JD Power has released its 2013 US Household (Home & Renters) Insurance & Bundling Customer Satisfaction Study. Although I think the annual JD Power customer surveys are great resources for consumers to use, as an objective measure of customer satisfaction, for each of the major residential property insurance companies in the USA, the power circle ratings, used by JD Power to rate each insurance company, can mislead people about the real quality of the companies included in the study. This review & analysis of the numerical scores for the home & tenants insurance companies surveyed in the JD Power 2013 US Household (Home & Renters) Insurance & Bundling Customer Satisfaction Study will let you know the best & worst companies, and which highly rated companies are really performing close to average, and about the same as lower rated companies.
The Best & Worst US Insurance Companies for Home Insurance Customer Satisfaction, based on the 2013 JD Power Customer Survey.
Per the JD Power September 30th, 2013 press release:
“The 2013 U.S. Household Insurance and Bundling Study is based on 21,167 responses from customers who may have the following insurance product lines: homeowners; renters; individual life insurance; recreational vehicle; personal liability umbrella; and secondary residence. The study was fielded from June 10, 2013, through July 12, 2013. The study examines overall customer satisfaction in each of these product lines; however, the study only ranks performance in two personal property insurance segments— homeowners and renters. Both index scores are comprised of five factors: interaction; policy offerings; price; billing and payment; and claims.”
This annual JD Power study, prior to 2013, rated the major US companies selling homeowners insurance for customer satisfaction. For 2013, in addition to the home insurance customer satisfaction ratings, the study includes company ratings for customer satisfaction with renters insurance. The home insurance customer satisfaction ratings have been changed to include companies like Progressive & GEICO, which do not insure homes, but sell the home & renters insurance of other companies, and offer a bundling discount to their auto insurance customers. This is a welcome addition to the study because, although GEICO & Progressive serve as agents instead of home insurance companies, many people purchase home or renters insurance from them. It’s important for consumers to have some measure of their customer’s satisfaction, before buying home or renters insurance from Progressive or GEICO. Of course, you also want to consider the customer satisfaction or complaint record of the insurance company offered by GEICO or Progressive to insure your home.
Although JD Power insurance studies are useful, you need to look beyond the power circle rating system used by JD Power, to know which companies really have superior or inferior customer satisfaction. Some companies, rated above average with four or five power circles, actually scored much closer to average than some other top-rated companies.
The power circle rating is determined by a company’s point score on a 1,000 point scale.
For example, Progressive insurance scored 796 out of 1,000 points in the 2013 home insurance study, and was rated 4 power circles (better than most) for overall customer satisfaction. Country Insurance scored 795 out of 1,000 points in the same study, which is only 1 point less on the 1,000 point scale (a .1% difference). But Country Insurance was rated 3 power circles (about average) for overall customer satisfaction. Progressive is rated better than most, but it scored only 9 points more (.9% higher) than the study average score. Progressive’s rating of 4 power circles implies much better home insurance customer satisfaction than Country Insurance, but Progressive’s score is only one point better than Country Insurance. I think the expectation of superior home insurance customer satisfaction from Progressive Insurance is a false expectation.
Renters Insurance: As for renters insurance, I’d recommend finding the best auto insurance company for you, then buying renters insurance from the same company insuring your auto. The two five power circle (among the best) rated companies in the JD Power 2013 Renters Insurance Customer Satisfaction Study, did not score much higher than the study average score. In the renters insurance customer satisfaction study, the most important category of claims was only evaluated for two companies. Renters insurance is inexpensive with most companies, so a company costing 20% less, would save the average renter at most $30 to $40 per year, and not likely as much as the savings on their auto insurance for bundling renters insurance with the same company.
If you don’t own a private passenger vehicle or need auto insurance, USAA, Nationwide Insurance, & American Family insurance performed the best for renters insurance customer satisfaction. Allstate received the worst rating of two power circles in the category of claims (All companies but USAA were not evaluated for claims in this study). Travelers, Farmers, & Liberty Mutual scored lower than the other major companies, and received the lowest rating of two power circles in all categories, including company interaction, policy offerings, price, & billing and payment.
This review analyzes the home insurance customer satisfaction scores from the study, ranking the highest scoring companies to the lowest scoring companies from best to worst, and looks at each company’s ratings for factors considered, like company interaction, policy offerings, price, billing and payment, and claims. You can read definitions of these factors in this blog post.
The information I provide will help you avoid thinking it might be worth paying more for a company rated better than most, or among the best, with 4 or 5 power circles, when its actual home insurance customer satisfaction score is not far from average. Or, let you know if a top rated company’s score is very close to another company with a lower power circle rating, which you may want to choose over the higher rated company, because it has better coverage, or a much better price for you. Also, my analysis will help you decide if you should consider changing home insurance companies, if your home insurance company has an average or lower rating in this study.
Not all the companies on this list sell home or renters insurance in every state. Not everyone will qualify for every company, based on their recent claims history, type age, or condition of their residence, or other factors.
JD Power 2013 US Home Insurance Customer Satisfaction Study: 28 Major Companies Ranked from Best to Worst for Overall Customer Satisfaction
The first company is in a class by itself, receiving the highest numerical score in the study by far. Although the second highest scoring company also received the highest rating of 5 power circles for overall home insurance customer satisfaction, the highest scoring company provides much higher satisfaction, as measured this study.
1,000 points is a perfect score.
1. USAA home insurance — 894 points. USAA scored 894 out of 1,000 possible points (89.4%), 5.2% more than the second highest scoring company, and 10.7% (107 points) above the study average score. Unfortunately, USAA has restricted eligibility to the US military, their spouses & children, and honorably discharged veterans. But if you qualify, you should definitely consider this company to insure your home.
2. Amica home insurance — 842 points. Amica scored 842 points out of 1,000 possible points (84.2%). This is 52 points (5.2%) below USAA, but still 55 points (5.5%) above the study average. If USAA is not an option for you, Amica may be your best choice for home insurance customer satisfaction.
Both USAA & Amica were rated at 5 power circles (among the best) for each category assessed in the study: company interaction, policy offerings, price, billing and payment, and claims.
All but the last of the companies in this next group of ten companies are rated 4 power circles (better than most) for overall home insurance satisfaction, but I would not consider them better than most, since the four highest scoring companies received three power circle (about average) ratings for claims. Although the top four companies scored between 2.1% to 2.6% above the study average, which I like to see, to consider a company better than average for customer satisfaction. However, higher scores for categories like company interaction and billing & payment, do not offset an average rating in the important category of claims. A 2% to 3% difference above the average is the norm for most of the higher scoring companies in JD Power insurance studies, but it’s debatable if it’s truly a significant difference. To illustrate why I consider this to be the case, say one student scores 82% on a test, and another student scores 85% on a test, would you consider the student scoring 85% a much better student? I don’t think so. I like to see companies score above the average in JD Power insurance studies, but I would not pay a lot more to insure with them, expecting to receive a “better than most” level of home insurance customer satisfaction. Satisfaction in the category of home insurance claims, are not consistent with the scores ranking the next eight companies, so please take note of each company’s power circle rating for the claims category, when considering the ten companies below.
3. State Farm home insurance — 813 points. State Farm scored 813 points out of 1,000 possible points (81.3%), 81 points (8.1%) below the highest scoring company, USAA, and 29 points (2.9%) below the second highest scoring company, Amica, but State Farm still scored 26 points (2.6%) above the study average. State Farm received a 4 power circle rating for overall home insurance customer satisfaction, but only rated 3 power circles (about average) in the categories of pricing and claims.
4. Auto-Owners home insurance — 812 points. Auto Owners scored 812 points out of 1,000 possible points (81.2%), only one point (.1%) below State Farm, and scored 25 points (2.5%) above the study average. Auto-Owners received a 4 power circle rating for overall home insurance customer satisfaction and all categories, except claims, where Auto-Owners rated 3 power circles (about average). Based on this study, I’d consider Auto-Owners providing about the same level of home insurance customer satisfaction as State Farm.
5. Erie home insurance — 811 points. Erie scored 811 points out of 1,000 possible points (81.1%), scoring only 1 point below Auto-Owners, only two points below State Farm, and scoring 24 points (2.4%) above the study average. Like Auto-Owners, Erie received a 4 power circle rating for overall home insurance customer satisfaction and all categories, except claims, where Erie rated 3 power circles (about average), the same as State Farm & Auto-Owners. Based on this study, I’d consider Erie providing about the same level of home insurance customer satisfaction as State Farm & Auto-Owners.
6. Automobile Club of Southern California home insurance — 808 points. Auto Club of SC scored 808 points out of 1,000 possible points (80.8%), three points below Erie, four points below Auto-Owners, and five points below State Farm, but scored 21 points (2.1%) above the study average. Although Auto Club of SC received a 4 power circle rating for overall home insurance customer satisfaction, it rated 3 power circles (about average) for the category of company interaction, and received the lowest rating of two power circles, for the category of claims. Based on its poor performance in the claims category, and in spite of its fairly close numerical score to State Farm, Auto-Owners, and Erie, I’d consider Auto Club of SC providing less home insurance customer satisfaction, and would favor any company, in this group of eight companies, rated higher in the claims category, over Auto Club of SC.
7. Encompass home insurance — 798 points. Encompass scored 798 points out of 1,000 possible points (79.8%), 10 points (1.0%) below Auto Club of SC, but still scored 11 points (1.1%) above the study average. Encompass received a 4 power circle rating for overall home insurance customer satisfaction, but only rated 3 power circles (about average) in the category of billing and payment. However, Encompass received the highest rating of five power circles in the category of claims. In spite of its lower score than the companies ranked 3-6 in this review, I’d consider Encompass providing a higher level of home insurance customer satisfaction where it counts — in the category of claims.
Erectile dysfunction is a sexual complication levitra generika probe cerritosmedicalcenter.com faced by men. To treat it in time, we need to know more . viagra purchase on line Erectile dysfunction is another ill-effect of cerritosmedicalcenter.com order cheap viagra over masturbation. According to an article on Livestrong, cheap female viagra Vitamin E has promise for Peyronies Disease, but such claims have not demonstrated a consistent benefit.
8. American Family home insurance — 797 points. American Family scored 797 points out of 1,000 possible points (79.7%), scoring only 1 point below Encompass, and 10 points (1.0%) above the study average. Although American Family received a 4 power circle rating for overall home insurance customer satisfaction, it rated 3 power circles (about average) for the category of pricing, and received the lowest rating of two power circles, for the category of claims. Based on its poor performance in the claims category, As with Auto Club of SC, I’d consider American Family providing lower home insurance customer satisfaction, and would favor any company, in this group of eight companies, rated higher in the claims category, over American Family.
9. Progressive insurance — 796 points. Progressive scored 796 points out of 1,000 possible points (79.6%), scoring only 1 point below American Family, only 2 points below Encompass, and 9 points (.9%) above the study average. Progressive received a 4 power circle rating for overall home insurance customer satisfaction and all categories, except company interaction, where it was rated 3 power circles (about average). However, Progressive’s score is within 1 percent of the study average, so I think it’s questionable it’s providing home insurance customer satisfaction much above average. It’s good Progressive received a 4 power circle rating in the category of claims, but Progressive works with different home insurance companies, depending on the cost to rebuild and location of your home. If you read my insurance company reviews, you know there is a substantial difference in the amount of company complaints against companies Progressive uses to provide home insurance, like Chubb, IDS, or Homesite. The real level of customer satisfaction you should expect will depend on the property insurance company Progressive uses to insure your home.
10. COUNTRY home insurance — 795 points. COUNTRY scored 795 points out of 1,000 possible points (79.5%), one point (.1%) below Progressive, and 8 points (.8%) above the study average. Country received a 3 power circle rating (about average) for overall home insurance customer satisfaction, but rated 4 power circles (better than most) in the categories of pricing and claims. In spite of its lower power circle rating for overall home insurance customer satisfaction than Progressive, there is only a one point difference in their scores, so I would consider their level of overall customer satisfaction about the same. Unlike Progressive, Country sells its own home insurance, so its 4 power circle rating for the category of claims is more reliable. Although companies, like State Farm, Auto-Owners, & Erie scored 16 to 18 points (1.6% – 1.8%) higher than COUNTRY for overall customer satisfaction, in the category of claims, COUNTRY rated higher than them in this study.
11. Cincinnati home insurance — No point score. There were not enough Cincinnati Insurance customers responding to this JD Power study, to meet the study’s minimum sample share, so its numerical score was not published by JD Power. However, the power circle rating for Cincinnati Insurance, in each category evaluated for this study, including overall home insurance customer satisfaction, is published on the JD Power website. Cincinnati Insurance received a 3 power circle rating (about average) for overall home insurance customer satisfaction, but rated 4 power circles (better than most) in the categories of pricing and claims. Cincinnati Insurance received the same ratings in each category as COUNTRY insurance, so I would consider its home insurance customer satisfaction at approximately the same level as COUNTRY insurance.
12. Shelter home insurance — No point score. Like Cincinnati Insurance, there were not enough Shelter Insurance customers responding to this JD Power study, to meet the study’s minimum sample share, so its numerical score was not published by JD Power. However, the power circle rating for Shelter Insurance, in each category evaluated for this study, including overall home insurance customer satisfaction, is published on the JD Power website. Shelter Insurance received a 4 power circle rating (better than most) for overall home insurance customer satisfaction and most other categories, but rated 3 power circles (about average) in the category of claims. Cincinnati Insurance received the highest rating of 5 power circles in the category of company interaction. Shelter did well in the study, but considering its inadequate sample share, unknown numerical score, and about average rating for the category of claims, I would not consider it has higher customer satisfaction than any other company ranked higher (#1-#11) in this review, except Auto Club of SC, which rated lower in the category of claims, than Shelter.
These next seven companies scored close to the study average, and rated three power circles (about average) or higher in most of the categories considered, including claims. The one exception is GEICO, which received the lowest two power circle rating category in two categories, including the claims category. Like Progressive, GEICO sells the home insurance of other companies, and given its poor performance in the claims category, I would consider GEICO providing lower home insurance customer satisfaction, in spite of its score, than the other companies in this Average to Slightly Below Average grouping.
13. Allstate home insurance — 789 points. Allstate scored 789 points out of 1,000 possible points (78.9%), two points (.2%) above the study average. Allstate received a 3 power circle rating (about average) for overall home insurance customer satisfaction and all categories, except the categories of policy offerings and billing & payment, where Allstate was rated 4 power circles (better than most).
14. GEICO insurance — 789 points. GEICO scored the same as Allstate, 789 points out of 1,000 possible points (78.9%), and two points (.2%) above the study average. GEICO received a 3 power circle rating (about average) for overall home insurance customer satisfaction only, being better or worse than average in each category making up overall home insurance customer satisfaction. GEICO received a 4 power circle rating (better than most) for the categories of price, policy offerings, and billing & payment. However, GEICO received the lowest rating of two power circles for the categories of company interaction and claims. GEICO, like Progressive, does not sell its own home insurance, but works with several other companies to sell their home insurance to GEICO auto insurance customers. Based on the study results, GEICO provides acceptable customer satisfaction for people buying home insurance from the company, unless you have a claim, where you are likely to experience worse than average customer satisfaction, communicating with the company and with the claims process. As I stated above, given its poor performance in the claims category, I’d consider GEICO providing lower home insurance customer satisfaction, in spite of its score, than the other companies in this Average to Slightly Below Average grouping.
2013 JD Power US Homeowners Insurance Customer Satisfaction Study Average Score: 787 out of 1,000 points (78.7%).
15. The Hartford home insurance — 787 points. Hartford scored the same as the study average, 787 points out of 1,000 possible points (78.7%). The Hartford received a 3 power circle rating (about average) for overall home insurance customer satisfaction and all categories, except the category of pricing, where The Hartford was rated 4 power circles (better than most). Although the majority of Hartford customers surveyed in this study consider Hartford’s home insurance rates better than most, don’t assume Hartford will have competitive home insurance rates for you.
16. NCNU Insurance Exchange (AAA) home insurance — 786 points. AAA of Northern California, Nevada, & Utah scored 786 points out of 1,000 possible points (78.6%), one point (.1%) below the study average. AAA NCNU received a 3 power circle rating (about average) for overall home insurance customer satisfaction and all categories, except the categories of pricing, where NCNU Insurance Exchange was rated 4 power circles (better than most), and the category of claims, where it received the lowest rating of two power circles. I think it’s best to avoid companies rated two power circles in the category of claims.
17. Nationwide home insurance — 780 points. Nationwide scored 780 points out of 1,000 possible points (78.0%), seven points (.7%) below the study average. Nationwide received a 3 power circle rating (about average) for overall home insurance customer satisfaction and all categories, except the category of billing & payment, where it received the lowest rating of two power circles.
18. Metlife home insurance — 778 points. Metlife scored 778 points out of 1,000 possible points (77.8%), nine points (.9%) below the study average. Metlife received a 3 power circle rating (about average) for overall home insurance customer satisfaction and all categories, except the category of company interaction, where it received the lowest rating of two power circles.
19. Allied home insurance — No point score. Like Shelter & Cincinnati Insurance, there were not enough Allied Insurance customers responding to this JD Power study, to meet the study’s minimum sample share, so its numerical score was not published by JD Power. However, the power circle rating for Allied Insurance, in each category evaluated for this study, including overall home insurance customer satisfaction, is published on the JD Power website. Allied received a 3 power circle rating (about average) for overall home insurance customer satisfaction and all categories, except the categories of company interaction and billing & payment, where it received the lowest rating of two power circles.
20. Safeco home insurance — 778 points. Safeco scored 778 points out of 1,000 possible points (77.8%), nine points (.9%) below the study average. Safeco scored the same as Metlife, but placed in the Worst group, because it received the lowest JD power rating in the claims category. Safeco received a 3 power circle rating (about average) for overall home insurance customer satisfaction and all categories, except the categories of company interaction and claims, where it received the lowest rating of two power circles.
21. Automobile Club Group home insurance — 776 points. Auto Club scored 776 points out of 1,000 possible points (77.6%), 11 points (1.1%) below the study average. Auto Club received a 3 power circle rating (about average) for overall home insurance customer satisfaction and all categories, except the categories of company interaction and claims, where it received the lowest rating of two power circles.
22. CHUBB home insurance — 768 points. Chubb scored 768 points out of 1,000 possible points (76.8%), 19 points (1.9%) below the study average. Chubb received the worst JD Power rating of 2 power circles for overall home insurance customer satisfaction and all categories, except the category of claims, where it received the rating of three power circles (about average).
23. The Hanover home insurance — 766 points. The Hanover scored 766 points out of 1,000 possible points (76.6%), 21 points (2.1%) below the study average. Hanover received the worst JD Power rating of 2 power circles for overall home insurance customer satisfaction and all categories, except the categories of pricing and claims, where it received the rating of three power circles (about average).
24. Farmers home insurance — 763 points. Farmers scored 763 points out of 1,000 possible points (76.3%), 24 points (2.4%) below the study average. Farmers received the worst JD Power rating of 2 power circles for overall home insurance customer satisfaction and all categories.
25. Liberty Mutual home insurance — 762 points. Farmers scored 762 points out of 1,000 possible points (76.2%), 25 points (2.5%) below the study average. Liberty Mutual received the worst JD Power rating of 2 power circles for overall home insurance customer satisfaction and all categories, except the category of policy offerings, where it received the rating of three power circles (about average).
26. Travelers home insurance — 756 points. Travelers scored 756 points out of 1,000 possible points (75.6%), 31 points (3.1%) below the study average. Travelers received the worst JD Power rating of 2 power circles for overall home insurance customer satisfaction and all categories, except the category of claims, where it received the rating of three power circles (about average).
27. Mercury home insurance — No point score. Like Allied, Shelter, & Cincinnati Insurance, there were not enough Mercury Insurance customers responding to this JD Power study, to meet the study’s minimum sample share, so its numerical score was not published by JD Power. However, the power circle rating for Mercury Insurance, in each category evaluated for this study, including overall home insurance customer satisfaction, is published on the JD Power website. Mercury received the worst JD Power rating of 2 power circles for overall home insurance customer satisfaction and all categories, except the category of pricing, where it received the rating of 4 power circles (better than most). Although the majority of Mercury customers surveyed in this study consider Mercury’s home insurance rates better than most, don’t assume Mercury will have competitive home insurance rates for you. Based on Mercury’s performance in this study, if you can find another company offering the same home insurance coverage at a similar price, it may be a better option for you than choosing Mercury.
28. Homesite home insurance — No point score. Like Mercury, Allied, Shelter, & Cincinnati Insurance, there were not enough Homesite Insurance customers responding to this JD Power study, to meet the study’s minimum sample share, so its numerical score was not published by JD Power. However, the power circle rating for Homesite Insurance, in each category evaluated for this study, including overall home insurance customer satisfaction, is published on the JD Power website. Homesite received the worst JD Power rating of 2 power circles for overall home insurance customer satisfaction and all categories, but was not evaluated for claims. Be aware auto insurance companies like Progressive & GEICO, often use Homesite to offer home insurance to their auto insurance customers.
Now you know how 28 major home insurance companies in the US are rated for home insurance customer satisfaction, start shopping now to save money and improve your service. You really can accomplish both these goals if you get price quotes from all the leading companies.
Which companies do you think provide the best & worst home & renters insurance? Comment on my facebook page. If you have questions and would like my help, you can reach me at help@smartshopyourcarinsurance.com. Follow me on Twitter for important insurance consumer news & new blog entries at CarInsWatch.