Homeowners have been growing steadily more dissatisfied with their insurance companies, and this year hit a new low, according to a study by J.D. Power & Associates. The J.D. Power and Associates 2010 U.S. National Homeowners Insurance Study, released Tuesday, reflected survey respondents’ rankings of their insurance companies on a number of issues, and many were found wanting.
According to the company, rankings by consumers on the five main areas of policy offerings, price, billing and payment, interaction, and claims brought overall satisfaction ratings with homeowner’s insurance companies of 750 on a 1,000-point scale in 2010; that’s a 23-point drop from 2009. While satisfaction has dropped in four of those five factors from 2009 (all but claims, which one might argue is the most important of the list), the greatest declines, say the survey, are in the policy offerings and interaction factors.
Too much advertising from insurers pushing auto insurance discounts, and the lack of understanding among policyholders of how home premiums are calculated—coupled with a basic lack of understanding of their homeowner’s policies—are considered the main reasons for the drop in satisfaction among customers.