Liberty Mutual vs State Farm

Verdict

Liberty Mutual and State Farm are both policyholder-owned mutuals, ranked #4 and #1 among U.S. homeowners groups by 2025 premiums ($10.40 billion against $35.27 billion, per NAIC data). The difference a homeowner feels first is how you buy. State Farm sells only through more than 19,000 exclusive agents who represent no other company. Liberty Mutual sells online, by phone and through independent agents, the channel its Safeco brand served until the brand was retired on April 25, 2026, so an independent agent can put a Liberty Mutual quote next to other carriers.

The contents settlement is the coverage difference to check. Liberty Mutual's coverage page says basic personal property pays actual cash value, and replacement cost for belongings is an add-on. Its claims page says the first check is actual cash value less the deductible, with withheld depreciation released after you send receipts. The State Farm pages we reviewed do not say how contents are settled, so ask. Both write on their own forms rather than ISO's HO 00 03. We did not find a roof payment schedule described on either company's coverage pages, so have the agent show you how a roof loss is settled on your quote.

Ratings and geography split them. AM Best affirmed Liberty Mutual at A (Excellent) in September 2025, with A from S&P and A2 from Moody's. State Farm's main companies are A+ (Superior), cut from A++ in November 2025, but State Farm General, which writes California, is B (Fair). California is limited for both: State Farm General has taken no new homeowners applications since May 27, 2023, and Liberty Mutual's direct brand stopped adding California homeowners policies in 2023, although agent-sold homeowners policies continue there. Liberty Mutual is the largest home insurer in Idaho and New Hampshire. State Farm is the largest in 41 states.

Choose Liberty Mutual if

• You want an independent agent who can compare Liberty Mutual with other carriers, or you prefer to buy online.
• You live in New England or the Northwest, where Liberty Mutual's share is strongest, and want an A-rated insurer with A and A2 ratings from S&P and Moody's.
• You want add-ons such as blanket jewelry with no deductible, service line, home systems and appliance breakdown, or inflation protection that raises limits at each renewal.
• You value its claims survey result: Liberty Mutual ranked above the average in J.D. Power's 2026 U.S. Property Claims Satisfaction Study.

Choose State Farm if

• You want one agent and one company for home, auto and umbrella.
• You want the largest home insurer in 41 states and an A+ (Superior) group rating from AM Best, and you can live with checking which State Farm company issues your policy.
• You qualify for its roofing or mitigation credits: Class 4 impact-resistant shingles (26 states), wind mitigation, and wildfire mitigation in California, Colorado and Oregon.
• You want inflation coverage built into the dwelling limit, plus sewer or drain backup and earthquake as endorsements.

Key differences

Before you decide

Quote the same Coverage A, deductibles and endorsements, and get the contents and roof settlement terms in writing from both. Ask each whether it is writing new homeowners business at your address. If you are leaning toward one agent for everything, captive agents, independent agents and direct insurers explains the trade-off, and how to compare homeowners insurance quotes shows how to line the offers up. recoverable depreciation: getting the rest of your claim covers the actual-cash-value claim payment, and Financial strength ratings: AM Best, S&P, Moody's and Demotech covers the rating letters.