Lemonade Renters Insurance Review: Pros & Cons, Pricing, and Features

Studenomics Score:  4.75 Out of 5 Stars

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If you've heard about Lemonade Renters Insurance, you've probably found it hard to find an unbiased review you can trust or to get a free ballpark quote on pricing.

(Of course, that's because most sites just want your personal info!)

Lemonade Renters Insurance Review

Lemonade Renters Insurance Review

Don't worry... You're in the perfect place!

We have reviewed just about every renters insurance company and our only wish is to bring you an honest Lemonade Renters Insurance Review.  We'll tell you the pros and cons of using Lemonade and provide you with sample quotes, no personal info required!

Highlights:

Overview:

Strong company founded in 2015 with solid pricing.  Easy to apply online. Very low rates.

Known for:

  • Easy-to-use mobile app.
  • Simple claims process with minimal hassle.
  • Leftover money is donated to charity.

Financial Rating:

Rated A+ for financial strength by A.M. Best

Who is Lemonade Insurance?

Lemonade Insurance came on the scene in 2015 and changed the renters insurance game by making everything simple. 

Lemonade is the most unique insurance company because they offer low rates, have transparent policies, and make filing a claim painless.

 Keep on reading to find out more. 

LEMONADE CONTACT INFO

Website:  www.lemonade.com

Phone:  (844) 733-8666

Address:  5 Crosby St. 3rd floor, New York, NY 10013

How Does Lemonade Renters Insurance Work?

Lemonade isn’t your typical renters insurance company. This is a unique peer-to-peer renters insurance.

According to the official website:

“Lemonade reverses the traditional insurance model. We treat the premiums you pay as if it's your money, not ours. With Lemonade, everything becomes simple and transparent. We take a flat fee, pay claims super fast, and give back what’s left to causes you care about.”

Lemonade takes 20% off your premium to cover operating costs (salaries, replacing technology, and overall operations) and the rest of the money goes towards insuring customers. If there’s any money left at the end of the month, they donate it to a charity that your group decides on.

Lemonade also doesn’t see any extra money if there aren’t many claims in a period. This means that they won’t hassle you about every claim since they don’t profit from denying claims like other renters insurance companies do.


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Is Lemonade Renters Insurance Legit?

Lemonade renters insurance is as legit as it comes. This new concept of peer-to-peer insurance may seem almost unrealistic in how positive it is, but it’s definitely legit.

The CEO and Co-Founder of Lemonade, Daniel Schreiber, made some interesting comments in a Forbes article that really showed what this insurance company is about:

“It’s precisely that outsider, tech-focused perspective that we brought to the insurance industry. Lemonade set out to make insurance loveable, but also to transform it from a necessary evil into a social good. We built an unconflicted business model powered by AI and behavioral economics, and invented the Lemonade Giveback, where leftover premiums are donated to charities our customers choose.”

This tells you everything that you need to know if you were wondering about how Lemonade renters insurance works exactly.

Is Lemonade Good Renters Insurance?

At Studenomics, we don't arbitrarily say whether a companyis "good" or "bad."  We use a rating system where we analyze four components of the company's offerings and then give an average grade or score.  Here is the breakdown for Lemonade.

Editor Review

Our editor's scores for Lemonade for pricing, customer service, policy options, and financial stability:


Studenomics Score: 4.75 Out of 5 Stars

PRICING SCORE:  5 Out of 5

How Much Does Lemonade Renters Insurance Cost?

How much does Lemonade renters insurance cost? 

After browsing around, it appears that Lemonade has the best rates out there. It’s difficult to give a one-size-fits-all answer here because your renters insurance premiums will depend on where you live, your history, what kind of coverage you’re looking for, and your claims history.

Rates start at $5/month for the most basic package and go up depending on where you live and how much coverage you need. 


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Renters Insurance Starting at $5/month

No brokers, no paperwork, get a policy in seconds.  Zero Hassle, zero paperwork, zero worry. Join now!  Starting at $5/month.

It's free to apply!


How Much Is Lemonade Renters Insurance?

The price will vary depending on where you live. Lemonade prides itself on offering low rates so that you don’t break the bank with renters insurance. 

Lemonade Renters Insurance Quotes

The best part of Lemonade is that you can find renters insurance quotes easily. You simply type in your address along with other information about your living situation and they’ll find you a quote based on your situation.

Here are two quick examples of renters insurance Lemonade quotes:

  1. $12.50 in NYC.
  2. $25.92 in Dallas, Texas. 

You can play around with the coverage amounts and deductible to see how the price fluctuates. Your premium will change depending on how much coverage you need.

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Pro Renters Insurance Tip


Renters insurance doesn't just cover the replacement of your belongings, but also protects you if someone gets hurt on your property.  Limits usually start at $100,000.

Is Lemonade Worth The Cost?

Yes, Lemonade renters insurance is worth the cost. You get plenty of coverage and you don’t have to worry about breaking the bank with this insurance policy. You can sign up within minutes, file a claim easily, and rest knowing that you’re protected with your renters insurance policy.

Studenomics Pricing Score:  5 out of 5


CUSTOMER SERVICE SCORE:   5 Out of 5

How is Lemonade's Reputation for Service?

We looked through Reddit and many trusted websites to see what regular people were saying about Lemonade.

BBB Rating:  B+

Number of Ratings:  216

Glassdoor Rating:  94% would recomend to a friend

Number of Ratings:  90

Reddit Sentiment:  Good/Bad/Neutral

Number of Comments:  Approx. 50+ from 6 threads

Overview of the general sentiment, positive or negative.  What are most people talking about.

Notable Quote Favoring Lemonade:

“I pay $6 a month for Lemonade. About a week after getting the policy, I was mugged outside of my office and my phone was stolen. Once I sent Lemonade a copy of the police report they reimbursed me. Even though they said my rates might go up they never did. I had a great experience and still use them.”

One Reddit user was surprised by their claim being auto-flagged:

"OHIO- A few days ago, my purse and its contents were stolen at a restaurant. The purse was expensive, so I filed a renter's insurance claim with Lemonade and it was auto flagged to the Special Investigations Unit. I provided a police report and the receipts of everything I claimed, but it was auto flagged by their AI system.

I've been with them for about a year and I've never filed a claim before. My credit is good. The only reason I can think of is that I recently changed my policy to add my boyfriend. Can anyone tell me what I can expect and what I should prepare?"

Wrap up the general sentiment, positive or negative.  Remind people that usually people only go to these review sites to complain and even some of the best companies in the world have negative reviews.

How Do You File a Lemonade Renters Insurance Claim?

Here's the big question.  How do you file a claim?  Do they make it nearly impossible?  Here's where Lemonade shines...The process is very simple.

Here’s how you can file a claim on your policy from your phone:

  • Click on the “claim” button.
  • Explain what happened.
  • AI goes over your claim. You may be asked a few questions. For example, if your phone was stolen you’ll be asked for the police report.
  • If your claim is instantly approved then AI will pay you instantly. If more review is needed then a human on the team will respond to your claim.

That’s really all that you have to do to file a claim on your Lemonade policy. 52% of claims come from vandalism or theft. 30% of claims are handled instantly. Lemonade also touts a 3 second world record claim handling.

Why’s filing a claim so simply with Lemonade? According to the official website:

“Unlike any other insurance company, we take a flat fee from your premium, use the rest to pay claims, and give back what’s left to causes you care about. We gain nothing by delaying or denying claims, so we handle them quickly and fairly.”


Studenomics Customer Service Score:   5 out of 5


POLICY OPTIONS SCORE:  5 Out of 5

What Does Lemonade Renters Insurance Cover?

What does Lemonade renters insurance cover?

  • Personal property coverage. Lemonade will cover your personal items in the event that any theft or damage occurs. Your personal property will also be covered outside of your home. If your cell phone gets stolen at the coffee shop, you could have it replaced. 

  • Loss of use coverage. If water damage from a burst pipe or fire damage from a cooking fire (to name a few simple scenarios) were to make your place unlivable, your stay in a hotel along with the related expenses would be covered.

  • Personal liability. This may be the most important form of protection. Lemonade renters insurance will cover you for any medical or legal bills to you or a guest at your place. 

If you’re still not sure about what Lemonade covers with its renters insurance policy, you can use the easy tool to customize your policy.

The form on the Lemonade website also makes it easy to see what’s covered. This image below is an example of how clear the Lemonade renters insurance policy is.

Lemonade Renters Insurance Review

You’ll also see in the image below that you can easily change your coverage amounts. If you feel that you need additional coverage for your personal property, you can easily do so.

Lemonade Renters Insurance Review

The good news is that as your situation changes, you can change your policy. According to the Lemonade website:

“However, Lemonade’s Live Policy allows customers to update their own coverage, whenever and wherever, on the Lemonade app. You can update your policy to reflect your needs in seconds, with no brokers or paperwork involved.”


What isn't covered by Lemonade Renters Insurance?

What isn’t covered by your policy with Lemonade? 

We looked through the renters insurance policy to see what would be covered and what wouldn’t be covered. Here’s what may not be covered at all or may cost you extra:

  • A place to stay if you have issues with bed bugs.

  • Natural disasters (earthquakes and floods) aren’t covered. You may need additional coverage or a seperate policy altogether. 

  • Expensive items. You will need extra coverage for your fine art, jewelry, and items that are over the limit.

  • Any issues with your power, water, or heating.

  • High risk dog attacks.

These sound like extreme scenarios, but it’s good to know what kind of protection you have and don’t have with your renters insurance policy. 

The screenshot from the Lemonade renters insurance policy sign up page below shows you how simply it is to add extra coverage.

Lemonade Renters Insurance

We always suggest that you take a few minutes to double check your policy to ensure that everything you need in a renters insurance policy is included before you enroll.

Can I add a roomate?

You can add your roommate to your Lemonade renters insurance policy. Your spouse is included for free. If you’re living with a partner or a roommate you can add them an extra cost. 

It’s important that you add your roommate if you want to have everything in the home protected. If you don’t add your roommate to your renters insurance policy, they’ll need their own policy.

Highlights

Lemonade Renters Insurance

Lemonade

State Farm Insurance

State Farm

Progressive Renters Insurance

Progressive

Cost

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Starting at $5/mth

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Starting at $10/mth

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Starting at $13/mth

Personal Property Coverage

(Starts At:)

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$10,000

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$20,000

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$20,000

A.M. Best Rating

(Financial Strength)

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N/A

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A+

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A+

BBB Rating

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B+

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A

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A

Claims Process

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Excellent

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Excellent

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Best for:

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Quick Online Purchasing

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Customer Service

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Lowest Cost

Studenomics Rating

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4.6 Stars

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4.6 Stars

Read Full Review

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4.6 Stars

Read Full Review

Lemonade has some of the lowest rates in the industry. It's an affordable option for renter's insurance and you can sign up for a policy in minutes. You also won't have to stress about filing a claim since it can be done over the mobile app in a few minutes.

Studenomics Policy Options Score:  5 out of 5


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Renters Insurance Starting at $5/month

No brokers, no paperwork, get a policy in seconds.  Zero Hassle, zero paperwork, zero worry. Join now!  Starting at $5/month.

It's free to apply!


FINANCIAL STRENGTH SCORE:  4 Out of 5

What is Lemonade's Financial Rating?

When it comes time to make a claim, here's where you need your insurance company to step up.

They need to have the money to pay out a claim.  The best way to determine if a company is financially stable and able to meet its ongoing claims obligations is by checking their financial rating and comparing it to other insurance companies.

The only setback with Lemonade is that it's a new company that hasn't been rated by A.M Best yet. 

Studenomics Financial Strength Score:  4 out of 5

"The process was very smooth and they deposited the money in my account in less than 3 days."

Ayman A. - BBB Review


Pros and Cons of Lemonade Renters Insurance?

As with any renters insurance policy there are going to be pros and cons since no renters insurance policy is perfect.  Here's the quick list.

Pros:

  • Low rates 
  • Simple claims process
  • Free family coverage
  • Transparent policies
  • Leftover money gets donated to charity

Cons:

  • Not available everywhere 
  • No insurance bundle options

In this section, we'll have room to describe the pros in a bit more detail.  

What are the pros of Lemonade renter’s insurance?

  • You can customize your renters insurance policy for your unique situation. 
  • You can enroll for renters insurance within minutes. You don’t have to spend days of your life on the phone trying to wait to get a hold of an agent. 
  • Everything is easy to use. You can even file a claim in seconds without getting stuck on the phone for hours.

What are the cons of renters insurance Lemonade?

  • You can’t get an insurance bundle since Lemonade doesn’t offer auto insurance.
  • Lemonade isn’t available in every state so you may not be eligible for Lemonade renters insurance. 

The simplest definition that I could find when it comes to what exactly is renters insurance was located on Investopedia:

“Renters insurance is property insurance that provides coverage for a policyholder's belongings, liabilities and possibly living expenses in case of a loss event. Renter's insurance is available to persons renting or subletting a single family home, apartment, duplex, condo, studio, loft or townhome. The policy protects against losses to the tenant's personal property within the rented property. In addition, a renter's insurance policy protects against losses resulting from liability claims, such as injuries occurring on the premises that are not due to a structural problem with the property (in this case, the owner's – not renter's – policy would apply).”

Does Lemonade Offer Insurance In My State?

Does Lemonade offer insurance in my state? As of 06/22/2020, here are the states where Lemonade insurance is offered:

Arizona, Arkansas, California, Colorado, Connecticut, District Of Columbia, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington, Wisconsin

Lemonade insurance is coming to the following states soon:

Alabama, Alaska, Delaware, Florida, Hawaii, Idaho, Kansas, Kentucky, Louisiana, Maine, Minnesota, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, South Carolina, South Dakota, Utah, Vermont, West Virginia.

You can also check the best renters insurance rates by state using the map below.

How to Cancel?

Do you want to cancel your Lemonade renters insurance? All you have to do is cancel on the app and you’ll be reimbursed for the remaining coverage that you don’t use.

You’re not held to some long-term contract that you can’t get out of. We realize how important this is because you may have to cancel your renters insurance for a variety of reasons (financial, moving out of state, or other personal reasons).

Take Action

Lemonade is a fairly new option when it comes to renters insurance but many readers are raving about them due to how easy it is to sign up and manage your policy.

We know that you have enough to worry about. If you want to save money and time, click here to get an insurance quote from Lemonade in minutes.

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