HomeInsuranceLiberty Mutual Homeowners Insurance Review

Liberty Mutual Homeowners Insurance Review

4 November 2024

Liberty Mutual offers many coverage options to customize your policy and discounts to help make it more affordable. Some of the endorsements available include Blanket Jewelry and Inflation Protection. Blanket Jewelry is a scheduled personal property endorsement for jewelry and doesn’t require an upfront appraisal for coverage and doesn’t have a deductible. Inflation protection automatically increases your coverage limits to keep pace with inflation when your policy renews. But, according to our research Liberty Mutual has a limited number of coverage options compared to other companies in our rating.

Discounts include the common bundling and claim-free discounts as well as discounts for going paperless, purchasing a newly built home, renovating your home, and signing up for automatic payments, among others.

Liberty Mutual scored below average in four of subratings: customer service, claims satisfaction, customer loyalty, and overall value. However, 34% of our survey respondents said they were likely to renew their policy, while 53% said they were very likely to renew.

You can also get a quote and file claims online. The mobile app can be used to manage and pay your bills and file and track claims. There is an extensive online library to learn about all types of insurance available through Liberty Mutual, including home insurance.

Liberty Mutual’s Claims Handling:

Liberty Mutual has a slightly below-average claims handling score. The average score is 4.2, and Liberty Mutual is tied for seventh place with Progressive at 4.1 points. According to our survey, almost 84% of respondents were satisfied or completely satisfied with how their claims were resolved.

Liberty Mutual’s Customer Service:

Liberty Mutual also scores below average for customer service, with a 3.8 score, putting it in eighth place. The average score is 4.1. 76% of our survey respondents were satisfied to completely satisfied with the ease of contacting customer service and approximately 82% were satisfied to completely satisfied with the customer service provided. For comparison, our No. 1 company in customer service, Auto-Owners, had a response of 87% who were satisfied or completely satisfied with the customer service provided.

Liberty Mutual’s Customer Loyalty:

Liberty Mutual ranks eighth with a 4.0, lower than the average score of 4.2. USAA has the highest score in the subrating with a score of 4.9. That being said, 53% of our survey respondents stated they were very likely to renew their policies and 50% were very likely to recommend Liberty Mutual to a friend. Top-rated USAA had 71% respond that they were very likely to renew their policies and 63% were very likely to recommend it to a friend.

Liberty Mutual’s Value:

Its 3.8 score in eighth place is lower than the average score of 4.2. In our survey, 46% were satisfied with the value they received from their policy with another 33% being completely satisfied with the value they received.

While Liberty Mutual didn’t fare as well as some of the other companies in our subratings, this doesn’t necessarily mean it is a bad company. For example, 79% were either satisfied or completely satisfied with the value they received from their policies and 84% were either satisfied or completely satisfied with how their claims were handled. This and its wide availability (all 50 states and Washington, D.C.), coverage options, and discounts mean it is still a homeowners insurance company worth considering.

Various factors like the home’s location, size, and age, as well as policyholder demographics, can affect insurance rates and eligibility. Contact Liberty Mutual to receive a personalized quote.

Liberty Mutual offers a variety of discounts. The amount of savings and availability will vary by state.

  • Multi-policy discount: Combining homeowners insurance with an auto policy can help you save money.
  • Claim-free discount: If you’ve gone without a homeowners claim for five years or more with another insurer, you may be eligible for a discount if you switch to Liberty Mutual.
  • Newly purchased home: If you just bought a new home, you could qualify for lower rates.
  • Safe Homeowner Program: Policyholders who go three or more years without making a claim may be able to save on premiums.
  • Early shopper discount: Homeowners insured by another company may get a discount if they request a quote from Liberty Mutual before their current policy expires.
  • Insured to Value discount: Insuring your home at up to 100% of replacement cost rather than market value or selling price may make you eligible for a discount.
  • New/renovated home discount: New or newly renovated homes may qualify for savings.
  • Preferred payment discount: Paying premiums through an automatic monthly transfer from your bank qualifies you for another discount.
  • New roof discount: Replacing your roof makes you eligible for this discount, which can also be applied to new homes.
  • Paperless policy discount: Going digital can save you money on your insurance.

A variety of additional coverages are available from Liberty Mutual. Coverage availability may vary by state. The company’s online estimating tool can give you an idea of cost, but it is best to talk to an agent or company representative to help determine the right coverage for your needs.

  • Flood insurance: Minor damage from a burst pipe or leak is typically covered under a standard homeowners policy, but additional coverage for flooding may be required if your home is located in a flood plain or near another potential flood source. Flood insurance may be a good idea regardless of where you live, but you can check your flood zone using the National Flood Insurance Program’s (NFIP) flood maps. The Federal Emergency Management Agency (FEMA) estimates that about 25% of all flood claims come from areas with low to moderate flood risk.
  • Hurricane coverage: This coverage option is specifically designed to cover damages from a hurricane and not other destructive weather. Keep in mind that your state may require a separate deductible for this coverage.
  • Personal property coverage: Standard personal property protection with Liberty Mutual includes limited coverage. Optional coverage raises that limit to help cover the cost of valuables or collectibles.
  • Replacement cost for belongings: This coverage option will pay you the actual cash value of the items at the time of loss and then up to the full amount of the cost in the current market.
  • Blanket jewelry coverage: This coverage option simply replaces lost or stolen jewelry, with no deductible or need for an up-front appraisal.
  • Umbrella coverage: This optional coverage adds liability protection beyond what is included in a standard Liberty Mutual auto or home policy. An umbrella policy includes $1 million in coverage, with higher limits available, and covers those in your household. Coverage is worldwide and includes rental properties and defense costs, attorney fees, and other legal expenses associated with a lawsuit.
  • Inflation protection: When you opt for this coverage, Liberty Mutual will automatically adjust your coverage limits when renewing your policy to keep pace with inflation. You’ll also get a discount on your premium.
  • Water backup and sump pump overflow coverage: This helps cover water damage to your home and belongings in the event of a sewer or drain backup or sump pump failure, something that isn’t covered by a standard policy.
  • Identity fraud expense coverage: This provides coverage for attorney fees, reimbursement for certain expenses, and coverage for other costs associated with fraud and identity theft.
  • Personal electronics coverage: This endorsement provides higher coverage limits for your personal electronics.

To file a claim, make sure you have the details of what happened and the approximate date, and then follow these steps:

  1. Contact the police. If your claim involves a crime like theft or vandalism, first call the police and file a report.
  2. Contact Liberty Mutual. There are multiple ways to file a homeowners insurance claim with Liberty Mutual. The company recommends doing so online, saying it typically only takes five to 10 minutes. You can also file through the Liberty Mutual app, by calling Liberty Mutual, or in person with your local agent.
  3. Review the damage. Document any damage with photos and/or video. If you have security cameras, download any relevant footage.
  4. Make temporary repairs. Make sure to fix any damage that could cause further harm. Keep the receipts for any materials or work you pay for.
  5. Connect with a claim handler. Liberty Mutual will assign a claim handler to you and may send an adjuster to view the damage.
  6. Update your claim. Follow up with photos, receipts, and repair quotes. Track your claim’s status either online or by calling your claims handler.

Why You Can Trust Us: 14 Homeowners Insurance Companies Researched

At U.S. News & World Report, we rank the Best Hospitals, Best Colleges, and Best Cars to guide readers through some of life’s most complicated decisions. Our 360 Reviews team draws on this same unbiased approach to rate the products that you use every day. To build our ratings, we researched more than 14 homeowners insurance companies and insurance agencies and analyzed 12 reviews from professionals. Our 360 Reviews team does not take samples, gifts, or loans of products or services we review. All sample products provided for review are donated after review. In addition, we maintain a separate business team that has no influence over our methodology or recommendations.

To get comparative insurance rates for this study, U.S. News worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from most of the largest national home insurance companies and agencies, though not every company operates in every state. Quadrant obtained publicly available rate data that home insurers file with state regulators. The insurance rates in our study are based on sample rates for a 47-year-old, married applicant household with a 728 FICO credit score. The rates were obtained for a HO3 policy covering a wood frame house with 10% Other Structures Coverage, 20% Loss of Use Coverage, 50% Personal Property Coverage, and a guest medical limit of $5,000.

We analyzed several different coverage sets, including dwelling coverages of $200,000, $300,000, $400,000, $500,000, $600,000, and 80% coverage of average home values in a given state, alongside $100,000 and $300,000 liability limits per level of dwelling coverage. Average home costs in each state were determined using Zillow Home Value Index data as of March 1, 2024.

Key Takeaways:

  • Liberty Mutual is tied with Farmers for the No. 8 spot in our best homeowners insurance companies rating.
  • Available in all 50 states and Washington, D.C.
  • The standard policy includes some limited home-sharing coverage.
  • An inflation protection add-on is available.

Boston-based Liberty Mutual Insurance began doing business in 1912, offering workers’ compensation insurance. It has grown over the years to include a wide variety of investment and insurance products. The company offers policies for home, auto, fire, workers’ compensation, and liability coverage for both homes and businesses. Liberty Mutual Insurance has more than 45,000 employees working in 29 countries around the world.

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