Lemonade Renters Insurance Review for 2022

In this article: Pros and cons | At a glance | Policy coverage | The cost | discount | Customer reviews | Conclusion | Frequently asked questions | METHODOLOGY

Lemonade Insurance Company is a public benefit corporation that collects a flat fee as profit and donates the remainder to charity through its Giveback program. Like most the best renters insurance companies, Lemonade also offers other policies, including homeowners insurance, car insurance, pet health insurance and term life insurance. Lemonade’s user-friendly app — one of its standout features — incorporates artificial intelligence (AI) to activate policies and approve multiple insurance claims within seconds.

We at the Home Media reviews team reviewed Lemonade renters insurance based on its coverage, pricing, pros and cons, customer satisfaction and more.

The pros and cons of lemonade renters insurance

Consider these pros and cons of choosing lemonade renters insurance:

!+ The donation program donates unused premiums to charity

!+ AI technology simplifies the claims process and enables fast payments

!+ Policies cover the cost of replacing stolen, damaged or destroyed items

– Claims can only be submitted through the Lemonade app

– Renters insurance is not available in every state

Lemonade renters insurance at a glance

Our assessment: 4.62 out of 5

Year of establishment: 2015

JD Power Rating: 870/1000

AM Best Rating: N/A

State availability: 28 countries and Washington, DC

Lemonade renters insurance policy coverage

Lemonade’s standard renters insurance policy offers four basic types of coverage:

• Personal property: This coverage helps renters replace items lost, damaged or destroyed due to one of the perils mentioned covered by the insurance policy. Perils cited include theft and vandalism, as well as damage from water, fire, smoke, wind, lightning, falling objects, freezing, short circuit, vehicle collisions, falling objects and explosions.
• Loss of use: This coverage applies if a named peril makes the tenant’s home uninhabitable. It covers living expenses related to a temporary relocation, such as hotel accommodation, food and laundry services.
• Personal responsibility: This covers bodily injury or property damage that occurs in your home or elsewhere because of your actions. If the injured party files a lawsuit, Lemonade will hire an attorney to defend you and cover legal fees.
• Medical payments: This coverage is closely related to personal liability coverage. It helps pay medical bills, usually up to $5,000, related to accidents that happen in your home.

Additional coverage

Beyond its standard coverage, Lemonade offers renters the following policy add-ons:

• Scheduled personal property: This coverage provides additional protection for jewelry, fine art, bicycles, cameras, musical instruments, and other valuables. Lemonade’s version is called Extra Coverage and includes no-deductible claims and accidental damage and mystery loss coverage.
• Device coverage: This coverage for electronics and tenant-owned equipment provides protection against damage caused by non-covered perils, such as a mechanical breakdown or electrical failure. Lemonade refers to this policy add-on as Equipment Breakdown Coverage.
• Earthquake insurance: This coverage applies to damage caused directly by an earthquake and is only available to renters in California and Arkansas. Lemonade’s standard renters insurance covers damage caused by any theft, fire or explosion that follows an earthquake – but not damage from the earthquake itself.

The cost of lemonade renters insurance

Lemonade renters insurance can cost as little as $5 per month, which compares favorably to the national average of $174 per year in 2019 as reported by the Insurance Information Institute in its 2021 report.

Your premium may be lower or higher than average based on the following factors:

• Location: Renters insurance will cost more in areas with high crime rates or natural hazards. These factors make renters more likely to experience a covered loss and file claims. Insurance providers weigh this risk and pay more to cover the cost of potential damages.
• Age of the house: Older homes are more likely to be damaged by bad weather and other aforementioned hazards, which means a greater chance of damage to the tenant’s belongings. As a result, renters insurance can cost more for older homes.
• Size and features of the house: The size of your home, its construction, and certain features can affect your renters insurance premium. The more you have to insure, the higher the cost will be. A security system, smoke detector and other features that reduce the risk of theft or damage can help lower your insurance rates.
• Policy Adaptation: Renters can choose to upgrade their policies with higher coverage limits or lower deductibles, resulting in higher premiums. Likewise, add-ons such as Additional Coverage and Breakdown Coverage will increase premiums. Conversely, lower coverage limits and a higher deductible will lower your premium.
• Personal information: Lemonade will consider your credit score and claims history. You can expect higher rates if you filed a claim within the last five years. Likewise, a poor credit score usually results in a higher rate.

Lemonade Renters Insurance Discount

Lemonade offers several discounts to help policyholders save money. Tenants can benefit from the following:

• Annual payment discount: Renters in some states earn discounts by paying their premiums annually instead of setting up monthly payment plans.
• Package discount: Lemonade offers a discount for bundling your renters insurance with one or more of its other products, such as pet insurance or auto insurance.
• Discount on protective equipment: Devices that improve the safety and security of your home, including smoke alarms, deadbolts and burglar alarms, result in a discount.