Lemonade is an online renter’s insurance provider that offers customers ease of application and claim management. It is a unique provider as it has a Giveback program that allows users to select a nonprofit to which leftover premium gets donated at the end of each year.
Summary: If you’re looking for a fast turnaround, Lemonade provides a complete digital experience and a quick application process when applying for renters insurance.
Fees & Coverage
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|HQ||NY, New York|
|Annual Coverage||$10,000 – $500,000|
|Deductibles||Starts at $250|
|Full Replacement Value||Available|
|State Restrictions||Not available in AL, AK, DE, HA, ID, KA, KY, LA, ME, MN, MO, MT, NC, ND, NE, NH, SC, SD, UT, VT, WV, WY|
Lemonade’s renter’s insurance policies are ideal for anyone looking to manage their renter’s insurance completely online. It prides itself on its quick approval and claims processes. Applicants can get approved for coverage and submit any potential claims within minutes. Taking a different approach than most other insurance providers, Lemonade takes a flat fee from the premium you pay and uses any leftover money at the end of the year to donate to a charity of the policyholder’s choice.
Lemonade has a simple application where you answer a series of screening questions to help them determine your coverage options. You can expect to answer questions about where you are renting, your personal property, and what types of security measures you have in your rental. From here, Lemonade will use their AI program to determine the right monthly premium and details for your coverage plan, which you can then edit yourself if needed.
The policy application process at Lemonade is extremely quick and easy and you can get approved for coverage within minutes.
Lemonade renter’s insurance starts as low as $5 a month for coverage, which is low compared to other renter’s insurance providers. Depending on your policy, you will be charged a specific monthly fee for your coverage. Any money unused at the end of the year will be donated to the charity of your choice.
Lemonade covers policyholders for personal property coverage, loss of use coverage, and personal liability coverage. Their personal property coverage covers lost or damaged property from theft, some weather-related damage, and more. The loss of use coverage provides you with coverage in the event you are unable to live in your rental unit, giving you money to help you pay for a temporary living space. The personal liability coverage protects you in the event someone gets injured at your rental unit and tries to take legal action for costs associated with damages.
Lemonade does not cover all issues that can take place in your rental unit. It will not cover damages caused by floods, nor does it provide coverage for loss of heat, electricity, and other outages. It also does not cover property damages, undocumented items, car theft, roommate’s items, and damage from pests.
Lemonade will factor in certain discounts for your policy if you choose to bundle your renter’s insurance along with other insurance plans they provide. They will also give a discount if you have certain protective measures, like security alarms, in your rental unit.
Lemonade offers many extra add-ons you can choose for your policy for an extra cost. These changes can include exclusions, additions, or any other changes to the policy. Most of your belongings such as furniture, electronics, and clothes are covered by the standard policy. The standard policy also covers jewelry up to $1,500. If your jewelry is worth more than $1,500, you will require additional coverage. Other items like bikes, fine art, cameras, and musical instruments also require you to get additional coverage. Depending on the state you live in, you can choose to receive coverage for earthquakes as well.
Lemonade renter’s insurance claims are processed completely through their app. Policyholders can submit claims conveniently on their phones, and their easy-to-use claims submission process makes it simple to send them in with no paperwork required. Most claims are approved in a short amount of time, sometimes within minutes. This is a huge contrast from the old-school tedious process of submitting an insurance claim. The time it takes from the point of the customer submitting a claim, to getting approved and receiving a reimbursement has been cut very short. This is one of the greatest advantages of an insurance platform that is leveraging technology to provide the best experience for its customers.
On the other hand, while the claims submission process is easy and quick, it can be frustrating for those who want to speak with an agent throughout the process. A good amount of Lemonade’s customer base is young and is comfortable using their mobile app to submit claims. However, it can steer the older crowd away, who still likes to do things in person or over the phone.
Lemonade has customer service representatives available to provide you with the assistance you need with your renter’s insurance policy or claims process. Customers widely are happy with their services and how they handle inquiries. You can email them at [email protected] for your questions.
If you require assistance over the phone, you can call Lemonade’s team at 844-733-8666. Their business hours are between 9 AM to 8 PM from Monday to Friday. The company also offers a chatbot feature called Maya, on its app. If Maya is not able to answer your questions, your questions are forwarded to a customer representative.
The three channels that include email, phone, and the chatbot provided by Lemonade offer its customers many ways to get in touch with the team and receive assistance. The company has shown a great track record of providing exceptional customer service.
Lemonade is still a relatively new insurance company. However, they have an A rating from Demotech, with an “exceptional” ability to pay out claims submitted. Lemonade is backed by Lloyd’s of London, which has multiple A or A+ ratings by trustworthy organizations including A.M. Best, Kroll Bond Rating Agency, and more. The company has established a good reputation when it comes to claiming payouts and is trusted by its customers.
It also takes further precautions to ensure its customer’s security. They have industry-standard security measures in place such as secure databases, encryption, malware protection, etc.
Lemonade offers renter’s insurance at an affordable rate. You can get a policy for as little as $5 per month, but the average cost of policies offered by Lemonade is $19 per month. It also operates completely online and no in-person assistance is provided, which can be a drawback for people who are not tech-savvy. However, the company offers great support to its clients through its customer representative team. Lemonade also allows customers to add additional coverage to their policies for an extra cost. You can choose to receive coverage for accidental loss or damage, which is typically not offered in base policies.
If you’re looking for an online renters insurance with fast approval times and an easy claim submission process, then Lemonade renters insurance might be a great option for you.