Lemonade Renters Insurance Review
Lemonade is a relatively new renters and homeowners insurance company in what is commonly referred to as “insurtech.” Insurtech companies rely on innovative approaches and technology to produce cost savings. The provider is quickly gaining notoriety for its renters insurance policies that are advertised as starting at just $5 per month.
Consumers who are comfortable with technology should consider Lemonade for renters insurance. In order to get a policy, you must have a smartphone and be able to download the Lemonade insurance app. Most services are offered online or through the app, although there is a customer service phone number available.
Lemonade also has an interesting profit-sharing program called Giveback, which returns leftover profits in the form of charity donations. You’re able to choose the charity or cause that receives your donation each year, but it is not tax-deductible.
The biggest downside to Lemonade is that because it’s only been around for a few years, it’s not yet rated by many of the customer service or financial strength rating agencies. That doesn’t mean that Lemonade isn’t a solid choice, but it still lacks some of the clout of established companies like State Farm or USAA.
|Coverage advertised for as little as $5 per month|
Quick sign-up process
Limited availability nationwide
The Renters Insurance Factors We Analyzed
As an insurtech company, Lemonade is known for conducting a majority of its customer service online or through its app. This is great if you’re tech-savvy and value convenience and efficiency. But if you’re the kind of person who prefers to receive support over the phone, it’s not ideal. However, Lemonade does provide an emergency customer service phone number at 844-733-8666.
Lemonade was not included in the 2019 J.D. Power Renters Insurance study. The reviewing body acknowledged Lemonade in a 2018 press release, noting that insurtech companies such as Lemonade are still relatively unknown among consumers, with less than 6% claiming to have heard of one of the main insurtech companies at the time.
Still, Lemonade received fewer than the average number of complaints for a company of its size registered with the National Association of Insurance Commissioners in 2018, which is promising.
Renters insurance policies from Lemonade include the three most basic types of coverage. Personal property covers your items that are lost or damaged in the event of theft, vandalism, fire, or some types of extreme weather. Second is temporary living expenses, which typically consist of hotel bills and small incidental expenses resulting from your home being temporarily uninhabitable. Finally, personal liability coverage makes sure you’re financially protected in the event that someone is injured while on the property you rent and decides to file a lawsuit.
Lemonade renters insurance policies only cover the policyholder and the property on the plan, which doesn’t include roommates.
Deals, discounts, and add-ons
Lemonade doesn’t advertise any renters insurance discounts, but there is one interesting feature of the company that could help you pay it forward. Through the Giveback program, Lemonade returns some of its annual profits by paying out donations to a cause of your choice.
In terms of add-ons, Lemonade offers extra coverage for personal property that is valued above the policy limit. Some popular items to purchase additional coverage include jewelry, art, and bicycles. Items are approved on a case-by-case basis.
Lemonade Renters Insurance Overview: Financial Strength, Availability, and History
Lemonade’s financial strength is not currently rated by any of the top three industry rating agencies: S&P Global, Moody’s, and AM Best. However, there are other ways of assessing this insurance provider’s status. Alternative rating agency Demotech, Inc., a financial services firm, gives Lemonade an A rating for financial strength. In addition, Lemonade carries an A+ rating from the Better Business Bureau, although it’s not currently accredited.
- In business since: 2015
- S&P Global financial strength rating: N/A
- Moody’s financial strength rating: N/A
- AM Best financial strength rating: N/A
- States served: 23
|AM Best Financial Strength Rating||J.D. Power 2019 U.S. Renters Insurance Study Score||NAIC Customer Complaints|
|Lemonade||N/A||N/A||Fewer complaints than average|
|USAA||A++||5/5||Fewer complaints than average|
|Lemonade||A++||5/5||Fewer complaints than average|
|Lemonade||A||5/5||Fewer complaints than average|
|Lemonade||A+||2/5||Fewer complaints than average|
|Lemonade||A+||2/5||Fewer complaints than average|
|Lemonade||A||2/5||Fewer complaints than average|
All information accurate as of February 6, 2020.
The Bottom Line
Lemonade offers comprehensive renters insurance policies that are comparable to those from mainstream providers. Despite operating a nontraditional digital-first platform, the provider maintains overall positive customer service ratings and existing customers seem to be more than happy with their policies.
Lemonade Renters Insurance FAQ
How much does renters insurance cost from Lemonade?What is typically covered under Lemonade renters insurance?Can you cancel Lemonade renters insurance?How long does it usually take to buy Lemonade renters insurance?
Lemonade advertises renters insurance for as little as $5 per month for $10,000 of coverage. However, your price will depend on personal factors, like your home size, location, and desired deductible. To find out how much renters insurance will cost you, try getting a quote from the company.
Lemonade renters insurance covers three main types of claims: personal property, temporary living expenses, and personal liability and medical bills. Personal property covers items that are lost or damaged from incidents like fire or theft. Temporarily living expenses are typically hotel costs should your home become temporarily uninhabitable. Personal liability means that anyone injured while in your home will have their medical bills covered.
It’s easy to cancel Lemonade renters insurance. Simply log into your account online or in the app and cancel your next scheduled payment; coverage will terminate once your current payment expires, and you will receive a refund for the remainder of the paid period.
Buying Lemonade renters insurance is relatively quick and simple. After answering series of questions regarding your property on the website or app, you can receive a quote and pay for the policy. Once that’s done, you’re covered.