on the Lemonade secure site
What we like:
|JD Power Overall Satisfaction Rating||N / A|
|AM Highest rating||N / A|
|Contact number||N / A|
Anyone who has taken out tenant insurance knows how tedious it can be. Applying for coverage involves a ton of paperwork and forms. And once you’re approved, filing a claim is even more complicated.
But the Lemonade Company promises a quick and hassle-free insurance experience. Thanks to artificial intelligence, you can apply for coverage and claims through their app in as little as 90 seconds. Let’s take a closer look at the company and its coverage to see if its service is really all it claims to be.
Lemonade is a property and casualty insurance company providing insurance to tenants and landlords. They were founded in April 2015 with the aim of changing the traditional model of insurance.
Lemonade uses AI and chatbots to manage policies and complaints through their app. By doing so, they completely avoid the use of insurance brokers.
They offer insurance policies to renters and homeowners in Arizona, New Mexico, New York, Rhode Island, Texas, Georgia, Nevada, Ohio, California, Illinois, New Jersey, in Pennsylvania, Maryland, Iowa, Wisconsin and the District of Columbia. The company plans to expand to other states in the future.
One of the company’s most popular selling points is its commitment to giving back to the community. They are a certified B corporation and promise that any money left after a claim will be donated to charity.
Cost and coverage
Obviously, the pricing of individual policies will vary based on a variety of factors. But according to their website, Lemonade renters insurance policies start as low as $5 per month.
>> Learn more: Average cost of renters insurance
You can purchase increased coverage on certain valuables. Lemonade promises seamless additional coverage and will show you how much you’ll pay in premiums for every additional $1,000 you add. And they’ll automatically cover all of your family members at no additional cost.
Customers in California, Illinois, Texas, Rhode Island, Nevada, Georgia, Pennsylvania, Washington DC, Maryland, Arizona, Michigan, Ohio, Iowa, Wisconsin, Oregon, Arkansas, and New Mexico have the option of choosing the Zero All feature. “. . This means there is no deductible for filing a claim and your rates will not increase until you file more than two claims.
You can request and adjust your coverage level on their website or app. And most claims are paid almost immediately. To file, all you have to do is send a list of everything missing and a short video explaining what happened.
Advantages and disadvantages
The biggest benefit of signing up for coverage with Lemonade is the speed and ease of signing up. Transparency is one of their guiding principles, and they seem to deliver on that promise. If they are unable to offer you coverage for any reason, they provide a detailed explanation in their blog.
Their website is very easy to navigate and the sign up process is very straightforward. Filing a claim is fully automated and reviews of their service suggest they pay out quickly. And because they’re B-corporation certified, it means they’re committed to helping solve social and environmental issues.
Despite these positives, Lemonade has fairly limited policy options. They only offer insurance to tenants and owners.
You also do not have the possibility of grouping your insurances. This means you could find yourself making multiple insurance payments each month. And because they’re only available in certain states, you might not be eligible for coverage.
Lemonade is also not rated by AM Best, which is a global credit rating agency that focuses on insurance.
LendEDU’s Experience with Lemonade Renter Insurance
Personal experience of Dave Rathmanner, VP of Content at LendEDU
I have had a great experience with Lemonade Renters Insurance so far. Although I haven’t had to file a claim yet (thankfully), I found that listing and changing my address on my policy when I moved was a seamless process and each took less than 10 minutes.
It was easy to select the level of coverage I wanted, and Lemonade was able to automatically retrieve a lot of information about my apartment, so I didn’t have to gather it myself.
I found it odd that I had to download the Lemonade app to change my font’s address and view my font’s info, but it wasn’t too much of a hassle. I think allowing users to fully view and manage their policies on the Lemonade website would be a nice addition.
For customers looking for low-cost tenant insurance, Lemonade may be a good choice. Potential customers can receive quotes and sign up for coverage in minutes.
Customer support is offered through their app and the whole process is automated. Lemonade is also about giving back and having a positive impact on the community.
Customers sacrifice some benefits by choosing lemonade. The company does not offer in-person customer support and its policy options are limited to renters and homeowners insurance only.
So if you’re looking for specialty coverage, lemonade might not be the best option for you. But if you just want basic tenant insurance at low rates, then Lemonade has you covered.
If you want to compare Lemonade to another provider, you can check out our comparison between Jetty and Lemonade.