Should I Buy Lemonade Homeowners Insurance?

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Bottom Line: Lemonade offers renters and home insurance powered by tech and driven by social good.

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Our Partner

Low cost insurance

AT A GLANCE

  • Get insured in 90 secs
  • 3 minutes to get paid
  • Policies as low as $5 per month
  • Designed for social impact

Overall Rating

4.5/5

B+ BBB Rating

Average review rating 9.4/10 on TrustPilot

Pros & Cons

Pros

  • Built on transparency.
  • Has lower rates than the competition.
  • Speedy claims process is almost instant in some cases.
  • Donates unused premiums to charity each year.

Cons

  • Not available in all 50 states.
  • Only covers up to $1,000, or 10% of your personal property coverage limit for items in a self-storage facility.

Whether it's your $2,000 MacBook or that $10 shirt you picked up on clearance, you’d be devastated if your personal belongings were damaged or stolen. 

You’ve worked incredibly hard for the things you have — and that’s why it’s important to protect them with renters or homeowners insurance.

But with insurance companies being a dime a dozen, how do you find the right one for you?  

Today we’re going to talk about Lemonade — a refreshing company that’s spinning the renters and homeowners insurance industry on its head. 

Lemonade Insurance icon

Quick Summary

Offering: Home, Renters, & Pets

Fees: As low as $5/month

Promotion: No current promotions

What is Lemonade Insurance?

Lemonade is a first-of-its-kind insurance platform that uses bots instead of brokers and artificial intelligence instead of paperwork to give you lightning-fast coverage at a super low rate. (Whew, that was a mouthful.)

It’s modern. It’s revolutionary. It’s refreshing (just like a tall, ice-cold glass of lemonade). 

But to understand just how revolutionary Lemonade is, we first need to talk about how traditional insurance companies work. 

Let’s break it down. 

Traditional insurance companies get mega-rich by maximizing their profits in two ways.

First, they charge you the highest premium possible. 

Second, they lace policies with a bunch of red tape and hidden fine print, so they can deny your claim and keep that money for themselves (which pads their pockets even more). 

Sounds sketchy, right? 

But Lemonade is different. The way its revenue model is set up, Lemonade doesn’t make a single penny if it denies your claims, so it has no incentive to hang on to funds.

How Does Lemonade Insurance Work?

Lemonade pools all the premiums its customers pay and puts them into one large pot.

It skims a percentage off the top of the pot and uses that money to pay its employees, cover its overhead, and keep innovating.

The remaining premium stay in the pot with the sole purpose of paying out claims. 

If Lemonade has a good year and there’s money left in the pot come June, it donates the remaining funds to a charity of your choice. 

That’s right — Lemonade doesn’t keep this unused premium for itself.

Instead, it reinvests it back into the community, so it can keep on doing social good. 

Pretty cool, right?

This innovative approach to insurance is unlike anything we’ve seen before. 


While most insurance companies have an incentive to deny claims, Lemonade has absolutely nothing to gain — which means their claims process is lightning fast. 

Quick Snapshot

Short on time? Use this table to explore Lemonade Insurance at a glance.

Ease of use

Get insurance in 90 seconds. Get a claims payout in as little as 3 minutes.

Application process

Fully online

Price

Renters insurance starts at $5 a month.


Homeowners insurance starts at $25 a month.


Pet health insurance starts at $12 a month.

Availability

Renters, condo & homeowners insurance: AZ, CA, CO, CT, GA, IL, IN, IA, MD, MA, MI, MO, NV, NJ, NY, OH, OK, OR, PA, TN, TX, VA, DC, WI


Renters insurance only: AR, NM


Renters & condo insurance only: RI, WA


Pet health insurance: AL, AR, AZ, CA, CT, DC, GA, IA, IL, IN, MD, MI, MS, MT, ND, NE, NC, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, WI

Demotech Rating

A-Exceptional 

What Types Of Insurance Does Lemonade Offer?

Lemonade offers four main types of insurance: 

Residents of Arkansas and California can also get earthquake insurance as an add-on option.

What Does Lemonade Insurance Cover?

Your Lemonade policy covers your personal belongings “anywhere in the world.”

So if your laptop gets stolen while you’re traveling abroad, you’re covered.

If your bike gets stolen while you’re running into the grocery store, Lemonade’s got that too. 

Renters insurance covers your personal property and personal liability, but it doesn’t cover the physical structure you live in (because you rent instead of own). 

On the other hand, homeowners, condo, and co-op insurance covers your dwelling too. 

As with most insurance companies, Lemonade covers several “named perils,” including personal property damage caused by:

  • Fire or lightning
  • Explosion
  • Aircraft
  • Windstorm or hail
  • Riots
  • Vehicles
  • Smoke
  • Theft
  • Vandalism
  • Falling objects
  • Weight of ice, snow, or sleet
  • Sudden and accidental tearing, cracking, burning, or bulging.
  • Accidental discharge or overflow of water or steam.
  • Sudden and accidental damage due to short-circuiting.
  • Freezing
  • Volcanic Eruption

In addition to these named perils, Lemonade also covers hotel costs if you can’t return to your home and medical payments if a guest gets injured on your property.

How Much Does Lemonade Insurance Cost?

Lemonade policies start out at $5 for renters insurance and $25 for homeowners, condo, and co-op insurance. 

The exact price you’ll pay for a policy largely depends on factors like your: 

  • Credit history
  • Recent claims
  • Property information, including its age, size, and construction quality
  • Property information, including its age, size, and construction quality

The best way to know how much you could pay with Lemonade is to get a free quote.

Features

Here’s a quick rundown of a few things we love about Lemonade:

Instant Claim Payouts

Most of us have one mission in mind when we shop for insurance — get the lowest price given the coverage we need. But have you ever stopped to think about what would happen if you actually did need to file a claim? 

We all buy insurance hoping to never need it, but we should also add the claims process to our list of features we look for when shopping around for policies. 

While some insurance companies take a week or longer to payout claims, Lemonade pays out 25% of claims in 3 seconds or less. 

As Lemonade’s AI continues to improve, it hopes to automate at least 90% of its claim payouts — putting much-needed money in your pocket quicker than any other insurance company. 

Annual "Giveback"

If you’re the type who likes to support businesses that give back to the community, then Lemonade is for you. 

It’s a Public Benefit Corporation and a Certified B-Corp — both of which are firsts for any insurance carrier. And its slogan is: “Insurance powered by AI and driven by social good.”

Not only does Lemonade partner with nonprofits, but it donates extra profits to charity each year (known as its annual “Giveback” event).

In 2020, it donated over $1.1 million to various organizations.

The graphic below shows how much Lemonade has given to charity since 2017.

Switch-Over Assistance

Already have an active renters or homeowners insurance policy? No problem. Give Lemonade a heads up when you fill out your application, and they’ll handle the dirty work for you. 

If you’re a renter, they’ll notify your provider to let them know you’re switching policies. (Oftentimes, your old insurance company will give you a partial refund if you cancel before your term ends.) 

If you’re switching homeowners’ insurance policies, Lemonade will even contact your lender and get your escrow payments sorted out if necessary.

Extra Coverage

Luxury items — such as expensive jewelry, fine art, cameras, musical equipment, or bicycles — aren’t typically covered under standard insurance policies.

But thankfully Lemonade allows you to buy extra coverage, so you can protect these items too. 

All you have to do is submit a receipt or appraisal of each item, and Lemonade will adjust your policy premium based on the coverage you need. 

A quick tip: You don’t have to worry about extra coverage for things like furniture, clothing, or personal electronics — those are automatically covered under your base policy.

What Do Customers Say About Lemonade?

Lemonade is the new kid on the block, so there aren’t many customer reviews on sites like Trustpilot and the Better Business Bureau. Reddit — on the other hand — has quite a few things to say about it. 

There’s no doubt that customers love how cheap the policies are and how painless it is to sign up.

But the real praise comes from those who have already had to file a claim.  

Reddit user, Obecalp86 says: “I had a break-in and lost valuables worth $2000. After filing the police report, I fired up the Lemonade app and recorded a video, answered some questions, and uploaded receipts. My claim was approved immediately and I received the funds the next business day.”

Another user, itsnotme24, has a similar story to tell: “My claim was approved in 6 seconds after I submitted it. You tell your story on a short video in your own words, take a picture of your receipt or proof of purchase, enter the police report number and city. Which in my town theft can be reported via online form. Did it all at 4 am on a Saturday. Lemonade told me that the money will be in my bank account in 1-2 days.”

Of the few negative reviews we found, customers say it can be hard to get a hold of customer service as their direct number can be difficult to locate. Instead, the best way to get in contact with their team would be through the contact form on their website or mobile app, or by emailing help@lemonade.com.

How Do I Buy Insurance Through Lemonade?

You can use your phone or Lemonade's website to check prices and lock in an insurance policy.

Here’s how it works in 7 simple steps: 

  1. Go to the official Lemonade website and click Check Our Prices.
  2. Enter your full name and click Let’s Do This.
  3. Enter your home address and click Next. 
  4. Select if you rent or own and click Next.
  5. Answer a few quick questions about your home, valuables, and living arrangements and click Next.
  6. Lemonade analyzes your information and presents you with a quote in seconds. View and adjust your quote until you find the price and coverage that meets your needs.
  7. Once you’re ready to buy, select Pay, and enter your debit or credit card information.

If you have questions or concerns, you can give Lemonade’s customer service team a call at 844-733-8666.

FAQ's

What Doesn’t Lemonade Insurance Cover?

As with most homeowners and renters insurance policies, Lemonade doesn’t cover everything. 

Here are a few examples of things you’ll likely pay-out-of-pocket for: 

  • Accidental damage to personal property (i.e. you drop your laptop and break it)
  • Anything that you could’ve prevented with routine maintenance and care (i.e. bed bugs, mold, etc.)
  • Damage caused by floods and some other natural disaster
  • Your roommate’s belongings (or your significant other’s if you’re not legally married - though you can add your significant other to your policy for a small fee.)
  • Dog attacks if the dog is considered a “high-risk breed”
Who Is Lemonade Insurance Best For?

Wondering who Lemonade Insurance may be best for? This might help you decide:

  • Consider Lemonade Insurance if… you want to support an insurance company that’s focused on social good. Or, you want a fully-digitized policy that you can buy online in 90 seconds and that pays out claims almost instantly. 
  • Continue looking if… you’re looking to bundle your household and auto insurance. (They’ve recently announced that they’re going to launch Car insurance, but it’s not available yet.)
What Information Do You Need To Apply?

Lemonade Insurance will ask for the following information when you shop for coverage: 

  • Full name
  • Date of birth
  • Residential address
  • Information about your personal belongings
  • Information about your dwelling and living situation
  • Debit or credit card information once you’re ready to buy a policy
How Do I File A Claim With Lemonade Insurance?

Of all the insurance companies we’ve reviewed, Lemonade has the easiest (and speediest) claims process by far.

Here’s how it works: 

  1. Open the Lemonade app and tap Claim.
  2. Follow the prompts to record a short video explaining your situation, answer a few questions, and submit your receipts.
  3. Lemonade’s AI Jim goes to work analyzing your claim. If it’s approved, you’ll find out instantly and money will hit your bank account within one to two business days. If Lemonade’s AI can’t definitively approve your claim, it passes it on to the claims team where they handle it manually.

Final Verdict

Lemonade Insurance is a refreshing take on an otherwise stale industry.

It's transparent fee model, competitive rates, and speedy claims process make it a no-brainer for almost anyone. And its focus on giving back is the icing on the cake. 

The biggest downside is that Lemonade isn’t available nationwide, which means some people won’t qualify for coverage even if they want to. 

If you live outside of Lemonade’s service area, compare other insurance providers until you find one that suits your needs.

Otherwise, hop on over to Lemonade and get your free quote. 

Have questions about Lemonade Insurance we didn’t answer? Drop them in the comments below.

Lemonade Insurance

Lemonade, America's top-rated insurance company, protects your family and your belongings—at home, and everywhere else.

Lemonade Insurance icon
  • Editor Rating
  • Rated 4.5 stars
  • 80%

  • Lemonade Insurance
  • Reviewed by:
  • Published on:
  • Last modified: June 18, 2021


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