Lemonade Renters Insurance Review 2024 (2024)

Founded in 2015, Lemonade is a digital insurance company that offers multiple types of coverage, including car, home, renters and pet insurance.

Lemonade takes a flat fee from the premiums it takes in. After paying claims, Lemonade gives what is left to charities that their customers choose as part of its Giveback program.

Lemonade trumpets itself as a digital insurance company with a focus on communicating through its website and app with customers and prospective customers. That includes using artificial intelligence bots to provide renters insurance quotes and processing claims.

Lemonade sells the core types of renters insurance that comprise a standard policy and has great personal property coverage, but dog owners should be sure the breed they own won’t cost them extra.

Lemonade provides replacement cost coverage for personal property instead of actual cash value coverage. That means when you file a personal property claim you’re reimbursed the amount it would cost to buy new, similar replacements—depreciation won’t be subtracted.

While Lemonade has generous coverage for your belongings, a note of caution if you buy Lemonade renters insurance and have a dog. Watch out for a possible “dangerous dog surcharge.”

One might be added to your cost if you own a pit bull, Staffordshire terrier, Doberman pinscher, rottweiler, German shepherd, chow, Great Dane, presa canario, Akita, Alaskan malamute, Siberian husky, wolf hybrid and/or any canine with a prior bite history. But Lemonade does offer pet owners an endorsem*nt that pays for some damages your pet causes, and not all renters insurance companies do.

• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• District of Columbia
• Florida
• Georgia
• Illinois
• Indiana
• Iowa
• Maryland
• Massachusetts
• Michigan
• Missouri
• Nevada
• New Jersey
• New Mexico
• New York
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• Tennessee
• Texas
• Virginia
• Washington
• Wisconsin

Lemonade renters insurance covers your personal property The company also offers personal liability and additional living expenses coverage.

You can buy additional coverage for items such as bikes, jewelry and fine art. You can also buy coverage to help pay for damage to your landlord’s property for problems such as pet and water damage that you cause.

Additional Personal Property Coverage

If you want a higher potential claim pay out for certain types of items, you can buy additional coverage for:

• Bicycles up to $10,000.
• Cameras up to $10,000.
• Fine art up to $20,000.
• Jewelry up to $50,000.
• Musical instruments up to $10,000.
• Portable electronics such as laptops, phones and tablets, up to $6,000.

You can also add water back-up coverage (up to $10,000) to replace your personal belongings if they are damaged by water that comes out of your drain or sewer.

Additional Landlord Property Damage Coverage

You can add these additional coverage types for accidental damage to your landlord’s property:

• Tenant pet damage. If your pet damages your landlord’s property, this covers up to $500 per year after your security or pet deposit kicks in.
• Tenant water damage. If your landlord’s property is damaged by water, this covers up to $100,000 per claim.

Lemonade renters insurance doesn’t cover everything, including:

• Car theft and damage, though it will cover belongings within a vehicle. Car insurance covers vehicle theft and damage.
• Damage to the physical structure; that’s covered by landlord insurance.
• Earthquakes, but you can buy separate earthquake insurance.
• Floods, but you can buy a separate flood insurance policy.
• Pest damage.
• Power outages, unless there’s physical damage to the building from a problem covered in your policy.

If you’re looking for cheap renters insurance, make sure you ask about discounts. Here are some Lemonade renters insurance discounts you’re likely to find.

• Annual payment. You can save if you pay your full term up front rather than monthly installments.
• Bundling discount. You’ll automatically qualify for a 10% discount if you bundle your renters insurance with Lemonade car insurance or pet insurance.
• Protective devices. You can get a discount if your home has fire alarms and burglar alarms.

The easiest way to get renters insurance through Lemonade is to request a quote from the company’s website or app. The company says renters insurance policies can begin as soon as the next day.

Here’s what to do:

• Estimate the value of your items. Figure out how much your personal belongings are worth. You’ll need that information so you know how much coverage you need. You can buy between $10,000 and $250,000 of personal property renters insurance coverage from Lemonade.
• Consider extra coverage for valuables. Figure out if you want scheduled personal property coverage for specific high-value items like jewelry, bikes and cameras. You can schedule those items. That means you insure the value of those items rather than potentially only getting reimbursed for a portion of expensive items if your policy has a sublimit for theft, such as $1,500.
• Choose a deductible. A renters insurance deductible is the amount subtracted from your personal property claims payment. If you have a $500 deductible and suffer $2,000 worth of damage and stolen items in a burglary, the insurance company reimburses you $1,500. A higher deductible usually means cheaper renters insurance.
• Select loss of use limits. Decide how much loss of use coverage you’ll need. You can get a ballpark figure by adding up estimated extra living expenses. These can include costs for lodging, food, laundry and transportation. Lemonade offers additional living expense coverage limits between $3,000 and $200,000.
• Determine liability limits. Think about how much you may lose if you’re sued or you have to pay someone’s medical bills. If someone is injured in your apartment and takes legal action, personal liability coverage can help pay the costs. Lemonade offers personal liability limits between $100,000 to $1 million.
• Request a quote. Go to the Lemonade website and fill out the online form to request a renters insurance quote or download the company’s app and apply that way. Lemonade’s process is typically done online but you can call Lemonade to apply via phone at 1-844-733-8666.

You can file a claim with the Lemonade app, where 40% of claims are handled instantly, according to Lemonade.

Open the app and hit the claim button, and the app provides guidance on how to file your claim, which includes recording a video of yourself explaining the incident. You can also upload photos, videos and documentation needed to support your claim.You’ll also need to enter in your bank information so you can be paid when your claim check is ready. When you’re done, you use a digital signature to sign the claim.

When you file a claim, Lemonade’s AI searches for fraud and either approves the claim quickly or forwards the matter to a human to investigate.

Lemonade vs. Nationwide Renters Insurance

Nationwide offers more types of insurance than Lemonade, including insurance for floods, ATVs and scooters.

Both companies offer add-on coverages, but Nationwide renters insurance has a few more. Nationwide has identity theft coverage, water backup and sump pump overflow coverage and an endorsem*nt that replaces damaged items with new items. Nationwide’s “protection boost” also increases coverage on property located outside your residence.

You may have an easier time finding coverage from Nationwide since Nationwide offers renters insurance in 43 states, compared to only 28 states by Lemonade.

Nationwide has a much lower complaint ratio than Lemonade, which may be a sign of customer satisfaction.

Lemonade vs. Allstate Renters Insurance

Lemonade promotes its digital focus, which may be right for you if you have that experience. But if you want to talk to a person and potentially meet face to face with an agent, Allstate renters insurance might be the better option.

Allstate has a lower complaint ratio, which may be a sign of higher consumer satisfaction. The company also provides building improvements coverage for renters that covers building upgrades to your rental following damage that’s covered by a policy.

Both companies lack a range of renters insurance discounts and have limited add-on coverage.

Lemonade vs. State Farm Renters Insurance

State Farm renters insurance is offered in all 50 states, while Lemonade only has renters insurance in 28 states.

State Farm provides more types of insurance than Lemonade, including boats, off-road vehicles and supplemental health insurance.

Lemonade has three renters insurance discounts, while State Farm only offers two: bundling discount and savings for installing home alert protection.

Lemonade has an average level of complaints to state departments of insurance, which is collected by the National Association of Insurance Commissioners.

Major competitors like USAA, Allstate and State Farm have much lower complaint levels compared to Lemonade.

Lemonade’s digital-first approach is what sets itself apart from many competitors. Its use of artificial intelligence and bots can make for a faster customer experience when it comes to quotes and claims.

Lemonade’s Giveback program is also a way for you to feel like your renters insurance dollars are going to a good cause.

Lemonade’s strength can be a negative depending on what you want from a renters insurance experience. If you want to talk to a person or prefer meeting with an agent, Lemonade is likely not a good fit for you.

Lemonade is also not offered in as many states as larger competitors and doesn’t offer as many types of insurance as other companies.

Lemonade is just one of many insurance companies that offer renters insurance, including:

• Allstate
• American Family
• Auto-Owners
• Chubb
• Country Financial
• Erie
• Farmers
• Nationwide
• Progressive
• State Farm
• Travelers
• USAA