Consumers less satisfied with home insurance than auto insurance, survey says
Lower claim incidence, less insurer explanation may be to blame for the disparity
Customer satisdfaction with home insurance claims procedures averaged 828 on a 1,000 point scale, J.D. Power said; the satisfaction score for auto insurance claims was 842. J.D. Power senior director of the insurance practice Jeremy Bowler cited home claims’ complexity as the reason for consumers’ lower satisfaction.
And, he added, home claimants “tend to have less knowledge of the specifics of their policy coverage than do auto claimants.”
The reason may be lower incidence of home claims. Only 5 percent of homeowners with insurance had to file a claim, according to insurance data firm ISO. That figure is 7.6 claims per 100 insured vehicle years, or 7.6 percent, for autos, the Highway Loss Data Institute says.
Insurance companies may need to do more to ensure that their customers are well-informed about the specifics of their policy. Fewer than 75 percent of home claimants’ insurers provided an explanation of their coverage, J.D. Power says. But 81 percent of auto claimants’ insurance companies explained the details of their coverage.
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Posted: December 23, 2009
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