Lemonade Home Insurance Review | 2021
If you're in the market for homeowners insurance, it's important to do your research to find a policy that will protect your home and property after an accident or disaster or in the event of a theft.
To save you some time, we conducted an in-depth review of one of the newest homeowners insurance companies in the industry: Lemonade.
Below, you can explore the provider's coverage options, policy costs, and available discounts.
Lemonade Insurance Pros and Cons
✔ User-friendly mobile app
✔ AI software that offers instant claims processing
✔ Fast and educational sign-up process
✔ Giveback program that donates to charities
✘ Not available in all states
✘ Premiums can be expensive depending on property details
✘ Newer company with less industry experience
About Lemonade Home Insurance
Lemonade is a public company headquartered in New York City and it has been in business since 2015. Though it's a relatively new competitor in the industry, it provides top-of-the-market coverage for renters, homeowners, and pets. It currently holds a B+ rating from the Better Business Bureau (BBB).
We've awarded Lemonade insurance a score of 89.38 out of 100 based on its offerings for key metrics such as cost, benefits and coverage, add-ons, customer service, and technology. The provider scored particularly well in the customer service category and earned high marks for its easy-to-operate app. We also found Lemonade to be one of the cheapest homeowners insurance companies that we looked at during our research.
Lemonade scored lower in some areas due to its inexperience in the industry and lack of state availability. Although the provider sells other insurance products in many different states, it only offers homeowners insurance in the following 23:
Arizona, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, and Wisconsin. It's also available in Washington, D.C.
One of the reasons Lemonade stands out from its competitors is its smartphone app, which is enabled with an artificial intelligence software that helps you file a claim. We also like its quick quote and online sign-up tool that allows customers to bypass a phone call with an agent. It's why we named Lemonade 'Most Accessible' on our list of the best homeowners insurance providers.
Also unique to Lemonade is its charitable business model. The business takes a flat rate from your premium to cover the company's operating costs, saving the rest to pay out claims. Then, through the company's Giveback program, it donates any unclaimed amounts to a charity of your choice. You can read more about this program on Lemonade's website.
Lemonade Homeowners Insurance Coverage
Lemonade covers the following categories in its standard homeowner insurance policies:
- Dwelling: Repair or rebuilding costs associated with the house's structure, such as the foundation, roofing, siding, walls, and floors.
- Other structures: Includes external structures or buildings on your property, like fences, garages, and sheds.
- Personal property: Protects against damage or loss of your personal belongings during a covered event up to the maximum amount stated in your policy. Lemonade also offers additional personal property coverage options as endorsements.
- Personal liability: Costs associated with an injury to a person or persons on your property for which you are legally responsible. Lemonade will pay for medical costs and legal fees up to your selected coverage amount.
- Medical payments to others: Pays for medical costs associated with an injury to a person or persons on your property for which you are not legally responsible. For example, Lemonade will cover a hospital visit up to the agreed coverage amount in the policy for someone who cut their finger chopping vegetables in your kitchen.
- Loss of use: Refers to additional living expenses you may incur after a covered incident. For example, Lemonade will pay for a hotel room if you're displaced from your house during a repair or rebuild.
Lemonade Homeowners Insurance Cost
The pricing of home insurance policies varies greatly depending on multiple factors, such as property details, location, and personal information. We pulled a sample quote on a 1,500-square-foot single-family home in Kempton, Pennsylvania to give you an idea of what the breakdown might look like. To get your own quote, use Lemonade's easy online tool.
Here are the details from our sample quote, including coverage amounts:
- Annual premium: $1,260
- Reconstruction: $250,000
- Personal property: $125,000
- Electronics: $1,500
- Personal liability: $100,000
- Loss of use: $75,000
- Medical payments to others: $1,000
- Deductible: $10,000
Lemonade offers a range of additional coverage options for homeowners that need extra protection and security. However, it's important to remember that these add-ons can greatly increase your premium. Here are the endorsement options that Lemonade provides for your home insurance policy:
- Extra personal property coverage for specific valuables like jewelry, bikes, fine art, cameras, and musical instruments
- Free spousal coverage
- Affordable (unmarried) significant other add-on
- Water backup coverage from drainage and sewage
- Swimming pool liability coverage
- Extended reconstruction costs for your dwelling
Certain factors can potentially lower your insurance premium. Here are some of the discounts offered by Lemonade:
- Fire protection discounts for smoke and fire alarm systems, extinguishers, or water sprinklers
- Gated community discounts for those who live in a secure and protected neighborhood
- Bundling discounts for those who purchase a pet insurance policy
- Theft protection discounts for those with security systems or burglary alarms
- Frame type discount for homes built with masonry
Lemonade Homeowners Insurance Reviews
With a BBB customer review rating of more than 4 out of 5 stars, Lemonade rates higher than most other homeowners insurance providers on the platform.
Here are some examples of what real-life customers had to say about the company:
Is Lemonade Homeowners Insurance Best for You?
We recommend Lemonade if you're looking for a speedy claims process, affordable premiums, and a socially responsible company.
You can get a quick automated quote through the check prices tool on the company's website.
Lemonade Home Insurance vs. Other Home Insurance Providers
Scroll down to see how Lemonade compares to other top home insurance providers (*learn more about our specific methodology below).
- Sample premium: $1,260
- Known for: Its accessibility
- Discounts: Alarm systems, masonry structural frame type, gated communities, and proximity to fire-fighting equipment (e.g. hydrants)
- Endorsements: Significant others (not married), swimming pools, and high-value items, including musical instruments and fine art
- States available: 23 (plus Washington, D.C.)
- BBB rating: B+
- Our score: 89.38
- Sample premium: $1,294.78
- Known for: Its coverage options
- Discounts: Protective systems, roofing age and type, recent home purchase, gated communities, and multi-policy bundling discounts and benefits
- Endorsements: Water backup, identity theft, sinkholes, high-value personal property, and roof replacement
- States available: 50
- BBB rating: A+
- Our score: 93.88
- Sample premium: $1,086
- Known for: Catering to new homeowners
- Discounts: High deductible, alarm systems, claim-free history, impact-resistant roofing and siding materials, and bundling
- Endorsements: Home systems and service line repairs, identity theft protection, and personal injury liability coverage
- States available: 50
- BBB rating: NR
- Our score: 97.26
Methodology for Home Insurance Provider Reviews
We rated 20 home insurance companies based on a combination of unique qualities and their performance in industry-standard categories. Here are the factors and weights we use in our methodology:
- Benefits, discounts, and add-ons: 17.5/100
- Cost: 12.5/100
- State availability: 7.5/100
- Customer service: 15/100
- Technology: 12.5/100
- Overall coverage: 20/100
- Reputation: 15/100
We performed in-depth research by getting sample quotes from each insurer, discussing specific offerings with an agent (if applicable), and pulling information from the companies' websites and policy details.