Homeowners Face Higher Insurance Premiums and Slower Claims

Homeowners across the country are feeling the pinch when it comes to their homeowners insurance. Not only are premiums on the rise, but service levels are slipping, leaving many feeling frustrated and underserved. According to the latest J.D. Power 2025 U.S. Property Claims Satisfaction Study, half of homeowners surveyed reported their insurer raising their premium over the last year, even if they didn’t file a claim.

The insurance industry as a whole is reaping the benefits of these rate hikes, with property and casualty insurers collectively earning $22.9 billion in net underwriting gains last year. However, customers are feeling the brunt of these increases, especially when combined with longer times to resolve claims. Mark Garrett, director of insurance intelligence at J.D. Power, attributes these delays to the unprecedented number of natural disasters in recent years.

With more disasters comes more demand for insurance adjusters, contractors, laborers, and construction materials, leading to delays in claim processing and repairs. It now takes an average of 44 days before a homeowner receives the final payment on their claim, the highest duration recorded since tracking began in 2008.

The impact of these delays on customer satisfaction is significant. J.D. Power found that satisfaction levels plummet when repairs take more than a month to be completed, dropping by 167 points on average. Additionally, receiving a premium increase unrelated to a claim can lower satisfaction levels by 101 points.

Unfortunately, experts predict that higher premiums are here to stay, citing ongoing volatility in the weather as a driving factor. The average cost of homeowners insurance rose by a record-high 14% last year, with policyholders in some parts of the country paying annual premiums exceeding $3,500.

Karen Collins, from the American Property Casualty Insurance Association, attributes these increases to inflation and rising costs for construction materials and labor. Nancy Albanese, a private client advisor at The Safegard Group, notes that rate hikes are widespread across the industry, ranging from 10% to 25%.

In addition to premium increases, homeowners in designated flood or earthquake zones may need separate policies to protect against those disasters, as they are typically not covered by standard homeowners insurance. Overall, homeowners are facing a challenging landscape when it comes to insurance costs and service, with no relief in sight. As the cost of homeowners insurance continues to rise, it can feel like an overwhelming burden for many homeowners, especially those living in areas prone to windstorms. In these areas, homeowners may even have a separate deductible if their home sustains damage from a named storm. However, there are still ways to save on homeowners insurance, according to experts.

One of the most effective ways to save on homeowners insurance is to shop around. Different insurance carriers have different approaches to assessing and quantifying risks, which can result in variations in pricing. By comparing rates from multiple carriers, homeowners may be able to find a lower rate, especially if they have been with their current insurer for many years.

Another common way to save on homeowners insurance is to bundle multiple policies, such as home and automobile insurance. Many insurers offer discounts for bundling policies, with some advertising savings of over $1,200 a year. Additionally, making upgrades to your home, such as replacing a roof or installing features that make your house more resistant to hazards, can also lower your insurance rate.

Increasing your deductible is another strategy to save on homeowners insurance. While a higher deductible means more money out of pocket in the event of a disaster, it can result in lower rates and discourage homeowners from filing small claims that could affect their ability to get affordable insurance in the future.

Furthermore, homeowners should look for discounts offered by insurance carriers. Many insurers provide discounts for protective devices such as burglar alarms, surveillance systems, sprinkler systems, water shut-off systems, and smoke alarms. Homeowners may also be eligible for discounts if they have not filed a claim for a certain period, opt for paperless statements, set up automatic payments, or pay in advance.

In conclusion, while the cost of homeowners insurance may be on the rise, there are still ways for homeowners to save on their premiums. By shopping around, bundling policies, upgrading their home, increasing their deductible, and taking advantage of discounts, homeowners can mitigate the financial impact of rising insurance costs.