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.
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.
Lemonade Renters Insurance Reviews
As of August 2022, Lemonade has an average rating of 3.41 out of 5 in BBB and 4.5 out of 5 stars on Trustpilot. Reviews tend to be polarized, with customers either very satisfied or extremely dissatisfied with their lemonade renters insurance. As a result, the vast majority of reviews are 1 or 5 star reviews.
Satisfied Lemonade customers praise the company for handling their claims quickly, insisting the process was easy and efficient. These customers describe friendly, helpful, understanding and knowledgeable customer service agents. They also cite quick response times and fair handling of claims as reasons for their positive reviews.
Negative reviews of Lemonade tend to focus on denied claims and poor customer service. Specific complaints include difficulty reaching the company by phone and long response times when emailing the company.
Below are some examples of customer reviews from BBB and Trustpilot about lemonade. We selected reviews focusing specifically on its renters insurance policies, but Lemonade Home Insurance Reviews are also available.
“One of the easiest/quickest and cheapest companies to get renters insurance from. I have had nothing but a wonderful experience. Upon canceling the policy as I was moving out of my old apartment, I was also refunded the portion of the month that was not used secondary to the early cancellation. They donate the money you didn’t use during the year to the nonprofit of your choice. You have nothing but good things to write about them and will be using them again in the future.” —Antonia Z. via BBB
“Great customer service and unbeatable prices. I have one year of Lemonade Renters insurance. Now that I’m moving I won’t be able to continue with them and I’m heartbroken as I absolutely love their customer service. Everything is easy and communication is informal and fast. You set it all up online and if you ever need anything, they’ll text you right away and do whatever you need before you even ask. The portal is easy to navigate and everything you need is accessible.” —Leandro B. via BBB
“Good for what they are, but don’t expect great customer service. I had a problem with the app and was trying to resolve it with a customer service representative who basically told me [me] maybe i should look for another insurance provider. So should I take my business elsewhere? This was just for what I thought was basic application resolution and didn’t involve claims or other business issues either. So I looked for other insurance and no, I do not recommend this lemonade. You get what you pay for in this case.” -Lou R. via BBB
“Very slow in processing requests. However, once the request is processed, I have been pleased with the results. I just wish it was faster and with more communication.” -Karl Simone via Trustpilot
The Bottom Line: Is Lemonade Renters Insurance Best for You?
Lemonade can be an efficient and affordable choice for renters insurance. You can purchase a policy without speaking to a representative and manage your account through the Lemonade app. Some claims are paid instantly thanks to the company’s AI technology, and its policies cover replacement costs. Customers who prioritize social responsibility will also appreciate the Lemonade Giveback program.
However, Lemonade renters insurance is not yet available in every state. Because this company relies heavily on its mobile app, it is not suitable for customers who prefer to work directly with an agent.
If you are shopping for the best home owners insurance or renters insurance, we always recommend getting insurance quotes from at least three different companies. Get your free lemonade offer on the provider’s website.
Frequently asked questions about lemonade renters insurance
Methodology: Our system for ranking the best rental insurance companies
Through in-depth industry research, we determined the following factors and weights to evaluate each company. We rated each company on a scale of 100 points, then divide the points earned for each provider’s final score on a 5-point scale.
- Total cost: 15/100
- Extras and discount options: 20/100
- Standard coverage: 17.5/100
- State availability: 5/100
- Support availability: 20/100
- Connectivity: 12.5/100
- Authority: 10/100
We used these rating factors to determine the best renters insurance companies to help with your decision when looking at policies. We routinely monitor and update data to ensure reviews reflect the most up-to-date information and advice.