Liberty Mutual - Homeowners

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Liberty Mutual • Auto • Disability • Homeowners --- News • Liberty Mutual Sued in Bid-Rigging Investigation

Rick of Seneca, SC September 1, 2009

I have had my home owner’s policy and automobile policies with Liberty Mutual for 20 years. I began construction on a second home in mid-July. Just before the start of construction (early July), I called Liberty Mutual and asked them for a proposal for insurance coverage for our second home. After a lengthy round of questioning, I was given a quote for this coverage.

I called Liberty Mutual on August 15th to ask them to proceed with the activation of my new policy request for our second home. As the representative proceeded with our new policy request, she regretted that they would not be able to give us insurance coverage for this house. The reason for this denial was that their researched showed that there was no fire hydrant in our neighborhood and that there was no fire department within five miles of our home. “Mapquest” is their method of research for determining distances. I assured them that not only was there a fire hydrant within our subdivision, but that the neighborhood fire hydrant is located on our property line on the street. In addition, I told them I was sure that the fire station was within five miles though I had never confirmed this. The representative’s response was that they would research my claims and get back to me later that day.

When the representative called back, they confirmed their claims were true that their Mapquest research showed our home was 6.1 miles from the nearest fire station. But they said since I was a long time customer, they would ask their underwriter for a special request to provide insurance for our new home.

I received another call back with news that the under writer gave special approval but they would have to charge me a higher premium. In addition to the higher premium, our coverage would be limited compared to the previous quote we received in early July. I told them I disagreed but conceded to the higher rate and reduced coverage since this process had already consumed several hours of my time.

The following week-end, August 22nd, I took it upon myself to measure the distance from my home to the fire department. It turns out that we have two fire departments near our new home – one is located 4.0 miles away and the other (which also has an EMS) is located 4.5 miles away. As soon as I returned home, I called Liberty Mutual and asked for the Manager on duty so that I could report my findings. I was passed off to an “escalator” since the managers were too busy. Though I was upset, I calmly gave the escalator the names, addresses, phone numbers of the two fire departments and the measured distances from our new home. I also re-voiced my insistence that there is a fire hydrant on my property line. The escalator apologized and said she would report this to the underwriter and resolve this as soon as possible. She said she would call me no later than Wednesday, August 26th with the proper resolution.

After hearing nothing from Liberty Mutual, I called again on August 29th. Since they could not reach the previous escalator, I was told a manager would call me back. After no response for several hours, I called again and was connected with another escalator. I had to start all over again and explain the entire situation to this second escalator. After another hour on the phone, I was again assured the situation would be resolved.

To my amazement, much later that evening the original escalator from the previous week left a message on my voice-mail stating that the underwriter again confirmed through Mapquest that the distance from my home to the nearest fire station is 6.1 miles – and that I must have used some type of back woods short cut to measure the distance from my home to the fire department and that this route would not be acceptable.

All of Liberty Mutual’s claims are absurd. The fact is there are two fire departments less than five miles away from our new home. And the fact is that my subdivision is located directly on the same highway that both fire departments are located – one fire department in one direction and the other in the opposite direction. And there is only one possible route to my home for each fire department. In addition there is not a single stop light, stop sign, or yield sign on the way of each route – and there is only one turn for each route. And finally, I have confirmed the distances in Mapquest and called both fire departments and confirmed the distances with each of them. Every one of these efforts have proven the 4.0 mile route and the 4.5 mile route.

I again called Liberty Mutual and insisted on speaking to a manager (not an escalator) to again explain there are two fire departments within five miles from my new home. After spending another hour with this manager, it became quite clear that all she could do was again send the issue to the underwriter – and that the results would be the same - Mapquest would show 6.1 miles from my house to the nearest fire department. It is also became clear that this is most likely routine procedure for Liberty Mutual - to ignore a request and then deny the request by misrepresenting their coverage research. Neither Liberty Mutual nor the under writer are even remotely interested in resolving this issue. I can only imagine how many other customers either never check their findings or simply give up trying to negotiate with them. And I can only imagine how much additional revenue is generated from these methods.

Dennis of Vacaville, CA August 31, 2009

We had a water pipe break in our home sometime during the night, 8-13-09. We discovered it first thing in the morning. The insurance company was immediately called, and they dispatched a company out of Vallejo, called Rainbow International. This company is owned by Cannady Construction, one of the approved vendors used by Liberty Mutual. Initially we were happy with the response and cleanup. We were uneasy about the fact that even though the carpets were completely soaked, neither the carpet or pads were removed. Special equipment was brought in to "top dry" (method) our home.

We met with adjuster A. Shaffer on 8-17-09. She walked the home with the owner or Rainbow International (Cannady Construction). At first we were comfortable in using the company's suggestion of Cannady Construction, however during the walk thru of the damage, we became uneasy because of what we observed. Basically, it was the adjuster's opinion that much of the damage did not have to be removed, even though there was obvious staining in the sheetrock of water damage. Grout in the newly installed tile floor in the upstairs bathroom (source of the water leak) was missing, and the floor was slightly raised.

Cannaday Construction was telling the adjuster what work would need to be done, which included his opinion that the floor would have to come up. The adjuster immediately said they were not replacing the floor, and indicated the floor needed to be re-grouted.

This scenario continued into the downstairs where obvious sheetrock damage was "just going to painted over", and only a small portion of the sheetrock was going to be replaced. There was obvious bubbling in the paper, so we were confused by the unwillingness of the adjuster to replace what we felt need to be replaced. The adjuster was only willing to paint a portion of the front room, even after we explained that we no longer had that paint to just touch it up.

I conducted extensive research on the internet, and talked with several restoration companies and contractors. I had two contractors (actually 3 when you include the air conditioning contractor) come in, and all agreed that the carpets should have been pulled, the pads removed, and that ALL the water damaged areas should be pulled. Apparently just because the house was dried, does not mean there is not moisture present in the inner walls where meters do not accurate read.

The adjuster returned to our property on 8-28-09, this time with her manager accompanying her. From the onset, it was apparent they were here to prove their initial evaluation of the 1st appraisal. Thank God we had the contractor present that we have chosen to do the work, because other than changing their opinion on some painting to the living room, they were not going to change their stance. When we sell our home we have to disclose that we suffered a loss -- how can we sell our home at a later time it we just allow the insurance company to paint over the damage, and cover up what happened?

We are outraged by the treatment we have received. From the research we have done it appears what Liberty Mutual is doing is called "low balling", in an attempt to get us to accept inferior repairs to our home so they do not have to pay for the needed repairs. Their claim that this is merely the investigative and negotiating phase of the claim does not set well with us. We feel they are basically trying to intimidate us into accepting inferior repairs to our home, and we are outraged.

We have filed a complaint with the Calif Dept. of Insurance, but have reservations as to how well that will be investigated given all the budget cutbacks that have occured in California. Any suggestions? The dollar amount of the claim is estimated between 20,000 and 25,000. I expect an additional offer, but so far Liberty Mutual has wanted to pay only 5,000 toward the claim.

Holly of San Diego, CA August 19, 2009

Our house burned down in a burglary/arson in august 2008. Liberty Mutual saw the house one time and wrote an initial estimate, they refused to come back for a supplemental estimate and I had to use their contractor to get one. The estimate was still incomplete and again Liberty refused to negotiate, look at or deal with our claim. They demanded appraisal about 3 months post loss and they continue to thwart the appraisal process and drag the claim out longer and longer. while we are stuck in a rental house paying 3k a month on a mortgage for a house that is sitting in ruins. They have the worst customer service I have ever seen. I would not recommend Liberty Mutual to anyone.

Patricia of Richmond, VA March 25, 2009

We had an ice and snow storm early Febuary. I had damage to my house as well as a tree that took out part of my fence. The tree itself was blocking my way to my back yard. The power also got pulled down. Lucky for me the power company cut most of the damage away. I have a dog that goes in my backyard and due to the fact that my fence ( gate ) is damaged I can not let her go out without supervision. I have gutter that was pulled away from the house due to the ice. I have a down spout that is no longer attached to the gutter. It was the entire top of the tree. Some fell on my side and the other landed on my neighbors roof. When he had a company come out and take the tree off of his house everything was put over in my yard.

I have been in contact with Liberty Mutual. It seems as no one is or has been working on my claim. I found out today that my claim had been CLOSED. I used to work for a regulated company and I know about mean time to repair and this is why my claim was closed with no resolution. I was also told today to get a contractor out ( it would be more than one - one for the gutter and one for the tree and possible one for the gate ) this is totally unacceptable.

Liberty claims has not worked with me at all and I want this matter taken seriously ( as the tree is now leaning ) and could possibly come down in a bad storm and it would do way more damage to my house. It would take out at least 1/4 of my roof and trusses. I want Liberty to resolve the claim by April 3rd.

Thomas of Garfield Hts, OH January 15, 2009

I have been with Liberty Mutual for about 15 years. When I turned 25, my previous insurance company failed to drop my rate so I called them. They told me they had to no problem dropping my rate, I just had to call to ask. Well, since I had to call to ask, I figured I would call everyone to get the best rate. At that time, the best rate I found was at Liberty Mutual. When I signed with them, the agent I had came to my house to fill out the paper work. In fact, every time I needed to make a policy change he would come to my house and take care of me in person. I could not be any more happy with them at the time.

Then my agent moved up in the company and I got a new agent. I stuck with them another 8 years or so, but noticed that each year my premiums would go up a little, even though I never file a claim, have excellent credit, and no tickets or accidents. So this year, I got fed up with the rates going up every year and decided to call around. I found that I was able to get the same coverage through other reputable companies for up to 40% LESS! That is a huge savings for me!

Well, Liberty Mutual just lost a long time customer. Also, my friends and family that I recommended Liberty Mutual to so many years ago will find out about this, will likely call around, and will likely be leaving them as well.

Richard of Miami, FL May 17, 2008

Recently we were dropped along with 3000 other Florida homeowners from Liberty Mutual. I asked what the criteria for being selected were and received general responses about being in a risk area for storm damage. When I asked for more specific criteria they sent 5 and we do not meet any of those five listed. In addition, my next door neighbor was not dropped and so area seems to be an irelevent issue.

I have received several letters from Liberty Mutual, the last one from Ms Fifield, stating that the company's non-renewal program does not violate any florida laws. We have had homeowners insurance with LIberty Mutual for 20 years and feel we have been dropped because of previous valid hurricane damage and relatively lower yearly premiums. My neighbor has made no claims. In the last three years we have stormed proffed our home with a new roof, window shutters, and new windows according to Florida code. We have these certified by a licensed home inspector which we sent to Liberty Mutual.

We have contacted the Florida State Insurance Office and while they are investigating nothing is happening to inform us of the specific criteria for our being non renewed. We feel that they are just stonewalling until August when our policy is over and due for renewal. Any suggestions?

Our insurance rates will significantly increase for our home.

Melvin of Lathrup Village, MI March 8, 2008

I filed the claim last Tuesday 3/4/08 because several sanitary sewer lines are busted and separated under my house foundation, causing backup. I just had a new partial sewer line put in the back yard of my home. I also am having a new bathroom put in my basement. I have a state licensed plumber that working on my basement; he made a video tape for the insurance adjuster to see the extent of damage to the sewer system. The state license plumber told me to provide the adjuster with a copy of the video, and the plumber faxed over a detailed quote to Liberty Mutual for replacing the damaged sewer lines. The insurance adjuster told me the quote was too high for replacing the damaged sewer lines. The adjuster will not look at the tape to see the detail of the damage. Now it is Saturday (3/8/2008) night, and I have family coming from out state for a family funeral. I told the adjuster I needed to get this done right away. I even asked the insurance adjuster to get someone else, and he didn't. If any of my family members get sick as a result of their adjuster refusing to take any action concerning this matter, I am going to the local TV channel and retaining an attorney on Monday 3/10/2008.

The plumber told me that he has never paid over 2,000.00 dollars for this repair even though he has not looked at the extent of damage to the system or even recommending another plumber for the job. I have called the insurance adjuster, and he refused to take my calls for the last couple of days. I am filing a formal complaint with the insurance commission in Lansing, MI. This is my second claim in eighteen years of coverage with their company, and this is how I am being treated.

My family could get sick because Liberty Mutual refuses to respond to me to resolve this matter.

Cindy of Worcester, MA February 20, 2008

On February 10, I received a letter from my mortgage company stating that they attempted to pay my hazard insurance renewal premium, but they were unable to obtain the policy information from my agent. The letter stated, please provide us with your policy renewal information to prevent a lapse in coverage. I called Liberty Mutual, who stated that I had no insurance coverage for a year and a half! They explained that Chase Mortgage had payed them late in January of 06, so they canceled the policy, cashed the check from Chase and sent me a check (they always send it to the customer).

I called Chase, and they paid the bill again. Apparently, Liberty mutual again, cashed the check and said that they sent me a check for the amt. paid. They are now saying that I am uninsurable because of a year and a half lapse in coverage stating that if you didn't insure your property for a year and a half, you probably don't take care of your property! First of all, if I had received a check from Liberty Mutual, I would have notified someone, because this happened to me about 6 years ago, I cashed the check because it said refund (without any type of cancellation notice) and I got canceled and mandated by my mortgage co (who was Washington Mutual at the time). So, I know that I would not cash a check from Liberty Mutual without investigating why I got it in the first place. Secondly, What happened in 2007? If I didn't have any homeowners insurance for the year, why wouldn't Chase mandate me or even notify me? I am now without homeowners insurance after using Liberty Mutual for eight years in a row, paid for in full each year from my mortgage escrow. Any suggestions?

I have no homeowners insurance and am having difficulty obtaining insurance because of the lapse. My mortgage co. (Chase) stated they'll give me a few days to obtain insurance.

Nicole of Phoenix, AZ June 4, 2007

My husband and I had 2 homes, 2 autos, and 2 life insurance policies with Liberty Mutual for more than 5 years. We had a small fire in one of our homes during our last policy effective dates. The claim is still open, however we have already been notified that our homeowners policies will not be renewed. Apparently, any claim or loss that is greater than 15,000.00 results in a non-renewal! Live and learn, ask your carrier what the underwriting standards are in the event of a claim. The last thing you want to be doing when you're dealing with fire clean-up, and construction crews is finding last-minute insurance! I'm pretty sure the Liberty Mutual commercial ends a little differently than this.

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