Lemonade Renters Insurance Review (2020)

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Lemonade is a new insurance company that provides renters and homeowners insurance for as little as $5 per month. Learn how the company is rethinking the insurance model by reading our Lemonade renters insurance review.

Lemonade is an up-and-coming insurance company that takes a new approach to providing renters and home insurance to customers. Policies start as low as $5 per month, and any premium money the company doesn’t use for claims is donated to the charity of your choice.

Keep reading our Lemonade renters insurance review to learn more about what makes Lemonade different from other insurance providers and determine if this is the best provider for you.

Pros and Cons of Lemonade Renters Insurance

Compare the advantages and disadvantages of Lemonade renters insurance:

Lemonade Coverage

Lemonade offers standard coverage for the same events that other insurance providers cover. These events include:

  • Fire
  • Lightning
  • Windstorm
  • Hail
  • Smoke
  • Vandalism
  • Theft
  • Freezing
  • Damage from aircraft or vehicle
  • Riots

Lemonade’s policies do not cover:

  • Natural disasters
  • Car theft
  • Undocumented items
  • Roommate’s items
  • Damage from pests
  • Property damage

A Lemonade policy covers four main renters insurance areas and offers coverage for portable electronics and other expensive items:

  • Personal property—This part of a renters insurance policy protects your personal belongings. For example, if a fire were to destroy your belongings, Lemonade would give you money for an actual cash value (ACV) replacement. This means that Lemonade will take into account how much your item has depreciated and pay you that amount.
  • Loss of use—If an accident made your home temporarily uninhabitable, Lemonade would pay for living expenses while you lived somewhere else. These expenses could include the cost of a hotel or the cost of eating out and doing laundry.
  • Liability—If you were to be held liable for an accident, your policy will cover property damage and bodily injury to someone else. It may even cover legal fees if that person sues you.
  • Medical payments to others—If a guest in your home gets injured, your policy will pay the medical bills for that person to get treated.
  • Portable electronics—Expensive items, like jewelry or electronics, usually aren’t covered under the personal property section. Most companies make you purchase additional coverage to get protection for those items. However, a Lemonade policy automatically protects some of your electronics.

Here are the coverage amounts Lemonade offers for each coverage area. The following amounts are based on Ohio availability:

Lemonade Additional Coverage

Lemonade customers can further customize their policies by adding extra coverage for these items:

  • Earthquake protection
  • Jewelry
  • Fine art
  • Bikes
  • Cameras
  • Musical instruments
  • Significant other (not married)
  • Water backup
  • Landlord property damage

How Much Does Lemonade Renters Insurance Cost?

According to Lemonade’s website, a starting policy costs as little as $5 per month. However, when we submitted our information to get a quote, we found the cost to be much higher. Here’s our quote for a one-bedroom apartment in Cleveland, Ohio:

Note: The price of your Lemonade renters insurance policy will vary based on your current living situation, your age, and a few other factors.

Lemonade uses the following information to calculate your premium:

  • Credit history
  • Recent claims
  • Property age
  • Property size
  • Property construction quality
  • Property sensitivity to weather
  • Protection equipment, like security systems

Customer Service and Claims Support

Lemonade prefers you use the chat function on its website or the mobile app for all of your policy and claims questions. However, if your claim is an emergency or you don’t have access to the website or app, you can call 844-733-8666.

How to File a Claim

To file a claim, open the Lemonade app and hit the claims button. The app will guide you through the rest of the process, which includes recording a minute-long video of yourself explaining the incident and inputting your bank information to get a claim amount paid to you.

Most of the time, your claim will get approved and you’ll get paid instantly. However, Lemonade may take longer to approve property damage or liability claims.

If your claim is considered an emergency, which Lemonade defines as an event that requires immediate assistance or temporary housing as a result of fire, ongoing water damage, or another structural issue, you can call the company at 844-733-8666 to file a claim.

Compare Lemonade to the Competition

If you’re not sure whether Lemonade is right for you, compare it to other top-rated renters insurance companies below.

Our Conclusion

Lemonade renters insurance may be ideal for a renter who wants the standard personal property, loss of use, liability, and medical payment coverage from a company that gives back to its community. However, Lemonade isn’t without its faults—the company limits customer service to online communication, doesn’t offer bundled discounts, and isn’t available in all 50 states.

Before signing up for a renters insurance policy, we recommend getting quotes from at least three companies so that you can compare pricing and coverage:

Lemonade Company Overview

  • CEO: Daniel Schreiber
  • Years in business: 4
  • State availability: 27
  • Address: 5 Crosby Street, Floor 3
  • City/State: New York, NY
  • Zipcode: 10013
  • A.M. Best financial strength rating: N/A

Frequently Asked Questions About Lemonade

How does Lemonade’s Giveback program work?

Lemonade strives to be different from traditional insurance companies by using a different business model. Lemonade takes a flat fee out of your premium to keep the business running and leaves the rest for any claims that may arise. At the end of the year, Lemonade takes any of your premium money that wasn’t used for claims and donates it to the charity of your choice.

What information do I need to request a quote from Lemonade?

To see how your property and personal information will change pricing, go to Lemonade’s website and submit the following information:

  • Name
  • Address
  • Safety features
  • Valuables
  • Email address
  • Date of birth

Can you get a discount by bundling insurance policies through Lemonade?

No. Lemonade only offers separate renters, condo, co-op, and homeowners insurance policies, and you can’t bundle auto insurance with your renters insurance policy.

To share feedback or ask a question about this article, send a note to our Reviews team at reviews@thisoldhousereviews.com.

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