Lemonade Homeowners Insurance Review 2023
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Coverage options
Discounts
NAIC complaints
Lemonade
Coverage options
Discounts
NAIC complaints
When it comes to home insurance, Lemonade works differently than other companies. To get a policy, you’ll interact with a chatbot named 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 $1.8 million in donations in 2022.
Lemonade isn’t right for everyone. Its policies aren’t available in all states, and it draws more consumer complaints for its size than many other home insurers. But for homeowners who value efficient service and the chance to send their insurance dollars to worthy causes, Lemonade is worth considering.
Lemonade home insurance star 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.
State availability
You can purchase Lemonade homeowners insurance in 22 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 coverage | What it does |
|---|---|
Pays to repair or rebuild the structure of your home. | |
Covers damage to unattached structures such as sheds or fences. | |
Pays to repair or replace personal belongings such as furniture or clothing. | |
Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs. | |
Covers legal expenses and damages if you're responsible for injuries to other people or their property. | |
Covers injuries to guests in your home, regardless of fault. |
For more details, see What Does Homeowners Insurance Cover?
Lemonade homeowners policies cover personal belongings on a “replacement cost” basis: If your stuff is stolen or destroyed, the company will pay out enough for you to buy new replacements.
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.
Foundation water damage coverage in case water seeps into your foundation and causes leaks.
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.
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.
Day care liability for those caring for other people’s children in their home.
In some states, Lemonade may also include coverage for issues like sinkholes, mine subsidence or leaky fuel tanks.
Discounts
You can save on your Lemonade homeowners policy by:
Buying another product from Lemonade, such as pet or life insurance.
Paying your bill annually instead of in more frequent installments.
Having deadbolt locks, burglar alarms or other protective devices in your home.
Consumer complaints
Lemonade received 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 types of home policies, 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 from the homepage.
App: You can use the highly rated Lemonade app to view policy details, update your coverage, file claims, get quotes and buy a policy.
Claims: Lemonade directs you to its app to submit claims, though you can also file by phone at 844-733-8666. On the app, you’ll interact with a chatbot and upload a video of yourself describing the incident. Depending on the circumstances, Lemonade may pay out your claim immediately. Payouts are deposited directly into your bank account.
Customer service: You can get help via chatbot on Lemonade’s website or app, send an email via an online form or call 844-733-8666.
Where Lemonade stands out
Claims processing. The company says it uses artificial intelligence to process about 40% of claims immediately. (Humans handle more complicated claims that AI can’t handle.)
Giveback program. This program directs part of your insurance premium to a charitable organization of your choice. Lemonade has donated more than $6 million since 2017.
Where Lemonade falls short
Consumer complaints. Although Lemonade has improved in this respect, the company still draws more complaints than expected for an insurer of its size.
Availability. Lemonade sells home insurance in fewer than half of U.S. states.
» MORE: Lemonade pet insurance review
Lemonade vs. competitors
Lemonade vs. Hippo home insurance
Lemonade and Hippo are newer companies that sell policies directly to consumers rather than using agents. One major difference between Lemonade and Hippo is that Hippo insures only houses and condos, while Lemonade also offers renters, pet, life and car insurance.
When it comes to homeowners insurance, Hippo and Lemonade offer similar coverage options, though different ones cost extra with each company. For example, Lemonade includes replacement cost coverage for your belongings in each policy, while only Hippo’s more expensive plans include this.
However, all of Hippo’s policies include extended replacement cost, which adds 25% to 50% to your dwelling coverage limit in case it costs more to rebuild your home than expected. This coverage costs extra with Lemonade.
In many states, Hippo offers policyholders free smart-home devices such as water sensors, smoke detectors and security cameras.
Check out NerdWallet’s Hippo home insurance review for more details.
Lemonade vs. Geico home insurance
The primary difference between Lemonade and Geico home insurance is that Lemonade sells its own policies, while Geico homeowners policies come from third parties.
Geico works with companies like Travelers, Liberty Mutual and Homesite to provide home insurance, so if you need to file a claim, you’ll have to contact the other company directly. Meanwhile, Lemonade has a quick, straightforward claim process that you can carry out in the app.
If you’re looking to bundle home and car insurance, it’s easier with Geico, which sells auto insurance nationwide. Lemonade’s car insurance policies are available in only three states: Illinois, Ohio and Tennessee.
Read our Geico home insurance review to learn more.
Is Lemonade home insurance right for you?
Lemonade’s digital-first experience prioritizes ease and convenience, letting homeowners handle nearly every aspect of their policy through the website or app. If that’s appealing to you, Lemonade will likely be a good fit.
But if you’d rather discuss coverage options with a local agent and build a relationship with them, you’ll be better off with a different insurer.
Other home insurance companies to consider
Not ready to make a decision? You may be interested in these other homeowners insurance companies:
Amica: Great customer service plus an approved contractor program to help with claims.
Nationwide: For shoppers seeking a broad range of coverage options.
Openly: Premium coverage for high-end homes.
Progressive: Best for existing Progressive auto customers looking to bundle policies.
Methodology
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, coverage, 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 ratings methodology for home insurance.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. 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.
In This Review . . .
