Lemonade has been in the renters and homeowners insurance market for five years. The company is part of what is commonly referred to as “insurtech”, meaning that it relies on innovative approaches and technology to make policies more affordable. Lemonade renters insurance has gained notoriety because it advertises policies as low as $5 per month.
Consumers who are comfortable with technology should consider Lemonade for renters insurance. The biggest downside to Lemonade is that it’s not yet rated by credit rating agencies, such as AM Best, because it’s only been around for a few years. That doesn’t mean that Lemonade isn’t a solid choice, as it made it to our list of the best renters insurance companies. If you are wondering, “is lemonade insurance good for me”? Keep reading.
- Affordable prices: Lemonade’s renters coverage is advertised starting at $5 per month.
- Quick sign-up process: This provider uses advanced technology to find data from its customers, making the sign-up process easier.
- Easy cancellation: The insurer allows you to cancel your policy through the app at any time. In case you’ve paid for a remaining period, they will refund it to you.
- Digital-first: For those who are not too tech-savvy, it could be challenging to choose a provider that thinks about a digital experience first.
- Limited availability nationwide: Lemonade renters insurance is only available in 24 states.
- Few discounts: Since the starting price is already low, Lemonade does not offer many discounts.
Lemonade advertises renters insurance for as low as $5 per month for $10,000 of coverage. However, your price will depend on personal factors like location, value of your belongings and desired deductible, among others. To find out how much renters insurance will cost you, you will need to get a quote.
Renters insurance policies from Lemonade include the three most basic types of coverage:
- Personal property covers items that are lost or damaged in the event of theft, vandalism, fire, or some types of extreme weather.
- Temporary living expenses, which typically consist of hotel bills and small incidental expenses resulting from your home being temporarily uninhabitable due to a covered loss.
- Personal liability coverage makes sure you’re financially protected if someone is injured while on the property you rent and decides to file a lawsuit.
You can also add coverage for valuable belongings like expensive jewelry and fine art. To determine the value of your assets, you can create a home inventory.
It’s important to keep in mind that Lemonade renters insurance policies only cover the policyholder and the property on the plan, so it doesn’t include roommates.
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 a customer service phone number at 844-733-8666.
Lemonade was included in 2020’s J.D. Power Home Insurance Study for the first time and scored first place in the renters insurance category with 866 out of 1,000 points for Overall Customer Satisfaction. Still,
Lemonade received more complaints than the average for the industry according to the National Association of Insurance Commissioners‘ Complaint Index. The main reasons for complaints were claim handling delays, underwriting cancellations and denial of claims.
The only discount that Lemonade advertises is a bundling discount for renters and pet insurance. The company also has one exciting feature that could help you pay it forward. Through the Giveback program, Lemonade returns some of its annual profits by making donations to a cause of your choice.
In terms of add-ons, Lemonade offers extra coverage for personal property 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 and the company tends to ask for proof of purchase and value.
For Lemonade’s renters insurance review we evaluated the company based on its customer rating and experience, financial stability, and coverage. To compare renters insurance companies across the board, we calculated a Reviews.com score based on the following:
- Customer Ratings– Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using JD Power Homeowners Satisfaction ratings.
- Coverage– As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options available and add-ons available.
- Confidence– It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best.
- Customer Experience– The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
|Company||Reviews.com Score**||AM Best Financial Strength Rating||J.D. Power 2020 Score||NAIC Customer Complaints|
|Lemonade||N/A||N/A||866/1000||More complaints than average|
|Geico||2.75||A++||N/A||More complaints than average|
|Allstate||3.5||A+||841/1000||Fewer complaints than average|
|USAA||3.75||A++||888/1000||Fewer complaints than average|
|State Farm||3.25||A++||836/1000||Fewer complaints than average|
*All information accurate as of 10/15/2020.
**Some companies don’t have enough third-party ratings to calculate a score.
Lemonade vs. Geico
While Lemonade Insurance made it to our list of the best renters insurance companies, Geico is not part of our team’s favorite providers for this type of insurance. As for discounts, Lemonade only offers to bundle renters insurance with its pet coverage. Geico is well-known for its bundles with auto insurance, which could be more useful for some policyholders. Other than that, Geico also has a discount for having or adding a home security system and sprinklers or smoke alarms systems to protect your belongings. Although the discounts may vary, depending which one of Geico’s renters insurance partners issues your policy.
Both Lemonade and Geico offer a great digital experience for their customers and comprehensive renters insurance coverage.
Lemonade vs. Allstate
Lemonade and Allstate are top rental insurance companies, coming out on top of our best renters insurance companies list. In terms of overall customer satisfaction, Lemonade got 25 points more than Allstate in the most recent J.D. Power Home Study. In terms of great deals, Lemonade already offers a low starting price for renters coverage, so it only has a few discounts for its customers. Both companies offer a discount for bundling insurance, but Allstate has more types of policies in its portfolio, allowing their customers to save by bundling renters insurance with their auto, motorcycle and even life insurance policies.
Both Lemonade and Allstate have excellent online tools and resources for their policyholders
The Bottom Line
Lemonade offers comprehensive renters insurance policies that are comparable to those from mainstream providers. Consumers who are comfortable with technology should consider Lemonade for renters insurance. Keep in mind that most of its services are offered online or through its app, although a customer service phone number is available.
You can become a policyholder with its quick online sign up process and cancel your policy easily. Despite operating a nontraditional digital-first platform, this provider maintains overall positive customer service ratings. They do have more complaints than average, mainly for claim handling delays and underwriting cancellations. For the price Lemonade renters insurance is advertised, we would definitely recommend getting a quote from them to evaluate their coverage offers.
Lemonade Renters Insurance FAQ
Lemonade offers renters and homeowners insurance, with condo and co-op coverage only provided in certain areas. Renters can also bundle their coverage with additional personal property coverage and with their pet health insurance.
According to what is stated in your policy, a standard renters insurance policy should protect your personal belongings against damages from fire, smoke, vandalism, lightning, theft, explosion, water and windstorm. Liability and medical expenses are another portion of a renter’s coverage. Should a visitor be injured in your apartment, it pays for the cost of even defending the renter in court. Finally, loss of use coverage is protection if you need a temporary place to live while your home is uninhabitable.
If you live in an area prone to natural disasters like hurricanes or earthquakes, you should consider getting additional protection for these harms. Creating a home inventory could help you decide how much insurance you need to buy.
Lemonade Renters Insurance is only available in 24 states. The states covered are the following:
- District of Columbia
- New Jersey
- New York
Lemonade uses a process known as precision underwriting. Within this process, the company uses artificial intelligence to gather data from customers and evaluate them with more criteria than traditional insurance companies. The fact that this insurer handles and processes data using artificial intelligence means that Lemonade can go through applications and claims faster than other providers.
Lemonade renters insurance covers 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 and if they sue you, your insurance will help pay legal expenses.
This provider offers extra coverage against accidental loss, damage and theft worldwide. You can add valuable items like jewelry, fine art, cameras, bicycles and musical instruments that may be worth more than the basic policy’s limit.