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Lemonade Homeowners Insurance Review 2022

Lemonade home insurance may be a good fit for tech-savvy homeowners who want part of their premium to go to charity.
Dec. 15, 2021
Homeowners Insurance, Insurance
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When it comes to home insurance, Lemonade works differently than other companies. To get a policy, you’ll interact with a chatbot called Maya rather than an agent. To file a claim, you’ll submit information and video through the company’s app — and you might get a payout within a few seconds.

Lemonade’s business model also diverges from the industry norm. The company takes a flat fee from each premium and uses the rest to pay claims and handle other expenses. Any money left over is given to charitable organizations selected by policyholders — adding up to more than $2.3 million in donations in 2021.

Lemonade isn’t right for everyone. Its policies aren’t available in all states, and it offers relatively few extra options to customize your coverage. But for homeowners who value efficient service and the chance to send their insurance dollars to worthy causes, Lemonade is worth considering.

Best for: Tech-savvy homeowners who want quick and easy coverage.

Lemonade home insurance pros and cons

ProsCons
Quick quotes available through website or app.Not available in all states.
Some claims are paid out immediately after filing.Receives far more than the expected number of consumer complaints for a company of its size.
Portions of policy premiums are donated to charity.Limited extra coverage options.

How Lemonade home insurance rates

4.0 NerdWallet rating

Lemonade homeowners insurance earned 4 out of 5 stars for overall performance. NerdWallet’s ratings are determined by our editorial team. The homeowners insurance scoring formula takes into account policy coverage options and discounts, ease of filing a claim, website transparency, the financial strength of the company, complaint data from the National Association of Insurance Commissioners and more.

» MORE: The best home insurance companies for 2022

State availability

You can purchase Lemonade homeowners insurance in 23 states and Washington, D.C.

Lemonade home insurance coverage

You can customize your homeowners policy with numerous add-ons, but below are the types of coverage that generally come standard:

Type of coverageWhat it does
DwellingPays to repair or rebuild the structure of your home.
Other structuresCovers damage to unattached structures such as a shed or fence.
Personal propertyPays to repair or replace personal belongings such as furniture or clothing.
Additional living expensesPays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.
LiabilityCovers legal expenses and damages if you're responsible for injuries to other people or their property.
Medical paymentsCovers injuries to guests in your home, regardless of fault.

For more details, see Homeowners Insurance: What It Is and What It Covers.

Lemonade homeowners policies cover personal belongings on a “replacement cost” basis, which means if your stuff is stolen or destroyed, the company will pay out enough for you to buy a brand-new replacement.

Depending on where you live, you may be able to add the following types of coverage onto a standard Lemonade policy:

Extra coverage for valuable items such as jewelry, fine art and high-end cameras.

Water backup coverage for damage caused by a drain or sewer backing up.

Extended reconstruction cost in case the amount it costs to rebuild your home after a disaster ends up being higher than your dwelling limit.

Swimming pool liability to pay for lawsuits if someone is injured in your pool.

Daycare liability for those caring for other people’s children in their home.

Equipment breakdown coverage to pay for appliances that have mechanical failures.

Buried utility coverage to cover damage to service lines such as power, water or sewage lines on your property.

Discounts

You can save on your Lemonade homeowners policy by:

  • Buying another type of insurance from Lemonade, such as pet or life.
  • Paying your bill annually instead of in more frequent installments.
  • Having deadbolt locks, burglar alarms or other protective devices in your home.
  • Living in a new or recently renovated home.
  • Living in a gated community.
  • Being insured with Lemonade as a renter before buying your new home or condo (available in select states).

» MORE: 9 ways to cut the cost of home insurance

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 also cover other home policy types, including mobile home, renters and condo insurance.)

Consumer experience

Website: Lemonade’s website is cleanly designed and easy to use, with a lengthy FAQ section offering information in jargon-free language. You can get a quick quote right from the homepage. To file a claim, though, you need to download the app. You can also file by phone at 844-733-8666.

App: When filing a claim using the Lemonade app, you’ll interact with a chatbot and upload a video of yourself describing the incident. Depending on the circumstances, you may see your claim paid out immediately. You can also use the app to view policy details, update your coverage, get quotes and buy a policy.

Homeowners insurance buying guide

You can get home insurance quotes online, over the phone or through an agent. But before you start, take the following steps:

  1. Determine how much coverage you need. Is a standard policy sufficient, or do you want to add extra insurance for situations like identity theft or sewer backups? Check whether each company you’re considering has the options you need.
  2. Take inventory. To ensure you have sufficient personal property coverage, take stock of your belongings. Include all furniture, electronic devices, clothing, jewelry and household items. How much would it cost you to replace them? This total is the minimum amount of personal property insurance you should have.
  3. Make a fair comparison. When evaluating rates, make sure each insurer is offering the same limits and deductibles.
  4. Check consumer complaints. Although it may seem tempting simply to choose the cheapest option, look at how many consumer complaints each insurer has before choosing a policy. Poor customer service could have a significant impact on your experience if you ever need to file a claim.

How to file a homeowners insurance claim

File as soon as it’s safe. The sooner you report a theft or damage to your home, the sooner your insurer can assign an adjuster and start working on paying out your claim. Some companies let you file claims online or through their app, while in other cases you may have to call your agent or insurer instead. Have your policy number handy.

Document the damage. Bolster your claim by taking photos or video of all damage. If something was stolen, report it to the police before you contact your insurance company. Your insurer may ask for a copy of their report.

Prevent further damage. After you’ve taken pictures of everything broken or destroyed, take steps to prevent additional damage. For example, you can put a tarp over a leaky roof or blown-out window. Keep receipts for any supplies you buy, as your insurer may reimburse you later.

For more information, see our guide to streamlining insurance payments on home damage claims.

Frequently asked questions

What other types of insurance does Lemonade offer?

Lemonade also sells renters, condo/co-op, pet, life and car insurance. To learn more, see our Lemonade renters insurance review.

Does Lemonade cover mobile homes?

No, Lemonade doesn’t sell insurance for manufactured or mobile homes. To find companies that do, see our guide to manufactured and mobile home insurance.

Does Lemonade cover stuff in a storage unit?

Yes, but the amount depends on where you live. In New York, California and Connecticut, your belongings in a storage limit are covered for theft up to 10% of your personal property limit. In other states, you may have only $1,000 of coverage for theft.

Does Lemonade home insurance have dog breed restrictions?

Yes, depending on where you live. In most states, Lemonade won’t provide liability coverage for claims involving any of the following breeds: pit bulls, Staffordshire terriers, Doberman pinschers, Rottweilers, German shepherds, chows, Great Danes, Presa Canarios, Akitas, Alaskan malamutes, Siberian huskies and wolf hybrids.

But if you live in Connecticut, Georgia, Illinois, Michigan, New Jersey, Pennsylvania or Virginia, breed restrictions don’t apply. Instead, dog bite liability won’t be covered only if your pet has a history of biting.

Other home insurance companies to consider

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

Homeowners insurance ratings methodology

NerdWallet’s homeowners 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, coverages, discounts, online experience and more. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. 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 editorial guidelines.

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. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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