Homeowners Insurance Premium Hikes Challenge Customer Loyalty and Profits, J.D. Power Reports

Nearly half of U.S. homeowners insurance customers faced premium increases over the past year — the highest rate in more than a decade — according to the newly released J.D. Power 2025 U.S. Home Insurance Study℠.

Premium Increases and Customer Loyalty

The study found that 47% of homeowners insurance customers experienced a premium increase in the past year. This surge is especially significant among high lifetime-value customers, where 49% reported insurer-initiated rate hikes. Rising costs are driving dissatisfaction and prompting many to explore alternative carriers.

Among customers who experienced a premium increase and are unlikely to renew, 43% said the recent price hike was their main reason for considering a cswitch. The study also noted that trust and perceptions of ease of doing business decline significantly when premiums rise without clear communication.

High-Value Customers at Greater Risk

High-value customers — defined as those with higher annual premiums and multiple insurance products — are particularly sensitive to repeated rate hikes. Of those unlikely to renew, 45% cited multiple price increases as their reason for leaving. By comparison, only 30% of low lifetime-value customers pointed to repeated increases as their reason for nonrenewal.

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