In This Review: Our Rating | Pros & Cons | Cost & Discounts | Coverage | State Availability | File a Claim | Customer Reviews | Our ConclusionLemonade vs. Competitors | FAQs

Launched in 2015, Lemonade Insurance Company is a newcomer to the home insurance industry that offers basic coverage with a focus on accessibility and technology. The easy-to-use Lemonade app allows customers to request a quote, make adjustments to their policy, and file a claim immediately—with 30% of claims handled instantly by artificial intelligence.

Buying home insurance is an important but sometimes daunting task. Protecting your most valuable asset and likely largest ever single purchase requires time, patience, and research. The This Old House Reviews Team has created a thorough Lemonade homeowners insurance review to help you decide if the company offers the best homeowners insurance for your needs.

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Our Rating of Lemonade Home Insurance

We gave Lemonade a score of 83.5 out of 100 on a variety of metrics, including coverage, discounts, customer service, availability, and more.

Lemonade’s lower score is largely due to the fact that, presently, it is only available in about half of the country and is a relatively new company.

 

Lemonade Home Insurance Pros & Cons

Pros Easy-to-use mobile app Plans starting at $25/month Nearly a third of claims handled instantly Charitable Giveback program
Cons Not available nationwide Negative reviews mention difficulty contacting a real customer service representative

 

Lemonade Home Insurance Cost

Lemonade home insurance premiums start at $25 per month. The exact cost you’ll pay depends on a variety of factors, including your property value, where you live, the size of your home, the coverage limits you select, the insurance deductible you choose, and more.

Lemonade covers home insurance by keeping a flat fee to cover expenses like salaries, running costs, and technology replacement, reinsures the remaining amount as needed, and gives back whatever is left between expenses and reinsurance to charity.

Lemonade Home Insurance Cost Breakdown

Type of Coverage

Amount of Coverage

Deductible

$1,000

Monthly Cost

$60.75

 

To get the cost and deductible information above, we requested a sample quote for a single-family home in Eureka, California, of roughly 2,200 square feet.

The monthly cost of Lemonade came out to $60.75 per month, cheaper than the national average per month of $101, according to the Insurance Information Institute.

The quote also included $350,000 for dwelling coverage, $175,000 for personal property coverage, $105,000 for loss of use, $300,000 for liability, and $1,000 per person for medical payments to others.

 

Discounts

One of the easiest ways to lower your insurance premium is by finding discounts you may be eligible for. Lemonade offers a variety of homeowners insurance discounts that can lower the overall amount you pay. Here’s a list of Lemonade’s home insurance discounts:

  • “Material” Discount: Pay less if your home is constructed from fire-resistant materials, including masonry
  • “Fire Protection” Discount: Pay less if you have safety measures like a sprinkler system or fire extinguisher
  • “Protection Equipment” Discount: Pay less if your home is equipped with protection like burglar alarms
  • “Gated Community” Discount: Pay less if you live in a gated community
  • “Bundling” Discount: Pay less if you bundle your home insurance policy with a pet insurance policy or with an auto insurance policy.

 

Giveback Program

Leftover money from expenses and reinsurance will be donated to charity. The first year, Lemonade donated more than 10% of its annual revenue to charity.

 


 

Lemonade Home Insurance Coverage

Since Lemonade features one of the fastest quote tools on the market that has AI technology to help walk you through the process, you can get signed up for a policy in 90 seconds or less.

Unlike other providers that require you to speak to an agent before enrolling in coverage, you can get insured by Lemonade without making any phone calls or dealing with agents or sales representatives.

Here’s a little more about what Lemonade covers:

  • Dwelling: This coverage type pays for the cost to repair or rebuild your home after covered damages. While your dwelling limit is customizable, it should typically be close to the total estimated value of your property.
  • Other structures: Lemonade homeowners insurance will also cover damage to unattached structures such as a shed or fence.
  • Personal property: This pays for the replacement of your belongings if they’re damaged or stolen (both inside and outside your home). Lemonade lets you choose your limit, which is anywhere between 40% and 80% of your total dwelling coverage amount.
  • Loss of use: Also referred to as additional living expenses coverage, loss of use coverage pays for costs if you cannot stay in your home due to a loss that’s covered by your policy. For instance, Lemonade pays for hotel fees or extra commuting costs when you’re displaced from your home while it’s being repaired or rebuilt.
  • Personal liability: When you’re legally responsible for someone’s injury on your property, you could owe thousands of dollars in medical bills or legal fees. This coverage pays these expenses up to your agreed policy amount. Lemonade allows customers to choose between $100,000, $200,000, $300,000, $400,000, $500,000, or $1 million for this category’s limit.
  • Medical payments to others: Unlike personal liability coverage, this coverage type pays for medical bills of people who receive injuries on your property that weren’t your fault. You can typically choose your limit for this category between $1,000 and $5,000.

Lemonade homeowners insurance covers damage or destruction caused by the following 16 named perils:

  • Fire or lightning
  • Windstorm or hail
  • Explosion
  • Riot
  • Aircraft
  • Vehicles
  • Smoke
  • Vandalism
  • Theft
  • Falling objects
  • Weight of ice, snow, or sleet
  • Accidental discharge or overflow of water or steam
  • Sudden and accidental tearing, cracking, burning, or bulging
  • Freezing
  • Sudden and accidental damage due to short circuiting
  • Volcanic eruption

Optional Extra Coverage

Lemonade base policies cover jewelry up to $1,500 in total. If your jewelry is worth a greater amount, you can sign up for Extra Coverage, which can also cover fine art, cameras, bicycles, and musical instruments.

Extra Coverage will take effect once items have been submitted and approved by the Lemonade team. Customers need to send in a short description, photo, receipts, or appraisals for each item. You can also add on coverage for earthquake damage.

Learn more: What Does Homeowners Insurance Cover?

 


 

Lemonade Home Insurance State Availability

Lemonade homeowners insurance is currently not available nationwide. However, it is available in 23 states plus Washington, D.C.

The company covers homeowners in the following states:   

Arizona | California | Colorado | Connecticut | Georgia | Illinois | Indiana | Iowa | Maryland | Massachusetts | Michigan | Missouri | Nevada | New Jersey | New York | Ohio | Oklahoma | Oregon | Pennsylvania | Tennessee | Texas | Virginia | Wisconsin

 


 

How to File a Claim with Lemonade

Customers can file a claim with the Lemonade Insurance app. Lemonade claims it can take as little as three minutes to get paid.

To file a claim, tap the “Claim” button on the app and record a brief video explaining the damage and how it happened. An artificial intelligence program will run anti-fraud algorithms and assess your claim. If instantly approved, your claim will be paid in seconds. If not, the program will send your claim to a team of real people for further assessment.

 


 

Lemonade Home Insurance Reviews

In our review process, we scoured Lemonade’s third-party ratings and customer reviews. Lemonade is not accredited by the Better Business Bureau and does not have rating from the organization. This could be related to Lemonade’s current class-action lawsuit alleging consumer privacy violations. In the lawsuit, plaintiffs allege that Lemonade collects and stores customers’ biometric data, including retina and face scans, without their consent.

The lawsuit was filed in August 2021 in the New York Southern District Court, and as of July 2022 is now settled. Based on Lemonade’s many attractive features—including its affordable plans, charitable giveback program, and user-friendly mobile app—we still recommend the company as a legitimate and reputable provider.

Here is what some customers have had to say in their Lemonade homeowners insurance reviews on the BBB.

Elina Pinkhasova said:

“I am so lucky I remembered to get a Lemonade insurance policy when I moved in because I don’t know how else I would have my equipment for work replaced that was ruined by the water damage in my room. The process of claiming was really simple and the customer service representative Jeremy who followed up was really a pleasure to work with and communicate with. This was over the holidays and my policy was reviewed quickly and I got my claim resolved in just a short few days. I am so happy to use lemonade as my insurance policy.”

Ebenezer said:

“I have had reasons to file insurance claims but I am usually wary due to people’s experiences that I have heard over the years. However, this time around, I thought to give it a shot since I had a theft situation that was so awful. Laurin was my claim specialist and she made the process seamless by giving prompt and accurate information and guidelines for me to follow. I highly recommend Lemonade and I will continue to be a happy customer and share my experience with friends and family.”

Ethan said:

“Very poor customer service. I was allured by the missions and business model, but was very disappointed when emailing support for clarification on my policy that they dodge and avoid easy questions. When I got their phone number I called, but nobody picks up and voicemails are not returned.”

Corrine said:

I got the homeowners insurance. No one to take your calls on the weekend. Then they were off on a holiday Monday. Then I was told that somebody would reach out to me in 24 hours. Never happen. I got an email from the person that I’m supposed to work with and she’s off Thursday and Friday. Meanwhile my house is getting mold from a water leak. I’m afraid for my health. A manager was supposed to reach out to me still waiting it is now Thursday night. No one has even addressed my situation. I’m afraid that I made a very bad decision when I went with lemonade. My other homeowners insurance had people working on the weekends and would get back to you immediately. Still waiting for somebody to address my situation. When you have a water leak it’s imperative that somebody gets it taken care of immediately or else it causes immense damage.

 


 

Our Conclusion

Lemonade homeowners insurance offers all of the basic coverage at a low cost, with a quick, efficient claims process completed through the mobile app. Lemonade could be a solid option for customers looking for accessibility, ease, speed, and a focus on technology, or who are concerned about social responsibility.

Our score is 83.50 due primarily to the low availability and recent founding, but we believe Lemonade is a solid choice for home insurance.

Lemonade now offers auto insurance, so there are available discounts for bundling home and auto and the opportunity for one-stop shopping.

You can also insure your pet or get a Lemonade renters insurance policy if you are not a homeowner.

Overall, we believe the pros outweigh the cons and that Lemonade is a provider worth considering. Get a free quote from Lemonade by visiting the company’s website.

 


 

Lemonade Homeowners Insurance vs the Competition

See how Lemonade stacks up against some of its top homeowners insurance competitorsAllstate and Travelers on key metrics.

Lemonade vs. Other Home Insurance Companies

Provider

Lemonade

Allstate

Travelers

Free Quotes

Visit Site

Visit Site

Visit Site

State Availability

23*

50

49**

Year Founded

2015

1931

1853

24/7 Claims Service

Protective Devices/Safety Features Discount

Mobile App

Peer-to-Peer Platform

*Lemonade home insurance is available in AZ, CA, CO, CT, DC, GA, IL, IN, IA, MD, MA, MI, MO, NV, NJ, NY, OH, OK, OR, PA, TN, TX, VA, WI

**Not available in Florida

 


 

Lemonade Company Information

  • Company name: Lemonade Insurance
  • Company type: Public
  • CEO: Daniel Schriber
  • Year founded: 2015
  • Headquarters: Five Crosby Street, New York, NY 10013
  • State availability: 23, plus Washington, D.C.

 


 

Lemonade Homeowners Insurance FAQs

 


 

Our Methodology

The This Old HouseReviews team is committed to providing comprehensive and unbiased reviews to our readers. This means earning your trust through transparency and having the data to back up our ratings and recommendations.

With that in mind, we created an objective rating system to score each home insurance company. Here’s what that review process looked like:

  • We analyze the information on each company’s website. This allows us to determine what products and services are offered by each home insurance provider.
  • We get a sample quote from the companies by either talking to a sales representative or by using the online quote tool. This tells us what a policy looks like and costs.
  • We test customer service by talking to a company representative, finding out their hours of operation, and determining what technological features are available for customers.
  • We update all of this information on a continuous basis, storing it in a proprietary database that allows us to compare dozens of home insurance companies against each other.

With this data, we created a rating methodology to score each home insurance company. Our rating system is a weighted, 100-point scale based on the following factors:

  • Coverage (30): We rated home insurance companies higher if they offered the six main types of homeowner protection—dwelling, other structures, personal property, loss of use, liability, and medical payments to others coverage.
  • State availability (7.5): Companies scored higher if they covered more states than their competitors.
  • Customer service (15): This factor is based on our communications with the company representatives, as well as the companies’ claims and quotes processes, availability throughout the week, and customer service information found on their websites.
  • Technology (12.5): Technology can increase the efficiency of filing and tracking home insurance claims. Companies scored higher if they had technology options like mobile apps and online chat functions.
  • Reputation (20): We gauged trustworthiness based on years of experience and Better Business Bureau (BBB) ratings.
  • Additional benefits (15): Companies that offered optional features, like discounts and endorsements, scored higher than competitors that didn’t.

Our Reviews team has a full-time researcher who collects and regularly updates data points from every company to help us compare them on key factors such as coverage, service, and dependability.

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