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Lemonade Renters Insurance Review (2021)

Lemonade is a new insurance company that provides renters and homeowners insurance for as little as $5 per month. Learn how the company is rethinking the insurance model by reading our Lemonade renters insurance review.

American home with three car garage. iStock

Lemonade is an up-and-coming insurance company that takes a new approach to providing renters and home insurance to customers. Policies start as low as $5 per month, and any premium money the company doesn’t use for claims is donated to the charity of your choice.

Keep reading our Lemonade insurance review to learn more about what makes Lemonade different from other insurance providers and determine if this is the best provider for you. For a free quote, visit the company’s website.

Pros & Cons of Lemonade Renters Insurance

Pros Cons
Pros Cons
✔ Coverage starts at $5 per month ✘ Less than five years of industry experience
✔ Giveback program donates unused policy money to charities ✘ Only available in 28 states
✔ Provides a mobile app and website chat function

Lemonade Renters Insurance Coverage

Lemonade offers standard coverage similar to most insurance providers. The company covers events including fires, lightning, windstorms, hail, smoke, vandalism, theft, freezing, damage from aircrafts or vehicles, and riots.

A Lemonade policy covers four main renters insurance areas and offers coverage for portable electronics and other expensive items:

  • Personal Property Coverage: This part of a renters insurance policy protects your personal belongings. For example, if a fire were to destroy your belongings, Lemonade would give you money for an actual cash value (ACV) replacement. This means that Lemonade will take into account how much your item has depreciated and pay you that amount. Lemonade coverage $10,000–$250,000 for personal property.
  • Loss of Use Coverage: If a covered loss made your home temporarily uninhabitable, Lemonade would pay for living expenses while you lived somewhere else. These expenses could include the cost of a hotel or the cost of eating out and doing laundry. Lemonade will cover 30% or more of personal property for loss of use.
  • Liability Coverage: If you were to be held liable for an accident, your policy will cover property damage and bodily injury to someone else. It may even cover legal fees if that person sues you. Lemonade covers a range of $100,000–$1,000,000 for liability.
  • Coverage for Medical Payments to Others: If a guest in your home gets injured, your policy will pay the medical bills for that person to get treated.
  • Portable Electronics Coverage: Expensive items, like jewelry or electronics, usually aren’t covered under the personal property section. Most companies make you purchase additional coverage to get protection for those items. However, a Lemonade policy automatically protects some of your electronics. Lemonade covers $1,500–$6,000 for portable electronics.

Lemonade’s Optional Extra Coverage

Lemonade customers can further customize their policies by getting extra coverage.

Here are Lemonade’s optional add-ons:

  • Earthquake protection
  • Jewelry
  • Fine art
  • Bikes
  • Cameras
  • Musical instruments
  • Significant other (not married)
  • Water backup
  • Landlord property damage

What Lemonade Insurance Does Not Cover

While Lemonade Renters Insurance covers a handful of events in their policy, it’s important to recognize the events that are not covered.

Lemonade’s policies do not cover the following events:

  • Natural disasters
  • Car theft
  • Undocumented items
  • Roommate’s items
  • Damage from pests
  • Property damage

How Much Does Lemonade Renters Insurance Cost?

According to Lemonade’s website, a starting policy costs as little as $5 per month. However, when we submitted our information to get a quote, we found the cost to be much higher.

Lemonade Cost Breakdown

Area of Coverage Coverage Amount
Area of Coverage Coverage Amount
Deductible $500
Monthly cost $29.67

The quote above is for a one-bedroom apartment in Cleveland, Ohio. This would include $30,000 of coverage for personal property, $9,000 for loss of use, $100,000 for personal liability coverage. It also includes $1,000 per person for medical payments to others and $1,500 for portable electronics.

Your Lemonade deductible can be $250, $500, $1,000, or $2,500.

Note: The price of your Lemonade renters insurance policy will vary based on your current living situation, your age, and a few other factors.

Lemonade uses the following information to calculate your premium:

  • Credit history
  • Recent claims
  • Property age
  • Property size
  • Property construction quality
  • Property sensitivity to weather
  • Protection equipment, like security systems

Lemonade Insurance State Availability

Lemonade Renters Insurance is available in 26 states nationwide, including the following: Arizona, Arkansas, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, and Wisconsin.

Lemonade Customer Service

Lemonade prefers you use the chat function on its website or the mobile app for all of your policy and claims questions. However, if your claim is an emergency or you don’t have access to the website or app, you can call 844-733-8666.

How to File a Claim with Lemonade

To file a claim, open the Lemonade app and hit the claims button. The app will guide you through the rest of the process, which includes recording a minute-long video of yourself explaining the incident and inputting your bank information to get a claim amount paid to you.

Most of the time, your claim will get approved and you’ll get paid instantly. However, Lemonade may take longer to approve property damage or liability claims.

If your claim is considered an emergency, which Lemonade defines as an event that requires immediate assistance or temporary housing as a result of fire, ongoing water damage, or another structural issue, you can call the company at 844-733-8666 to file a claim.

Our Conclusion

Lemonade renters insurance is ideal for renters who want affordable coverage and an easy sign-up process. Additionally, it’s great for those who want to support companies that give back to the community. However, Lemonade isn’t great for those who value dislike customer service via email or the company’s AI bot, even though phone support is also available.

Overall, we believe Lemonade is a provider worth considering. As you evaluate whether Lemonade is right for you, we recommend getting a free quote from the company’s website.

It’s also a good idea to get quotes from multiple companies in your area so you can compare costs. Enter your zip code in the tool below for free quotes from other providers near you:

If you’re not sure whether Lemonade is right for you, compare it to other top-rated renters insurance companies below.

Compare Renters Insurance Companies

Companies Lemonade Progressive Geico
Companies Lemonade Progressive Geico
Known For... Quick Sign-Up Process Single Deductible Benefit Low Deductibles
Monthly Price $5+ $13–$25 $12+
State Availability 28 states 50 states 50 states
Years in Businiess 4 years 83 years 81 years
AM Best Rating N/a A+ A++
BBB Rating B+ A+ A+

Company Overview

  • Company Name: Lemonade Insurance Company
  • CEO: Daniel Schreiber
  • Years in Business: 4 years
  • State Availability: 28 states
  • Address: 5 Crosby Street, Floor 3
  • City/State: New York, NY
  • Zip Code: 10013
  • A.M. Best Financial Strength Rating: N/A
  • BBB Rating:

Frequently Asked Questions About Lemonade

How does Lemonade’s Giveback program work?

Lemonade strives to be different from traditional insurance companies by using a different business model. Lemonade takes a flat fee out of your premium to keep the business running and leaves the rest for any claims that may arise. At the end of the year, Lemonade takes any of your premium money that wasn’t used for claims and donates it to the charity of your choice.

What information do I need to request a quote from Lemonade?

To see how your property and personal information will change pricing, go to Lemonade’s website and submit the following information:

  • Name
  • Address
  • Safety features
  • Valuables
  • Email address
  • Date of birth

Can you get a discount by bundling insurance policies through Lemonade?

No. Lemonade only offers separate renters, condo, co-op, and homeowners insurance policies, and you can’t bundle auto insurance with your renters insurance policy.

To share feedback or ask a question about this article, send a note to our Reviews Team at reviews@thisoldhousereviews.com.