In our continuation of providing information about the many insurance companies offering homeowners insurance, in this article, we present Liberty Mutual Homeowners Insurance.
If you are purchasing a home and taking a mortgage on the transaction, your lender is going to require that you purchase homeowners’ insurance and in most cases, you’ll be required to pay a year’s coverage in advance.
Knowing this, the company you select is important because you’re likely insuring what will become your most valuable asset.
About Liberty Mutual Insurance Company
Established in the early 1900s, Liberty Mutual Insurance Company provides a comprehensive portfolio of insurance and investment products. As one of our nation’s largest home and auto insurers, Liberty Mutual employs over 50,000 people that are spread out over 800 offices located in 30 countries.
Liberty Mutual has three methods of distributing its products to make purchasing almost any type of insurance a very easy process. The company’s products can be purchased over the telephone, online, or from a Liberty Mutual agent in your neighborhood.
Keeping up with 21st Century innovation, Liberty Mutual offers a free app for its policyholders which allows them to access all their insurance policy information and even file a claim with the company.
Available Products from Liberty Mutual Insurance
Like other large and highly-rated insurers around the world, Liberty Mutual offers many insurance products for families, small businesses, and industry.
Here’s how Liberty Mutual Insurance Company can help you or your business:
|Auto & Vehicle||Property||Other|
|Personal Auto||Homeowners||Life Insurance|
|Watercraft||Condo||Critical Illness Insurance|
|Classic/Antique Car||Landlord Insurance||Pet Insurance|
|ATV and Off-Road Vehicle||Mobile Home||Tuition Insurance|
|RV and Travel Trailer||Flood||Identity Theft|
|Personal Umbrella||Business Insurance|
Although Liberty Mutual offers automobile insurance and financial products, for this article, we will focus on Liberty Mutual Homeowners Insurance.
Liberty Mutual’s Financial Ratings and Financial Stability
In short, an insurance policy is simply a promise to pay in exchange for the policyholder’s premium. Most insurance policies are long-term promises and as such, it’s essential that the company you select will be able to meet its financial obligations at the time of a claim.
Discovering that the company you’ve selected has a history of fighting a customer’s claim every step of the way should not enter the picture in the company-customer relationship. In today’s economy, you can review your company’s bottom line with a few taps on the keypad.
Here’s what’s been offered about Liberty Mutual Insurance Company:
|Rating Company||Current Rating|
|A.M. Best||A (Excellent)|
|Standard & Poor’s||A (Strong)|
|Moody’s Investors Service||A2 (Good)|
|J.D. Power||3 out of 5 stars for claims satisfaction|
Other important notes that demonstrate Liberty Mutual is highly capable of keeping its promise to policyholders:
- Ranked #75 in Fortune Ranking
- Ranked #5 for largest Property and Casualty insurance worldwide
- Over 50,000 employees to serve its policyholders
- Operates in 30 countries around the world
Liberty Mutual Homeowners Insurance
Similar to other highly-rated homeowners insurance providers, Liberty Mutual offers a standard HO3 policy form and then makes additional optional coverages available to help applicants sufficiently insure their most valuable asset.
Here are the coverages offered in the standard homeowners’ insurance package:
|Type of Coverage||What it Covers||Typical Limit of Coverage||Deductible Applied|
|Dwelling||Covers the structure of the home and any attached/built-in appliances||Claims are generally based on replacement cost of the home (land or lot not covered)||Yes - Flat amount or % of structure value|
|Other Structures||Covers any structures on the property not attached to the house such as fences, barns, workshops||Usually 10% of dwelling limit. Can be increased if needed.||Yes|
|Personal Property||Personal belongings inside and outside of your home||50% of dwelling limit but can be increased or decreased as needed||Yes|
|Loss of Use||Pays for temporary relocation expenses while the home is under repair||20% of dwelling limit||Yes|
|Personal Liability||Pays for medical expenses and legal expenses if found liability for injuries or property damage to a third-party||Typically available limits are $100,000 to $1 million||No|
|Medical Payments||Pays medical expenses for third-party injuries regardless of fault||Typical limits are $1,000 to $10,000||No|
|Optional Coverage||How it Protects Your Home|
|Water Backup||Water damage and sump overflow coverage will pay for damages caused to your home and belongings if a drain or sewer backs up or there is a sump pump failure.|
|Scheduled Personal Items||The standard homeowners' policy contains special limits for valuable items like jewelry, furs, art, and guns. Typically the special limits on these items will be insufficient to cover the cost to replace them. By scheduling these items, you can cover them for the appraised value.|
|Inflation Protection||When this option is selected, your homeowners' insurance limits will be adjusted at each renewal to keep pace with inflation.|
|Identity Fraud Coverage||This optional coverage will provide up to $15,000 per incident and $30,000 per policy for attorneys fees, reimbursement for certain expenses and other costs associated with fraud and identity theft.|
|Umbrella Coverage||For homeowners who prefer higher personal liability limits, a stand-alone umbrella policy can be purchased to provide a liability umbrella over your auto and home liability limits.|
|Earthquake Coverage||Although damages resulting from an earthquake are excluded in the standard homeowners' policy, Libery Mutual offers a stand-alone earthquake policy for homeowners living in areas with a history of earthquakes.|
|Flood Insurance||Losses due to flooding are not covered under your homeowners insurance so Liberty Mutual will offer a stand-alone flood policy that is issued through the National Flood Insurance Program.|
Discounts offered by Liberty Mutual Homeowners Insurance
When it comes to homeowners’ insurance policies, most companies are very close on the rates they charge, however, it is the discounts that can substantially separate one company from the next.
Liberty Mutual offers a number of discounts that will help homeowners reduce the cost of their insurance coverage. The amount of the discount depends on the state you live in.
|Multi-Policy||When you purchase auto, life, or other insurance policies along with your homeowners' policy, Liberty Mutual will credit your policy with the multi-policy discount.|
|Claim-Free Discount||For applicants who are claim-free for 5 or more years on a homeowners or renters insurance policy, you are eligible for an additional discount.|
|New Home Discount||Applicants who insure new homes or newly remodeled homes will receive lower rates than applicants with older homes.|
|Protective Device||Homes with an alarm system for burglary and fire are eligible for Protective Device discounts|
|Loyalty Discount||Policyholders that demonstrate loyalty to USAA by keeping their policies for many years earn additional discounts.|
|Preferred Payment||Policyholders who agree to have payments automatically withdrawn from their bank or credit card will qualify for the auto-pay discount.|
|Safe Homeowner Program||Liberty Mutual will reward policyholders who have gone three policy years without filing a claim a lower premium at renewal.|
|Military Discounts||Active military and veterans will qualify for additional homeowners insurance discounts.|
What Homeowners Insurance Customers are Saying about Liberty
If you want a clear picture of what Liberty Mutual policyholders think about their company, you can find out instantly by checking several rating platforms online:
Liberty has been at it for over 100 years and we believe that homeowners’ insurance shoppers should have them at the top of their list when they are concerned about value, customer service, and claims service.
Frequently asked Questions
Will Liberty Mutual cover dog bites?
When you apply for coverage, you will be asked if you own a pet with a history of biting. If you answer “yes” your liability for dog bites will likely be excluded. If your dog does not have a history of biting, your liability will cover a dog bite.
Will homeowners insurance cover flood damage?
Your homeowners insurance will not cover damages caused by a flood. If you are concerned about flood damage, you can purchase a stand-alone flood policy through the National Flood Insurance Program.
Is fire insurance the same as homeowners insurance?
Fire insurance, also known as “dwelling fire” insurance, is similar to homeowners insurance but with limited coverages. It is usually used to cover vacant homes or rental homes without contents.
Does Liberty Mutual offer discounts on Homeowners Insurance?
Liberty Mutual offers many discounts (depending on your state) that will significantly reduce your cost of homeowners insurance.