Lemonade Renters Insurance: The Basics
If you’re comparing renters insurance companies, Lemonade is a provider that is definitely worth considering. They make it easy to get a policy online or from a mobile app on your smartphone in minutes. What’s more, Lemonade works differently than other companies: they keep a fixed share of your premium rather than profiting from denying claims. That means the claims process is faster and easier than with some other renters insurance providers.
Furthermore, Lemonade has a unique giveback program. Because they charge a flat fee to operate, any extra money from customers’ premiums that doesn’t go toward covering claims is donated to nonprofits.
What does Lemonade renters insurance cover?
Like most renters insurance policies, Lemonade insurance provides coverage for personal property, personal liability and medical payments, and additional living expenses. While some insurers only pay out the actual cash value for your belongings (which is usually less than you paid for each item due to depreciation), Lemonade covers the cost to replace damaged or stolen items.
Lemonade covers your personal property in case of loss or damage from 16 different perils, including theft and vandalism, certain accidents, and water damage not related to weather. They’ll even cover items stolen outside of your home. In addition, you can purchase extra coverage to cover certain valuables (such as musical instruments or fine art ), lost belongings, or even damage from earthquakes in some states. You can also elect to get coverage without a deductible.
Special Deals and Discounts
Lemonade customers can save 10 percent on your premium by bundling your renters insurance policy with a pet insurance policy.
Lemonade also offers an optional ‘Extra Coverage’ option for jewelry, fine art, cameras, bicycles, and musical instruments.
Where does Lemonade offer renters insurance?
Lemonade offers renters insurance in the following states:
Lemonade renters insurance ratings
|J.D. Power||866 (1st place)|
|A.M. Best||Not rated|
|Better Business Bureau (BBB)||B+|
Lemonade renters insurance customer reviews
More than 200 customers rated Lemonade an average of 4.4 out of 5 stars with the BBB. Most people agree that Lemonade’s insurance coverage is cheap and hassle -free to get, but reviews about the claims process were mixed. Some reported frustration with the company when it came time to file an insurance claim, while others said they had an excellent customer service experience.
Still, the reviews set Lemonade apart from other companies in the insurance industry. Traditional insurance providers frequently receive abysmal reviews. For example, Allstate has a rating of just 1.2 out of 5 stars with the BBB, and State Farm received a rating of just 1.3 out of 5 stars. Compared to those ratings, an average Lemonade insurance review of 4.4 means the company leads the pack in customer service.
Average Cost of Lemonade Renters Insurance
Lemonade renters insurance policies start at just $5 per month, a far cry from the national average of $15/month and much less than the typical home insurance policy. By contrast, GEICO charges at least $12/month for its policies, and Allstate charges an average premium of $15/month. Your actual premium will vary based on where you live, what add-ons you select, your deductible, and more.
Positives and negatives of Lemonade renters insurance
- A unique business model that results in donations to charity and a better claims process
- Fast and easy to get a policy online or through the Lemonade app
- Competitive pricing that beats most other companies in the insurance industry
- Payouts that cover the replacement value of your belongings
Is Lemonade renters insurance right for me?
When deciding if Lemonade renters insurance is right for you, first determine whether it is offered in your state. Next, find out how much you could save by bundling your current renters insurance with your current auto policy. While Lemonade offers some of the best rates in the industry, you might get a better deal at a competitor by bundling.
If Lemonade is the cheapest option available in your state, signing up is probably no-brainer. Lemonade uses a peer-to-peer insurance model that helps the company process claims faster since they don’t profit from denying claims. Lemonade is also the highest-rated renters insurance provider by J.D. Power and has excellent customer reviews with the BBB. And you can feel good about supporting nonprofits if any of your premium is left over.