- Liberty Mutual’s Background and Financial Strength: Founded in 1912, Liberty Mutual is a major, mutual homeowners insurer with strong financial ratings and significant revenue, making it capable of paying claims even after catastrophic events.
- Coverage Flexibility and Discounts: Liberty Mutual offers customizable policies with good coverage options, and it provides an extensive list of discounts, including bundling, claims-free, online purchase, and new home discounts.
- Customer Satisfaction and Complaints Trends: Despite good claims handling scores, Liberty Mutual's customer satisfaction ratings are below average, with recent increases in complaints about rate hikes, non-renewals, and communication issues.
- Price Range and Rate Trends: Average premiums are estimated between $1,229 and $1,340 annually, but rates have increased by 37.1% since 2023, with many customers experiencing significant premium hikes.
- Coverage Options and Limitations: Liberty Mutual offers standard HO-3 policies with multiple add-ons like inflation protection and guaranteed replacement cost, but does not provide flood or earthquake insurance, which must be purchased separately.
Liberty Mutual Home Insurance Overview
Liberty Mutual has been around since 1912 and is the fifth-largest homeowners insurer in the U.S. by market share (6.8%). It is a mutual company, meaning policyholders technically own it rather than shareholders. With $50.2 billion in annual revenue, over 45,000 employees, and a spot on the Fortune 100, this is one of the biggest insurance companies in the country.
The core pitch for Liberty Mutual homeowners insurance is coverage flexibility and discounts. The company offers a longer list of ways to save than most competitors, and add-on options like inflation protection, blanket jewelry coverage, and guaranteed replacement cost give you more ways to customize your policy. AM Best rates it A (Excellent) with a stable outlook.
But the last two years have been rough for customer satisfaction. Liberty Mutual’s NAIC complaint index for homeowners insurance was historically below average from 2022 to 2023. Then it nearly doubled in 2024, landing at 2.86, nearly three times the baseline. Customer reviews are dominated by complaints about steep rate increases (the company has raised rates 37.1% cumulatively since 2023), unexpected policy non-renewals, and poor communication. The claims process itself scores above average according to J.D. Power (707/1,000 in 2025), but overall satisfaction is below average.
Pros and Cons
Pros
- Excellent discount options: Liberty Mutual offers one of the most comprehensive discount menus in homeowners insurance, including claims-free, new home, new roof, wind mitigation, insured-to-value, online purchase (10% off), autopay, and bundling. Most of these are easy to qualify for.
- Strong coverage add-ons: Inflation protection automatically adjusts your dwelling coverage at renewal and comes with a premium discount. Blanket jewelry coverage requires no appraisal and has no deductible. Guaranteed replacement cost pays the full rebuild cost, even if it exceeds your dwelling limit.
- Available nearly everywhere: Liberty Mutual operates in 49 states plus D.C. The only gap is new policies in California, where the company stopped writing homeowners’ insurance.
- Financially strong: AM Best A (Excellent), $50.2 billion in revenue, $4.4 billion in net income in 2024. This is a company that can pay claims. The combined ratio hit 91.5% in Q4 2024, its lowest in 20 years.
- Above-average claims satisfaction: J.D. Power gave Liberty Mutual a 707/1,000 in the 2025 Property Claims Satisfaction Study, above the industry average of 682.
- Bundling savings: Liberty Mutual advertises an average of $950/year in savings when you bundle home and auto, which is one of the higher bundling discounts among major carriers.
Cons
- Steep rate increases: A cumulative 37.1% increase since 2023 (per S&P Global). Many customers report premiums doubling or tripling in a single renewal cycle. One customer reported going from $5,000 to $10,000/year for a 2,300 sq ft home.
- Rising NAIC complaint index: From below average in 2022-2023 to 2.86 in 2024, nearly 3x the industry baseline. That is a big swing in the wrong direction.
- Below-average overall satisfaction: Despite strong claims scores, Liberty Mutual ranks below average in J.D. Power’s overall 2025 Home Insurance Study. Customer reviews on Trustpilot and BBB average about 1-1.5 out of 5.
- Policy non-renewals: Multiple reports of Liberty Mutual dropping customers over roof condition, even after homeowners made requested repairs. This is a growing trend across the industry, but Liberty Mutual has drawn particular criticism.
- No new policies in California: If you are in California and need new homeowners coverage, Liberty Mutual is not an option.
- Safeco transition: Liberty Mutual is retiring the Safeco brand in 2026. Safeco customers are being migrated, and Safeco’s J.D. Power score dropped 23 points in 2025 (to 571). If you are a Safeco customer, pay close attention to your renewal terms.
Coverage Options
Standard Coverage
Liberty Mutual offers a standard HO-3 homeowners policy, covering the usual six categories:
Coverage Type | What It Covers | Notable Details |
Dwelling (A) | Your home’s structure, roof, walls, and built-in systems | Inflation protection automatically adjusts this limit at renewal |
Other Structures (B) | Detached garages, sheds, fences, pools | Typically, 10% of dwelling coverage |
Personal Property (C) | Furniture, electronics, clothing, belongings | Replacement cost coverage available (pays for new items, not depreciated value) |
Loss of Use (D) | Additional living expenses if your home is uninhabitable | Hotel, meals, temporary housing during covered repairs |
Personal Liability (E) | Legal defense and damages if someone is injured on your property | Starts at $100,000; higher limits available |
Medical Payments (F) | Medical bills for guests injured on your property | No-fault pays regardless of who caused the injury |
Add-Ons and Endorsements
Liberty Mutual has one of the strongest menus of optional coverages among major carriers:
- Inflation protection: Automatically adjusts your dwelling coverage to keep pace with construction costs. Comes with a premium discount. This is included with every policy and is one of Liberty Mutual’s better features.
- Guaranteed replacement cost: Pays the full cost to rebuild your home, even if it exceeds your dwelling limit. A valuable safety net if construction costs spike after a disaster.
- Blanket jewelry coverage: Covers loss or theft of jewelry with no deductible and no upfront appraisal required. Most competitors require you to schedule individual items with appraisals.
- Water backup and sump pump: Covers damage from sewer backups and sump pump failures. Optional, but worth considering if you have a basement.
- Equipment breakdown: Covers mechanical and electrical breakdown of home systems and appliances beyond normal wear and tear.
- Service line coverage: Covers underground utility lines (water, sewer, gas, electric) running from the street to your home.
- Identity fraud coverage: Covers expenses from identity theft, including legal fees and lost wages.
- Ordinance or law coverage: Pays extra costs to bring your home up to current building codes during repairs.
- Loss forgiveness: Prevents your rate from increasing after your first claim. Optional add-on.
What’s Not Covered
Standard exclusions apply: flood, earthquake, normal wear and tear, pest damage, mold from neglect, and intentional damage. You will need separate policies for flood and earthquake coverage. Liberty Mutual does not sell directly.
Pricing and Cost
Liberty Mutual does not publish company-wide average rates, which makes direct price comparisons harder than with some competitors. Available estimates put the average homeowners’ policy between $1,229 and $1,340 per year, depending on the source and the dwelling coverage amount used.
On paper, those numbers are competitive. But the rate trajectory is a concern. According to S&P Global, Liberty Mutual has raised homeowners’ rates a cumulative 37.1% since 2023. While rate increases are happening industry-wide (driven by inflation, rising catastrophe costs, and reinsurance pricing), Liberty Mutual’s pace has been faster than some competitors.
The real-world impact: Customer reviews are full of stories about premiums jumping 50%, 75%, or even 100% in a single renewal. One customer reported going from $5,000 to $10,000/year for a 2,300 sq ft home in Texas. Another switched from Liberty Mutual to USAA and saw their rate drop from $10,000 to $2,800 for the same property. These are extreme examples, but the trend is consistent enough to take seriously.
Discounts and Savings
This is where Liberty Mutual stands out. The company offers one of the longest discount lists among major homeowners’ insurers:
Discount | Estimated Savings | Details |
Multi-policy bundling | ~$950/year (avg.) | Bundle home + auto for the biggest savings. One of the highest bundling discounts among major carriers. |
Claims-free (with LM) | Varies | Stay claims-free with Liberty Mutual for at least 3 years |
Prior insurance claims-free | Varies | No claims for 5+ years with your previous insurer |
Online purchase | 10% | Buy your policy online to get an automatic 10% discount |
Newly purchased home | Varies | Discount for buying coverage when you close on a new home |
New or renovated home | Varies | Savings for recently built or substantially renovated homes |
New roof | Varies | Discount for homes with a recently replaced roof |
Wind mitigation | Varies | Requires a qualified inspection showing wind-resistant construction features |
Insured-to-value | Varies | Discount for insuring your home at 100% of replacement cost |
Autopay / paperless | Small | Set up automatic payments and/or paperless billing for a modest discount |
Loss forgiveness | N/A | Not a discount, but it prevents your rate from going up after your first claim. |
That is a much longer list than what you will find at Lemonade, USAA, or even State Farm. If you can stack several of these discounts, the savings add up quickly.
Claims Experience
What the Data Says
Liberty Mutual’s claims picture is mixed. The professional surveys say one thing; the customer complaints say another.
- J.D. Power 2025 Property Claims Satisfaction: 707/1,000, above the industry average of 682. This puts Liberty Mutual in the above-average tier for claims handling.
- NAIC Complaint Index (2024): 2.86, nearly 3x the industry baseline of 1.0. This is a significant jump from 2022-2023, when Liberty Mutual’s complaint rate was below average.
- Common complaint themes: steep rate increases after claims, slow adjuster response times, lowball initial settlement offers, and policy non-renewals tied to roof inspections.
The J.D. Power number suggests that when Liberty Mutual handles your claim, the process itself tends to go relatively well. The NAIC data suggests there are enough bad experiences to significantly outpace the industry average. Both can be true: the average claims experience is decent, but the worst-case outcomes are bad enough and frequent enough to generate outsized complaints.
How to File a Claim
Liberty Mutual offers multiple ways to file:
- Online at libertymutual.com
- Through the Liberty Mutual mobile app
- By calling 1-800-2CLAIMS (1-800-225-2467)
- Through your local Liberty Mutual agent
Customer Service and Digital Experience
Service Channels
Liberty Mutual offers a mix of digital and traditional service. You can manage your policy through the app or website, call a service line, or work with a local agent. The company distributes through both direct channels and a network of about 2,300 sales professionals. It also has independent agent distribution through the Safeco brand, though that brand is being retired in 2026.
Satisfaction Scores
Overall, customer satisfaction is below average. Liberty Mutual ranked below average in J.D. Power’s 2025 Home Insurance Study overall, despite the above-average claims score. Customer reviews on Trustpilot and BBB average roughly 1 to 1.5 out of 5 stars, though these platforms tend to skew negative because satisfied customers rarely leave reviews.
The most common complaints in customer reviews are unexpected rate increases, difficulty reaching agents, policy non-renewals over roof condition, and slow communication during the claims process.
The App
Liberty Mutual’s mobile app lets you view your policy, make payments, file claims, upload documents, and contact support. It is functional and covers the basics, but it is not as polished or fast as apps from Lemonade or USAA. Think of it as a solid utility rather than a standout feature.
Financial Strength
Liberty Mutual’s financial position is among the strongest in the industry:
- AM Best: A (Excellent), stable outlook. Risk-adjusted capitalization at the strongest level (per Best’s Capital Adequacy Ratio).
- Revenue: $50.2 billion (2024), up 1.6% year-over-year.
- Net income: $4.4 billion in 2024, up from $213 million in 2023. A significant turnaround.
- Combined ratio: 91.5% in Q4 2024, the lowest in 20 years for the company.
- Fortune 100: Consistently ranked in the Fortune 100 by revenue.
- Market position: 9th-largest global P&C insurer by gross written premium; top 5 in U.S. homeowners.
- Employees: ~45,000 in 29 countries.
- Mutual company: Policyholder-owned, so there is no pressure from public shareholders to prioritize profits over policyholders (in theory).
What this means for you: Liberty Mutual has the financial strength to pay claims, even after a bad catastrophe year ($3.89 billion in cat losses in 2024, plus a $1.2 billion preliminary estimate for the January 2025 California wildfires). This is not a company that is going to run out of money.
Who Is Liberty Mutual Good For?
Best For
- Discount hunters: If you want to stack multiple discounts (bundling, claims-free, new roof, online purchase, autopay), Liberty Mutual gives you more options than most competitors.
- Homeowners who want coverage customization: The add-on menu is strong, with options like inflation protection, guaranteed replacement cost, blanket jewelry, service line coverage, and loss forgiveness.
- Bundlers: If you also need auto insurance, Liberty Mutual’s average bundling discount of ~$950/year is one of the highest in the industry.
- Homeowners in states where other carriers have pulled back: Liberty Mutual still operates in 49 states + D.C., though California is now excluded for new policies.
Not Ideal For
- Homeowners worried about rate stability: A 37.1% cumulative increase since 2023 is significant, and customer reviews suggest some policyholders have been hit much harder.
- Anyone prioritizing customer service: Below-average overall satisfaction in J.D. Power, and online reviews are consistently poor.
- California homeowners: Liberty Mutual is not writing new homeowners’ policies in California.
- Current Safeco customers: The brand transition is creating uncertainty. Watch your renewal terms closely.
- Homeowners with older roofs: Liberty Mutual has been aggressive about non-renewals tied to roof condition. If your roof is 15+ years old, you may face scrutiny.
How to Get a Quote
Liberty Mutual offers several ways to get a homeowners insurance quote:
- Online at libertymutual.com (10% discount for online purchase)
- By phone at 1-800-295-2732
- Through a local Liberty Mutual agent or independent agent
Start with an online quote to lock in the 10% online purchase discount, then follow up with an agent if you have questions about coverage options or add-ons.
How Liberty Mutual Compares
Liberty Mutual | State Farm | Allstate | |
Overall Rating | 3.5 / 5 | 4.0 / 5 | 3.5 / 5 |
Avg. Annual Premium | ~$1,229–$1,340 | ~$2,133 | ~$2,321 |
AM Best Rating | A (Excellent) | A+ (Superior) | A+ (Superior) |
J.D. Power Claims | 707 / 1,000 | 661 / 1,000 | Not ranked |
NAIC Complaint Index | 2.86 | ~1.0 | ~1.0 |
Discount Options | Extensive (11+) | Moderate | Strong (9+) |
States Available | 49 + D.C. | 48 + D.C. | 50 + D.C. |
Best For | Discount stacking | Budget + agents | Customization |
Liberty Mutual vs. State Farm
State Farm has a stronger financial rating (A+ vs. A), lower complaint volume, and its own exclusive agent network. But Liberty Mutual’s average premiums are significantly cheaper, the discount options are more extensive, and the claims satisfaction score is actually higher (707 vs. 661 in J.D. Power). If you are price-sensitive and willing to stack discounts, Liberty Mutual may come out ahead. If you want the lowest-friction experience with a well-known agent down the street, State Farm is the safer pick.
Liberty Mutual vs. Allstate
Both companies score 3.5/5 in our reviews, but for different reasons. Allstate has stronger digital tools (like Digital Locker and QuickFoto Claim), a better customization story, and slightly more coverage creativity. Liberty Mutual has more discounts, cheaper average premiums, and a higher J.D. Power claims score. Allstate’s NAIC complaint volume is lower. If discounts and price matter most, go with Liberty Mutual. If digital experience and brand consistency matter more, lean Allstate.
Final Verdict
Liberty Mutual earns a 3.5 out of 5 in our review. The coverage options are strong, the discount menu is one of the best in the industry, and the company has the financial muscle to pay claims. J.D. Power’s above-average claims score (707/1,000) is encouraging.
But the last two years have introduced real concerns. The NAIC complaint index nearly tripled between 2023 and 2024, steep rate increases have frustrated long-time customers, and policy non-renewals over roof condition have become a common complaint. Below-average overall satisfaction in J.D. Power studies adds to the picture.
Liberty Mutual is a strong choice if you are a discount-savvy shopper who can stack multiple savings, wants solid coverage add-ons like inflation protection and guaranteed replacement cost, and does not mind a company going through a bumpy customer satisfaction stretch. Get a quote at libertymutual.com (and take the 10% online discount). Just compare it against State Farm, USAA, and Erie before you commit.
Our Methodology
This review uses a weighted scoring system: coverage options (25%), pricing and value (20%), claims experience (20%), customer service (15%), discounts and savings (10%), and digital experience (10%).
Other Liberty Mutual Products We’ve Reviewed
Frequently Asked Questions
Answers to your questions about Liberty Mutual home insurance.
It depends on what matters to you. J.D. Power’s 2025 claims score (707) is above average. But overall satisfaction is below average in J.D. Power’s broader study, and the NAIC complaint index jumped to 2.86 in 2024 (nearly 3x the baseline). Liberty Mutual is a solid choice if discounts and coverage flexibility are your priorities. It is a weaker choice if customer service and rate stability matter most.
Liberty Mutual has been in business since 1912, for more than a century. It is the ninth-largest global property and casualty insurer, ranks on the Fortune 100, generates $50.2 billion in annual revenue, and employs over 45,000 people. AM Best rates it A (Excellent) with a stable outlook. It is a mutual company, meaning it is owned by its policyholders rather than public shareholders. Liberty Mutual is about as established and financially sound as insurers get.
Estimates put the average Liberty Mutual homeowners policy between $1,229 and $1,340 per year, depending on dwelling coverage levels and the data source used. Your actual rate depends on location, home characteristics, claims history, and coverage amounts. Be aware that rates have increased significantly in recent years (37.1% cumulatively since 2023, per S&P Global).
No. Flood and earthquake damage are excluded from standard homeowners policies, and Liberty Mutual does not sell separate flood or earthquake policies. You will need to buy flood insurance through the National Flood Insurance Program (NFIP) or a private flood insurer, and earthquake coverage from a specialist carrier.
Inflation protection is an optional endorsement that automatically adjusts your dwelling coverage at each renewal to keep pace with rising construction costs. It also comes with a premium discount. This means your coverage keeps up with inflation without you needing to manually request increases each year. It is one of Liberty Mutual’s more useful features and a good idea for most homeowners.
Yes. Multiple customer reports describe Liberty Mutual non-renewing policies over roof condition, even in cases where homeowners had made requested repairs. This is a growing trend across the homeowners’ insurance industry, not unique to Liberty Mutual. But the company has drawn more complaints about it than some competitors. If your roof is older, be prepared for potential scrutiny at renewal.
