Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.
Lemonade offers both homeowners and renter’s insurance on a peer-to-peer platform that relies on technology to underwrite insurance policies and make claims decisioning.
Lemonade uses artificial intelligence (AI) to make the fastest claims decisions in the world, topping out at 3 seconds. Some claims are handed instantly, , and the rest are handled by a team of professionals dedicated to resolving your claims. Lemonade even has an almost 5-star rating on its mobile app.
Despite its user-friendly website and mobile app, incredibly easy signup process, and competitive pricing, there are some drawbacks to Lemonade. First, they only offer homeowners and renter’s insurance, so you cannot get any kind of bundling discount. Lemonade is currently available in about half of the states right now, though they have active plans to expand into additional states.
Price | Homeowners insurance starting at $25/month and renter’s insurance starting at $5/month |
Best For | People who want basic, affordable coverage for their homes and property |
Not For | People who prefer to bundle their policies for discounts |
The innovative new company, Lemonade Insurance, promises to change the game with their new homeowners and renter’s insurance policies. They claim that they offer “instant everything”, taking only 90 seconds to get insured and 3 minutes to get paid for a claim. They also claim to have some of the lowest starting prices for homeowners and renter’s insurance, at $25 per month and $5 per month, respectively.
Sort of. Lemonade Insurance falls a little short on some of its claims, and they’ll even admit it, but overall they have a very high customer satisfaction rate, which lends a lot of credibility to the company. While it does take only a few seconds to get insured, they only instantly approve 30% of their claims. That means over half of their claims require a manual override to get approved. This falls short of “instant everything” by a long shot. Their starting prices are some of the lowest in the industry. Homeowners insurance starts at only $25 per month, and renter’s insurance starts at just $5 per month. They’ll even help you switch to Lemonade by helping you cancel your old insurance.
Lemonade makes their insurance policy accessible to everyone on their website. Some of their coverage and perks include:
Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.
Lemonade Insurance will have different prices for different people living in different homes. Construction material may be a factor in your insurance premiums, as will the location in which you live, the size of your home, and the coverage limits you select for your property. Monthly premiums start at $5 for renter’s insurance and $25 for homeowners insurance. Increasing your coverage limits will increase your premium.
If you can afford the higher coverage limits, you should definitely purchase them. This will ensure that all of your physical property is covered in the event of a flood, fire or theft. (A side note: flood insurance is separate coverage provided by the National Flood Insurance Program. Ask about it if you live in a flood-prone area.) However, don’t purchase more coverage than you need or you’ll be throwing away your money on insurance that doesn’t have any benefit.
To determine how much coverage you need, there are some things to consider. One important consideration is how much property you own. To determine this number, do a physical inventory of your whole home. Make a list of everything you own, then find approximate retail values for them. Once you have a total of what everything in your home costs, you can then choose insurance coverage that will fit that limit. You may be surprised at how much everything in your home is worth!
One last thing to note: you may not have a lot of flexibility with your liability limits, but that’s okay. If anything is going to be high, you want it to be the coverage you need in case someone gets hurt at your home. If you have a dog or other pet, you may want to consider increasing your liability insurance in case of a bite.
When you get a quote from Lemonade, we recommend shopping around and getting quotes from 2-3 additional places. To compare prices accurately, make sure to choose the same coverage limits for property and liability that you choose with Lemonade. However, once you have a base premium and know which option is best for you, then you can choose a company that has additional coverage in line with what you need. Compare prices carefully and read the fine print. You want to make sure what natural disasters and events are covered under your policy.
If you would rather not purchase homeowners or renter’s insurance, you’ll need to take some steps to protect yourself and your property. The first thing we recommend is to start an emergency fund or savings account. You’ll want to put money up every month, rather than paying monthly premiums, so that when something does happen, you can cover the expenses. This is especially important if you have a pool or a dog, which are common liabilities that can cost a lot of money to a homeowner or renter.
If you do choose to invest in homeowners or renter’s insurance, you want to be sure your coverage actually covers everything you need it to cover. For example, if you have a dog that bites someone, that can cost upwards of $75,000 per incident. The standard liability amount is $100,000, which would cut it close with a dog bite. If you have multiple dogs, or dogs that interact with people frequently, it may be wise to increase your liability coverage in case something does happen with one of them.
Take some time to do some research and work out the numbers for yourself. Keep in mind that if you have a mortgage or rent an apartment, you may be required to have insurance, especially for liabilities. A homeowners insurance policy can save you money when it comes to things like a leaking water heater or busted pipe, and renter’s insurance can protect your property if something happens to your apartment. And if you choose not to go with insurance, make sure to put enough money aside to handle any property damage you incur.
There are a lot of options on the market for homeowners and renter’s insurance. Lemonade Insurance is a great choice for people who don’t need to bundle their policies and only need basic coverage. But what if you want additional coverage for your business, or you want to protect your hedges? If you want a different kind of company, try out one of these competitors:
Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.
With their generous giveback program and low premiums, Lemonade is a great choice for people looking for basic, easy homeowners and renter’s insurance policies. Lemonade Insurance reviews are positive and encouraging, and their mobile app has an extremely high rating. While they may not offer discounts for bundling services, the other benefits may outweigh that particular disadvantage for some people. Lemonade Insurance is your best bet for affordable premiums and fast, convenient service.
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