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Lemonade Insurance Review 2020

Oct. 16, 2020
Insurance, Renters Insurance
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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.

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

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.

Lemonade insurance coverage

Renters Insurance

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.

Homeowners Insurance

Lemonade’s homeowners insurance policy contains all the standard coverage, including reconstruction costs, loss of use, medical payments to others and personal property and liability.

Lemonade also offers the same Extra Coverage and water backup options as it does with renters insurance. Another option for homeowners is extended replacement coverage, which pays when the cost of rebuilding your home ends up higher than expected.

Discounts

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

Complaints

Lemonade had fewer than the expected number of complaints to state regulators relative to its size for home insurance, 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.)

Financial strength

Lemonade’s financial stability is rated A — the third-highest rating — by financial analysis firm Demotech. Lemonade’s financial strength is not rated by A.M. Best. Financial stability or strength ratings indicate an insurer’s ability to pay claims.

Customer satisfaction

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.

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