Lemonade Insurance Review 2023

Lemonade is a peer-to-peer platform that offers homeowners and renters insurance — and recently, pet insurance. It is particularly popular with younger homeowners between the ages of 25 and 34. 

Lemonade Insurance Company is a public benefit corporation that saw its stock prices doubled when it went public. It earned a financial stability rating of A from Demotech Inc., even though it has only been in business since 2016.

The company uses artificial intelligence to underwrite insurance policies and make the fastest claims in the world in just 3 seconds. Lemonade insurance reviews talk about its user-friendliness and competitive pricing.

Lemonade claims it was created to change the traditional homeowners’ business model. It simply takes a flat fee via its account management services, pools policyholders’ premium, and then uses the money to pay claims when the need arises. Because of this, Lemonade is more risk-averse than traditional home insurance companies. 

If you are interested in doing business with them, you can contact them at:

Lemonade insurance address: Five Crosby Street New York, NY 10013 USA

Lemonade Insurance website: www.lemonade.com

Lemonade insurance phone number: (844) 733-8666 

Another thing that sets Lemonade apart from its competitors is its Giveback program, which donates leftover money to charities chosen by its policyholders.

Although it may not be the best company for everybody,  for young homeowners who have a good credit score, this company can offer nice self-service features, lighting-fast claim processing, and the satisfaction of knowing the leftover policyholder money is going to a good cause.

Lemonade insurance reviews are very positive so we decided to do our own research on the company to find out if the claims hold true.

How We Reviewed

We wrote this guide by analyzing:

• The pros, cons, and features of the platform
• What coverage types it provides and what it doesn’t
• The pricing quotes with different conditions
• Data on the financial strength of the company
• Lemonade insurance rating from user review websites like Yelp, BBB, ConsumerAffairs, etc.

Where Is Lemonade Insurance Available?

One big drawback of Lemonade homeowners insurance is that it is only available in half the United States. The company is hoping to provide its services in more states soon, but currently, its availability is limited to: 

1. Arizona
2. Arkansas
3. California
4. Colorado
5. Connecticut
6. District Of Columbia
7. Georgia
8. Illinois
9. Indiana
10. Iowa
11. Maryland
12. Massachusetts
13. Michigan
14. Missouri
15. Nevada
16. New Jersey
17. New Mexico
18. New York
19. Ohio
20. Oklahoma
21. Oregon
22. Pennsylvania
23. Rhode Island
24. Tennessee
25. Texas
26. Virginia
27. Wisconsin

Aside from the U. S., it is available in some cities of Germany and the Netherlands and hopes to expand its reach to more countries. Lemonade Insurance Agency (LIA) is acting as the agent of Lemonade Insurance Company, which is headquartered in New York.

Lemonade Homeowner Insurance Review

Lemonade provides a relatively comprehensive list of services, especially considering its premiums start from as low as $5. 

Types of Home Insurance Coverage

The major coverage types include:

Lemonade Renters Insurance

Lemonade provides coverage for renters, which allows them to protect choice items up to their total value. 

Its standard renters insurance policies can cover the cost of damaged or lost items during situations like theft, fire, vandalism, or natural catastrophes like hail, windstorm, smoke, lightning, and freezing weather. It does not provide hurricane or earthquake insurance.

Renters have the option of selecting extra coverage for high-value items like electronics, jewelry, bikes, and musical instruments. Policyholders can simply add these items to their coverage through the Lemonade app for an additional cost.  

Lemonade also offers coverage for theft outside of your home (for example, if your smartphone gets stolen at a café). 

Aside from this, it has a “Zero Everything” feature, which allows renters to get rid of deductibles for a higher premium.  According to a Zero Everything Lemonade review written by a customer, this is a wonderful option for renters who need to file claims for less expensive items.

Lemonade Home Insurance

The standard home insurance coverage, also known as H01 policy, includes the cost of construction of your home. The cost is estimated by Lemonade’s experts. The policy also covers other properties on your home, including the driveway, shed, and fence.

Additionally, it allows homeowners to claim the total value of their personal property (electronics, furniture, jewelry, etc.). 

Lemonade offers personal liability coverage for homeowners if someone gets hurt on your property and sues you. They provide medical payment insurance in such cases too.

If your home becomes unlivable, Lemonade also offers you coverage to rent a hotel room or home and covers your living expenses.

One of the biggest advantages of Lemonade home insurance over other companies is that it saves you time. All processes can be completed within minutes through the company app. 

Lemonade Condo Insurance

The standard condo insurance, also known as the H06 policy, provides coverage to your condo unit, personal property, loss of use (when the condo becomes uninhabitable), personal liability, and medical payments to guests or others who became injured at your place.  The insurance amount is limited to $5,000.

Unlike traditional insurance providers, Lemonade has separate property insurance for condo and co-ops. A condo insurance plan is a good option for people who want a “walls-in” coverage that ensures every item inside your condo — including the walls, are insured.

Lemonade Co-op Insurance

Lemonade is one of the few companies that provide separate co-op coverage for co-op owners. This insurance insures the condo unit (but not the common areas or the grounds), personal property coverage, and loss of use coverage. Like the condo coverage, it offers cover for personal liability and medical payments to others under $5,000.

It has a Zero Everything policy for condo and co-op owners in Illinois, Texas, California, and Nevada, which allows policyholders to claim replacements of their stolen items without paying deductibles.

Additionally, Lemonade covers you and your family members as well as your landlord automatically for free if it is required to do so in the rental agreement. 

You can also get earthquake insurance in California and Arkansas.

Lemonade Pet Health Insurance

Lemonade is now providing a pet health insurance policy that starts from $12 per month. If your pet becomes sick or is involved in an accident, Lemonade will cover the cost of their diagnosis, medication, and treatment.

Their upgraded Preventive and Wellness Package covers the cost of annual checkups, vaccines, bloodwork, and heartworm tests. You can also access a veterinarian if you have questions about your pet’s health after hours.

Missing Coverages

Lemonade does not provide coverage for the following circumstances:

• Heat, water, and power disruption.
• Flooding due to natural causes (Lemonade covers water damage from burst pipes that flood your house.)
• Mold will not be covered if it is not a result of the listed water-related perils        
• The extermination of bed bugs, as well as other household pests, is also not covered since they come under “standard maintenance”
• Damage from external water sources, sewers, or drains
• Broken windows (they are part of the building structure and are not covered under the renters policy)
• If you are living with a roommate, Lemonade will cover your shared possessions but not your roommate’s exclusive possessions. 

Lemonade Insurance Pricing

Lemonade homeowner insurance pricing depends on a wide variety of factors, including the value of your property, location, the extra items you want to be covered, and the deductible you choose.

The company boasts homeowner’s insurance from as low as $25 and renters insurance from $5 per month, with average renters insurance at $15.50 per month. These prices do not specify what kind of coverage is offered but an insurance quote from Lemonade is typically lower since it operates under a different business model than traditional homeowner insurance companies.

As mentioned before, many of the factors that affect the pricing quotes of traditional insurance companies also apply to Lemonade. 

Some recent claims also suggest that the policyholder’s credit history may significantly affect the Lemonade insurance payment you make or even make you ineligible for coverage.

Lemonade Insurance Discount

Lemonade is offering discounts for people who are subscribing to its new pet insurance policy. Additionally, you can receive:

Material Discount: You get a discount if your home is made of fire-resistant material like masonry.

Protection Equipment Discount: Homeowners may get a protective device discount if they have security systems such as burglar and fire alarms.

Fire Protection Discount: This discount will apply if you have fire-safety equipment in your home, like a fire extinguisher or a sprinkler system.

Gated Community Discount: You can also get a safety discount if you live in a gated community.

Customer Satisfaction and Financial Strength Review

Lemonade is not a good option for everyone, but overall, customer satisfaction is high. BBB gives it an A- rating but also shows 68 customer complaints in the past 3 years. 

When it comes to financial stability, Demotech gave Lemonade an A which means it has an exceptional ability to pay claims. This is excellent for a company that has been in business for just around 4 years. 

J.D. Power has not rated Lemonade. Neither have Moody’s, S&P, and AM Best given the company a rating.

When it comes to customer service, Lemonade fares slightly better than the national average. According to the National Association of Insurance Commissioners, the complaint index for Lemonade stands at 0.81, which is lower than the national average score of 1.00.

This means that Lemonade insurance policyholders have registered fewer complaints than a typical homeowner insurance company of the same size.

Customer Support

Lemonade is an all-digital concept, which allows many of its processes to be automated. This is how Lemonade can offer cost-competitive policies.

At the same time, because of this, Lemonade insurance customer service is somewhat limited. The company does not offer a live chat feature. If you have any questions, you can fill an online ticket, with a response provided to you via email. To find the online form, click on the “Help” button on the lower right corner of the website. 

Lemonade offers a comprehensive FAQ page in case you need to ask questions related to the company, its policy, claims, insurance coverages, add-ons, and the Giveback initiative.

There is a Lemonade Insurance customer service phone number, but it serves only very urgent circumstances to make a claim. Those who have used the service say the team is extremely courteous and helpful.

Claims Handling

 Lemonade has an easy claims handling process. Here is what you need to do:

• Open Your Lemonade insurance app and click on the “CLAIM” button to make your Lemonade Insurance claims.
• You can then enter some details about the claim, including the type and value of the claim and when the incident occurred. You will also need to state whether the claim is an emergency or not.
• If it is an emergency, the 24/7 customer representative team will call you immediately and ask you for more details.
• If the claim is not an emergency, you will be required to make a video, which will fully explain your claim and show them the evidence, when possible.
• Lemonade claims it offers an “instant everything” claim which can pay you instantly. But actually, the company’s AI processes only 30% of claims instantly. The rest are processed manually, mostly for large Lemonade claim payout amounts.
• Lemonade may also ask you for some supporting documentation such as receipts for the claimed items. Since this is not always possible, Lemonade suggests keeping the receipts for items over $250 once the policy is taken out.

Comparison With Competitors

Lemonade Insurance vs Jetty

Lemonade provides customers the convenience to customize their plan so they only pay for the coverage they need. It also has a better reinsurance ability than Jetty. 

However, it does not offer any roommate coverage options and does not offer discounted bundles with other policies. 

Jetty, on the other hand, primarily offers renters insurance by forming partnerships with apartment buildings. It offers three tiers of coverage that you can customize. 

Unlike Lemonade, it does not have an online claims process. Additionally, it does not provide coverage to pet owners who own breeds of dogs that are considered dangerous.

Lemonade vs State Farm Renters Insurance

The pricing is what makes a big difference between the two companies. Lemonade has a 4.80 rating awarded for its affordable coverage while State Farm has a 4.21 price rating. When it comes to renters insurance, State Farm is the better choice.

The two companies are geared towards different age groups which have different lifestyle and preferences. State Farm’s users enjoy the convenience of talking to an agent while the younger customers of Lemonade are more at ease with the speed provided by a bot.

Both of these companies, overall, are enjoying the success of their different business models.