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Lemonade Renters Insurance Review
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Lemonade is a licensed insurance carrier that offers tech-powered renters insurance. Instead of brokers and bureaucracy, Lemonade uses bots and machine learning to create an insurance experience that is instant, affordable, and paperless. As the only Certified B-Corp insurance company, Lemonade is transforming insurance by giving back unclaimed premium to charities every year rather than profiting when they don’t pay out claims.
How Do We Rate Lemonade?
Breakdown
4.5/5
Coverage Options
5.0/5
Add-Ons & Discounts
4.5/5
Customer Service
5.0/5
Financial Strength
Our Overall Rating: 4.8 / 5 (Excellent)
Using a different business model than traditional insurance providers, Lemonade offers affordable renters insurance with a focus on social impact and technology-based tools. The usability of their app and website for originating quotes and claims is lauded by customers, even if it lacks some of the coverage customization options or discounts that major insurance providers might include. Their affordable premiums and the ability to choose a $0 deductible make Lemonade an attractive alternative for basic renters insurance. Nonetheless, because of the company's young history, information from ratings agencies and customer reviews are scarce.
Lemonade Coverage
Coverage Options - 4.5 / 5
Although not as robust as other, larger insurance providers, Lemonade offers coverage for Personal Property, Loss of Use, Personal Liability (up to $500,000), and Medical Payments to Others. Lemonade's base policies cover 16 different perils, including theft, fire, explosion, and vandalism for personal property and loss of use. Their policy also includes liability coverage. They do not cover damage caused by flooding, vicious dog attacks (high-risk breeds or dogs with a history of attacks), or damage to a roommate's property. Earthquake coverage is optional and can be requested as an add-on. We encourage consumers to review coverage options during the quote process to make sure what their policies will and will not cover.
| Basic Coverage | Personal Property Personal Liability Loss of Use / Additional Living Expenses Medical Payments |
| Optional Coverage | Roommate / Additional Insured Individuals Extra Coverage |
| Property Valuation Methods | Replacement Cost |
Pricing & Discounts
Add-Ons & Discounts - 5 / 5
Lemonade's policy price varies depending on a variety of factors, including the property’s geographic location and condition, as well as the coverage amount selected. However, the company provides premiums for basic renters insurance for as low as $5 per month. Coupled with the Zero Everything option (where you pay an additional $10 in premiums for 0 deductibles), Lemonade offers some of the most affordable renters insurance rates in the industry. Because of this, their discounts are not as varied as other insurers, although they do provide discount options for fire and burglar alarms.
| Annual Premium | Starting at $5 |
| Deductible Options | $0, $250, $500, $1,000 |
| Maximum Liability Coverage | $500,000 |
| Property-Level Discounts | Burglary Protected Fire Protection |
Customer Experience
Customer Service - 4.5 / 5
Lemonade operates with a customer-first mindset. As part of their focus on technology, all quotes and claims are done exclusively through the Lemonade app and website. Lemonade boasts that it takes as little as 90 seconds to receive a quote and 3 minutes to establish a claim. Positive reviews online praise the simplicity of these electronic processes, while negative reviews stem from the difficulty of contacting live agents over the phone. According to their latest Transparency Chronicle, they operate with the primary objective of surprising customers with great service, simplicity, and transparency. Lemonade received an NPS score of 70, which measures how likely customers are to recommend a service to others. According to Lemonade, 97% of customers renew their insurance policies with for another year. Although their BBB rating of F seems unfavorable, it should be noted that the company has only been active for about 2 years.
Financial Strength Ratings
Financial Strength - 5 / 5
Since Lemonade is still a new player in the insurance industry, they are not yet included in rating's sites like Moody's, S&P, or A.M. Best. However, the company has a Financial Stability Rating of A (Exceptional) from Demotech, Inc., and their Annual Statement for 2017 is available to peruse in the Lemonade website. They’re also reinsured by some of the biggest names on the planet, including Lloyd’s of London and XL Catlin.
| Underwriter | Lloyds of London |
| Company Type | Underwriter |
*The above information reflects the financial strength of the underwriter of the Lemonade renters insurance policies: Lloyds of London.
Contact & Additional Information
| Homepage URL | |
| Headquarters Address | 5 Crosby St. 3rd Floor, New York, NY, 10013 |
| Year Founded | 2015 |
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