Nearly Half of Renters Lack Insurance

Some 46 percent of renters are uninsured even though renters are more satisfied with their insurance than homeowners, according to a new JD Powers study released today.

Price is the leading driver of the satisfaction gap: price satisfaction is a significant 45 points higher among renters than among homeowners. Satisfaction with insurers is higher among renters than among homeowners (809 vs. 787, respectively, on a 1,000-point scale), the study found.

State Farm captures the largest share of the renter insurance market (26%), followed by Allstate (12%) and USAA (10%).

Customer retention rates with their current insurer are higher among renters who bundle an auto policy (91%) compared to renters who do not bundle an auto policy (67%).

“Many insurance agents focus their time selling high-dollar products, such as auto and homeowners, with higher commissions instead of the average $200 per year renters policy,” said Jeremy Bowler, senior director of the global insurance practice at J.D. Power. “This is shortsighted because agents who satisfy the large renter population today are more likely to retain and service their growing household insurance needs over time.”

Power Circle Ratings Legend
5 - Among the best
4 - Better than most
3 - About average
2 - The rest

The 2013 U.S. Household Insurance and Bundling Study is based on 21,167 responses from customers who may have the following insurance product lines: homeowners; renters; individual life insurance; recreational vehicle; personal liability umbrella; and secondary residence. The study was fielded from June 10, 2013, through July 12, 2013. The study examines overall customer satisfaction in each of these product lines; however, the study only ranks performance in two personal property insurance segments-homeowners and renters. Both index scores are comprised of five factors: interaction; policy offerings; price; billing and payment; and claims.