1 Minute Review
Lemonade Insurance Company is a newer player when it comes to renters insurance. It’s become a popular choice because it uses technology to simplify buying insurance and getting claims paid.
You can get the full Lemonade experience using its mobile app or website. To buy a policy, Lemonade walks you through a short, easy application. During the application, you can determine your deductible and adjust for areas that need more coverage. For example, if you have expensive electronics, you may want to increase your coverage above the default to ensure you can get them replaced if a worst-case scenario occurs.
Another feature that sets Lemonade apart is its Giveback program. When you get a Lemonade policy, you choose a nonprofit to support. There are many charities to choose from, including the American Red Cross, UNICEF, Teach For America, the ACLU and The Trevor Project. Out of the premiums you pay each month, Lemonade pays its expenses and pays claims. Any premiums left go toward your charity of choice. Lemonade donated over $1 million in 2020 through its Giveback program.
Lemonade is best for those who are comfortable communicating and filing claims through the app or website. There is no publicly available customer service number; if you have questions for Lemonade, you can get in touch through the app or by clicking the “Help” button on the bottom of the website.
Lemonade also isn’t available in all states. Its renters insurance is available in Arizona, Arkansas, California, Colorado, Connecticut, the District of Columbia, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington and Wisconsin.
Learn more about Lemonade renters insurance in this review.
- Renters who want a simple application process
- Renters comfortable with using apps
- Renters who want to support charities through the businesses they work with
- Easy application that you can complete using the app
- Fast, hassle-free claims process
- Supports charities
- Not available in all states
- Customer service is only available using the app or website
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Lemonade’s renters insurance policy offers 3 types of coverage: personal possessions, liability and additional living expenses.
Lemonade’s renters insurance policy will pay to repair or replace your personal items if they’re damaged due to a covered peril. A peril is an event that negatively affects you, such as fire or theft. Your Lemonade policy will state which perils are covered. In general, renters insurance policies cover fire, theft, storms, vandalism and water damage from pipes or broken appliances.
With Lemonade’s theft coverage, your items are covered anywhere in the world. For example, if you’re working in a coffee shop and your phone is stolen, the theft would be covered according to the terms of your policy.
Liability is another important type of coverage offered by Lemonade. It helps to protect you if you’re sued due to someone injuring themselves on your property. It also protects you if you or a member of your household injures someone or damages their property. For example, if your dog ruins your neighbor’s prize rose bushes, your policy will help cover the damages.
Liability only covers damage and injuries to others. If your dog ruins your rose bushes, you’ll have to pay for them to be replaced yourself.
Additional Living Expenses
When some disasters happen, you may need to stay in a hotel while your apartment is being repaired. While your renters insurance doesn’t cover damage to the structure of your rental (that’s covered by your landlord’s policy), it will help cover the costs of a hotel stay and meals according to the terms of your policy.
Your renters insurance policy will only pay for you to stay at a hotel if it’s due to a covered peril. If it’s for another reason, like a power outage, Lemonade won’t cover it.
You may have some items, like art, jewelry or watches that are expensive. It may be best to insure these items separately. You can send a note to Lemonade and they’ll give you a quote for Extra Coverage for those items. Lemonade offers Extra Coverage for jewelry, bikes, cameras, fine art and musical instruments.
Lemonade’s Extra Coverage also helps you for situations that aren’t covered under your standard renter’s insurance policy. For example, damaging your wedding ring wouldn’t typically be covered, but if you have Extra Coverage, Lemonade may cover the repairs.
What Isn’t Covered by Lemonade Renters Insurance
Flooding, earthquakes and sinkholes aren’t typically covered by renters insurance. You’ll need to purchase separate policies if you’re concerned about these events.
Renters insurance also doesn’t cover damage due to pests like rodents and bugs. If this is an issue, you’ll need to discuss it with your landlord.
Renters insurance also doesn’t cover accidental damage or lost items.
How Lemonade’s Renters Insurance Works
Renters insurance typically reimburses you for either the actual cash value or the replacement costs. Actual cash value is when the insurance company reimburses you for the current value of an item. For example, if you have a 2-year-old laptop that was worth $1,500 when you bought it, it might be worth $1,000 if you sold it today. An actual cash value policy would reimburse you for $1,000 if it was destroyed.
A policy that covers replacement costs would pay you to replace the laptop with the same model as it costs today. To buy the same model today, it might cost $1,300 since electronics often cost less over time. The policy will reimburse you for $1,300. Lemonade’s policies reimburse you based on the replacement costs.
All of Lemonade’s services are offered through its app or website. That includes customer service. You can only get in touch with customer service through the Lemonade app or through its website. On the website, you can click on “Help” in the bottom right-hand corner to receive assistance.
Lemonade does have extremely high ratings from its customers. If you’re looking for assistance in person or by phone, though, Lemonade may not be right for you.
Lemonade also takes a unique approach when it comes to claims. It uses artificial intelligence (AI) to review claims, and 30% are paid instantly. Lemonade’s claims department handles claims that aren’t approved right away.
Lemonade claims that aren’t an emergency can be filed using its app or its website. You’ll need to record a brief video to explain what happened and show the damage.
If you’re experiencing an emergency, you can call Lemonade at 844-733-8666.
Renters insurance, in general, is relatively inexpensive. Lemonade offers reasonable prices on its renters insurance. It bases your renters insurance costs on several factors, including your credit history and whether you’ve had any past property insurance claims.
You can also get a discount if you bundle your renters insurance policy with a Lemonade pet insurance policy.
Lemonade has a highly-rated mobile app that’s available from the Google Play and Apple App Store. You can apply for a policy, manage your policy and file claims through the mobile app. You don’t need to pick up a phone to make changes to your policy, including cancellations and adding or dropping coverage. You can do everything through the mobile app.
Lemonade renters insurance is for renters who are tech-savvy and value being able to buy a policy without talking to an agent or filling out extensive paperwork. When you file a claim, it may be paid automatically, which sets Lemonade apart from many insurance companies.
While Lemonade isn’t available in all states, it is working on expanding. You can also save money by purchasing a pet insurance policy along with your renters insurance. Overall, Lemonade makes it easy to buy renters insurance and file claims. You can buy a policy in less than 10 minutes and have coverage right away. If saving time and managing your policy from your phone is important to you, Lemonade is a good choice.