Lemonade Homeowners Insurance Review
Are you thinking about purchasing homeowners insurance through Lemonade? Below, we take a closer look at Lemonade and offer our complete, unbiased review of their insurance offerings. We also answer common questions so you can make an informed decision.
Lemonade was founded in 2015 by Daniel Schreiber and Shai Wininger. Lemonade currently offers homeowners insurance, car insurance, renters insurance, pet health insurance, and life insurance.
The company launched with a goal of modernizing the process of purchasing insurance. They accomplished this goal by bringing the entire process of checking rates and purchasing a policy online. To get started, all you need to do is visit Lemonade’s website and indicate the type of insurance you’re in the market for. You’ll then provide all of the information needed in a unique, chat-bot function with their virtual agent Maya. Within minutes, you’ll have a quote. Claims filing is also handled online through a similar self-serve format, with claims experts only getting involved for more complicated claims.
Due to these automated processes, Lemonade is able to keep their operating costs relatively low. The company keeps approximately 25 percent of all premiums paid to cover the costs of operating and expanding the business, and uses the remaining 75 percent of premiums paid to cover claims. At the end of the year, any unclaimed premiums are donated to charity. In 2021 alone, the company donated more than $2.3 million through this program. For this and other reasons, Lemonade holds B-Corp status, indicating they are committed to a double bottom line, and the social and environmental impact of their business.
Lemonade is headquartered in New York, New York, but offers homeowners insurance policies in 24 states.
What people say about Lemonade
What we like about Lemonade
- Lemonade maintains an A (Exceptional) rating with Demotech.
- Lemonade offers homeowners, car, renters, pet, and life insurance.
- Lemonade offers a number of discounts (including bundling more than one Lemonade policy!) that customers can use to lower their monthly premiums.
- Getting a policy can be done entirely online and takes only minutes.
- Lemonade regularly pays claims quickly; around a third of all claims are paid within seconds of being filed.
Lemonade maintains an A (Exceptional) rating — one of the highest ratings available — with Demotech, one of the largest credit rating agencies in the insurance industry.
Why do ratings matter? Companies with higher ratings have been deemed safer. That means when you hold an insurance policy with an A-rated company, you can feel confident that the insurance company will be able to meet its obligations to you if you ever need to file a claim.
Products offered by Lemonade
Lemonade offers homeowners insurance and related policies.
Lemonade homeowners insurance options
- Dwelling coverage
- Other structures coverage
- Additional living expenses coverage
- Personal property coverage
- Personal liability coverage
- Medical payments to others
For more information about homeowners insurance and coverage definitions, read our Homeowners Insurance 101 guide.
Other insurance products offered by Lemonade
- Renters insurance
- Condo insurance
- Pet insurance
- Life insurance
- Auto insurance
Lemonade insurance coverage options
In addition to the standard home insurance policies, Lemonade offers a number of other types of coverage that policyholders can add to their policies as desired.
Lemonade homeowners insurance coverage options
- Valuable articles coverage: provides additional coverage for items that are high value, such as jewelry, collectibles, art, cameras,or musical instruments.
- Water backup coverage: provides coverage to help pay for cleanup, repair, and replacement of items if your home’s sump pump stops working or if water or sewage backs up through your drains.
- Extended reconstruction coverage: provides additional coverage in the event that your home needs to be rebuilt and the costs are higher than expected.
- Appliance/equipment breakdown coverage: provides coverage in the event that appliances or electronics in your home (such as a washing machine, television, or refrigerator) suffer a mechanical breakdown.
- Buried utilities coverage: provides coverage to underground pipes on your property.
- Earthquake coverage: provides coverage in the event your home experiences damage caused by an earthquake.
Lemonade homeowners insurance discounts
Lemonade offers a variety of homeowners insurance discounts that you can take advantage of to lower the cost of your premiums, including:
- Pay in full discount: if you pay your premiums upfront each year, you may qualify for a discount.
- Multiple policy discount: if you have another type of insurance policy through Lemonade, such as pet insurance or life insurance, you may qualify for a discount.
- Protective devices discount: you may qualify for a discount if you install home protection devices such as central fire alarms, sprinkler systems, burglar alarms, security systems, deadbolts, etc.
- Window protection discount: if you purchase and install impact-resistant windows, or have storm shutters, you may qualify for a discount.
- Secured community/building discount: if your home is situated in a community with extra security, such as a gated community, you may qualify for a discount.
How to cancel your Lemonade policy
If you already have a Lemonade homeowners insurance policy and would like to cancel it, all you need to do is log into the Lemonade app or your account on their website and request a cancellation.
Lemonade states that they will refund in the event that you have paid any portion of your premiums ahead of time.
Before canceling your homeowners insurance, you’ll want to have coverage lined up with another insurance carrier. This will ensure that you do not have any gaps in your insurance that would otherwise put you and your family at risk.
Matic matches you with the best policy for the best price from our network of 40+ A-rated carriers, including Lemonade.
Get a personalized home or auto insurance quote in seconds or call (833) 382-1304.