Liberty Mutual Home Insurance Review

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Advertiser Disclosure

Liberty Mutual offers comprehensive protection for your home and personal property, but customers haven’t been thrilled with its claims handling.

Liberty Mutual protects against all basic perils to your home and offers unique coverages you won’t find with most insurers. Its loss forgiveness option prevents your rates from increasing following your first claim, and its inflation protection will increase your level of coverage at every policy renewal to keep up with the rising cost of living. Liberty Mutual pays the full cost for replacing damaged items without factoring in depreciation, so you shouldn’t have to pay for anything out of pocket.

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Liberty Mutual has an excellent selection of discounts, but despite this, customers have reported its rates to be about average. Its customer service and claims handling also received average ratings, according to the latest J.D. Power homeowners insurance survey. This shouldn’t discourage you from getting a quote from Liberty Mutual, but it is something to keep in mind as you’re comparing your options.

The Specs

Price Varies by home, location and other factors
Best For Those who want flexible, comprehensive coverage
Not For Those who place a high value on customer service
States Served 50
A.M. Best Rating A
Moody’s Rating A2
S&P Rating A
Standout Features Inflation protection
Full replacement cost of personal property
Loss forgiveness
Good selection of discounts

The Claim

Liberty Mutual is there to watch over your family and your most valuable investment: your home. It provides comprehensive coverage against all major perils, quick claims handling, and a fair rate that fits easily into your budget.

Is it True?

Sort of. Liberty Mutual is hard to match in terms of coverage. It protects against all major perils to your home and offers additional riders for valuables like jewelry and art. It’s one of the only home insurance providers that adjusts your policy’s limits every renewal period to keep up with inflation, so you’re always getting the same level of coverage you signed up for. It also offers loss forgiveness, which prevents your rates from increasing following your first claim.

Liberty Mutual is also known for its many homeowners discounts, including claim-free, protective devices, and insured to value discounts. These savings aren’t available with all home insurance companies and they can do a lot to lower your premiums. As with any insurance company, you won’t know exactly how much a Liberty Mutual policy will cost you without getting a quote, though.

In terms of customer service, customers rated its pricing, customer service and claims handling as “about average.” If this concerns you, you may want to go with a company known for its customer satisfaction, like Geico.

Our Deep Dive

  • Coverage rises with inflation: Liberty Mutual is one of the few home insurers that takes inflation into account when renewing your policy. Every policy period, your coverage will rise to keep up with inflation, so you’re always receiving the same level of coverage you signed up for.
  • Plenty of savings opportunities: Liberty Mutual offers one of the largest selections of homeowners discounts in the industry. It offers basic discounts, like multi-policy, new home, and claim-free discounts. You can also save by purchasing a new policy before your current coverage expires, installing protective devices like fire and burglar alarms in your home, and insuring your home for its full value. Members of Liberty Mutual’s 14,000 affinity groups are eligible for even more savings.
  • Get damages fixed right away: With Liberty Mutual’s Emergency Home Repair Service, the company will help you quickly locate a contractor that does emergency work to prevent damage to your home from getting worse.
  • Rates won’t go up after one accident: Liberty Mutual has loss forgiveness, which works like accident forgiveness for your car. You don’t have to worry about your rates going up following your first claim.
  • Full replacement cost for damaged items: Liberty Mutual will give you the money to replace your damaged items, even if that cost is higher than the item’s depreciated value. Company representatives will do their best to replace the exact item you lost whenever possible, but if that’s not possible, it’ll be replaced with the closest match.
  • Get help choosing coverage: Liberty Mutual’s coverage calculator asks you basic questions about your home and personal data to help you estimate how much coverage you need. Once you’re presented with your estimate, you can enter your zip code and get started on a quote with those coverage limits.
  • Covers additional living expenses: If you’re unable to live in your home following an accident, Liberty Mutual will pay for the cost of renting a place until your home is repaired.
  • Extra coverage for valuables: If you have expensive jewelry, art, or antiques in your home and you’re concerned your basic homeowners policy won’t cover the full value of these items, you can add riders. These provide extra coverage for these valuable items so you are fully covered in the event of a loss.
  • Mobile policy management: Liberty Mutual has mobile apps available for iOS and Android devices. These apps enable you to view policy documents, pay your bill, and file a claim online.
  • Identity theft protection: If you’re concerned about the possibility of identity theft, you can add this coverage to your homeowners policy. It pays for any expenses related to restoring your identity, including lost wages and legal fees, up to your policy limit.

Cost Rundown

There’s no way to predict how much your homeowners insurance will cost you without getting a quote. Insurance rates are highly individualized, taking factors like your home’s size and location and your credit history into account. Every company weighs these factors slightly differently, which is why quotes vary from one company to the next.

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Rates also vary depending on your level of coverage. Most homeowners policies include coverage for the following perils:

  • Damage caused by aircraft
  • Damage caused by vehicles
  • Explosion
  • Fire or lightning
  • Riot or civil commotion
  • Smoke damage
  • Theft
  • Vandalism
  • Volcanic eruption
  • Windstorm or hail

However, there are certain natural disasters, including floods and earthquakes, that aren’t covered under a traditional policy. If you live in an area prone to these events, you may have to purchase an additional policy rider, which will increase the cost of insuring your home. Riders are also available for valuables, like jewelry, art and antiques.

Cheaper (or Free!) Alternatives

All lenders require homeowners insurance, so there’s no way to avoid it. There are some simple steps you can take to lower your premiums with all lenders, though:

  • Compare quotes from several companies. Don’t just go with the one that offers you the lowest rate. Choose the one that offers you the best deal on the most coverage.
  • Choose a higher deductible. This increases your out-of-pocket costs in the event of a claim, but it will drastically reduce your monthly premiums.
  • Bundle your home and auto. Most insurers, including Liberty Mutual, give discounts to customers who bundle home and auto insurance.
  • Improve your credit. Insurance companies look at your credit history as a means of assessing your responsibility. A higher credit score translates into lower insurance premiums.
  • Install a security system. Many insurers give discounts to customers that have monitored security systems in their home, as this has been proven to decrease the risk of theft.
  • Prepare your home for disasters. Know what natural disasters are common in your area and prepare your home accordingly. For example, if you live in an area known for bad storms, install storm shutters on the windows. This can help minimize the damages in an accident.

The Competition

State Farm: It offers a good selection of policy endorsements, so it’s easy to build a policy around your needs. State Farm is also known for providing excellent customer service, which can be a big help when you need to file a claim. It doesn’t offer much in the way of discounts, though, and its rates may be slightly more expensive than some of the other companies on this list.

Geico: It doesn’t underwrite its own policies, but instead pairs you up with one of its partner lenders. If you need to file a claim, you’ll deal with Geico’s partner instead. According to the latest J.D. Power survey, customers seem pretty happy with the coverage they’ve received from Geico’s partner, earning it an above-average customer satisfaction rating. Before you purchase homeowners insurance through Geico, though, it’s a good idea to do a little research on the company that will actually be underwriting your policy.

Allstate: Allstate offers decent coverage and a variety of policy riders you can use to customize your home’s protection. It has quite a few homeowners discounts, but despite this, rates are generally high. Allstate, like Liberty Mutual, doesn’t raise your rates following your first claim, though, so if you’re interested in this type of protection, Allstate may be a good choice.

Progressive: Progressive, like Geico, doesn’t underwrite its own policies. It matches you up with a partner lender who will be the one to handle your claim in the event of an accident. According to the J.D. Power survey, customers seem less satisfied with Progressive’s partners than they do with Geico’s, but it still received a higher rating than Liberty Mutual.

What Others Are Saying

  • CBS Sacramento reported that Liberty Mutual refused to renew some customers’ policies in northern California due to the risk of wildfire. This practice is legal, but it left the homeowner very upset: “I was sick, I was just sick…It was a fire danger when I bought this and they had no problem.”
  • Claims Journal discussed smart home technologies and how they’re affecting the home insurance industry. Many insurers, including Liberty Mutual, now offer discounts to homeowners with certain smart devices like the Nest Protect smoke and carbon monoxide alarm. When asked about this, Liberty Mutual’s senior vice president responded, “We believe customers seeking to monitor their homes with devices like Nest Protect demonstrate responsible behavior. As a result, we will be offering these customers reduced pricing on their home insurance policy.”
  • The Boston Business Journal reported that Liberty Mutual has plans to begin using drones to assess property damages. This practice will only be applied on a small scale and is subject to FAA restrictions. A spokesman for the company said, “It’s very easy for us to get excited by a technology that helps our claims professionals more safely help our customers after a loss.”

The Bottom Line

Liberty Mutual offers excellent homeowners coverage, including some relatively unique options like inflation protection that are hard to find elsewhere. Customer satisfaction ratings have suggested there is still room for improvement when it comes to pricing and claims handling, but it’s still worth getting a quote.

Find the Best Home Insurance

Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.