Liberty Mutual is one of the oldest insurance companies in the nation, dating back to 1912. In that time, the company has become widely known, and has grown to offer a comprehensive suite of insurance products. Liberty Mutual’s renters insurance is competitive with many others in the industry, with low starting prices and average coverage. While the company truly shines in some areas, such as its variety of options and the discounts available to its customers, it lacks in others, like customer service.
Liberty Mutual Renters Insurance Overview
Liberty Mutual’s century-plus of insurance experience has earned it top ratings among customers and consumer organizations. It holds top financial ratings from three of the biggest independent ratings agencies like AM Best, Standard & Poor Global, and Moody’s. Also, the Better Business Bureau gives Liberty Mutual an A+ rating. Most consumer complaints filed with the BBB center were on issues common in the insurance industry, including billing and collections grievances and problems with products and services.
- Liberty Mutual has a variety of discounts available to their customers
- Liberty Mutual makes it easy to get a quote and begin your policy online
- Liberty Mutual has more complaints than average in the property insurance industry
- Personal property coverage is limited to $25,000, which may be too low for some people
Liberty Mutual Highlights
According to Liberty Mutual’s website, renters insurance can cost as low as $5 per month. The cost of each individual policy can vary widely depending on a few factors:
- Location: Factors such as crime rate and the chances of inclement weather can increase the price of one’s policy.
- Coverage: The lowest prices available are generally for policies with minimum coverage. With more coverage, you can expect to pay more for your policy.
- Deductible: In general, a higher deductible generally means a lower premium, and vice versa.
Liberty Mutual’s standard renters insurance policies include personal property, liability, additional living expenses, and medical payments coverages. These coverages cover most of the bases for most renters, offering protection for their belongings, liability coverage if a court finds them liable for damages or injuries, and coverage to pay medical expenses if someone sustains an injury in their home. We like the inclusion of additional living expenses coverage, which can help pay your living expenses if you must temporarily move out of your residence due to a covered peril, such as a fire.
Liberty Mutual also offers renters additional add-on coverages. Blanket jewelry coverage enables you to set a blanket coverage amount to protect your gems without impacting your personal property limit. The earthquake add-on covers personal property damaged or destroyed by earthquake or aftershocks, coverage not included in most standard renters policies. And the personal property replacement cost add-on pays to repair or replace your personal belongings at current market prices, regardless of depreciation. Replacement cost coverage is a must if you have valuable computer equipment or electronics, so we were pleased to see its inclusion with Liberty Mutual.
According to the National Association of Insurance Commissioners, Liberty Mutual received more than the average number of consumer complaints against U.S. insurers for homeowners insurance in 2018. The insurer received fewer complaints than in 2017, but the sheer number is still concerning. Liberty Mutual also didn’t fare well in J.D. Power’s 2019 U.S. Renters Insurance Study, falling well below the industry average with two out of five stars in overall customer satisfaction.
Liberty Mutual offers a wide variety of discounts to its customers including:
- Discounts for those without a claim for five years
- Early shopper discount
- Multi-policy discount
- Preferred payment discount
- Online purchase discount
For Liberty Mutual’s renters insurance review we evaluated the company based on its customer rating and experience, financial stability, and coverage. To compare renters insurance companies across the board, we calculated a 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 available 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.
- 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 2019 Score(On a 1,000-point scale)||NAIC Customer Complaints|
|Liberty Mutual Renters Insurance||3.25/5||A||824/1000||More complaints than average|
|State Farm||3.25/5||A++||850/1000||Fewer complaints than average|
|Geico||2.75/5||A++||N/A||Fewer complaints than average|
|USAA||3.75/5||A++||895/1000||Fewer complaints than average|
|American Family||3.75/5||A||853/1000||Fewer complaints than average|
|Allstate||3.5/5||A+||829/1000||Fewer complaints than average|
|Nationwide||3.75/5||A+||828/1000||Fewer complaints than average|
*All information accurate as of October 7, 2020.
Liberty Mutual vs. State Farm
Liberty Mutual and State Farm are two of the leading companies in the renters insurance industry. State Farm leads its competitor in most areas. First, State Farm ranks significantly better in terms of customer satisfaction. It rates higher in the J.D. Power Customer Satisfaction Survey, and has fewer complaints than the industry average, while Liberty Mutual has more complaints than average. State Farm also fares better in terms of public opinion. YouGov surveys find that 51% of people have a favorable view of State Farm, while only 38% have a positive Liberty Mutual opinion.
Liberty Mutual vs. Geico
Popularity aside, Geico also outshines Liberty Mutual in terms of customer complaints. It has fewer than average complaints for its property insurance, while Liberty Mutual has more than average.
That being said, Liberty Mutual wins in terms of price. According to the Liberty Mutual website, customers can purchase renters insurance for as low as $5 per month. But Geico insurance policies start at $12 per month.
The Bottom Line
Overall, Liberty Mutual renters insurance is a good choice for most renters. We particularly like its easy quote and purchasing process, which allows you to request an online quote and obtain coverage in just a few minutes. Liberty Mutual offers a number of discounts, some of which you may qualify for immediately. We are impressed with Liberty Mutual’s high liability coverage option, though we wish customers could choose higher coverages for personal property and add-on coverages for items such as jewelry.
It’s also worth considering your priorities when it comes to customer service; Liberty Mutual has a shaky track record, although customers do praise its claims handling. We always recommend pulling a few quotes to see which provider offers you the best premium, but if you are looking for sound renters coverage, Liberty Mutual could be the provider for you.
Liberty Mutual Renters Insurance FAQ
Liberty Mutual offers a robust suite of property insurance products, which also include homeowners, condo, landlord, mobile home, flood, and umbrella insurance.
In addition to its property insurance, Liberty Mutual offers insurance for cars and other vehicles, as well as insurances for life, accidents, critical illness, identity theft, pets, tuition, and small business.
The amount of renters insurance you need depends heavily on the value of your belongings. In general, you should purchase enough coverage to replace all of your belongings in case of a total loss.
Liberty Mutual Renters Insurance coverage is available in all 50 states, as well as Washington, D.C., Guam, Puerto Rico, and the U.S. Virgin Islands.
Renters insurance policies through Liberty Mutual are underwritten by Liberty Mutual Insurance Company and its affiliates.
Liberty Mutual’s renters insurance policies include personal property, liability, additional living expenses, and medical payments coverages. Their policies include add-ons such as blanket jewelry coverage, personal property replacement cost add-on, and earthquake add-on.