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Lemonade Home Insurance Review 2022: Low-Cost Premiums For Comprehensive Coverage

Charles Baisden

Lemonade attracts most policyholders with its instant service for home insurance coverage. Although it is still young, Lemonade’s home insurance has become a household name in the insurance industry. The insurer uses modern technology to create an efficient and superfast experience for its clients. For instance, your policy becomes active within 90 seconds from the time of sign-up, and claims are paid immediately. 

Overall rating

4.9

Summary: Lemonade seeks to protect your home through its affordable but comprehensive coverage. It also offers fantastic discounts to homeowners and helps them to save even more. 

Lemonade Home Insurance

lemonade home insurance logo

$1,500,000

Coverage Up To

$500 - $2,500

Deductibles


Reviews

5

Policy Application

4.5

Fees & Coverage

5

Claim Support

5

Customer Service

5

Safe & Secure

Pros

  • Designed for social impact
  • Safe and secure (A-Rated and reinsured) 
  • Easy to navigate mobile app
  • Accepted by leading lenders

Cons

  • Does not operate in some States
  • Limited insurance building opportunities

Best For

  • Affordable rates
  • Amazing homeownership insurance discounts
  • Superfast compensation on claims
  • Quick insurance policy activation

Features

HQ5 Crosby St. 3rd floor, New York, NY 10013
Rates From$25/month
Annual CoverageUp To $1,500,000 (Also varies by coverage type)
Deductibles$500, $1,000, $2,500
Full Replacement ValueNo
State RestrictionsAvailable in 24 States

In depth review on Lemonade Home Insurance

Lemonade Home Insurance was founded in 2015 and has become a respected name in the home insurance industry with its affordable premiums. The insurer’s business model sets it apart from other providers with its fast, reliable, and transparent digital services. 

Lemonade is also an excellent choice for policyholders who have a social conscience. The insurer has a ‘Giveback’ program that donates over 40% of unclaimed funds to a nonprofit organization of your choice. Although the insurer is still young, the amount of money donated to charity organizations over the years is an indicator that Lemonade has grown immensely. For instance, the provider donated $53,174 to nonprofit organizations in 2017. This figure rose to $1,128,109 in 2020, signifying over 2000% growth in three years.  

Lemonade Home Insurance is best for

  • Affordable rates: Lemonade’s home insurance coverage begins from as low as $25, which is relatively low compared to other insurers. 
  • Amazing homeownership insurance discounts: The insurer offers various discounts to help you save more and protect your home. Some of those included are material discounts, protection equipment discounts, and fire protection discounts, among others. 
  • Superfast compensation on claims: Lemonade compensates your claims instantly. You can use the mobile app or digital platform to submit your claims. 
  • Quick insurance policy activation: There is no waiting period for the provider’s policy. Your coverage begins within 90 seconds from the time of sign up. 

Lemonade Home Insurance benefits

  • Designed for social impact: The insurance agency is a certified B-corporation that donates 40% of unclaimed funds to nonprofit organizations. 
  • Safe and secure: Lemonade has an A+ rating from top financial rating agencies. Additionally, it is also reinsured by Lloyds of London, a household name in the insurance industry. 
  • Easy to navigate mobile app: It offers a mobile app that houses all your home insurance needs. You can file, track and download claims through the mobile app. You can also adjust your policy through the app. 
  • Accepted by leading lenders: Leading lenders in the US, such as Wells Fargo, JP Morgan, Bank of America, and UWM, among others, recognize Lemonade’s home insurance policy.  

Lemonade Home Insurance drawbacks

  • It does not operate in some States: The insurer operates in 24 States only.

Factors contributing to the overall rating

Policy application

5

Signing up for Lemonade home insurance is easy and straightforward. You need to create an account through the online platform or mobile app by entering your personal information. Once the information is received, the insurer reviews your application and your credit information. Lemonade uses artificial intelligence technology that guides you through all your home insurance needs. 

You can request a price quote and view your estimated coverage costs without any fees.

The provider requires eligible policyholders to pay deductibles and monthly premiums for the coverage to begin. Lemonade’s coverage is annual and should be renewed yearly upon expiry. During the sign-up, you can select a charity organization that will receive Lemonade’s donation in the ‘Giveback’ program. 

Fees and coverage

4.5

Lemonade offers affordable coverage for the basics. The costs for your policy may vary due to the following factors:

  • Property location: you may incur higher costs if your home is close to a water body or prone to wildfires. 
  • Roof condition: newer roofs have lower monthly premiums. 
  • Home characteristics: these include home size, building material used, among others.
  • Claims history: if you have a history of filing claims frequently, you may incur higher monthly premiums. 
  • Home security systems: policyholders who have installed security systems such as alarms, fire sprinklers, and security cameras may incur lower costs. 
  • Dog bites: your coverage might  be costly if there is evidence of previous dog bites.
  • Credit history: individuals with stronger credit scores incur lower monthly premiums. 
  • Home based business: Your home insurance won’t cover your business for data loss; loss of income, or liability for injuries and damage.If you’re running a business from home you’ll want to ensure you’re covered by looking into a business insurance policy, or a Business Owners Policy (BOP) for small businesses.

Lemonade offers the following coverage policies:

  • Dwelling coverage : this provides coverage to your home’s actual structure. The insurer offers compensation for repair or reconstruction in case of damage. 
  • Other structures coverage: this provides coverage of other structures on your property that are not directly attached to your home. These include a detached garage, mailbox, fence, or driveway. 
  • Personal property coverage: this offers coverage for your personal belongings such as furniture, electronics, and clothing. 
  • Personal liability coverage: the insurer will offer compensation for legal fees or injury costs that occur on your property. 
  • Loss of use coverage: this is also termed as ALE (Additional Living Expense) insurance. It pays for food and hotel bills temporarily when your home becomes uninhabitable. 
  • Medical payments coverage: this covers medical bills in the event that someone gets injured on your property. 

Lemonade offers the following discounts:

  • Material discount: policyholders receive a discount if their home is made of fire-resistant material. 
  • Protection equipment discount: homes with fire or burglar alarms receive better discounts. 
  • Fire protection discount: you can enjoy this discount if you have a sprinkler system or fire extinguisher in your home. 
  • Gated community: homes in a gated community enjoy this discount. 

Exclusions

Some of Lemonade’s exclusions include:

  • Governmental action 
  • Mysterious Disappearance
  • Nuclear Hazard
  • Intentional Acts
  • Failure to make repairs, neglect, or lack of maintenance
  • Destructive Acts

Below are the coverage amounts for the various policies that Lemonade offers. 

Claim support

5

Lemonade attracts many customers with its superfast claims compensation. The insurer uses chatbot technology to ensure efficiency. Policyholders can file their claims through their mobile app. You will be required to provide your email address, full name, phone number, and policy number. 

The insurer also requires you to describe the incident and attach supporting photos. If accepted, the claims are paid within minutes via bank transfers or checks. 

Simply click on the ‘claims’ button, submit your claim and leave the rest to the digital assistant. The insurer also requires claims to be made within 180 days from the date of the incident. You can track your claims through the mobile app. 

Customer support

5

Lemonade uses the unique technology of chatbot to guide you during the sign-up process and to address all your questions in a short time. The digital assistant (AI Maya) welcomes you to the platform and gives your price quotes for your policy. 

Lemonade’s customer review page speaks for itself. Although the insurer does not provide a live chat with human support staff, the chatbot technology offers instant feedback on a wide range of inquiries. You can also speak directly to the support staff via the mobile number provided in the app. 

Safe and secure

5

Although Lemonade is a new entry into the market, it has processed over 1.2 million claims over the years. The provider is a publicly-traded insurance agency (NYSE: LMND) and has over $9 billion market valuation. It is also insured by market leaders in the industry, including Lloyds of London. The provider has also received AM Best’s A+ rating regarding its financial stability. 

Once you have submitted your bank details, the agency conducts a verification series, including One Time Pin (OTP). Top insurance regulatory authorities also regulate it in the respective States. 

Is Lemonade Home Insurance right for you?

Lemonade Home Insurance is a great alternative for individuals looking for comprehensive coverage at relatively lower costs. The insurer provides affordable home insurance plans that suit every policyholder’s pocket. The excellent home discounts allow homeowners to save even more. With relatively low premiums and high annual limits, Lemonade protects your home and finances during unpredicted times.