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2019 Lemonade Renters & Home Insurance Review: Is the Company Legit?

Updated: October 2019
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Lemonade Insurance Company opened its figurative doors in September 2016. The company started its operations in New York City and expanded from there. Tens of thousands of people rely on Lemonade for homeowners and renters insurance today. Unsurprisingly, one of the country’s newest insurance companies brings ample innovation to the table. Lemonade seeks to disrupt the traditional insurance industry by utilizing technology and making insurance straightforward for consumers in stark contrast to other insurers.

Table of Contents

Lemonade: On A Mission With The Resources To Succeed

Currently, some big names in insurance have backed Lemonade Insurance Company. Lloyd’s of London and other companies reinsure Lemonade at the moment. The company is best described as a hybrid tech startup and insurance company. Instead of focusing on profits and making things complicated for consumers, Lemonade takes a much different approach. Lemonade specializes in low premiums, transparent policies, and social good. Everything the company does is designed to help consumers and simplify insurance for policyholders.

LEMONADE INSURANCE REVIEW
Lemonade Insurance

Why Lemonade Insurance?

  • Lemonade Insurance is used by tens of thousands of homeowners and renters.
  • It is backed by many big names in the insurance industry, which includes Lloyd’s of London.
  • The insurance premiums are pooled into a communal account.
  • It follows a peer-to-peer model that makes filing claims easier.
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A Peer-To-Peer Business Model Where Everyone Is Taken Care Of

Unlike traditional insurance companies, Lemonade takes advantage of a peer-to-peer business model. Every insured pays their premiums, and the funds are then placed into a communal account. Such communal funds are then used to handle claims incurred under Lemonade policies, which means everyone shares in the cost of claims. Recently, peer-to-peer models have been used in the lending industry with interesting results. This particular setup encourages honesty among insureds in a unique manner.

Insurance Providers Often Known For Fighting Against Insureds To Profit More

Most insurance companies are known for fighting against their insureds in claim situations. For better or worse, insurance providers are incentivized to strong arm their policyholders to maximize profit. Charging higher premiums and paying out as little as possible in claim situations helps such companies earn more money. Lemonade operates in a completely different manner, choosing to incentivize itself to help insureds. In fact, Lemonade cannot profit from pinching its policyholders, but how can this be?

Lemonade Renter Insurance Review

With Lemonade, Safeguards In Place To Take Care Of Policyholders The Right Way

Lemonade Insurance Company tells everyone exactly what happens with policy premiums. First, the company handles traditional operating expenses that every business deals with, including claim payouts. Then technology upgrades and employee salaries are covered by premiums. Most companies would pocket the rest of the money as profit. However, Lemonade takes that money and donates it to charity. Individual policyholders choose where the leftover money is donated to, and this GiveBack program is an incredible offering.

Lemonade Renter Insurance Review

A Sacrifice For The Greater Good, An Innovation In and Of Itself

Few, if any, companies would choose to cut back on their own profits. Then again, Lemonade operates with a social conscious. Doing so allows the company to focus on putting its insureds first, itself second, and charitable organizations third. Building a social conscious into the company’s core operations keep everything fair for everyone. Consumers won’t see another insurance company following the same business model anytime soon because Lemonade differentiates itself from the pack in the best ways possible.

Lemonade’s Other Ace In The Hole: Technology and Innovation

In general, people with renters insurance contact their agent or contact a call center for assistance. Lemonade exists entirely on a mobile app or as a desktop experience. Potential customers sign up for insurance coverage through the app. Policy changes and coverage changes are processed through the app as well. On top of that, claims are handled through the app and powered by artificial intelligence and machine learning. Human interaction is minimal here, but that fact streamlines the whole process.

Claims Processing In An Unparalleled Amount of Time

Renters policy claims are handled within the app, often in minutes or hours. The average insurance provider might take 24-48 hours (or longer) to process a claim. For Lemonade, such processing times are unacceptable and outside of the norm. Lemonade recently broke a world record for processing a claim within three seconds of submission. Many claims are processed and paid out within minutes, which is unheard of in the insurance industry. People don’t believe this is possible until they’ve seen it in action!

Safeguards In Place To Prevent Fraud and Other Problems

Consumers might think this approach opens Lemonade up to large amounts of fraud. In reality, the company has countless safeguards in place to combat fraud. The insurance company utilizes machine learning and automated fraud algorithms to protect everyone. Fraud on the platform is minimized, and all legitimate claims are handled within a short period of time. No other insurance company offers such fast processing times, and insurance companies’ fraud prevention measures don’t stack up to Lemonade’s measures.

What Does A Lemonade Renters Policy Cover?

A renters policy from Lemonade offers traditional coverages found in most renters policies. Luckily, the renters policy covers all related individuals within a property free of charge. Non-relative occupants may require their own separate renters policy, but that’s standard in the industry. Personal property is covered whether it’s in the covered property or outside of it, with certain limitations. Lemonade offers additional coverages that beat coverages provided by competing renters policies as well.

Lemonade’s basic renters policy covers an individual’s personal belongings. The policy also provides liability coverage to protect the insured in various situations. For personal property, limitations are placed on certain items, such as jewelry and camera equipment. Personal property coverage amounts are available from $10,000 to $100,000 or more. Individuals will need to evaluate their personal belongings to determine the proper amount of coverage. Lemonade does provide a basic calculator for this purpose.

Other Person Liability helps protect insureds for situations where they become liable for damages to another person. For instance, someone might fall at the insured’s home and sue for medical bills. OPL takes care of the legal costs associated with the lawsuit, and then OP will cover damages the insured is found liable for causing. Basic OPL coverage is $100,000, but Lemonade allows insureds to increase this coverage to various amounts. While this coverage is invaluable, most insureds don’t realize they have it.

Lemonade Renter Insurance Review

Optional Coverages and Other Benefits Offered By Lemonade

As previously mentioned, Lemonade allows its insureds to pay for increased coverage amounts. They can add more liability coverage or increase personal property coverage at will. The limitations on jewelry, camera equipment, and other items can be increased to $50,000 per category with an additional premium. Not all insurance companies provide such extended limits on these categories of personal belongings. Plus, a number of other extended coverages can be found with Lemonade, and they’re simple to add onto a policy.

Lemonade Truly Changes The Game With Zero Everything

Zero Everything is perhaps the most unique feature of Lemonade’s renters policy. For an additional premium, Lemonade will waive the deductible on low-value items. An insured might pay no deductible for items valued less than $500. Virtually no other renters policy offers such a feature, and Zero Everything is truly a unique offering. Depending on an individual policy, the premium increase may not be that noticeable. Lemonade won’t increase rates for insureds with two or less claims per year, either.

Is Lemonade Worth Choosing Over More Established Insurance Companies?

Based on simple research, Lemonade often costs significantly less than other insurance companies when it comes to renter insurance. The company experiences far less overhead costs to provide insurance after all. Lemonade often costs a minimum of $10 less than other options on the market. While that amount doesn’t sound like much, the average savings is much closer to anywhere from $100 to $300 per year. Finding better savings than that might prove impossible from larger insurance companies today.

In simple terms, Lemonade beats other insurance providers in almost every arena. Policyholders will discover better rates and more coverage with a renters policy here. They’ll have more ways to control their policies, and they won’t have to worry about a claims adjuster lowering their claim payout to the bare minimum. A sleek and fine-tuned mobile app means that users will rarely need human interaction to deal with their policies. Lemonade is designed to be straightforward to the benefit of every single user.

Lemonade comes with only a handful of downsides at this point in time. First, the company isn’t available in every state across the country. Consumers will only find Lemonade in about half the states right now. Wider availability is planned throughout 2019 and 2020, though. By then, Lemonade plans to extend to most, if not all, of the country. You won’t find auto insurance offered by Lemonade, so bundling policies for a discount isn’t an option. Consumers will often still save more money even without the bundling opportunity.

In the end, Lemonade isn’t the perfect insurance company, but it comes quite close. Wider availability would propel the company into the stratosphere. Lemonade can settle for beating out most other insurance companies in price and quality, though. Consumers are used to their insurance provider being a negative factor in their lives. Thankfully, Lemonade bucks this trend and helps everyone from policyholders to charities in ways that other insurance companies cannot compete, or at least they refuse to compete like this.

A better renters policy might not be available in states where Lemonade operates.

FAQ

A home is what anyone works hard to get. Sometimes, the place we come home is often threatened and sadly, there are limited precautions to protect the occupants after these events. Hence why you want the best home security along with your insurance coverage. Not only that but remember Insurance companies are already offering discounts for homeowners with security systems.

Lemonade Renters Insurance is an insurance company that aims at offering insurance policies to homeowners and renters at affordable rates. You might have heard about Lemonade Insurance and guessing what the company is all about. We have put together answers to recurring questions about Lemonade Renters Insurance.

Lemonade Insurance Basics

Lemonade Renters Insurance is giving home owners or buyers the best homeowners insurance on their properties and great coverage for renters. This section covers answers to the idea behind the company, the founders and what Lemonade Renters Insurance is all about.

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What is Lemonade Insurance?

Lemonade Insurance is an American casualty and property insurance company that offers home insurance and renters insurance to apartments, co-ops and homes. The company aims at offering users low fees on home and rent insurance.

Is Lemonade Insurance legit?

Lemonade Insurance is legitimate and has helped many people obtain insurance. The company has been offering insurance policies to homeowners and renters throughout the three years of its existence.

What does Lemonade Insurance cover?

Lemonade Insurance covers homeowners, condo, co-op and renters. Lemonade Renters Insurance only focuses on homes. Automobiles are not in the list of its insurance coverage. The company offers insurance for lost items in your automobile.

How does Lemonade Insurance work?

Lemonade Insurance uses premiums collected from each peer group to pay for the peer group’s claims. If the premium is below the group’s claims, reinsurance is used to cover the exceeded claim. If there are leftover funds after paying claims, Lemonade Insurance gives it back to the group.

Who owns Lemonade Insurance?

Lemonade Insurance was founded by Daniel Schreiber and Shai Wininger. They founded the company to change the monopoly of traditional insurance companies. Instead of making money off users when they withhold claims, Lemonade Insurance take a 20% flat fee and pays claims promptly.

Who buys Lemonade Insurance?

Homeowners and renters are potential clients to Lemonade Renters Insurance. On the other hand, the company attracted other users from different insurance sectors. For instance, users on Allstate, Liberty Manual and Assurant left these insurance companies for Lemonade.

Who underwrites Lemonade Insurance?

Lemonade AI-powered bot is designed with underwriting algorithm. The bot in addition to Lemonade’s human underwriters take the task of underwriting insurance policies with Lemonade Renters Insurance. The aim is to make underwriting faster and free of miscalculations.

How to cancel Lemonade Insurance

Lemonade Insurance lets you cancel your policy through the mobile app. If you do not want to continue with a policy, Lemonade Insurance lets you cancel the policy by telephoning the customer experience team or through the app.

Do lenders accept Lemonade insurance?

Lenders accept Lemonade Insurance. However, some lenders might not accept it because it is yet to be certified by A.M. Best. Even so, Lemonade Insurance has some good records with many lenders.

Why is Lemonade Insurance different?

Lemonade Insurance pays claims faster than traditional insurance companies. Also, it insures most items that are not covered by traditional insurance companies. Lemonade Insurance also stands out because of the low fees it charges.

Is Lemonade a good insurance company?

Lemonade is a good insurance company which helps homeowners with their insurance. However, the company is yet to be rated by A.M. Best. In spite of this, the company has been offering cheaper policies to users.

How to invest in Lemonade Insurance

You can invest in Lemonade Insurance by buying the company’s insurance products. A user automatically becomes an investor when he buys a homeowner or renters policy from the company.

How did we name Lemonade Insurance?

Lemonade Insurance was established to disrupt the insurance industry and also offer better policies to users. The company’s aim is to insure homes at reduced costs.

How long has Lemonade Insurance been around?

Lemonade Insurance has been around for three (3) years. The company was founded in April, 2015. The company’s establishment marked a milestone in the insurance sector. Since inception, Lemonade Insurance has performed creditably in the home insurance industry.

Is Lemonade an insurance company?

Lemonade is an insurance company. The company is an American casualty and property insurance company that offers home insurance and renters policies on apartments, condos and homes to renters and homeowners.

Is Lemonade a real insurance?

Lemonade Renters Insurance is a real insurance company with particular interest in home and renters insurance policies. The company’s insurance policies are restricted to homeowners and renters.

Should I get Lemonade Renters Insurance?

Everyone loves to be protected. In the event of a loss or break-in, Lemonade Insurance lets you get insurance coverage over your home. You can get Lemonade Renters Insurance if you’re a homeowner or took up a home on rent.

Lemonade Location and Contact

This section covers the areas covered by Lemonade Renters Insurance. The section also includes distinct policies offered by Lemonade Insurance in the specified locations. Contact information is also included.

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Where is Lemonade Insurance available?

Lemonade Insurance offers home and renters insurance policies in New Mexico, New York, Nevada, Illinois, Rhode Island, California, Wisconsin, Texas, Arizona, New Jersey, Georgia, Iowa, the District of Columbia, Ohio, Maryland and Pennsylvania.

What states is Lemonade Insurance in?

Lemonade Insurance is not available in every state. It is available in choice areas like Ohio, Nevada, Georgia, Rhode Island, New York and California. The services are also available in Maryland, New Jersey and the District of Columbia.

Can I call Lemonade Insurance?

Lemonade Insurance is an online-only insurance company. You can only get across to them through their website and mobile app.

How to contact Lemonade Insurance

Contacts can be established over-the-air. Lemonade Insurance can be reached through the web portal and mobile application. You can use the “Help” button in the website to reach them.

Where does Lemonade sell insurance?

Lemonade sells homeowners, condo and renters insurance in New York, Connecticut, Arizona, Pennsylvania, Georgia, Nevada, Illinois, California, New Jersey, the District of Columbia, Michigan and Maryland.  Renters insurance is available in Oregon, Wisconsin, Iowa, Ohio, New Mexico and Arkansas. Lemonade Insurance sells renters and condo insurance in Rhode Island and Texas.

Lemonade Insurance Services

Lemonade Renters Insurance works best for homeowners and renters. In this section, you will find out the services and policies covered by the company.

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Does Lemonade insure RVS?

Recreational Vehicles (RVS) are the delegation of automobile insurers. Lemonade Insurance is a home and renters insurance company. It does not insure Recreational Vehicles (RVS) or any other automobile.

What makes Lemonade Insurance different?

Lemonade Insurance does not work like traditional insurance companies that lose after paying claims. The company takes out a fixed fee from your monthly payments, pays reinsurance and other unavoidable expenses. The remaining funds are used in paying out claims.

Does Lemonade Insurance cover accidental damage?

Yes. Lemonade Insurance covers accidental damage. The homeowners’ insurance policy covers accidental damages. Take note that Lemonade Insurance will not pay claims for intentional accidental damages caused by you.

Does Lemonade Insurance cover explosions?

No. Lemonade Insurance is yet to list explosions in its policy. The company only has interest in homeowners and renters. On the other hand, if the explosion was caused by a gadget in the home, you might get a refund.

Is my computer covered by Lemonade Insurance?

The Lemonade Renters Insurance policy covers personal electronics like computers, televisions and telephones. However, the policy does not extend to loss or breakage of these items. So be careful with them.

How to add interested party to Lemonade Renters Insurance

An interested party can be added to your existing policy with Lemonade Renters Insurance. You have to make sure the policy is enough for both of you before making the addition.

How is Lemonade Insurance doing?

Lemonade Insurance is making big moves in the insurance industry. The company uses bots and AI to sell insurance to users. It also uses reduced fees to attract more users.

Does Lemonade cover office insurance?

No. Lemonade Insurance only covers the home. Even though it is a property insurance company, it is yet to extend services to office owners. Currently, Lemonade Insurance supports two (2) users – the renter and homeowner.

How soon can you make a claim with Lemonade Insurance?

You can make claims immediately through the mobile app. However, the duration for payout on these claims differ by the item.  For instance, if your claim includes property damage, the company will need extra time to access the incident before paying out.

Will apartments accept Lemonade renters insurance?

Apartments are covered in Lemonade Renters Insurance. The company only covers residential apartments. Work environments like the office are not accepted. Also, the insurance policy covers lost or damaged items in the apartment and not the apartment itself.

Lemonade Insurance Costs

Lemonade Insurance has specific costs users are expected to sign up with. This section contains these costs and other underlying costs that are integrated in Lemonade Renters Insurance.

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How much is Lemonade Insurance?

Lemonade Insurance offers killer prices for its insurance. For instance, it accepts monthly payments of $25/month for homeowners and $5/month for renters insurance.

Is Lemonade Insurance profitable?

Lemonade Insurance is profitable because it pays reinsurance and other unavoidable expenses. The company also pays claims on time. Also, users get quick claim payouts. You don’t need to spend much to get a sign up.

Why is Lemonade Insurance so cheap?

Lemonade Insurance is not cheap. Instead, it offers low costs for its policies in order to get more homeowners and renters covered. With reduced costs, more persons will sign up to the policy.

How much does Lemonade cost for bike insurance?

Lemonade Insurance did not specify the amount for bike insurance. However, possessions like bike insurance are protected in the Lemonade Policy up to the worth of $10,000. Also the best insurance companies for home and auto give you discounts for bundling multiple insurance types, so ask them if they do the same.

Why is Lemonade Insurance less?

Lemonade Insurance costs less because the company aims at covering losses at lesser costs. Also, many users can’t be able to afford high insurance policies. By reducing the costs, Lemonade Insurance can cover more homeowners and renters.

How does Lemonade Insurance make money?

Lemonade Renters Insurance makes money by taking a flat 20% fee from your premium. The remaining funds are used for reinsurance and paying claims. The 20% flat fee stands a “rainy day fee” which the company can use in paying bills in future.

Jordan Beaumont

Jordan Beaumont

Financial Guru

Jordan's work focuses on helping people reach their financial goals so they can spend more time with family and friends and less time worrying about their budget. After finishing college with a degree in Accounting and Communication, he realized that these are the most important things in life and that people shouldn’t miss out because of money.