Trust keeps homeowners loyal even as premiums rise: JD Power

• Key insight: Trust, seamless service and channel effectiveness are critical to homeowners insurance retention.
• Expert quote: "Two out of three, 66% [of] home insurance customers still said they somewhat or strongly agree that shopping for a new insurer is too difficult or time consuming. This could change materially as new technology, AI agents specifically, reduces the effort and time required for consumers to shop." – Craig Martin, executive director, insurance intelligence at JD Power.

Trust, seamless service and channel effectiveness are critical to homeowners insurance retention, according to the JD Power 2026 U.S. Home Insurance Study. 

The cost of home ownership is adding affordability strain for customers, according to the study.

"Despite the fact that we've seen elevated levels of consumers reporting their premiums have increased, two out of three, 66%, [of] home insurance customers still said they somewhat or strongly agree that shopping for a new insurer is too difficult or time consuming," Craig Martin, executive director, insurance intelligence at JD Power, shared with Digital Insurance. "That said, this could change materially as new technology, AI agents specifically, reduces the effort and time required for consumers to shop."

Trust is associated with higher retention and lower likelihood of shopping around for new insurance. Customers who strongly agree their insurance experience is seamless have higher overall satisfaction, according to the study.

Understanding a policy is also a challenge as more than half, 55%, of homeowners say they completely understand what their policy covers. That level hasn't changed much in the past six years. Proactive outreach by insurers does increase understanding to 60%, compared with the 48% who have had no contact with their insurer in the past 12 months. 

Amica ranked the highest in the homeowners insurance segment for the second year. Erie Insurance was ranked second and Chubb was third. State Farm ranked highest in renters insurance, Erie Insurance was second and Amica was third. 

The U.S. Home Insurance Study examines customer satisfaction in homeowners and renters insurance. Satisfaction is measured by product and coverage offerings, problem resolution, digital channels, people, price for coverage, trust and ease of doing business. The study includes responses from 17,191 homeowners and renters who did online interviews between July 2025 and July of this year.