If you’ve recently filed a home insurance claim, there’s a good chance you’re unhappy with your policy. As home insurance costs rise, repairs and claims are taking longer to complete, and both factors are leading to a decline in customer satisfaction.
A new study from J.D. Power found that home repair cycle times are “through the roof.” This refers to the number of days between filing a claim and completing home repairs, and the average cycle time is up to 23.9 days, an increase of six days from 2022. The fact that Home insurance prices have increased significantly only adds to the burden of policyholders.
It’s no surprise, then, that customer satisfaction with homeowners insurance is declining for the study group, made up of approximately 6,000 policyholders who recently filed a claim. Over the past year, average customer satisfaction has dropped five points, from 874 to 869 on J.D. Power’s 1,000-point scale.
Insurers are dealing with a greater number of claims and a greater severity of damage, which is why repairs are taking longer, according to Mark Garrett, director of claims intelligence at J.D. Power.
“Catastrophic weather events are straining an already fragile system that still has supply chain issues impacting the availability and cost of materials,” Garrett said in a report. “Resources become strained for both insurers and contractors doing the work.”
Why satisfaction with home insurance is declining
All aspects of the claims process take longer: damage estimates, customer compensation, and actual repairs. According to J.D. Power, customers tend to get frustrated when complaints take longer than three weeks. Of course, more serious claims will take much longer than that time frame, but homeowners only have so much patience for minor repairs.
Increasing home insurance premiums also impact satisfaction.
A separate report from Guaranteed Rate Insurance, a national brokerage, found that the national average annual cost of home insurance rose to $1,723 in 2023, up from $1,276 in 2021.
J.D. Power notes that 28 disasters last year caused at least $1 billion in damage, which was a record and financial blow to the industry. Insurance companies say they are raising premiums due to increased claims and higher home repair costs.
Customers looking to save on home insurance sometimes opt for policies with higher deductibles. Unfortunately, higher deductibles typically lead to lower satisfaction among people filing claims.
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