Homeowners across the US are facing rising insurance costs and shrinking options, as carriers continue to reassess their exposure to climate risks, inflation and reinsurance pressures.
A new Consumer Reports survey shed light on how insurers are performing on cost, service and claims handling at a time when coverage is harder to secure.
The survey drew on nearly 27,000 insurance experiences from about 24,000 policyholders across 28 companies. Only three insurers earned Consumer Reports' recommendation – NJM Insurance, Erie Insurance and USAA. At the other end of the spectrum, Citizens Property Insurance Corporation, Florida’s state-run carrier of last resort, received the lowest score overall.
Top-rated insurers
NJM Insurance Group, operating in just five states, received high marks for customer loyalty and long-term relationships, with policyholders reporting a median tenure of 19 years. As a mutual insurer, NJM reinvests profits for members, but its limited availability keeps it out of reach for most US homeowners.
Erie Insurance, available in 12 states and Washington, D.C., scored strongly on affordability, with an average premium of $1,153, which was the lowest in the survey. Customers praised its claims process and agent access, though Erie’s regional footprint remains modest.
USAA, serving military members, veterans, and their families, ranked well for customer service and rate stability. Its average premium of $2,013 was higher than many peers, but policyholders reported fewer rate hikes compared with the broader market.
Struggles in Florida
The poorest performance came from Citizens Property Insurance, which scored just 14 out of 100.
With average premiums nearing $3,000, limited coverage options, and frequent rate hikes, Citizens drew widespread frustration. Many policyholders noted they had little choice but to turn to Citizens after being dropped by private carriers.
Rising premiums nationwide
The rankings come against a backdrop of sharp increases in homeowners insurance costs.
Nationally, the average annual premium now falls between $2,000 and $3,300, depending on methodology. NerdWallet placed the figure at about $2,110 for a standard policy, while the Consumer Federation of America reported a 24% rise over three years, pushing typical premiums to $3,303.
In high-risk areas, the impact is even more pronounced. A Treasury Department study found that homes in disaster-prone ZIP codes pay 82% more than those in lower-risk regions, with premiums rising 8.7% faster than inflation between 2018 and 2022.
Carriers are continuing to withdraw or tighten underwriting in states like California, Florida, and Louisiana, citing climate-related losses, litigation costs, and reinsurance strain. Against this backdrop, Consumer Reports’ rankings provide a rare benchmark for policyholders weighing cost against service and claims performance.
