2023 was a tough year for many homeowners: There were a record 28 catastrophic weather events that each caused more than $1 billion in damages, according to J.D. Power.
In total, these events were responsible for $92.9 billion in damages. As a result of all that wreckage, homeowners insurance performance appears to be suffering overall, with customer satisfaction falling to a seven-year low, results from J.D. Power’s 2024 U.S. Property Claims Satisfaction Study show.
J.D. Power says the increase in severe storms triggered more high-severity claims. That, in turn, caused delays in all steps of the claims process — including damage estimates, payments to customers and completion of repairs.
In a summary of the findings, Mark Garrett, director of claims intelligence at J.D. Power, says:
“Catastrophic weather events are straining an already fragile system still experiencing supply chain issues that affect the availability and cost of materials. Resources become strained for both insurers and the contractors doing the work. Unfortunately, it’s when claims last beyond three weeks that J.D. Power sees things decline.”
Despite this tough environment, some insurers continue to handle claims well. Keep reading for a list of the insurers that continue to perform well — and a summary of the worst-ranked insurance companies.
How J.D. Power ranked home insurance companies
In compiling its rankings, J.D. Power surveyed 6,019 customers with homeowners insurance who filed a claim in the previous nine months and asked them to rank their insurer based on five factors in order of importance:
- Settlement
- Claim servicing
- First notice of loss
- Estimation process
- Repair process
Amica
This homeowners insurance company’s overall customers satisfaction score: 906 of out 1,000 possible points
Amica sells a Platinum Choice HO5 policy that includes built-in replacement cost coverage of up to 130%.
It also offers its customers a service called Contractor Connection that helps them find licensed contractors that warranty their work for five years.
USAA
This homeowners insurance company’s overall customers satisfaction score: 889 of out 1,000 possible points
J.D. Power actually excluded USAA from its ranking because the company does not meet study award criteria. You cannot purchase USAA coverage unless you are a U.S. military member or veteran, a spouse or child of a member or veteran, or a precommissioned officer.
However, if USAA had been included, it would have earned the second-highest score of all.
When you buy a homeowners policy with USAA, replacement cost coverage is standard. You also can add USAA Home Protector coverage to your policy. This gives you 25% more toward rebuilding costs, debris removal, and building ordinance or law requirements.
Other top home insurers for claim processing
All of the following insurers earned customer satisfaction scores that tied with or beat the industry average, which is 869 out of 1,000 points:
- AIG: 889
- Erie Insurance: 888
- Farmers: 883
- American Family: 877
- Nationwide: 877
- Chubb: 876
- State Farm: 873
- Auto-Owners Insurance: 869
- Liberty Mutual: 869
The worst home insurers for claim processing
Some insurers struggled in the latest survey results. All of these insurers earned customer satisfaction scores below the industry average of 869 out of 1,000 points:
- Allstate: 868
- Automobile Club of Southern California (AAA): 864
- The Hartford: 864
- CSAA Insurance Group (AAA): 859
- ASI Progressive: 851
- Safeco: 851
- Travelers: 845
- Homesite: 820
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