Lemonade Insurance Reviews - Ideal For Homeowners and Renters?

By Derek Lakin
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.”

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.

Customer Reviews

Start your review of Lemonade Insurance:
  • 196 Customer Reviews
  • 89% Recommend This Company
4.5 out of 5
5 star: 82% 4 star: 5% 3 star: 1% 2 star: 0% 1 star: 10%

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  • One of the worse experiences

    Overall Experience:

    So I filed a claim three weeks ago. I spoke to someone three days later and was told it will take 24 hours to respond. I called and emailed with no response. I send in pictures, receipts, and file police report. Never hear back.

    So yesterday I get a call saying I need to provide more information and someone will come out to assess the damage. What the heck? I never had any insurance come and assess the damage. So I get a call and they say three more weeks. They are playing games to not pay claims.

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

  • Lemon not Lemonade

    • By Richard Wolf,
    • Dallas, TX,
    • Mar 9, 2018
    • Verified Reviewer
    Overall Experience:

    Do not believe any of it. I filed a claim after my house was broken into over the holidays, had receipts and police report, everything they requested, and I used the word "office," and everything I lost (home theater, stereo, laptops, and televisions) became a home business, and nothing, not even my camera, was covered. $50,000 in property and $6000 in a payment I have yet to see. When you're looking at an empty home, you may not use the correct words or say the right things because you're in shock and upset, but that does not matter because when you do, they don't want to listen. It's too late and too bad.

    After having to deal with five people accused of canceling my claim because their system kicked me out and then almost getting me kicked out of my home, then contacting the stores I purchased my items at for proof of ownership, then told I am running a business out of my home. It's just been too much. They originally wanted my roommate's insurance to cover it all and called them also.

    Stay as far away from Lemonade as you can. The only good thing about Lemonade is, I forget.

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

  • Don't even bother!

    Overall Experience:

    I purchased my policy on 3/23/18. I had $3,000 worth of items stolen from me out of my home on 3/31/18 (MacBook, camera, bookbag, a pair of shoes and flat iron).

    I filed a claim with Lemonade and a police report on 04/01/18.

    On 04/02/18 Lemonade requested proof of ownership, so I sent more receipts showing my name.

    On 04/03/18 I got an email from Jen Robinson, who is my claims adjuster, who has returned NONE of my calls.

    I know who stole my items, and I was trying to get them back, which is why it was a 12-hour delay with me filing the police report and claim. I actually planned on filing the police report on the morning of 04/02/18 since it was already really late, but the app wouldn’t let me submit the claim without a police report, so I called dispatch and an officer came to my location and I filed the report from there.

    The email from Jen on 04/03/18:

    Thanks for sending this over. After reviewing the information on your claim, we have decided to escalate this to our Special Investigation Unit. Due to the fact that the loss is within a week of policy inception, we will send out a field adjuster to meet with you. They will take a recorded statement, and gather other documentation pertinent to this claim.

    We also noticed that the police were called after you started the claim, but before it was submitted. It's unusual that the police wouldn't be called immediately after noticing your belongings were stolen.

    The field adjuster with the SIU will be contacting you in the next 2-3 days to set up a meeting. The entire process will take approximately 2-3 weeks, depending on the claim complexity and your cooperation.

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

  • Customer service

    Overall Experience:

    I was informed that my claim was approved and it would arrive in two days. It has been over three weeks, and nobody will reply to my messages. What gives? I keep getting the same automated response. I thought they were a good company, but now I feel cheated.

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

  • Disappointed

    • By James S.,
    • Las Vegas, NV,
    • Dec 17, 2018
    • Verified Reviewer
    Overall Experience:

    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

  • Go to your auto insurance. Avoid.

    • By Michael,
    • Las Vegas, NV,
    • Mar 22, 2018
    • Verified Reviewer
    Overall Experience:

    I have been with Lemonade since January. My apartment got broken into, and I called the police and spoke with my apartment complex.

    People, what Lemonade doesn't tell you is if you don't have a receipt or send them a picture of your purchase prior to joining, they will not cover you. If you add a roommate and a spouse, they will not cover you. I have been paying for my roommate as well, thought it would be easier for us to split. Well, Lemonade decided to refund me my policy for the last few months. I never had a break in in my life! And told me good luck.

    Please you guys, I'm a 9 to 5 worker, and we work hard for our items and the insurance we pay. Go to another company, please, they will let you down. I promise guys, I spoke to Meghan, and she advised they can't cover my items since I never previously sent a pic or a receipt. I work, and I have two kids, and who keeps receipts when you feel you live in a safe area and you paid your dues to your insurance? If you have a roommate, Lemonade requires you have a separate policy. Boy, BS for sure. I live in Las Vegas where houses get robbed all the time. Do not go with Lemonade, trust me! I spent too much time writing this review to let you guys know.

    After I wrote this review, Lemonade reached out saying they will have an adjuster come out but it will take two to three weeks just for the phone call while I continue to pay, but they won't cover me. Go through your auto insurance, trust me. I wasted money, and we all hate to waste money.

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

  • Kick you while you are down

    Overall Experience:

    The happy and friendly image portrayed by Lemonade, a company that touts a simple and fast claim service, is criminally false advertising. The use of good charities to mask their deceptive practices is shameful at best, but in reality, it's irresponsible, hurtful, greedy and unethical as they are damaging organizations that really do honestly want to be there for not only those to which they have a fiduciary responsibility, but all.

    You can't even give Lemonade credit for fulfilling their contractual responsibility to their clients, let alone their moral responsibility to society. They will painstakingly comb through a policy to find any one of numerous legally unjustifiable clauses that they've riddled their convoluted policy with to ensure they don't pay simply because they know your life is upside down if you are using their insurance and you won't have the time, resources, or money (because they withhold it) to navigate the nightmarishly bureaucratic system of appeals.

    I was left homeless without a penny, and after nearly a week, they blatantly ignore the police departments assessment and utilize their own to cut a $3200 loss to a $200 offer and then spitefully withhold even that forcing me to sleep on the streets in below freezing temperatures.

    The crimes committed by Lemonade and the lies they tell make them far worse than any criminal or disaster mentioned in their policies.

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

  • Misleading

    • By Ryan,
    • California,
    • Mar 23, 2018
    • Verified Reviewer
    Overall Experience:

    In their Google advertisement and on their site homepage, they mislead you into thinking that it's only going to be $5 a month. In reality, I am paying $19.92 for a $1,200 a month apartment in Sacramento. I'm willing to bet one look into their database would reveal that most likely over 90% of their customers are paying more than $5 a month. Very misleading company. No phone number. I would not use it if I was you.

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


    Overall Experience:

    I strongly advise against choosing Lemonade for Renters insurance. THEY REFUSE TO PAY MY CLAIM, I have filed a complaint with the state and am hiring an attorney. You may want to think twice about doing business with them.

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

  • Paid my claim quickly

    • By Susan W.,
    • Thousand Oaks, CA,
    • Dec 8, 2018
    • Verified Reviewer
    Overall Experience:

    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

  • Friends-giving fiasco

    • By Lana N.,
    • California,
    • Dec 9, 2018
    • Verified Reviewer
    Overall Experience:

    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

Showing 1-11 of 196

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