer Experience

Garrett further noted, “Customers are essentially paying more for slower service. It now takes an average of 44 days from the first notice of loss to receive final payment on a claim, impacting customer satisfaction unless insurers maintain clear and frequent communication throughout the process.”

The study reveals that claim cycle times have reached unprecedented levels, with the average claim taking a staggering 32.4 days to complete. The duration from the first notice of loss to final payment has exceeded 44 days, marking the longest recorded period since the study began in 2008.

Customer Satisfaction and Communication

Claims resolved within 10 days achieve an average satisfaction score of 762 on a 1,000-point scale. However, satisfaction plummets by 167 points to 595 when repairs extend beyond 31 days. Half of the surveyed customers reported premium increases over the past year. Those experiencing rate hikes without filing a claim exhibited markedly lower satisfaction scores (629) compared to those whose rates remained static (730).

Enhanced communication can mitigate the frustration associated with rising costs and extended claims processing times. Satisfaction scores more than double (777 vs. 337) when customers find communication with their insurer straightforward. Common grievances include leaving voicemails, repeatedly calling with questions, and experiencing delayed responses to emails and texts.

Garrett remarked, “Interestingly, 82% of customers frequently interact with their insurer through non-preferred communication channels.”

Digital Tools and Insurer Rankings

The study also finds that satisfaction is higher among customers utilizing digital tools for filing claims, submitting photos for estimates, and receiving proactive updates. Among digital channels, app usage stands out, yielding the highest levels of satisfaction throughout the claims process.

Among insurers, Chubb leads in property insurance claims experience with a score of 773, followed by Amica (745) and The Hartford (725).