Satisfaction with home claims experience averages 828 compared to 842 for auto claims experience

Satisfaction among homeowners insurance customers who file a property claim is significantly lower than that of auto claimants, according to a study released by JD Power and Associates.

The research showed that customer satisfaction with the home claims experience averages 828 on a 1,000-point scale. In comparison, satisfaction with the auto claims experience averages 842.

Jeremy Bowler, senior director of the insurance practice at JD Power and Associates, said: Home claims are typically far more complex than auto claims, and homeowners insurance claimants tend to have less knowledge of the specifics of their policy coverage than do auto claimants.

Although satisfying home claimants is particularly challenging, it’s still crucial for insurance providers to meet the needs of these customers, given the significant impact the experience has on long-term policy retention.

According to the study, higher levels of satisfaction with home claims experience have a positive impact on customer loyalty and advocacy. Among customers of insurers that achieve high satisfaction scores, two-thirds said that they definitely will renew their policy, while 64% say they definitely will recommend the insurer. In contrast, among respondents with lower levels of satisfaction, only 49% say they definitely will renew and 42% say they definitely will recommend the insurer.

The study showed that insurers in particular have the opportunity to enhance customer satisfaction during the first notice of loss and settlement portions of the claims process.

Fewer than three-fourths of home claimants indicate that the insurer provided an explanation of their policy coverage, compared with 81% of auto claimants, during the first notice of loss process. During the settlement process, 22% of home claimants report negotiating the settlement amount, compared with 11% of auto claimants, the firm said.