Liberty Mutual Homeowners Insurance Review
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.
Liberty Mutual offers multiple discounts for bundling with other insurance policies and other financial incentives for purchasing newer homes, remaining claims-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.
The Home Insurance Factors We Analyzed
Several factors can affect the price of a Liberty Mutual homeowners insurance policy, but only some of these factors can be controlled by the homeowner. To minimize policy costs, homeowners should consider the location, age, and condition of the home they wish to purchase as certain geographic locations and older homes can be more expensive to insure than others..
Fortunately, there are several other factors that you can control as a homeowner. Opting for a higher deductible saves on the monthly premium for a policy. Bundling a homeowners policy with auto, life, or other insurance policies can also decrease the price, especially for policyholders who are already paying for those additional coverages separately. Finally, homeowners who install safety devices, such as smoke detectors and alarm systems can qualify for lower policy premiums than homeowners in comparable homes without those features.
In the 2020 JD Power Property Claims Satisfaction Study, Liberty Mutual ranked slightly below the average for overall customer satisfaction with its ability to handle claims quickly and easily. The average score for all ranked insurers in the study was 881 on a 1,000-point scale, with Liberty Mutual earning 877 points, only slightly below average.
Claims handling aside, Liberty Mutual receives a largenumber 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.
Before securing a policy, customers can expect a hassle-free experience, as Liberty Mutual has several methods for obtaining quotes and policy information. For self-managed service, customers can use the mobile app or online quote feature to shop at their convenience. For those who prefer to speak with a live agent, the company offers toll-free customer support available seven days a week, as well as chat and email support available through social media. The company’s website also features unique, free training classes available on a variety of topics of interest to homeowners. By learning which home improvement projects are likely to increase the value of a home, how to protect a home against potential storm damage, or the proper way to safeguard against various threats, homeowners can save money and avoid costly insurance claims.
A Liberty Mutual homeowners insurance policy comes standard with the following coverages:
- Dwelling – Covers damage to your house and additional insured buildings on your property, such as a shed or outbuilding
- Personal Possessions – Provides fair market value for any personal items that are damaged during a claim
- Liability – Protects against claims from a third party who may be injured or have damage to their belongings while on your property
- Additional Living Expenses – Pays for an increase in living expenses that may occur as a result of a claim
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 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.
Deals, discounts, and add-ons
Liberty Mutual offers several home insurance discounts, including claims-free discounts and discounts for getting a quote with Liberty Mutual before your current policy expires. The provider also offers discounts for new or newly renovated homes and homes with new roofs, plus several administrative discounts for using services such as automatic bill pay or paperless billing. By bundling multiple policies with Liberty Mutual, consumers can also receive significant savings with a variety of bundling discounts.
Liberty Mutual Home Insurance Overview: Financial Strength, Availability, and History
Liberty Mutual Group, the parent company for Liberty Mutual Insurance, was founded in 1912 and has provided insurance to its property, casualty, and life insurance customers for over 100 years. All three independent rating agencies gave Liberty Mutual high ratings for financial solvency, and the company’s ratings with each agency have remained relatively stable for the past 10 years. The company is also popular with customers—YouGov lists it as the 11th most popular insurance brand and the 7th most famous. Liberty Mutual has also been accredited with the Better Business Bureau since 1931 and currently has an A rating.
- In business since: 1912
- S&P Financial Strength Rating: A
- Moody’s Financial Strength Rating: A2
- AM Best Financial Strength Rating: A
- States served: 50
|Company Name||AM Best Financial Strength Rating||J.D. Power 2019 U.S. Home Insurance Study Score||J.D. Power 2020 U.S. Property Claims Satisfaction Study Score||NAIC Customer Complaints|
|Liberty Mutual||A||792/1000 points; 2 / 5 stars||878/1000 points, 3 / 5 stars||3.84|
All information accurate as of May 20, 2020.
How We Evaluated Liberty Mutual Homeowners Insurance
Factors evaluated include the providers financial strength as indicated by organizations such as AM Best and Standard & Poors, customer service ratings and support, as well as average premiums.
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 Homeowners Insurance FAQ
Liberty Mutual’s homeowners policy automatically includes some coverage for personal property items, but customers can easily bundle a standard homeowners 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 claims 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 homeowners policies.
A homeowners 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.