Lemonade Homeowners Insurance Review 2021
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When it comes to home insurance, Lemonade works differently than other companies. To get a policy, you’ll interact with a chatbot called Maya rather than an agent. To file a claim, you’ll submit information and video through the company’s app — and you might get a payout within a few seconds.
Lemonade’s business model also diverges from the industry norm. The company takes a flat fee from each premium and uses the rest to pay claims and handle other expenses. Any money left over is given to charitable organizations selected by policyholders — adding up to more than $2 million in donations so far in 2021.
Lemonade isn’t right for everyone. Its policies aren’t available in all states, and it offers relatively few extra options to customize your coverage. But for homeowners who value efficient service and the chance to send their insurance dollars to worthy causes, Lemonade is worth considering.
Lemonade home insurance pros and cons
How Lemonade home insurance rates
Lemonade homeowners insurance earned 3.5 out of 5 stars for overall performance. NerdWallet’s ratings are determined by our editorial team. The homeowners insurance scoring formula takes into account policy coverage options and discounts, ease of filing a claim, website transparency, the financial strength of the company, complaint data from the National Association of Insurance Commissioners and more.
Lemonade home insurance state availability
You can purchase Lemonade homeowners insurance in 23 states and Washington, D.C.
Lemonade home insurance coverage
You can customize your homeowners policy with numerous add-ons, but below are the types of coverage that generally come standard:
For more details, see Homeowners Insurance: What It Is and What It Covers.
Lemonade homeowners policies cover personal belongings on a “replacement cost” basis, which means if your stuff is stolen or destroyed, the company will pay out enough for you to buy a brand-new replacement.
You can add the following types of coverage onto a standard Lemonade policy:
Extra coverage for valuable items such as jewelry, fine art and high-end cameras.
Water backup coverage for damage caused by a drain or sewer backing up.
Extended reconstruction cost in case the amount it costs to rebuild your home after a disaster ends up being higher than your dwelling limit.
Lemonade home insurance discounts
You can save on your Lemonade homeowners policy by:
- Buying another type of insurance from Lemonade, such as pet or life.
- Paying your bill annually instead of in more frequent installments.
- Having deadbolt locks, burglar alarms or other protective devices in your home.
Lemonade home insurance complaints
Lemonade received significantly more than the expected number of home insurance complaints to state regulators relative to its size, according to three years’ worth of data from the National Association of Insurance Commissioners. (NAIC home insurance complaints also cover other home policy types, including mobile home, renters and condo insurance.)
Lemonade home insurance consumer experience
Website: Lemonade’s website is cleanly designed and easy to use, with a lengthy FAQ section offering information in jargon-free language. You can get a quick quote right from the homepage. To file a claim, though, you need to download the app. (In an emergency, if you don’t have access to the app, you can call Lemonade at 844-733-8666.)
App: When filing a claim using the Lemonade app, you’ll interact with a chatbot and upload a video of yourself describing the incident. Depending on the circumstances, you may see your claim paid out immediately. You can also use the app to view policy details, update your coverage, get quotes and buy a policy.
Homeowners insurance buying guide
Before you start comparing quotes, identify how much home insurance coverage you need. Is a standard policy sufficient, or do you want to add extra insurance for situations like identity theft or sewer backups? Check whether each company you’re considering has the options you need.
To ensure you have sufficient personal property coverage, take a quick inventory of your belongings. How much would it cost you to replace them? Include all furniture, electronic devices, clothing, jewelry and household items. This total is the minimum amount of personal property insurance you should have.
When comparing rates between insurers, make sure they’re offering the same limits and deductibles. Although it may seem tempting simply to choose the cheapest option, consider looking at how many consumer complaints each insurer has before choosing a policy. Poor customer service could have a significant impact on your experience if you ever need to file a claim.
You can get home insurance quotes online, over the phone or through an agent.
Lemonade home insurance FAQ
What other types of insurance does Lemonade offer?
Lemonade also sells renters, condo, pet and life insurance. To learn more, see our Lemonade insurance review.
Does Lemonade cover mobile homes?
No, Lemonade doesn’t sell insurance for manufactured or mobile homes. To find companies that do, see our guide to manufactured and mobile home insurance.
Does Lemonade cover stuff in a storage unit?
Yes, but the amount depends on where you live. In New York, California and Connecticut, your belongings in a storage limit are covered up to 10% of your personal property limit. In other states, you may have only $1,000 of coverage.
Does Lemonade home insurance have dog breed restrictions?
Yes. Lemonade won’t provide liability coverage for claims involving any of the following breeds: pit bulls, Staffordshire terriers, Doberman pinschers, Rottweilers, German shepherds, chows, Great Danes, Presa Canarios, Akitas, Alaskan malamutes, Siberian huskies and wolf hybrids.
Homeowners insurance ratings methodology
NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts, online experience and more. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2020. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
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