Liberty Mutual Homeowners & Renters Insurance Review of 2022
Buying insurance is a necessity.
The coverage you purchase protects you in the event that something beyond your control happens and your property is damaged or stolen, or someone is injured on your property, whether it’s a rental or a home you own.
At PropertyNest, we’re big believers in insurance, but we also recognize that buying it can be confusing when you’re not sure about a company’s financial strength, reliability, and pricing.
That’s why we’ve written this comprehensive review of one of the biggest insurance companies in the United States, Liberty Mutual.
Liberty Mutual History and Overview
Liberty Mutual Group (LMG for short) was first founded over a hundred years ago in 1912.
The company's original name was the Massachusetts Employees Insurance Association (MEIA). It was formed in response to a 1911 Massachusetts law requiring employers to provide workers’ compensation insurance to their employees.
One thing that makes Liberty Mutual unique is that it was founded as a mutual company where the insurance company is owned by its policyholders.
The company soon branched out to offer other types of insurance, starting with automobile coverage.
It later added life insurance through its Liberty Life Assurance branch. In 1917, the company name was changed to the one we all know today.
In 2002, the company began selling stock while still remaining a mutual company, a controversial decision that led to a lawsuit and limited compensation to the company’s directors and officers.
The company’s expansion has been driven by a combination of organic growth and acquisitions.
Today, Liberty Mutual is a Fortune 100 company.
As of 2022, it is the sixth-largest property and casualty insurer in the United States, providing renters and homeowners insurance in all 50 states plus the District of Columbia.
How is Liberty Mutual Rated?
One way we can determine any insurance company's strength is by reviewing its financial ratings.
Financial ratings are provided by several well-known companies that evaluate insurers based on their financial strength, claims-paying ability, and other factors.
A high rating is usually a good indication that you can expect that the claims you file will be verified and paid in a timely manner.
These ratings can also provide peace of mind because a company with a high rating is unlikely to go out of business.
Liberty Mutual receives strong ratings across the board from the major players in the industry. Here’s how these ratings break down.
These ratings all indicate a high degree of financial strength and stability.
They don’t speak to every aspect of what makes an insurance company a good choice for consumers because these companies don’t review coverage options, costs, or customer service.
However, they serve as a good starting place to decide whether to seek further information about the company.
|J.D. Power (out of 1,000)||872|
|A.M. Best - Financial Strength Rating||A|
|NAIC Complaint Index||2.37|
Homeowners Insurance Overview
Every homeowner must purchase homeowners insurance.
Homeowners insurance coverage is required to close on a house, and it protects you in the event your home sustains damage or your personal property inside the home is damaged.
It also covers your personal liability.
Liberty Mutual is licensed to provide homeowners insurance in every state plus the District of Columbia.
We have reviewed their homeowners coverage on a state-by-state basis, and they have consistently performed well compared with other companies.
Homeowners Insurance Policies & Coverage
Liberty Mutual offers homeowners insurance that’s customizable.
Certain coverages come with every policy, and there are multiple add-ons you can consider to increase your protection.
Here’s what’s covered by a standard policy.
|Personal Property Coverage||Personal Property Coverage covers the actual cash value of your belongings inside the home including clothing, electronics, furniture, and valuables up to a specified limit.|
|Personal Liability and Injury to Others||Personal Liability and Injury to Others provides protection if someone else’s person or property is injured or damaged in your home. It also provides coverage of some legal expenses.|
|Dwelling Coverage||Dwelling Coverage protects you from structural damage to your home or to other structures on your property. It also protects you against damage from fire, water, vandalism, and theft.|
|Wind/Hail Coverage||Wind/Hail Coverage protects you from damage caused by wind or hail. In some states, you may be required to pay an additional deductible.|
|Hurricane Coverage||Hurricane Coverage protects you against damage caused by a hurricane and you may be required to pay an additional deductible if your state requires it.|
|Additional Living Expenses/Loss of Rent Coverage||Additional Living Expenses/Loss of Rent Coverage will pay for you and your family to stay somewhere else if your home is not livable.|
In addition to the standard coverage listed above, you can add coverage as follows.
|Replacement Coverage||Replacement Coverage will pay for the full replacement cost of any items that are damaged beyond repair or stolen.|
|Blanket Jewelry Coverage||Blanket Jewelry Coverage will cover your jewelry up to a specified limit. Note that it may not include high-value items that need to be scheduled separately.|
|Escape of Water Coverage||Escape of Water Coverage will protect you from water damage if a drain, sewer, or sump pump well overflows.|
|Inflation Protection||Inflation Protection will automatically adjust your policy limits for inflation when your policy renews.|
Certain high-cost items such as jewelry, artwork, and electronics may not be covered unless you schedule them and pay an additional premium.
You should also know that Liberty Mutual does not cover flood damage. Flood insurance may be purchased separately from FEMA.
The limit of the policy you buy from Liberty Mutual will depend on many factors. We suggest the following.
- Dwelling coverage should have a limit that will cover a complete reconstruction of your home.
- Coverage for other structures on your property should be about 10% of your dwelling coverage.
- Personal property coverage limits should be enough to cover replacing your belongings, usually between 50% and 70% of your dwelling coverage.
- Alternative living expenses are typically about 20% of your dwelling coverage.
- Many policies default to $100,000 of personal liability; we suggest between $300,000 and $500,000 to be safe.
When you get a quote, a Liberty Mutual representative will advise on the necessary coverage limits for your home.
Liberty Mutual, like many other companies, offers only a small limit for medical expenses, ranging from $1,000 to $5,000.
Liberty Mutual offers a wide array of discounts if you buy your homeowners insurance through them. Here’s a quick review of what’s available.
|Claims-free discount||You’ll get a discount if you haven’t filed a homeowners claim with your previous carrier for three years.|
|Safe homeowner program||Liberty will give you a discount if you keep your policy with them and don’t file a claim for three years.|
|Early shopper discount||Liberty will give you a discount if you keep your policy with them and don’t file a claim for three years.|
|Newly built/renovated home||If your home was recently built or extensively renovated, you can qualify for a reduction in premium.|
|New roof||A new roof translates to savings on your homeowners insurance.|
|New homeowner discount||As a congratulations to new homeowners, Liberty offers a discount on coverage.|
|Multi-policy discount||Bundle multiple policies with Liberty to save money.|
|Insured to value discount||Many homeowners don’t purchase enough insurance to cover the replacement cost of their home, but if you do, you’ll get a break on your premium.|
|Autopay discount||Sign up for automatic payments to get a discount.|
|Paperless policy discount||Get a paperless policy to save on your premium.|
You should layer as many of these discounts as you can to get the lowest possible price on your homeowners insurance.
One of the areas where Liberty Mutual’s homeowners insurance excels is in its affordability.
The national average for homeowners insurance as of early 2022 is $1,390. That works out to $115 per month.
By contrast, the average cost withLiberty Mutual is only $1,230 per year, which is just $102 per month. That’s more than 12% below the national average.
It’s important to note that the amount you pay will be determined by a variety of factors, including the size of your home, its condition, its location, and the amount of coverage you buy.
However, when you combine Liberty Mutual’s lower-than-average prices and consider the available discounts, it’s a good bet that you can afford to buy coverage with Liberty.
Liberty Mutual gets high marks from policyholders and reviewers for paying claims quickly. You can file a claim online or using Liberty’s free mobile app 24/7, or you can call Liberty Mutual to file a claim.
If you do need to file a claim, make sure you have your policy number handy together with the details of the claim.
It may be useful to take photographs before clearing away debris or damage to back up your claim.
Your Liberty Mutual claims adjuster may ask you for photos and other documentation.
Renters Insurance Overview
If you rent an apartment, condo, or house, then you should buy renters insurance.
The reason you need renters insurance is because it protects you in the event your personal belongings are lost, damaged, or stolen.
Your landlord’s property insurance covers their property; it does not cover yours.
Liberty Mutual offers renters insurance coverage and we have reviewed their coverage and policy options extensively on a state-by-state basis.
Here are the things you need to know before you buy renters insurance through Liberty Mutual.
Renters Insurance Policies & Coverage
Liberty Mutual offers renters insurance coverage in these categories. The first three items come standard with every policy, while the final four are add-on options.
|Personal Property Coverage||Personal Property Coverage protects your personal belongings, including clothing, electronics, furniture, and valuables up to a specified amount. The default option is for the policy to pay the actual cash value of your belongings.|
|Personal Liability and Injury to Others||Personal Liability and Injury to Others protects you in the event that you are personally liable for property damage or an injury that occurs in your rental space.|
|Additional Living Expenses Coverage||Additional Living Expenses Coverage will pay for you to stay somewhere else in the event that your rental space becomes uninhabitable.|
|Blanket Jewelry Coverage||Blanket Jewelry Coverage will cover your jewelry up to your policy limit.|
|Replacement Value Coverage||Replacement Value Coverage will reimburse you for the actual cost of replacing any covered items that are lost or damaged beyond repair.|
|Earthquake Coverage||Earthquake Coverage protects you if your property is damaged in an earthquake. This is an add-on and something that won’t be worth buying unless you live in an earthquake-prone state such as California or Hawaii.|
|Scheduled Coverage||Scheduled Coverage allows renters to itemize valuable property, including high-cost jewelry, artwork, or electronics.|
You can choose to purchase the basic coverage or purchase add-ons to expand your coverage.
We should note here that water damage is not covered by the policy.
Liberty Mutual does not provide flood insurance, which you can purchase separately from FEMA.
On their website, Liberty Mutual says that $15,000 of personal property coverage and $100,000 of personal liability coverage should be sufficient for most renters.
We recommend doing an inventory of your belongings. With Liberty Mutual, you can buy maximum personal property coverage of $25,000.
If you own many things, you may want to maximize your coverage to protect yourself.
Liberty Mutual is one of the best companies for discounts on renters insurance. They offer the following discounts to reduce the cost.
|Multi-policy discount||Like many insurers, Liberty Mutual offers policyholders the option to save by bundling multiple insurance policies with the same company.|
|Automatic payment discount||Renters who sign up to make automatic payments will get a discount on their premium.|
|Claims-free discount||If you’ve purchased renters insurance previously without filing a claim, you can get a break on your premium.|
|Early shopper discount||Buy a policy from Liberty Mutual before your existing policy expires to save money.|
|Online purchase discount||If you get your quote and purchase your policy online, you’ll pay less.|
Keep in mind that you may claim as many of these discounts as you qualify for, which means you can save quite a bit.
We strongly recommend taking advantage of the automatic payment and online purchase discounts, which almost everybody can get.
One of the things that we like about Liberty Mutual is that it’s one of the country's most affordable renters insurance companies.
With monthly premiums starting at just $5, buying basic coverage at a low price is possible.
You should keep in mind that the national average for renters insurance is about $15 per month and your price will increase if you buy a high coverage limit or tack add-on coverage onto your policy.
Liberty Mutual has recognized that convenience is a priority for their policyholders. You can file a claim online 24/7 by logging into your account or by using the mobile app.
You also have the option of calling Liberty Mutual to file a claim. You should make sure to have your policy number and details of the incident handy.
You will receive a claim number that you can use to track the claim status. You may be required to submit photographs and other documentation, including receipts.
Liberty Mutual receives high marks for resolving claims quickly. Their high rating from the Better Business Bureau is a good indication that they prioritize customer service.
Customer Service Options & Availability
Liberty Mutual policyholders can get help in three ways.
- Call the toll-free customer support number at 1 (800) 290-7933.
- Log into your account online and get live, 24/7 chat support. You can also reference the company’s FAQ and knowledge base.
- Download the Liberty Mutual mobile app.
We like that Liberty Mutual offers a free mobile app. It’s available for both the Android and iOS operating systems and you can download it by scanning a QR code on their website.
How Does Liberty Mutual Compare with Other Companies?
To help you get a better idea of where Liberty Mutual falls in the insurance market, let’s do a quick comparison to some other companies.
Like Liberty Mutual, Lemonade has prioritized convenience with an array of online and mobile services. Here are some key points of comparison.
- Liberty Mutual offers coverage in all 50 states, while Lemonade is only available in about half of the country as of this writing.
- In general, Lemonade’s starting prices are a little lower than Liberty Mutual’s.
- Lemonade offers fewer discounts than Liberty Mutual.
- Liberty Mutual has been in existence far longer than Lemonade and has strong indications of financial strength; Lemonade is not yet rated by many of the top players.
- Lemonade is classified as a public benefit company, which means that they take a percentage of their profits and donate them to charity each year.
Liberty Mutual has financial strength and discounts on its side, while Lemonade has more online options and, depending on what kind of coverage you buy, may be less expensive than Liberty Mutual.
Read a full Lemonade home insurance review.
We chose State Farm for comparison because they also offer homeowners and renters insurance in all 50 states. Here are some of the key similarities and differences between the two companies.
- While both companies are highly rated, State Farm gets higher financial ratings than Liberty Mutual. For example, State Farm gets an A++ from AM Best compared to Liberty’s A rating.
- Liberty Mutual offers more discounts, although we should note that State Farm offers quite a few discounts as well.
- State Farm gets higher ratings for its customer service and claims handling.
- State Farm offers more options for add-on coverage than Liberty Mutual and may be preferable to some homeowners and renters.
- State Farm may be less expensive than Liberty Mutual, but it depends on how much coverage you buy and where you live.
If financial strength and customer service are your top priorities, then State Farm may be a better choice than Liberty Mutual, but Liberty still offers the most discounts and a lot of customizable coverage.
It’s always helpful to compare the pros and cons of any insurance company before you buy a policy. Here are the pros and cons of Liberty Mutual as we see them.
Liberty Mutual Pros & Cons
- Liberty Mutual offers the widest array of discounts for both renters and homeowners insurance.
- The company receives high ratings for financial strength.
- Liberty Mutual is licensed in all 50 states and the District of Columbia.
- The coverage options are extensive and there are plenty of customization options available.
- It is quick and easy to get an online quote for renters or homeowners insurance on Liberty Mutual’s website.
- There’s a free mobile app that you can use to pay premiums, file claims, and track claim payments.
- Liberty Mutual offers some unique tools, including the Home Gallery App that allows policyholders to create a home inventory.
- It can be difficult to get local and personal service, since even Liberty Mutual’s local numbers tend to reroute to the national number.
- While the company has a decent record of paying claims quickly, they have also received a higher-than-average number of complaints.
- Even with discounts, their coverage may be more expensive than some other companies.
- Coverage and discounts may vary by state and some coverage options may require a separate deductible.
Summary & Conclusion
Overall, Liberty Mutual is a solid and reliable insurance company with strong financial ratings and a wide array of coverage available.
They beat almost every other carrier we have ever reviewed in terms of the number and breadth of the discounts available, many of which can be layered to maximize your savings.
The company could do better in its local accessibility since even calls to a local Liberty Mutual office may be rerouted to the national number.
As we have noted above, the company also gets a higher-than-average number of complaints, according to the NAIC.
We like that Liberty Mutual is available in every state, and their online quote process is simple and intuitive. Their mobile app also receives high ratings from users, making it easy to file a claim even if you’re on the go.
On the whole, we recommend Liberty Mutual for homeowners and renters insurance. As always, we suggest getting quotes from at least three companies to compare rates and coverages before you buy a policy.