Lemonade Renters Insurance Review 2022

Lemonade is notable for its digital-first offerings, but it's not available in all states.

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Lemonade offers renters insurance with a feature that sweetens the deal. You choose a charity when buying insurance through Lemonade, then your payments are pooled with those of other policyholders. After paying expenses and claims each year, the company gives any money left over to customers’ favorite causes. In 2021, this amounted to more than $2.3 million in donations.

Lemonade doesn't sell renters insurance through sales agents. You buy coverage and make claims through the company’s app or website. Lemonade sells not only renters insurance but also homeowners, condo, co-op, life and pet insurance.

Best for: Those who want a simple, understandable policy from a tech-centric, mission-driven company.

Our star ratings are based on consumer complaint data from the National Association of Insurance Commissioners; financial strength grades from AM Best; coverage and discounts available; and the overall consumer experience. See our criteria for evaluating renters insurance companies.

Our writers and editors follow strict editorial guidelines that ensure fairness and accuracy in order to help you choose the financial products that work best for you. Here is a list of our partners and here’s how we make money.

Lemonade renters insurance pros and cons

Pros

Cons

Some claims are paid instantly.

More consumer complaints than expected for a company of its size.

Quick quotes available via website and app.

Not available in all states.

If belongings are lost or stolen, you'll be paid enough to buy brand-new replacements.

Digital-first format isn't ideal if you want the personal support of an agent.

How Lemonade renters insurance rates

4.0

NerdWallet rating 

Lemonade renters insurance earned 4.0 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account coverage and discounts, ease of filing a claim, website transparency, financial strength, complaint data from the National Association of Insurance Commissioners and more.

State availability

Lemonade renters insurance is available in 27 states plus Washington, D.C.

Lemonade renters insurance coverage

Landlords sometimes require tenants to purchase a policy with a minimum amount of renters liability insurance, but otherwise, the coverage you choose is generally up to you. Below are the four types of coverage included in most standard renters policies:

Type of coverage

What it does

Covers your clothing, furniture, electronics and other belongings.

Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.

Pays out if you're responsible for injuries to other people or damage to their property.

Medical payments

Covers injuries to other people in your home, regardless of fault.

Lemonade covers your belongings on a replacement cost basis. That means if your items are stolen or destroyed, it’ll pay out enough for you to buy new replacements. Some companies pay out less to reflect the depreciated value of your belongings.

Depending on where you live, optional coverage types may also be available, including:

  • Extra coverage, which pays out if jewelry, fine art, cameras, bicycles or musical instruments are lost, damaged or stolen. No deductible applies.

  • Water backup, for damage caused by water coming out of your drain or sewer.

  • Equipment breakdown, which pays if appliances or electronics (like your phone or TV) have a mechanical failure.

Discounts

You may be able to save money on your Lemonade renters insurance policy if:

  • You buy another type of Lemonade policy such as pet insurance.

  • Your home has protective devices such as smoke alarms or deadbolt locks.

Consumer complaints

Lemonade received significantly more than the expected number of home insurance complaints to state regulators relative to its size, according to three years’ worth of data from the National Association of Insurance Commissioners. (NAIC home insurance complaints cover other home policy types, including renters, mobile home and condo insurance.)

Consumer experience

Website: Lemonade’s website is cleanly designed and easy to use, with an instant quote feature right on the homepage. You can find information about the company’s policies on its lengthy FAQ page.

App: Available for both iOS and Android, Lemonade’s app is the place to go to get quotes and buy your policy. You’ll also use it to file claims.

Claims: To file a claim on the app, record a video of yourself describing what happened, then fill in some information about the amount of your claim. Although many cases are transferred to a person on the claims team, Lemonade says it handles 30% of claims instantly and wires money to your bank.

If you don’t have web access, you can call 844-733-8666 to file your claim.

Customer service: Logged-in policyholders can use the Maya chatbot service. You can also send a message through the website, email [email protected] or call 844-733-8666.

Lemonade vs. competitors

Here’s how Lemonade renters insurance stacks up against policies from other popular companies.

Lemonade vs. Geico

Lemonade sells its own renters insurance, while Geico offers policies through third parties. With Geico, your coverage and discount options may vary depending on which company ends up writing your policy. Both Geico and Lemonade offer bundling discounts if you buy more than one type of insurance.

The claims filing experience is one area where the companies differ. Lemonade claims are filed through its app, and some are processed instantly. With Geico, you’ll need to reach out to the third party that services your policy to file a claim.

You can get quick online quotes from both companies, but Lemonade’s renters policies aren’t available in all 50 states the way Geico’s are.

Lemonade has a unique “Giveback” program that donates a portion of its premiums to charities chosen by its policyholders. Meanwhile, Geico supports a variety of causes through the Geico Philanthropic Foundation.

Lemonade vs. State Farm

Lemonade is one of the newest renters insurance companies in the industry, founded in 2016, while State Farm has been around for a century.

Lemonade takes a digital-first approach to insurance, offering most customer service functions (such as quotes, payments and claims filing) through its app. State Farm also has a robust website and app, but it has a large network of local agents for policyholders who want more personalized help.

Each company lets you add extra coverage to your base policy, though available options depend on where you live. They both also have bundling discounts if you buy more than one policy. However, State Farm has a significant advantage when it comes to consumer complaints. It’s drawn fewer complaints to state regulators than expected for a company of its size, while Lemonade has drawn far more.

Lemonade comes out ahead when it comes to the speed of claims processing. Some of its claims are paid out almost immediately after being submitted through the app. However, State Farm’s renters policies are available in more states than Lemonade’s.

Renters insurance buying guide

Before you compare renters insurance companies, gather key information such as the address of the rental and any safety and security features the unit has.

You should also figure out how much coverage you need. Take a quick inventory of your belongings: How much would it cost you to replace them? Include all furniture, electronic devices, clothing, jewelry and household items. This total is the minimum amount of personal property insurance you should have.

Your liability limit should be high enough to cover your net worth, while your deductible should be an amount you’d feel comfortable paying in an emergency.

When evaluating renters insurance quotes, make sure each rate estimate includes the same coverage limits and deductibles so you know you’re getting a fair comparison. While it’s tempting to buy the cheapest policy, you may also want to read reviews of your preferred company to make sure it offers good customer service.

Other renters insurance companies to consider

Not ready to make a decision? You may be interested in these other renters insurance companies:

Frequently asked questions

Lemonade sells homeowners, condo, co-op, term life and pet insurance. It launched a new auto insurance product in Illinois in November 2021, with plans to roll out to more states in the future. Check out NerdWallet’s Lemonade home insurance review.

The company advertises plans starting at $5 a month, but your own premium will depend on where you live and the amount of coverage you need. Discover the average cost of renters insurance.

Lemonade renters policies will generally cover liability claims if your dog bites someone outside your household, but some breeds are restricted from coverage in certain states. These may include pit bulls, German shepherds, Rottweilers and Siberian huskies.

Methodology

Renters insurance ratings methodology

NerdWallet’s renters insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverage options, discounts and online experience. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our full renters insurance rating methodology.

Insurer complaints methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2020. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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