Updated April 13, 2022
Reading time: 8 minutes
You may know Lemonade for their punchy social media presence and renters insurance policies. But did you know they also offer homeowners insurance for around the country? Let Insurify help you decide if Lemonade homeowners insurance is the right choice for you.
This millennial-focused insurance company has a bit of a punch to it.
Lemonade is an insurance carrier that allows users to compare homeowners insurance and renters insurance. Lemonade leverages artificial intelligence to secure low home insurance rates for policyholders on a budget. Indeed, as Lemonade is driven by “AI and Behavioral Economics,” it considers itself a tech company first and foremost, distinct from the old business model of property and casualty insurance.
Lemonade prides itself on charging customers a flat fee and handling claims payouts instantly. And unlike most traditional insurance companies, Lemonade is distinctly devoted to customer centricity and social good (more on that below).
But how exactly does Lemonade work, and is it really the next big thing in home and renters insurance? Let’s investigate. Here’s our Lemonade home insurance review.
Lemonade Insurance Company was founded in 2015 by Daniel Schreiber and Shai Wininger. It offers renters and homeowners insurance policies. These policies can apply to homes, apartments, condominiums, and co-ops.
Lemonade currently offers homeowners insurance policies in the following states: Arizona, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, Washington, D.C., and Wisconsin.
You can get Lemonade renters insurance in: Arizona, Arkansas, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington, Washington, D.C., and Wisconsin.
And you can get condo insurance from Lemonade in: Arizona, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Rhode Island, Virginia, Washington, Washington, D.C., and Wisconsin.
Lemonade plans to continue expanding across the United States and Europe in the coming years.
A cutting-edge startup making a splash in the insurance industry, Lemonade uses artificial intelligence and chatbots to provide insurance policies and handle insurance claims. Lemonade does not employ insurance brokers. Instead, it relies on complex algorithms and AI technology to deliver quality service and insurance products to its customers.
But don’t let that scare you. Lemonade regularly receives rave reviews for hassle-free customer service. Not to mention, the use of technology allows the company to lower pricing across the board.
In its own words, Lemonade treats your cash like it’s still your cash:
Lemonade was built differently. We take a fixed fee out of your monthly payments, pay reinsurance (and some unavoidable expenses), and use the rest for paying out claims. In essence, we treat premiums as if they were still your money and return unclaimed remainders in our annual ‘Giveback’.
Although one of Lemonade’s primary goals is to make a profit and sustain the business, Lemonade’s Giveback program is part and parcel of its unique claims process. Through Giveback, each year, customers get to choose which nonprofits will benefit from the underwriting profits of unclaimed premiums (aka leftover money).
Lemonade also has a “Zero Everything” policy, which allows for payments of up to two claims per year, with no subsequent rate hikes the following year. That means no deductible and full replacement cost, twice a year, for nearly any catastrophe.
The Lemonade app, available for iOS and Android smartphones, is also a central component of Lemonade’s business model. Policyholders can file claims, process payments, and even cancel their plans directly through the app.
As mentioned above, Lemonade offers home and renters insurance policies. It also provides condo and co-op insurance as well as landlord insurance in New York, California, Texas, Illinois, Pennsylvania, New Jersey, and the District of Columbia for qualifying landlords.
Here’s what’s covered in a typical HO-3/HO-4 (home or renters) policy:
Personal liability coverage for anyone who lives under your roof in your immediate family (including your spouse or immediate family members by blood or adoption)
Liability coverage for people under the age of 21 in your care or in care of a relative also living in your household
Liability coverage for pets (except high-risk dog breeds), including service animals
Property damage and theft
Perils and extra living expenses
Loss of use
Extra Coverage is also available for fine art, jewelry, watches, bikes, cameras, musical instruments, and other prized possessions.
Lemonade renters insurance covers Roommates do not count under these policies.
Lemonade lets you reduce or increase coverage limits via the mobile app.
Lemonade does not provide auto insurance, so policyholders can’t bundle it with their home policy for the sake of convenience or to secure a multi-policy discount.
Lemonade prides itself on charging highly affordable renters and home insurance rates for its policyholders.
The Lemonade home page advertises renters insurance rates as low as $5 per month. That’s not even 20 cups of coffee a year for the average resident of Manhattan. (MANHATTAN.)
Lemonade’s homeowners insurance rates are also industry-leading, or so it claims: rates as low as $25 a month? That’s no joke.
But are all Lemonade policies so cheap? I took it upon myself to see if Lemonade passed my taste test.
On the Lemonade website, I was greeted by “Maya,” Lemonade’s AI persona.
The application flow was impressively intuitive. “Maya” asked me one question at a time, gauging relevant information like whether I was closing on a new home or switching insurers (I chose the former), if the house was to be my primary residence, what the size of my new home was in square feet, and what fixtures I had included in my house.
I also had to enter my email and the last four numbers of my SSN. Lemonade required both to generate were my quote. I was dubious, but I did it for you all, so you’re welcome.
My initial quote was $235.25.
But that wasn’t the end of the journey for me. Naturally, I was curious to see if I could get a lower quote…and Lemonade seemed to read my mind. I scrolled down to various coverage options and policy add-ons that, when toggled higher or lower, adjusted my quote accordingly in real-time.
I decreased my personal property coverage from $160,000 to $130,000. Voilà, the quote went down to $233.09 per month. Similarly, when I set my reconstruction costs coverage to the minimum offered ($252,000), my premium dropped even more to $207.59 per month.
But then it occurred to me that I might want extra coverage for some of my most prized belongings. To protect my bike and digital camera, I added $1,000 replacement coverage for both. My policy went up to $209.75.
Then, I lowered my claim deductible from $2,500 to $1,000. My rate increased again, to $229.17.
You get the drill. Lemonade gave me many tools to raise and lower my rates, based precisely on what worked for my budget and needs. Accordingly, it told me what would and wouldn’t be covered under this customized policy, for better or for worse. Ultimately, I elected for the minimum coverage levels offered for basic coverages, plus the extra protection for my bike and camera, and a deductible amount of $1,000—a total of $227.25 per month.
Okay, so not the $25 as advertised. But that’s probably due to factors beyond my control, such as the house type, its geographic location, and preexisting fixtures. Lemonade gave me the option to purchase my policy then and there online (via debit or credit card) or integrate my policy into my closing costs. Pretty snazzy.
The online experience is one thing; dealing with Lemonade as your home or renters insurance provider is entirely another.
Lemonade reviews vary from joyous to ambivalent. Users often comment on its flexible insurance coverage options, transparency, and easy-to-use technology.
The 600 customer reviews on Clearsurance are overwhelmingly positive. The vast majority of these reviews are from renters insurance policyholders, bestowing an average score of 4.79/5. Homeowners gave an even higher average satisfaction rating of 4.85/5.
It appears Lemonade’s unique claims handling process is a double-edged sword. Could these two reviews be more divided?:
Michou71 gave Lemonade a 1-star review on their renters insurance. “I was not happy with the process to put a claim through. Having to track down receipts from years ago and still not have my claim fully paid due to know having enough photographs was a bit unreasonable.”
Lpenate had the opposite experience. They gave Lemonade a 5-star review. “They’re friendly and willing to help. I. had my apartment ceiling fall in and my belongings were damaged. 1000/1000 would recommend.”
Lemonade has seen its share of customer complaints on the Better Business Bureau (BBB) but maintains an A- rating, although the company is not BBB accredited.
The chatter over at HighYa, another review aggregator, is pretty positive, where Lemonade has a rating of 4.5/5. Ninety percent of users report they’d recommend Lemonade to a friend.
Even Reddit is on board—some Redditors, that is.
All the review aggregators and approved sites have a few spoiled apples (lemons?) in there. Some aren’t in love with the company’s tech-forwardness; some have gone as far as to call Lemonade a scam. Regardless, as it is with all insurance providers or anyone you’re entrusting with your money, you have to do your research first. (Good thing you’re here!)
This table shows Lemonade’s official Insurify Composite Rating, based on a combination of reviews from aggregator sites:
|Site||Customer Rating||Number of Reviews|
|Clearsurance||4.8 / 5||600|
|HighYa||4.5 / 5||196|
|Total Score||4.7 / 5||796|
Lemonade is rated 4.7 out of 5 based on 796 reviews.
Lemonade’s tech-forward structure keeps many overhead costs low. That means that Lemonade already offers low-cost insurance premiums, especially in comparison to traditional insurers like Allstate and State Farm.
However, you can lower your rate even further by bundling your policy with other insurance policies. That includes:
Car insurance (when it becomes available)
Gulp. If you wish to cancel your home or renters policy from Lemonade, you can do so through the Lemonade mobile app. You'll receive a refund equal to the remaining premium for the rest of the policy period. Lemonade promises that it won't penalize you if you decide to return, however. You might just receive a policy at a different rate from before.
Lemonade is an insurance company that offers homeowners insurance and renters insurance. Lemonade leverages artificial intelligence to secure low home and renters insurance rates for policyholders on a budget. Indeed, as Lemonade is driven by "AI and Behavioral Economics," it considers itself a tech company first and foremost, distinct from the old business model of property and casualty insurance. A unique part of its business model is its Giveback program. Through Giveback, each year, customers get to choose which nonprofits will benefit from the underwriting profits of unclaimed premiums.
You should comparison shop several cheap home or renters insurance quotes before you choose a policy. Use an insurance quotes comparison site like Insurify to compare real, bindable rates in one place and see how much you could save on your policy. You might find a price cheaper than Lemonade's offerings in mere minutes.
In the past three years, Lemonade has sold over 1.2 million policies, including policy renewals, via its AI Maya software. The insurer has also handled over 29,000 claims. The company has boasted 500 percent growth since its launch and currently claims 10 percent of the home insurance market.
In line with their company’s commitment to charity, Lemonade’s founders launched The Lemonade Foundation in March 2020 with the goal of supporting AI-powered, socially impactful technology initiatives across the globe.
|Phone||1 (844) 733-8666|
|Address||5 Crosby St. 3rd Floor,|
NY, NY 10013.
Nick Dehn is a former content specialist for Insurify. A seasoned writer, Nick has produced feature pieces, opinion editorials, and press releases for start-ups, small businesses, and local news publications. Nick is an alumnus of Williams College, where he graduated cum laude with a degree in English and Sociology.Learn More