If you’ve watched any TV or media as of late, chances are you’ve seen at least a handful of Liberty Mutual’s commercials. While the company pushes the auto angle heavily, Liberty Mutual also offers extensive home insurance options. The provider is, actually, part of our ranking of best homeowners insurance in the U.S.
Some highlights from our Liberty Mutual homeowners insurance review include several great discounts available, over 100 years of experience in the industry, and a lot of recognition for overall business credibility.
Liberty Mutual Home Insurance Overview
Liberty Mutual has a long history in the insurance industry and has been recognized by multiple independent rating agencies for its business credibility, financial solvency, and customer service standards. It was ranked 75th in the Fortune 100 list of largest companies in the U.S. based on 2018 revenue, and it’s the sixth-largest property and casualty insurer globally based on 2019 gross written premium.
- Multiple bundling discounts available
- Good financial strength
- Satisfactory claims handling
- Below-average customer service
- Above-average number of customer complaints
Liberty Mutual Homeowners Insurance Highlights
Liberty Mutual homeowners insurance offers multiple discounts for bundling your insurance policies and other financial incentives for purchasing newer homes, remaining claim-free for at least three years, and using safety features such as alarm systems and security cameras. The company’s homeowners’ policies are the most cost-effective for those who can take advantage of the majority of these discounts, so customers looking for a limited policy on an older home in a high-risk area might find cheaper coverage elsewhere.
- Personal Possessions
- Additional Living Expenses
Customers can also add on coverage for water damage resulting from sewer or drain backups, for valuable items such as art or antiques, and inflation protection, which increases your coverage amount during each renewal period to help keep up with the cost of living increases.
Policy owners can also purchase additional coverage lines, such as an umbrella policy to cover major claims, flood insurance, life insurance, pet insurance, critical illness coverage, or identity theft protection.
Liberty Mutual ranked below the average in the 2020 J.D. Power Home Insurance Customer Satisfaction Index. The average score for all ranked insurers in the study was 823 on a 1,000-point scale, with Liberty Mutual earning 805 points, ranking in the 15th place out of 22 companies listed.
Liberty Mutual also receives a large number of customer complaints, according to the NAIC Complaint Index. For 2019, Liberty Mutual’s complaint index was 3.84, meaning it received almost four times the number of complaints expected in the market. Of the company’s 280 verified complaints to NAIC in 2019, 94 were related to homeowners coverage, 167 were related to auto coverage, and the remaining 19 complaints were related to other product lines.
- Claims-free discounts
- Discounts for getting a quote with Liberty Mutual before your current policy expires
- New home
- Newly renovated home
- New roof
- Automatic bill pay
- Paperless billing
- Bundling multiple policies with Liberty Mutual
We evaluated the company based on its customer rating and experience, financial stability, and coverage. To compare Liberty Mutual with home insurance companies across the board, we calculate each Reviews.com score based on the following:
- Customer Ratings — Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
|Company||Reviews.com Score||AM Best Financial Strength Rating||J.D. Power 2020 Score**||NAIC Customer Complaints|
|Liberty Mutual Home Insurance||3.25||A||805||More complaints than average|
|State Farm||3.75||A++||829||More complaints than average|
|Geico||2.75||A++||N/A||More complaints than average|
*All information accurate as of September 21, 2020.
**Based on a 1,000-point scale.
Liberty Mutual vs. State Farm
When it comes to comparing Liberty Mutual vs. State Farm, you’ll find a lot of similarities and differences across two of the bigger names in the industry. One of the biggest areas you’ll see a difference is with some of the third-party rating systems.
With J.D. Power, Liberty Mutual scored 805 out of 1,000 points in the 2020 U.S. Home Insurance Overall Satisfaction Study. In the same study, State Farm scored 829 points. Additionally, Liberty Mutual earned an A rating with AM Best Financial, while State Farm earned an A++, the highest rating possible.
While there are a lot more factors to consider when choosing a homeowner’s insurance company, the early edge goes to State Farm with third-party raters.
Liberty Mutual vs. Geico
Both Geico and Liberty Mutual offer service to all 50 states and carry many different product lines, including homeowners’ insurance. Much like State Farm, Geico earned the highest AM Best Financial rating, giving it an edge over Liberty Mutual in this category.
Regarding available discounts, Liberty Mutual offers a wide array of discounts that customers can use to take advantage of savings and only pay for the level of coverage needed. Meanwhile, since Geico uses a network of partners to provide home insurance, discounts can be limited and vary depending on the provider working with your policy.
Overall, both companies are good contenders and it might be good to get a rate quote from each for the level of coverage you’re looking to get on your home.
The Bottom Line
Homeowners in suburban and rural communities with the means to purchase newer homes and invest in security upgrades are likely to find an affordable policy with Liberty Mutual. The policy’s standard features provide strong protection in the event of a claim, and add-on coverages can help keep more affluent families well protected in a variety of situations.
Liberty Mutual Home Insurance FAQ
Liberty Mutual’s homeowner’s policy automatically includes some coverage for personal property items, but customers can easily bundle a standard homeowner’s policy with an umbrella policy, accident insurance, or other coverage for additional protection. Customers can also get other types of property insurance, such as renters insurance, condo insurance, or a variety of policies for small businesses.
To determine the amount of coverage needed in a policy, it’s important to calculate replacement costs for both your home and all of your personal property. Preparing a home inventory makes the insurance process much simpler if a claim does occur, and it also helps ensure you have adequate protection.
Liberty Mutual homeowners insurance is available in all 50 states and Washington, D.C.
Liberty Mutual uses its in-house underwriting team for all homeowner’s policies.
A homeowner’s policy with Liberty Mutual typically covers the entire home, additional structures such as sheds or outbuildings, and the entire personal property contents of the home. For additional coverage, customers can add on scheduled item coverage for valuables such as art or jewelry, or they can bundle an umbrella policy to provide extra protection in the event of a major loss.