Bundled policies mean higher U.S. homeowner satisfaction: J.D. Power survey

Insurers have a greater chance of achieving customer satisfaction if they bundle other policies with a homeowner policy, notes the most recent version of J.D. Power and Associates U.S. national homeowners insurance study.

The 12^th edition of the survey shows that overall satisfaction with homeowner insurance companies in the United States averaged 785 on a 1000-point scale – the highest level in the history of the study. Customers who bundled their auto and homeowners polices with the same insurer showed a higher satisfaction rating by 19 points.

“The increase in satisfaction with policy offerings is directly related to customer perceptions that insures are doing a better job in offering the right coverage options at competitive prices when policies are bundled,” says Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates.

“Bundled policies not only may provide a reduced premium for customers, but may also be advantageous to both parties, as it allows customers to interact with a single insurer, potentially streamlining billing and payment.”

While the most typical bundled policy with homeowner insurance is auto, J.D. Power adds that consumers who buy any additional insurance products show improved satisfaction. When one additional product is bundled (such as auto), satisfaction increases to a rating of 792, compared to an average of 712 for a single homeowner policy. However, when four or more products are bundled, satisfaction rates jump to 861.

“Insurance companies have a tremendous opportunity to create loyal customers by delivering a satisfying bundling experience and deepening their penetration into the household,” Bowler adds.

A Canadian homeowner insurance study from J.D. Power and Associates is expected to be released later in October.