Gen Z homeowners report higher insurance company dissatisfaction

A new survey from Kin Insurance suggests that Gen Z homeowners are less satisfied with their home insurance providers than older generations, citing poor customer service and claims experiences rather than cost as their main frustrations.

Findings highlight a growing disconnect between digital-native Gen Z homeowners — born between 1997 and 2012 — and the traditionally analog insurance industry.

Only 32% of Gen Z homeowners said they were “very satisfied” with their insurance companies, compared with 45% of Gen X and 47% of millennials, the report said.

While high premiums were the top complaint across all age groups, Gen Z respondents were more likely to point to poor customer service (15%) and claims handling (28%) as reasons for dissatisfaction.

“Some insurance companies outsource all of their customer service, which can lead to really poor alignment on communication between the insurance company, the customer service reps and the policyholders,” said Sean Harper, CEO of Kin. “On the other hand, when insurance companies own the entire customer journey, they can prioritize clear and compassionate communication for every homeowner.”

Claims and purchasing process

Gen Z’s dissatisfaction extends to the claims process.

Among those who filed a roof claim in the past decade, only 44% were “very satisfied” with the outcome, compared with 59% of millennials and 77% of Gen X homeowners.

Confidence during the purchasing process also lagged among younger homeowners. Just 34% of Gen Z respondents said they felt “very confident” when buying home insurance — compared with 45% of millennials and 42% of Gen X.

Many cited confusing policy language and a lack of educational resources as key barriers.

“Easier-to-understand language” would have helped 22% of Gen Z homeowners feel more confident, according to the survey, while 21% said cost calculators could have improved their experience.

Financial strain adds up

The generational gap may reflect broader financial pressures.

Gen Z homeowners earn an average of $81,000 annually, according to a 2024 SmartAsset study, while the Consumer Federation of America reports that insuring a $350,000 home costs about $3,303 per year.

That means the typical Gen Z homeowner spends roughly 4% of their income on insurance — before factoring in mortgage payments and other housing costs.

A separate Kin survey found that 39% of Gen Z homeowners spend a third or more of their income on housing, and more than half didn’t include insurance costs in their budgeting.

The financial strain — combined with unclear communication from insurers — may help explain why younger homeowners feel uncertain when choosing coverage, the report said.

Kin’s research also pointed to opportunities for insurers to improve. Respondents said they wanted simpler, digital-first tools for understanding coverage, clearer policy explanations and more consistent customer service.