Are Homeowners Happy with Their Home Insurance Provider?
Consistent rate increases led to customers being less than satisfied with their insurer.
A recent study by Clearsurance took a look at how happy homeowners are with their insurer and found that the residents of West Virginia were happiest when it came to their homeowners insurance while the people of Florida were the least happy.
The scores were based on user reviews and ratings of their overall experience with insurance companies as well as their likelihood to renew with their current insurer and how likely they would be to recommend their insurer to a friend. The highest possible score was a 5.0 with West Virginia achieving a 4.47 while Florida only managed a 4.03.
It should be noted that some states did not meet the minimum requirement of 100 reviews. The following states did not qualify: Alaska, Delaware, Idaho, Hawaii, Maine, Montana, North Dakota, New Mexico, Rhode Island, South Dakota, Vermont and Wyoming.
The study found that many factors impact the level of happiness customers feel towards their insurance company. Customer service and claims handling process absolutely impacts the happiness factor, particularly among policyholders that had filed a claim. As with most things in life, price was also a major contributor to happiness or in many cases, unhappiness with a specific insurer. Consistent rate increases led to customers being less than satisfied with their insurer.
Following is how the Top and Bottom 10 rankings shook out:
Happiest States:
- West Virginia – 4.47
- Washington, D.C. – 4.39
- Ohio – 4.36
- Kentucky – 4.36
- Alabama – 4.34
- Michigan – 4.34
- Arkansas – 4.33
- Pennsylvania – 4.33
- Utah – 4.32
- Maryland – 4.32
Least Happy States:
- Florida – 4.03
- Colorado – 4.13
- Iowa – 4.15
- Mississippi – 4.17
- Kansas – 4.17
- Tennessee – 4.20
- Georgia – 4.20
- Connecticut – 4.23
- Texas – 4.24
- New York – 4.24
One factor that seemed to have a major impact was the number of weather related incidents a customer experienced, which is probably why residents of Florida were the least happy with their homeowners insurance.
The study found that the percentage of people in the happiest states who referenced a weather related incident in their review was only 4 percent while that number was doubled (8 percent) for reviewers in states that were least happy with their insurance. The majority of the unhappiest states are prone to severe weather, tornadoes, hurricanes and hailstorms are common in the majority of them.
As an example, Florida, which is the least happy state in the country when it comes to homeowners insurance is also the most hurricane prone state. On the other hand, many of the happiest states (but not all of them) are fairly immune to major weather disasters.
Prices and Claim Service Matter
Claim service ratings are definitely a key to happiness when it comes to homeowners insurance. The happiest states averaged a score of 4.26 for claim service while the least happy states came in at 4.04.
How an insurer handles a claim can have a major impact on the happiness of their customers. If a customer is unsatisfied with either the amount paid on the claim or the time it takes for the insurer to process a claim, happiness can plummet.
Price is another factor that can dramatically affect happiness levels with an insurer. The happiest states when it comes to homeowners insurance scored a 4.00 for pricing while the least happy states came in at 3.88. Many of the happiest states enjoy the lowest homeowners insurance costs in the country.
If you find yourself in the unhappy category when it comes to homeowners insurance, shopping your coverage is the best option for finding better home insurance rates online. Experts recommend shopping your coverage at least once a year.