inside of fancy apartment with art and sculptureLemonade Renters Insurance Review
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Lemonade delivers a fast experience to quote and buy renters insurance. But what does that mean for you, the customer?

Lemonade just completed the Initial Public Offering to expand their home and renters insurance products globally to Europe and move into other insurance product categories, like pet insurance. They've got a slick interface and competitive pricing. They are even using "AI" to payout claims instantly for simple losses.

A Fresh Approach

Lemonade is trying to re-think the traditional insurance carrier model in attempting to align itself with the policyholders. Lemonade takes a flat fee upfront (which used to be 20%, but now is ~25%) on the total policy premium to run the business, and pays anything leftover to charity groups. The donations make them a certified B-corporation.  

They are also innovating in other areas, such as crowdsourcing a brand new digital insurance policy - one that the average person outside insurance can understand. This industry is incredibly complicated from a regulatory standpoint, and most policy documents were written by lawyers decades ago. This new approach could bring a differentiated new product to the industry. In the meantime, they currently still sell the same industry-standard HO-4 ISO forms.

The Product

The vast majority of Lemonade's business is renters insurance. They allow you to add extra coverage for valuables, such as jewelry and bicycles and have flexible deductible options. Consumers with more complex needs will still need to look elsewhere as Lemonade doesn't yet have solutions for rental property policies, secondary homes, or vacant homes. Lemonade is only four years old, so they are still young and expanding into new coverages rapidly.

If you buy a policy through Lemonade, you have to download their app to manage your plan and retrieve information on the details of your policy - like your declarations page or proof of insurance. They use their app to handle everything from policy updates to processing claims.

The Carrier

Lemonade is a fully licensed insurance carrier, but they do sell off some of their risk to reinsurance partners. They are not yet rated as a carrier by A.M. Best, as this process can take many years, but they did receive an A rating from Demotech.

The Claims

Lemonade holds the world record for paying a claim in 3 seconds. Great job on moving the goal post on what is possible in the insurance industry! However, a customer should not expect this for any type of claim. Filing a claim with a chatbot might sound great in theory, but there are lots of grey areas in insurance and instances when you want to talk to a human. Lemonade does have a customer support phone number 844-733-8666, but it can be challenging to get a rep on the phone. Lemonade flaunts a 4.75/5 claims rating on their mobile app.

The Reviews

Customers love the fast buying experience and competitive rates Lemonade offers. They sometimes experience frustration with the claims experience. 

Where can I buy Lemonade Insurance?

Lemonade Insurance state coverage map

The bottom line: fast signup, gorgeous tech, competitive rates, limited product selection, and spotty customer support. Excellent work, Lemonade, and welcome to the industry! 

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At your service,
Young Alfred

Disclosure: Lemonade is one of the many options that Young Alfred offers for renters insurance. Young Alfred did not receive any compensation or direction from Lemonade in writing this review.