How Lemonade Works
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.
Lemonade Homeowners Insurance Coverages
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.