Author: Holly Johnson
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Key takeaways:
- Unlike other insurance companies that exist to make profit, Lemonade charges a flat fee for coverage and overhead, and they donate leftover premiums to charity through their Lemonade Giveback program.
- Consumers can purchase Lemonade home insurance coverage online or through the company’s app. Once a plan has been purchased, they have to download the Lemonade app to manage their policies.
- In addition to homeowners insurance, Lemonade also offers renter’s insurance coverage, life insurance and pet insurance.
- Lemonade insurance policies are reinsured by an array of top providers including Swiss Re, Munich Re, and Hannover Re.
- Lemonade is only available in 37 states plus Washington D.C.
Lemonade may not be one of the biggest names in the insurance industry, but they do promise coverage that is simple, fast, and transparent. The technology-based provider also boasts 4.9 out of 5 stars in the App Store, which shows that real-life Lemonade customers are actually pretty happy with their plans.
When it comes to Lemonade home insurance, you should note that the company promises a no-hassle shopping experience and great prices that are often lower than the competition. Prices for their coverage start at just $25 per month, and your mortgage company will accept your plan just like they would with traditional homeowners insurance.
When it comes to Lemonade home insurance, you should note that the company promises a no-hassle shopping experience and great prices that are often lower than the competition. Prices for their coverage start at just $25 per month, and your mortgage company will accept your plan just like they would with traditional homeowners insurance.
If you’re in the market for homeowners insurance and taking a closer look at Lemonade home insurance reviews, you’re in the right place. Read on to learn how Lemonade homeowners insurance works, what their plans include and how to find the right plan for your needs and budget.
About the Company
Lemonade Insurance was only founded in 2015, yet the company has grown by leaps and bounds since then, both in their customer base and in their reputation. In fact, Lemonade even earned the top ranking in J.D. Power’s 2020 U.S. Home Insurance Study for their renter’s insurance coverage, beating out major players like Erie Insurance, Allstate, and Nationwide.
While most major insurance companies have an app these days, Lemonade relies more on its technology than other companies in this space. You can buy a Lemonade home insurance policy on the company website or through their app, but you have to have the app if you want a way to manage your policy.
With that being said, Lemonade manages homeowners insurance policies the same way as other companies, meaning they will let you pay your insurance premiums in your mortgage payment and collect them through escrow. This makes the company just as convenient to use for home insurance as other providers, yet you may qualify for lower prices due to the way this company is set up.
As we mentioned already, Lemonade really does have positive user reviews, including 4.9 out of 5 stars in the App StoreLemonade home insurance reviews on Trustpilot are also exemplary with an average star rating of 4.1 out of 5 stars.
In addition to homeowners insurance, Lemonade also offers renter’s insurance coverage, life insurance and pet insurance. Their home insurance in particular is set up to protect you financially if:
- Your home is damaged
- Your home becomes unlivable for a covered reason
- You are a victim of theft in your home
- Someone sues you for liability
- A visitor in your home gets injured
You can also add on additional coverage for items you own, such as fine art, expensive jewelry, bikes, cameras, musical instruments, and more. Other Lemonade add-ons available for homeowners insurance coverage include:
- Swimming pool liability coverage
- Water back-up insurance
- Coverage for a spouse or significant other
- Extended reconstruction cost coverage
Meanwhile, Lemonade does list some items that are explicitly excluded from their home insurance coverage. These include “your power, water, or heat going out in the dead of winter, or a bed bug infestation,” they write. They also do not cover personal property that is mistakenly lost or broken.
Beyond the fact Lemonade prices their policies based on what your claims might actually cost without excessive need for profit, Lemonade home insurance also comes with some standard discounts. For example, you can qualify for a multi-policy discount if you also have a pet insurance policy, or you could save money by paying your premiums upfront instead of on a monthly basis.
How Lemonade Calculates Your Home Insurance Premiums
Like other home insurance providers, Lemonade determines your premiums by looking at the value, condition, and construction quality of your home. They also take a closer look at your insurance history and any previous claims you’ve had.
Factors that can impact the cost of your homeowners insurance policy with Lemonade include:
- Choosing higher (or lower) coverage limits
- Your deductible amount
- How well your home has been maintained
- Your insurance history
- Protective devices you have such as a burglar alarm, deadbolts, smoke detectors, and more
- How many other policies you have with Lemonade
- Whether you pay your insurance premiums monthly or annually
- Your credit score, whether it’s good or bad
Unique Features
There are quite a few factors that help Lemonade home insurance stand out, including the following:
- Easy Quotes: Lemonade makes shopping for home insurance coverage a breeze thanks to their easy online quote process. All you have to do is enter basic personal information and details of the home you want to insure, and you’ll get a free and fast quote for coverage.
- Mobile Chat: You can speak with a Lemonade team member over the phone if you need help with your policy, but you can also access customer service via the mobile chat function through the app.
- Lemonade Giveback: The Lemonade Giveback program lets the company give extra profits to various charities, although funds are donated on a discretionary basis and never guaranteed.
Who Lemonade Is Best For
Lemonade home insurance and renter’s insurance could make sense for almost anyone, but a policy from this company could be especially beneficial for:
- Consumers who are quoted lower premiums for homeowners insurance or renters insurance through Lemonade
- Anyone who is able to bundle multiple policies with the insurance carrier
- People who are comfortable shopping for insurance online and without the benefit of a dedicated agent
At the end of the day, consumers shopping for homeowners insurance need to make sure they have enough coverage to protect their financial interests, as well as coverage for any extra situations that might apply. This is true whether you go with Lemonade or another home insurance carrier. With that in mind, it always makes sense to compare at least a few other homeowners insurance providers in order to see how coverage and pricing stacks up.
Lemonade vs. Other Home Insurance Competitors
Are you currently comparing home insurance quotes? If so, there are several competing firms that offer similar coverage to Lemonade. The chart below shows how Lemonade insurance coverage might compare to other popular providers:
| Lemonade Home Insurance | Hippo Home Insurance | GEICO Home Insurance | |
| Financial ratings | Financial Stability Rating® of A-Exceptional from Demotech Inc. | Partners with companies that are rated A- or better for financial strength from A.M. Best | Rated A++ for financial strength from A.M. Best |
| Discounts offered | Multiple policy discountsSafety feature discountsFull payment discounts | Multiple policy discountsSafety feature discountsFull payment discountsNew home discounts | Multiple policy discountsSafety feature discountsFull payment discountsNew home discountsMembership and employee discountsMilitary and federal employee discountsGood student discounts |
| Customer star rating (Trustpilot) | 4.1 out of 5 stars | 2.9 out of 5 stars | 1.7 out of 5 stars |
What To Know About Home Insurance
When it comes to homeowners insurance, there are quite a few important details to keep in mind. The first of which is knowing about the types of home coverage you can buy and why each component of your policy is so important.
The Insurance Information Institute (III) provides a wealth of information about various types of insurance, including homeowners insurance. They also list the following types of home insurance coverage as the most important:
- Coverage for the structure of your home
- Coverage for your belongings
- Liability protection
- Coverage for additional living expenses
Also note that you can buy more or less coverage depending on your needs, and that some of the specifics in your policy will determine your reimbursement if you have to make a claim. For example:
- Actual Cash Value: A policy that pays Actual Cash Value will replace your home and possessions after making a deduction for depreciation.
- Replacement Cost: Replacement Cost policies pay for the cost of rebuilding or repairing your home and replacing lost, damaged, or stolen items without a deduction for depreciation.
- Guaranteed or Extended Replacement: Policies with Guaranteed or Extended Replacement cost coverage offer the most protection. These policies guarantee full replacement or repair regardless of whether the cost exceeds your policy limits.
Before you invest in homeowners insurance, you should take the time to shop around with at least four or five different providers. From there, compare the monthly or annual premiums you’re being asked to pay, as well as the coverage types and limits you’re being offered. Also check whether your policy provides Actual Cash Value or Replacement Cost coverage.
In addition to comparing the specifics of your premium, you should also compare the deductible you’re being asked to pay — or the amount you have to pay in cash for your policy to being taking responsibility for a claim. Some homeowners policies may initially offer you a deductible as low as $500, but you can tweak your deductible higher in order to secure lower home insurance premiums.
The Bottom Line
Lemonade definitely has positive user reviews, and they say they can save most people up to 25% off their homeowners insurance premiums. However, you should really shop around with a few different home insurance providers before you take their word for it. You may find you’ll have to pay more for coverage with Lemonade than you might with a competitor, but you won’t know unless you check.
In the meantime, you should also consider whether you’re comfortable with shopping for homeowners or renter’s insurance online, or whether you prefer to work with an agent who can get to know you and your family. By and large, that’s the biggest downside of Lemonade. While they do offer customer service online, over the phone and through their mobile app, this insurance provider does not use the agent model like some of the bigger insurance companies do.
Lemonade Frequently Asked Questions (FAQ)
Is Lemonade homeowners insurance legit?
Lemonade insurance is a reputable company that is known for their high quality home insurance, renter’s insurance, and pet insurance coverage.
What is different about Lemonade homeowners insurance?
Lemonade works diligently to price your premiums as close to actual claims as they possibly can. They take a flat fee to pay for company salaries and overhead, and they donate any excess funds to charity through the Lemonade Giveback program.
Which states does Lemonade insurance operate in?
Lemonade is currently available in Alabama, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.
Lemonade does plan to extend their coverage in other states in the future, so make sure to check back if you currently live outside of one of their coverage areas.
How can I save money on homeowners insurance?
You’ll save money on homeowners insurance if you spend some time getting quotes from at least a handful of insurers. Other ways to save include checking for discounts you may be eligible for, and agreeing to a higher deductible on your policy.
You’ll also pay less for homeowners insurance if you lower your coverage limits, although this could also put you at risk for insufficient coverage if you face a major disaster and need to file a claim.
What is Hippo home insurance?
Hippo is another technology-based insurance provider that also promises big savings. Make sure to read our Hippo home insurance review to see how this company stacks up.
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