Lemonade Homeowners Insurance Review 2021

Using the SimpleScore methodology, we compared the company's coverage, discounts, support, accessibility, customer satisfaction, and support for this Lemonade home insurance review.

We compared Lemonade to its competitors using our SimpleScore as well as third-party reviewers such as J.D. Power and Consumer Reports.

How does Lemonade home insurance work?

  • Lemonade provides low-cost homeowners insurance that is simple to obtain online.
  • Only available in a few states, but with high ratings in those states.
  • Up to 30% of its claims are processed automatically.
  • When certain financial requirements are met, Lemonade donates to charity.
  • The majority of Lemonade Insurance reviews are positive.

What we like about Lemonade

Lemonade, the newest kid on the homeowners insurance block, has captured the attention of the world with its peer-to-peer model, which is currently the only one of its kind in the United States. Customers are organised into 'peer groups' in a P2P system, and all premium money is accumulated into a collective pool. When a claim is filed, funds from this pool are used to pay for it. Lemonade homeowners insurance has a lot to offer.

Cheapest monthly plans 

While premiums are largely determined by the type of coverage chosen and the amount of property insured, Lemonade offers the most affordable monthly rates, beginning at just $5 for up to $10,000 in personal belongings.

Service that is both quick and transparent

Lemonade handles the majority of its customer service with AI-powered bots. You can sign up for a policy and get immediate coverage by using the website or mobile app. The company also strives to live up to its claims and is open about its flaws.

Simple claim resolution

Filing insurance claims and getting them approved can be a pain with traditional providers. Lemonade streamlines the process by instantly approving 30% of claims and paying them in a matter of minutes. If the AI bots cannot approve a claim, it is handled by a professional team.

Who is it intended for?

Those in need of basic, low-cost coverage for their property and personal belongings, as well as quick and efficient service

Things to consider

Lemonade, while a game changer in the home insurance market, may not be for everyone. Consider the following disadvantages before deciding if this is the right insurance provider for you.

Only available in certain states

Most traditional insurance providers are available across the country, but Lemonade is currently only available in a few states. Although there are plans to make them available nationwide, you cannot currently sign up if you do not live in one of the qualifying states.

Live customer service is limited.

Customer reviews about Lemonade homeowners insurance mention the difficulty in reaching a live person if you have questions or concerns that the automated bots cannot resolve.

Who it isn't intended for

Those who live in a state not covered by Lemonade or prefer to communicate with real people rather than chatbots.

How we analyzed 

Discounts

Lemonade's homeowners insurance discounts are nothing out of the ordinary. The majority of these are offered by major home insurance companies. Some of the Lemonade discounts are as follows:

  • Material discount: For people who live in a house made of fire-resistant materials.
  • Fire protection discount: For those who have fire safety equipment in their home, such as a fire extinguisher or sprinkler system.
  • Discount on protection equipment: For those who have fire and burglar alarms installed in their home.
  • Gated community: For those who live in a gated community or a condo.

Coverage

Lemonade home insurance leaves a lot to be desired. Most home insurance providers provide the options of dwelling coverage, liability and loss of use, and personal property coverages, but Lemonade tries to stand out with a few unique options.

  • Earthquake coverage: If you live in California or Arkansas, this option protects your home from earthquake damage.
  • Water backup: For damage caused by a sewer line backing up into your home.
  • Extended reconstruction cost: If your construction costs exceed the original estimate due to unforeseen circumstances, this option will cover the difference.
  • Valued possessions coverage: With this option, you can add your valuable possessions, such as jewellery or musical instruments, worth up to $10,000, to your existing policy for an additional fee.

Customer Satisfaction

Customers love the Lemonade app because it simplifies the process and is simple to use. Lemonade renters insurance was ranked first in the J.D. Power 2020 U.S. Home Insurance Study in October 2020. This was the first time an Insurtech company took the top spot in a J.D. Power survey. Price, process, interaction, policy offerings, and claims were the five key factors examined in the study. According to the National Association of Insurance Commissioners, Lemonade has fewer complaints than its competitors, despite a few complaints about difficulty reaching a live agent (NAIC).

Support

The website and mobile app make it simple to use Lemonade home insurance, but there is no in-person support or physical location. Customer service is handled by chatbots, and while there is a phone number for filing claims, getting in touch with a real person is often difficult with Lemonade.

Availability

The website's and mobile app's ease of use compensate for the lack of live customer support. Intelligent bots can handle everything from getting quotes to signing up for policies to filing claims. Lemonade stands out from the crowd for the younger, more tech-savvy generations because of its automated, simple process.

Lemonade home insurance vs. the competition

There is no shortage of homeowners insurance providers on the market today, and many of them offer nationwide coverage and bundle options, which are two of the factors influencing Lemonade's suitability. If you need home or renters insurance from another company, the following are some of Lemonade's main competitors in terms of availability, coverage options, and discounts.

Allstate

Consumer Reports ranks Allstate 4 out of 5 for claim amount, agent courtesy, timely payment, and response time.

If you're looking for low-cost insurance, Allstate outperforms the competition. When you sign up, you will receive a welcome discount, as well as additional discounts for theft and fire protection systems installed in your home, as well as other safety features such as fire-resistant materials or storm protection. Furthermore, Allstate offers a variety of optional coverage plans for everything from landscaping to commercial property.

Nationwide

J.D. Power gives Nationwide a 4 out of 5 for customer satisfaction, while our SimpleScore gives it a 5 for support and accessibility.

Nationwide is a good option for those who want to bundle their insurance policies for convenience and lower rates. Nationwide, a large full-service provider, allows you to combine your homeowners insurance with auto, pet, or personal insurance policies. Nationwide offers additional options such as flood and earthquake insurance, replacement cost coverage, and even identity theft insurance.

StateFarm

State Farm, one of the largest providers of home insurance in the United States, provides excellent, personalized service.

When it comes to customer satisfaction, look no further than State Farm, one of the largest players in the insurance industry. However, the company's information on coverage options is not readily available online, and you must contact the team for a quote.

Lemonade’s rates

Although Lemonade offers rates as low as $5 per month (for renters insurance), the premiums you pay will be largely determined by the type of property you insure, where you live, and the coverage options you select. Lemonade, on the other hand, has the most affordable rates for the most basic coverage. Lemonade, for example, charges $120 per month for a $250,000 dwelling coverage limit, compared to the competitor average of $186 per month.

Lemonade, unlike many of its competitors, charges a flat fee of 25% and, as a certified B-corp, donates unclaimed money to charities. During the signup process, customers can select a charity of their choice.

Lemonade website and mobile app

Lemonade's innovative technology is its distinguishing feature, capturing the world's attention while saving customers the hassle of signing up for an insurance policy. Despite the absence of live sales agents, the company's highly developed AI chatbots more than make up for it. These bots' software is designed and authorized to operate without human intervention, handling everything from registering new customers to providing quotes to paying claims.

The Lemonade website and app have received high marks for their intelligent technology and ease of use. Lemonade, a leading Insurtech company, caters to the younger generation by providing tools that save time and maximize efficiency.

Lemonade renters' insurance and pet health insurance

Renters insurance- Lemonade has the lowest renters insurance rates, and while the coverage options are limited, the company stands out with its Zero Everything feature. This option (available only in certain states) allows you to choose a zero-dollar deductible in exchange for a higher rate. As long as you do not file more than two claims per year, your rate will not rise. Extra coverage for valuables such as jewellery, art, and bicycles is also available.

Pet health- Lemonade pet insurance is a relatively new offering. It is a basic, industry-standard Accident & Illness policy with the option to include wellness coverage (for routine exams, tests, and vaccines). Plan prices begin at $12 per month.

Bundling options- At the moment, Lemonade offers a home or renters insurance bundle with its pet policy. When homeowners and renters combine the two policies, they can save up to 10% on premiums.

Lemonade in the news

  • In August 2020, Insurance Journal published an article about Lemonade's first public earnings report, in which the company disclosed losses in the year's second quarter while claiming to have made progress.
  • Forbes published an article in 2019 about the best and cheapest places to find renters insurance. Lemonade has been recognized as the leading fintech insurer in his industry. In the same year, Forbes published an article about how Lemonade is reshaping the insurance industry.
  • The Harvard Business School Digital Initiative released a report in 2018 on Lemonade's use of machine learning to transform the insurance industry. “Investors like SoftBank and Google Ventures backed the company with a $120 million funding because they saw Lemonade as a revolution in the insurance industry,” according to the student report.