Lemonade Insurance Reviews - Ideal For Homeowners and Renters?

By Derek Lakin
HighYa Staff Updated on: May 3, 2019

Lemonade Insurance uses a combination of technology, transparency, and simplicity to provide their homeowners and renters policyholders a fast, affordable, and hassle-free experience.

They take a flat fee for their services, pay claims quickly, and treat “the premiums you pay as if it’s your money,” so the website advertises they’re transforming and reversing “the very business model of insurance.”

As a certified B-Corp and a Public Benefit Corporation, Lemonade also maintains social impact at the core of their business model and gave more than $160K to charities in 2018.

There are a lot of fully licensed insurance carriers in the marketplace that can help you protect the stuff you love. And like Lemonade, many also advertise hassle-free service and claims, instant policies, competitive premiums, and social or charitable aspects.

Is there anything about a Lemonade renters or homeowners policy, though, that might deliver better value for your money? Who could they work best for, who might want to stay away?

Combining our research and experience with insight from third-party professionals, we’ll help answer all of your core questions. Let’s start by taking a closer look at Lemonade’s process.

How Does Lemonade Insurance Work?

Lemonade offers renters, condo, co-op, and homeowners insurance policies in 21 states, with an additional 25—and parts of Europe—“coming soon,” according to their website. They offer landlord policies in some of these states as well.

The company is fully reinsured, holds an A-Exceptional Financial Stability Rating from Demotech Inc., and takes a flat fee for each policy they issue. Together, they say this means there’s no incentive to bloat your premium or sell you additional coverage.

As a certified B-Corp, they donate up to 40% of their unclaimed money per year to non-profit organizations.

There’s another meaningful difference when it comes to Lemonade insurance—after asking just a few questions, their Maya artificial intelligence chatbot helps you set up your policy, including choosing limits, increasing coverage for certain classes of personal property, and even filing and settling claims.

In fact, Lemonade advertises this technology allows them to pay 25% of claims in just three seconds.

Lemonade Insurance ScreenshotsLemonade’s Maya AI chatbot asks you a few simple questions, provides a rate, and allows you to make a payment and bind coverage immediately. Credit: Lemonade Inc.

Then, after choosing your deductible and reading through a coverage summary written in everyday language, you can click the “Activate Your Insurance” button to make a payment and start your policy.

If you’re already insured, Lemonade will notify your current provider and/or lender to advise of the change, as well as handle your escrow payments.

Following issuance, you can adjust coverage via the app or website, or cancel your policy.

Lemonade Insurance Mobile App ScreenshotsThe Lemonade Insurance iOS and Android apps work exactly like the website, just on a smaller screen. Credit: Lemonade Inc.

What are Lemonade Policyholders Saying in Their Reviews?

Here on HighYa, more than 190 readers have given Lemonade Insurance an average rating of 4.5 stars. Most policyholders seem pleased with the company’s claims process and excellent customer support.

On the other hand, relatively few complaints often referenced frustrating claim handling, denied coverage, and technical issues.

Between iTunes and Google Play, the Lemonade app has more than 15,900 user reviews and a combined average rating of about 4.8 stars.

Many reported that the app is user-friendly and makes filing a claim a breeze, while some experienced problems using the app, or didn’t appreciate that coverage wasn’t available in their area. The company responded to each complaint directly.

How Much Does Lemonade Insurance Cost?

Lemonade advertises that their renters insurance policies start at $5 per month, while their homeowners begin at $25/mo. We received a $12 monthly rate for our dummy quote in NYC ($40K personal property, $100K liability, $12K loss of use, $1K med pay, $250 deductible).

The website explains you might pay more or less, since “premiums are calculated individually” and are “based on a number of different factors including your credit history, recent claims, and information about your property including its age, size, and construction quality.”

Related: How Does Your Credit Score Affect Your Car Insurance Rate? Answers from a Study

As soon as you make your payment using a debit or credit card, Lemonade will instantly email you your final policy.

If you cancel, you’ll receive a pro-rated refund for the remaining period for which you’ve paid.

What You Should Know Before Buying Homeowners and Renters Insurance Online

I spent more than a decade in the personal lines insurance industry, much of this time as a high-value property underwriter.

From this experience, I learned that most home and renters policyholders have little-to-no idea what the coverages on their policy provide, as well as whether or not their current levels are sufficient.

As a result, my biggest recommendations before signing on the dotted line are related to making sure you have enough coverage.

Start by taking stock of your personal property and adding up its total value. The Lemonade blog has an excellent article that outlines how to do this.

If you own a home, make sure that you have enough dwelling coverage to rebuild if it’s a total loss, which you can do using an online replacement cost calculator.

Pro tip: Your home’s market value and its replacement cost can be very different, so don’t think they’ll necessarily match.

And whether you own or rent, I’d recommend against skimping on liability coverage, which comes with very little cost difference between minimum ($100K) and maximum ($500K+) limits. But, this could make a big difference if the unthinkable happens.

One of the biggest upsides of shopping online is that you can receive multiple quotes in a short amount of time, which gives you an important advantage, according to Sa El, Co-Founder of Simply Insurance.

“You should apply to more than one company,” he says, “because every company has its own underwriting guidelines and could come back with a different price than they quoted you. This also allows you to choose the policy with the best price and coverage.”

Lemonade Insurance vs. Competing Online Insurance Carriers

These days, just about every personal lines company has a website (and very likely an app) where you can obtain quotes, make changes, access policy documents, pay your premium, file claims, and so forth.

However, there aren’t any that use technology in quite the same way as Lemonade, although here’s how some of their top competitors compare:

Company Notes
Lemonade Insurance Issues their own renters and homeowners policies in 21 states. AI chatbot Maya can provide quotes, bind coverage, and even file claims. Live humans available if you need. Company gives unused profits back to charity each year.
Kin Insurance Offers flood, homeowners, hurricane, umbrella, landlord, and mobile home insurance through third-party partners. Available in AL, GA, FL, TX. Must consent to entering personal details, having a soft pull performed on your credit, and being contacted.
Jetty Renters insurance only (policies issued through State National Insurance Company). Offers reduced deposits and co-signing services. Partners w/third-party companies for product and service discounts.
Gabi Also uses an AI chatbot, but is a broker (works for you) vs. a carrier or an agent (works for the insurance company). Reviews your coverage and recommends third-party partners based on what it learns. Offers auto, home, renters, umbrella, and life insurance policies.
Trov Extended personal property coverage for items typically not covered fully under homeowners or renters. Coverage extends anywhere in the world.

The bottom line is that when it comes to purchasing personal lines insurance, there isn’t a single “perfect” combination of factors that will meet everyone’s needs.

With this said, if you’re looking to obtain competitively-priced homeowners or renters insurance in a completely AI online environment, and from a company that issues their own policies, Lemonade is currently the only game in town.

Still, Sa El of Simply Insurance points out that when you purchase insurance online, it’s up to you to “self-educate how your coverage works,” since there’s no agent involved.

Along these same lines, agent Jenny Saint Preux from HSN Insurance Services recommends watching “YouTube videos on different coverage options that the company offers, so that you may understand them more clearly.”

“You still won’t capture the underwriting, automatic coverage changes, and coverage application piece,” she admits. “However, you’ll be much more informed.”

On the other hand, if this doesn’t appeal to you, you’re not internet savvy, have lots of questions, or are otherwise uncomfortable with the process, “reaching out to an agent instead of purchasing online might work best for you,” El says.

Should You Start a Lemonade Insurance Policy?

Shai Wininger and Daniel Schreiber founded New York-based Lemonade to fix a broken industry, while also emphasizing that insurance can work as a social good.

And with their overwhelmingly positive online policyholder feedback, unique and easy-to-use AI chatbot, ultra-low prices, and mission to make a positive social impact, it seems like they’re well on their way. As such, they look like a no-brainer if you're in the market for a renters or homeowners policy and live in one of the 21 states where they provide coverage.

Are you considering switching your homeowners or renters policy over to Lemonade? If so, just remember they don’t offer auto coverage—and that one of the most significant discounts provided by most insurance carriers is for having both home and auto with them.

As a result, you might notice a steep increase in your current auto premium.

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Read 194 Lemonade Insurance Customer Reviews and Complaints

Write a Review
Average Consumer Rating: 4.5
Rating Snapshot:
5 star: 162 4 star: 11 3 star: 3 2 star: 0 1 star:  18
Bottom Line: 90% would recommend it to a friend
Showing 1-11 of 194
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  • Editor’s Note: It is our understanding that this company has been asking its customers to leave feedback on HighYa. We assure you that each of these reviews has still been subjected to the same verification & vetting process that all submitted reviews go through. Learn More Here
  • Worst insurance service

    • Maryland,
    • Mar 31, 2019
    • Verified Reviewer

    Since they drop us two months ago and promised they’ll send my refund check within two to three weeks, I can’t get hold to anyone, and they don’t even know when they're gonna mail the check. They are holding my money so I can’t get other insurance and do not even contact us about what’s is going on. Since they don’t have an office or live customer service, it’s like playing ping pong and no resolution. I remembered when I was looking for insurance and they were so glad to have me and took the money right away but when refunding, it takes longer. That's my money, and this time of year everything is tight. All I need is my refund so I will be able to get new insurance.

    Bottom Line: No, I would not recommend this to a friend

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  • 3 out 3 people found this review helpful

    Replaced my bike, same day!

    • Los Angeles, CA,
    • Jan 4, 2019
    • Verified Reviewer

    I recently fell into financial hardship and decided to pick up Postmates as a second income. I don't have a car anymore, but in Los Angeles, we can deliver on bikes. So I used my bike that I saved up to get for years. Although I was hesitant, I still decided to use it out of necessity. On my third day doing Postmates, my bike was stolen within minutes from a pole that thieves unknowingly, to common people, are able to detach the top and take off very quickly. I knew I had Lemonade, but I was EXTREMELY stressed on how long it would take as I needed it replaced immediately. Lemonade approved my claim and I luckily found a bike shop nearby that had a comparable bike. I was shocked and awed that they deposited the money within minutes and I was right back to getting deliveries the same day. How grateful and glad I signed up with Lemonade is insurmountable.

    Bottom Line: Yes, I would recommend this to a friend

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  • 1 out 1 people found this review helpful

    Lemonade is awesome

    • Corona, CA,
    • Dec 22, 2018
    • Verified Reviewer

    Lemonade is pretty awesome - they were fast with the response and getting my claim taken care of. They were also really easy to work with, and it was really nice not having to speak to speak someone on the phone. Overall I had a great experience with Lemonade.

    Bottom Line: Yes, I would recommend this to a friend

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  • 1 out 1 people found this review helpful

    Claim

    • North Richland Hills, TX,
    • Dec 22, 2018
    • Verified Reviewer

    Jen was phenomenal! Everyone I dealt with from filing to completion was great! Quick and always with positive vibes in a difficult time.

    Thank you, Jen, for your kindness and patience and understanding!

    Bottom Line: Yes, I would recommend this to a friend

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  • 3 out 3 people found this review helpful

    Woolsey fires

    • Calabasas, CA,
    • Dec 21, 2018
    • Verified Reviewer

    This was my first time ever having to deal with an insurance company. I heard horror stories from everyone over the years about other insurance companies, however, during this horrible time, Reese from Lemonade made everything so simple and helped every step of the way. I am so thankful I chose Lemonade as my insurance here. We are finally trying to get our life back in order thanks to him!

    Bottom Line: Yes, I would recommend this to a friend

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  • 2 out 2 people found this review helpful

    When life gives you lemons...

    • Tarzana, CA,
    • Dec 20, 2018
    • Verified Reviewer

    My backpack was stolen and I lost a lot. Luckily I had Lemonade, which gave me enough to replace the items in a matter of days. Cheap, quick, and painless security at your fingertips. I would definitely recommend them to anyone with things. Period.

    Bottom Line: Yes, I would recommend this to a friend

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  • 1 out 1 people found this review helpful

    Quick and easy process

    • Holland, OH,
    • Dec 18, 2018
    • Verified Reviewer

    When things go wrong in life, usually it's a pain to try to recover from it. So, when I had something go wrong today, I remembered I had switched from a traditional insurance company and had Lemonade. The process was quick and simple to file a claim on my issue. I was even paid shortly after approval so I could get on with my day and replace what I had lost.

    Bottom Line: Yes, I would recommend this to a friend

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  • 4 out 4 people found this review helpful

    Disappointed

    • Las Vegas, NV,
    • Dec 17, 2018
    • Verified Reviewer

    We are the downstairs unit, our upstairs neighbors had a water leak in their bathroom and over time it was leaking, we were packing for a vacation and I noticed in the wardrobe the carpet was wet. Upon investigating I noticed the clothes hanging up were also saturated, and upon pulling them out, they were also moldy. Walls were also saturated. I filed claim and it was declined by Lawrence, followed up with him and he just quoted rules and regulations.

    Eventually, he said that they might cover the hotel stay during construction. A month later when construction was due to start, I forwarded Lawrence the builder's quote with construction dates but never heard back from him. I needed to speak with a supervisor to get someone to action the hotel stay.

    Out of the blue, I get an email from Lawrence saying congratulations your claim has been approved and we should be getting our claim paid into our account in a few days.

    This turned out to be wrong, and we are not getting anything, the payment was intended to cover our hotel stay. This was deceiving, and we are still left with several thousand dollars of damages due to this water damage.

    Bottom Line: No, I would not recommend this to a friend

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  • 3 out 3 people found this review helpful

    Friends-giving fiasco

    • California,
    • Dec 9, 2018
    • Verified Reviewer

    Friends-giving sounds so fun, right? Well, not so much when you almost set your house on fire. I got ambitions, got a huge turkey and didn't take basic oven size into consideration...Long story short, fat started to melt off of turkey, spilled down and boom...huge kitchen fire!

    Nicole and the Lemonade team were so helpful and resolved our claim very quickly. My property manager, who happens to be a Coldwell VP, was also impressed (even though he laughed when I told him company name...catchy) and pretty sure will recommend the company should the need arise. He was actually truly surprised how quickly we got our new appliance!

    Thank you guys, truly appreciated!

    Bottom Line: Yes, I would recommend this to a friend

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  • 1 out 1 people found this review helpful

    Best insurance experience ever

    • Chicago, IL,
    • Dec 9, 2018
    • Verified Reviewer

    Gus was extremely helpful and responsive. The claim was approved two days after I sent in everything for review and I am just awaiting payment to hit my account. The process was painless - both signing up and eventually needing to make a claim. Thank you!

    Bottom Line: Yes, I would recommend this to a friend

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  • 2 out 2 people found this review helpful

    Paid my claim quickly

    • Thousand Oaks, CA,
    • Dec 8, 2018
    • Verified Reviewer

    At first, I was a little panicked because it took a little longer than they said it would. And then I read a couple of bad reviews about Lemonade on Yelp. However, they did pay my claim quickly and without giving me a hard time. I guess I can relax now. So yeah, I guess I would recommend them.

    They really do NOT have 24 /7 emergency support, as they claim on their website, which was something I really needed because I was evacuated from a wildfire. At one in the morning. So that’s why four stars instead of five. Because nobody actually contacted me until the next week. There is an emergency number on their website which is a fake number, LOL. It doesn’t go anywhere. However, they did pay my claim, so I am OK with them.

    Bottom Line: Yes, I would recommend this to a friend

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Showing 1-11 of 194

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