Homeowners Insurance Premium Hikes Are Driving Away Loyal Customers

Nearly half of U.S. homeowners (47%) have faced homeowners insurance premium increases over the past year, the highest rate in more than a decade, according to J.D. Power’s 2025 U.S. Home Insurance Study. The surge in rate hikes—driven by inflation, extreme weather events, and tightening reinsurance markets—is affecting customer loyalty, especially among high-value policyholders. These customers, who typically carry higher premiums and hold multiple policies, are more likely to switch carriers following repeated price increases.

J.D. Power’s findings show a direct link between premium hikes and customer dissatisfaction. Among policyholders unlikely to renew, 43% say the rate increase was the primary reason. Trust in insurers also declines when customers face price hikes without adequate communication or explanation. However, the study found that when insurers explain the reason behind the increase and offer ways to reduce costs, satisfaction scores are significantly higher—even outperforming those who didn’t receive any rate hike.

High-value customers—considered the most profitable for insurers—are particularly sensitive. Forty-five percent of those unlikely to renew cite repeated premium increases as the main factor. In comparison, just 30% of low lifetime-value customers say the same. The study emphasizes the importance of proactive customer engagement to mitigate churn and maintain profitability.

Amica ranked highest in both homeowners and renters insurance satisfaction, highlighting the importance of delivering consistent service, clarity, and trust. Other top-performing carriers include Chubb, Erie Insurance, and CSAA Insurance Group. The results underline that insurers who manage rate increases with transparency and support stand a better chance of retaining loyal customers in a volatile market.