Lemonade offers insurance with a feature that sweetens the deal. You choose a charity when buying insurance through Lemonade, and 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. From July 2019 to June 2020, this amounted to more than $1.1 million in donations.
Lemonade sells renters, homeowners, condo, co-op and pet insurance only through its website and mobile app, and recently began selling term life insurance to some customers.
Who it’s good for: Lemonade insurance makes sense for someone who wants a simple, understandable policy from a tech-centric, mission-driven company.
Lemonade renters insurance 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.
Lemonade insurance coverage
All Lemonade renters insurance policies cover:
- Damage or theft of personal belongings. The base policy pays a maximum of $2,500 per item and $10,000 total.
- Temporary living expenses should your home become unlivable, up to $2,500.
- Liability if you’re held responsible for someone else’s injury or property damage, up to $100,000.
You can add more coverage to any of these for an extra monthly charge.
Optional coverage types are also available, including:
- Extra Coverage, which pays out if jewelry, fine art, cameras, bicycles or musical instruments are lost, damaged or stolen, with no application of your insurance deductible.
- Water backup, for damage caused by water coming out of your drain or sewer.
- Landlord property damage, in case water or your pet cause damage to the property.
Lemonade’s homeowners insurance policy contains all the standard coverage, plus a few extras. Learn more with our Lemonade home insurance review.
Lemonade recently began offering term life insurance to some customers, but it is not yet available widely. This new product is targeted toward healthy adults ages 21 to 55. Policies are offered in terms of 10 or 20 years, do not require a life insurance medical exam and have a maximum coverage amount of $1 million.
Lemonade offers only one type of discount across all its policies: a bundling discount. If you have multiple policies with Lemonade — for example, homeowners and pet insurance — you can get as much as 10% off your monthly premium.
Lemonade company information
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.)
North American Company for Life and Health Insurance, which issues the life insurance policies that Lemonade sells, also had fewer complaints than expected for a company of its size, the NAIC data shows.
Lemonade’s financial stability is rated A — the third-highest rating — by financial analysis firm Demotech. Financial stability or strength ratings indicate an insurer’s ability to pay claims.
Lemonade was ranked as the top renters insurance company in J.D. Power’s 2020 U.S. Home Insurance Study, which measures customer satisfaction. The survey weighs five factors: interaction, policy offerings, price, billing and claims.
More about Lemonade
Lemonade Insurance has no sales agents. You buy coverage and make claims through the company’s app or website. The company says Lemonade can provide a quote in as little as 90 seconds and pay a claim in as little as three minutes. However, many cases are transferred to a human claims team. Lemonade says it handles 30% of claims instantly and wires money to your bank.
Claim filing is handled entirely through the mobile app. In an emergency where you don’t have web access, Lemonade does have a phone number you can call to get the process started.
To file a claim on the app, you record a video of yourself describing what happened and then fill in some information about the amount of your claim. You can also use the app to manage your policy and make payments.
Lemonade’s pet insurance offers a base policy with two optional types of coverage. One pays for preventive care visits such as annual exams and vaccinations, and the other covers health treatments like physical therapy.
Lemonade is a for-profit company. It’s certified as a public benefit corporation by the nonprofit B Lab. The certification requires the company to meet certain standards for social and environmental performance, transparency and accountability.
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.