Lemonade Renters Insurance Review

Like the rapper Twista, who can rap 280 words in a minute, Lemonade approves or denies claims (almost) instantly. But, you have to live where it offers policies.

J.D. Power Rating
5/5
AM Best Rating
N/A
Standard & Poor’s
N/A
SimpleScore
3.6 / 5.0
close
SimpleScore Lemonade 3.6
Discounts 1
Coverage Options 3
Customer Satisfaction 5
Support 4
Accessibility 5
  • Sign up process is fast and easy
  • A variety of coverages including homeowners, renters and pet health
  • Great prices
  • Transparency
  • Excellent online tools and resources.
  • Only available in about 25 states
  • No auto or life insurance available for bundling discounts

Lemonade Insurance Company is not your regular renters insurance company. Lemonade is a fully online, regulated and licensed insurance company, so it prices, underwrites and sells policies and pays claims. Unlike many standard insurance companies, Lemonade offers instant claim fulfillment. Lemonade also has some of the best prices found anywhere.

Formed in April 2015, Lemonade’s headquarters is located in New York City, with overseas offices in The Netherlands and Germany (and now France). Even its business model is different: the company takes a set amount for expenses and claims payouts, anything left goes to charity. Lemonade currently offers homeowners, renters and pet health insurance.

We compared Lemonade with three other insurance company’s discounts, customer satisfaction, coverage options, customer support and website accessibility using our proprietary SimpleScore methodology.

In this article

    Lemonade at a glance

    In businessSince 2015
    States served25
    Best forSomeone who prefers to get insurance online.
    Not forSomeone who wants face-to-face access to agents.
    Standout featuresPeer-to-peer provider. The premiums you pay go into a communal pot with other policyholders and are used to pay out claims.
    When you need to file a claim, you log into the app and record a short video explaining why the claim is being filed.
    Customers can get approved or denied via a mobile app.
    Lemonade’s GiveBack program.
    Available bundlesNone

    Find the Best Renters Insurance

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      America’s top-rated renters insurance

      • Policies starting at just $5/month
      • Sign up in seconds, claims paid in minutes
      • Zero hassle, zero paperwork

      [ Read: Where to Find Financial Relief During the COVID-19 Pandemic ]

      What we like about Lemonade renters insurance

      We like Lemonade so much it’s difficult to name only a few things we like.

      • Sign-up is fast and easy. You can go to the Lemonade website or use the mobile app and sign-up in about three minutes. Fill in some personal information, pick a charity and you’re good to go.
      • A variety of policies. Customers can choose from renters, homeowners and pet health insurance. You can also get extra coverage that covers accidental loss, damage, theft and expensive jewelry.
      • Great prices. Depending on where you live and what coverage you need, you might only pay $5 per month.
      • Transparency. Insurance policies are straight-forward and easy to understand.
      • Online tools and mobile app. Use Lemonade’s online tools or mobile app to file a claim and upload a video showing damage and your claim will be approved or denied within seconds.

      Things to consider 

      There’s not much we don’t like about Lemonade.

      • Limited availability. Lemonade insurance is only available in about 25 states (with more to come soon)
      • No special deals. Lemonade promises low prices and will return premiums to customers whenever possible, so it doesn’t offer special deals or bundled policies. That said, you will get a break on your premium if you have a home security system or smoke alarms installed.

      Find the Best Renters Insurance

      Save money on renters insurance with our simple comparison tool.

      Matching you with providers.
      We found results in
      Click at least 2-3 companies to find the very best rate.

        America’s top-rated renters insurance

        • Policies starting at just $5/month
        • Sign up in seconds, claims paid in minutes
        • Zero hassle, zero paperwork

        Lemonade renters imsurance vs. the competition

        Progressive 

        Flo and her many personalities have garnered a lot of attention for Progressive, but does a great ad campaign also equate to great renters insurance coverage? In Progressive’s case, we’d say yes.

        J.D. Power Rating
        3/5
        AM Best Rating
        A+
        Standard & Poor’s
        AA
        SimpleScore
        4.2 / 5.0
        close
        SimpleScore Progressive 4.2
        Discounts 5
        Coverage 3
        Customer Satisfaction 3
        Support 5
        Accessibility 5

        Best known for its car insurance, Progressive has been around since 1937.  Progressive homeowner’s insurance is available through third parties. Unlike Lemonade, if you have Progressive car insurance, you may qualify to bundle your homeowner’s policy for a better rate. Rates are competitive, and Progressive offers a few discounts that Lemonade doesn’t, like if you pay for your premium in full, installing home alarm systems and safety devices and more. It takes a bit longer to find out if your claim is denied or approved, up to two weeks, but policy-addons and customer service are first-rate.

        Nationwide 

        The jingle, “Nationwide is on your side,” is immediately recognized by more than a million customers — and for good reason.

        J.D. Power Rating
        2/5
        AM Best Rating
        A+
        Standard & Poor’s
        AA+
        SimpleScore
        3.8 / 5.0
        close
        SimpleScore Nationwide 3.8
        Discounts 4
        Coverage Options 5
        Customer Satisfaction 2
        Support 4
        Accessibility 4

        Nationwide Insurance was formed in 1926 as Farm Bureau Mutual. In 1955, it changed its name to Nationwide. One standout at Nationwide is that if any disaster covered by your policy damages your belongings, you get full-replacement cost. Lemonade doesn’t offer that perk. You also get multi-policy discounts, discounts for home security systems and smoke alarms. Rates are a bit higher than either Progressive or Lemonade, and the time it takes to get your claim approved or denied can be as much as one month. Nationwide has good customer service and many policy add-ons — unlike Lemonade.

        State Farm 

        Jake from State Farm might need some extra coffee — getting a claim completed with State Farm isn’t quick.

        J.D. Power Rating
        5/5
        AM Best Rating
        A++
        Standard & Poor’s
        AA
        SimpleScore
        4.2 / 5.0
        close
        SimpleScore State Farm 4.2
        Discounts 3
        Coverage Options 5
        Customer Satisfaction 5
        Support 4
        Accessibility 4

        State Farm Insurance has a reputation for excellent customer service. But, its claim denial rate is a bit high for most customers. It also takes anywhere from three and eight weeks to get approval or denial on a claim. Rates are competitive but vary a great deal depending on where you live and the type of coverage. You can bundle policies for extra discounts, and there are many policy add-ons. Although it seems to offer more in terms of personalizing your policy than Lemonade, it doesn’t come close when talking about claim turnaround, ease of access and pricing.

        Lemonade’s renters insurance rates 

        Lemonade’s rates are some of the best around. When comparing renter’s insurance rates with competitors, the difference is glaring. For example:

        For $10,000 worth of coverage, you’ll pay about $6 with Lemonade, and about $14 with Farmers Insurance. For $30,000 in coverage, you’ll pay $15 with Lemonade and $29 with Farmers. Over time, the differences can really add up. For homeowner’s insurance, you’ll pay a bit more, $120 at Lemonade vs. $237 for a comparable policy at Farmers.

        Lemonade also has a feature called Zero Everything. It’s not an add-on, but instead, it’s a feature that for paying a higher rate, lets you select a $0 deductible. Lemonade also won’t raise your rates as long as you make no more than two claims per year.

        You can also buy extra coverage for any of your valuables worth more than $1,500, like fine jewelry, bikes and artwork. Plus, you can adjust your deductible up or down at any time to decrease or increase your premiums. You’ll also get a break on your premium if you have good credit, smoke detectors, an alarm system, or home monitoring system, or if you live within close proximity to a police or fire department.

        Lemonade renters insurance coverage

        • Renters insurance starts at $25 per month. Renter’s insurance starts at just $5. But the price you pay will depend on your credit score, location and how much insurance you need.
        • After covered damages, dwelling insurance pays for the cost to repair or rebuild your home.
        • Personal property insurance pays for the replacement or repair or replacement of your belongings if they are stolen or damaged.
        • Loss of use pays for you and your family’s living expenses if your home is damaged if covered in your policy.
        • Personal liability protection covers the medical bills or legal fees if someone is injured on your property.
        • Lemonade also covers damages from fire or lightning, wind or hail, vandalism, smoke, aircraft, riots, weight or ice or snow and freezing, volcanic eruption, accidental damage due to a short circuit, falling objects, vehicles, explosions and the overflow of water.
        • Jewelry and expensive items over $1,500 are covered for an extra cost.

        [ More: What Does Renters Insurance Cover? ]

        Lemonade’s discounts 

        You’ll get a break on your renters and homeowners premium if you have good credit, smoke detectors, an alarm system, home monitoring system or if you live within close proximity to a police or fire department. The availability and any discount depend on where you live and your policy coverage.

        How to submit a claim with Lemonade 

        Tapping into the latest AI, Lemonade has made it quick and easy to sign-up and submit a claim. In as little as three minutes, you can submit and claim and get paid. All you do is go online to Lemonade’s website, or better yet, submit a claim with its mobile app.

        Steps to submitting a claim with the app:

        1. Click the “CLAIM” button on the app. Record a video of the damage. You will be walked through the next steps to record the details of your claim. Lemonade’s algorithms will assess your claim. If approved, you will be paid in seconds. If denied, your claim will be forwarded to a claim advisor at Lemonade for further evaluation. That’s it — easy.

        [ Next: How to File a Home Insurance Claim ]

        If you have questions, the app isn’t working or you need information about a claim you need to process, you can reach out to customer service via a short form on the Lemonade site. FAQs mention filing a claim on the website, but there is no form other than the contact form, so the app seems to be the best place to make it all happen.

        Lemonade online and mobile app 

        Instead of filling out several complicated forms to file a claim, customers interact with the Maya, the AI chatbot, to file a claim via the Lemonade app for iOS and Android. Maya handles everything.

        When you open the app on your mobile device, you will be asked a few short questions, including your assurance that the information you provided was true and accurate, if you need a repair quickly, when the incident happened, and the nature of the incident, like a tree falling on your garage.

        Then, you simply record a short video describing the incident. In fact, it’s so easy to file a claim on the Lemonade app that you may wonder if your information went through. No need to worry. If your claim is approved, you’ll see a message that funds have been securely transferred to your account. It takes about three minutes from the time you file a claim to get paid.

        Lemonade home, renters and pet health insurance bundles

        Unfortunately, because Lemonade does not offer auto and life insurance, you can’t bundle with these types of policies. However, if you have a pet and purchase pet health insurance with Lemonade, you may qualify for a discount. Lemonade’s pricing is already some of the lowest available.

        [ See: What You Need to Know About Bundling Renters and Auto Insurance ]

        Lemonade in the news 

        • With the pressure to offer the latest in innovation, Market Watch highlighted Lemonade as an insurance company that is setting” the bar higher than in the past.” Market Watch points out that customers’ expectations for fast and convenient service led Lemonade, early on, to provide great service at good prices, leaving most other insurance companies far behind
        • In October 2020, Lemonade expanded its international reach to France, as announced by Yahoo Finance. Customers in France will now be able to sign-up for multi-risk insurance by the end of 2020 but can be on a waitlist now. France is the third overseas country in which Lemonade offers insurance. The Netherlands and Germany started offering Lemonade’s products in June 2019.
        • Lemonade is looking good on the stock exchange. In fact, NASDAQ says that because Lemonade leverages AI and big data to improve the underwriting process, process claims, and detect fraud, it looks a lot more attractive than any of its peers, including Allstate and Berkshire Hathaway, just to name a few

        We welcome your feedback on this article and would love to hear about your experience with the renters, homeowners, or pet health insurance providers we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions

        Methodology

        SimpleScore

        The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.
        For every review, our editorial team:

        • Identifies five measurable aspects to compare across each brand
        • Determines the rating criteria for each aspect score
        • Averages the five aspect scores to produce a single SimpleScore™

        Here’s a breakdown of the five aspect scores and their rating criteria for our renters insurance reviews.

        Why do some brands have different SimpleScores on different pages?

        To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

        However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.

        Discounts

        We awarded higher scores to insurance providers with more discounts available on their website.

        Coverage Options

        We gave providers with more renter insurance coverage options a higher score because they’re more likely to have a policy that best meets your needs.

        Support

        We awarded higher scores to renters insurance providers with the most channels for customer support.

        Customer Satisfaction

        We leveraged the J.D. Power Home Insurance Satisfaction Study℠ to see how customers rated their experience with each insurance provider. (If a provider wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)

        Accessibility

        We awarded higher scores to insurance providers that have more online and mobile features to easily manage your policy and claims.