author-profile
ByJulian Dossett

Julian is a tech and finance writer, covering stories from artificial intelligence to cryptocurrency. He lives with his wife in Albuquerque, New Mexico.

Liberty Mutual Homeowners Insurance Review

Liberty Mutual is an insurance company that specializes in helping its customers get the exact coverage they need at the right price. It’s clear that Liberty Mutual does offer an appealing lineup of coverages and discounts to suit the lifestyle and home of most people looking for homeowners insurance, though available discounts differ greatly depending on the home and where it’s located, as well as the financial history of the homeowner.

Liberty Mutual does not have the best track record when it comes to customer satisfaction with claims, however, which is definitely something to take into account when looking at its offerings. It may still be worth getting a quote, but keep in mind that you may have more trouble with customer service than you would with a company like State Farm or Allstate.

Pros
Cons
Guards against inflation
Large variety of options
Excellent discounts
Poor claims handling
Subpar financial stability ratings

The Home Insurance Factors We Analyzed

Pricing

Liberty Mutual advertises a wide range of discounts and the ability to customize coverage to unique needs, meaning you should be able to adjust your coverage to better fit your budget. It's impossible to predict what your premium will be, given that your price depends on factors like your location, your age, and your home's condition, but Liberty Mutual at least offers ways to adjust or lower your initial quote.

Customer experience

The customer service experience at Liberty Mutual is about average compared to its competitors. J.D. Power’s 2019 U.S. Property Claims Satisfaction Study gives Liberty Mutual an overall rating of three out of five, which puts Liberty Mutual around the middle of the pack, and a separate J.D. Power study measuring overall satisfaction with homeowners insurance puts Liberty Mutual well below average.

According to the complaint index of the National Association of Insurance Commissioners (NAIC), Liberty Mutual definitely has some work to do on its customer relations: The company received more than the average number of customer complaints in 2018.

Coverage

Liberty Mutual stands out for its unique coverages, including its inflation protection endorsement. This means that every year the policy is renewed, Liberty Mutual will automatically take inflation into account so that the policyholder won't lose any coverage for increased prices on things like higher building or labor costs from one year to the next.

Along with covering personal belongings and other physical structures (like a shed or greenhouse), Liberty Mutual will also provide extra living expenses in the event of a total loss on a home. So if a homeowner is displaced while the home undergoes damage repairs, Liberty Mutual will help out and cover the cost of a rental.

For claims concerning personal items, a policyholder usually needs to factor in depreciation against the item’s total value. With a Liberty Mutual policy, the entire value of the item will be covered without factoring in depreciation, which is an excellent perk that many other insurance providers do not offer.

Deals, discounts, and add-ons

Liberty Mutual advertises a ton of discounts. However, the discounts that a potential customer qualifies for can change quite a bit depending on the individual's profile, which state they live in, and the state of the home. Depending on these factors, a homeowner could receive discounts for bundling policies together, installing a smoke alarm or sprinklers, not filing many claims, being in the military, and signing up for online billing.

There are also plenty of add-ons available for anyone who needs to specialize their policy, but these add-ons can get expensive fast, so make sure to review the fine print before signing up. Liberty Mutual’s home insurance add-ons include coverage for floods and earthquakes, high-value personal property, water backup and sump pump overflow, and identity theft expenses.

Liberty Mutual Home Insurance Overview: Financial Strength, Availability, and History

Liberty Mutual’s financial strength ratings aren’t necessarily poor, but they’re also not anything to write home about. They actually fall on the lower end when compared to some of their competitors. For context, an "A" from AM Best essentially means that Liberty Mutual is known for paying out its claims with little to no difficulty, but it doesn’t imply the same consistency and confidence that a A++ score brings to the table.

  • In business since: 1912
  • S&P Global financial strength rating: A
  • Moody’s financial strength rating: A2
  • AM Best financial strength rating: A
  • States served: 50

The Competition

AM Best Financial Strength Rating
J.D. Power 2019 U.S. Home Insurance Study Score
J.D. Power 2019 U.S. Property Claims Satisfaction Study Score
NAIC Customer Complaints
Liberty Mutual
A
2/5
3/5
More complaints than average
State Farm
A++
4/5
3/5
Fewer complaints than average
Allstate
A+
3/5
3/5
Fewer complaints than average
USAA
A++
5/5
5/5
Fewer complaints than average

All information accurate as of January 20, 2020.

The Bottom Line

Liberty Mutual is a safe bet for people looking to maximize coverage options. The company also advertises a good deal of discounts. However, it's important to note that Liberty Mutual has a poor track record with customer satisfaction, so you may experience a few more headaches than you would with other established providers. Of course, we always recommend shopping around — it’s a good idea to pull quotes from multiple providers, and Liberty Mutual might be the best bet for a well-priced policy with solid coverage.

Liberty Mutual Homeowners Insurance FAQ

What other property insurance does Liberty Mutual offer?

Aside from home insurance, Liberty Mutual also offers insurance for condos, landlords, mobile or manufactured homes, and renters.

How much home insurance do I need?

When considering homeowners insurance providers, look at which types of coverage and add-ons are available. Home insurance is highly individualized, and it’s important not to skimp on coverage just to save a little money. For more information on choosing the right policy, check out our homeowners insurance FAQ.

Where is Liberty Mutual home insurance coverage available?

Liberty Mutual is active in all 50 states.

How does Liberty Mutual underwrite its home insurance policies?

Liberty Mutual handles all of its own policy underwriting in-house.

What does Liberty Mutual cover as it relates to foundational troubles (such as plumbing and mold)?

The company does offer coverage for most foundation troubles that a homeowner will run into. Depending on the state, a homeowners insurance policy from Liberty Mutual may include a mold endorsement that would cover standard mold damage in a home, and plumbing is usually covered under the regular policy, as long as the plumbing is within the foundation of the insured home.

You might also like