Lemonade Renters Insurance Review 2023
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Coverage options
Discounts
NAIC complaints
Lemonade
Coverage options
Discounts
NAIC complaints
Lemonade offers renters insurance with a feature that sweetens the deal. You choose a charity when buying insurance through Lemonade, then your payments are pooled with those of other policyholders. After paying expenses and claims each year, the company gives any money left over to customers’ favorite causes. In 2022, this amounted to more than $1.8 million in donations.
Lemonade sells renters insurance primarily through its app and website, and you’ll file any claims through the app, too. The company says it settles about 30% of claims instantly.
Lemonade renters insurance star rating
Lemonade renters insurance earned 4.5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account coverage and discounts, ease of filing a claim, website transparency, financial strength, complaint data from the National Association of Insurance Commissioners and more.
Based on this rating, Lemonade is among NerdWallet’s Best Renters Insurance Companies for 2023.
State availability
Lemonade renters insurance is available in 28 states plus Washington, D.C.
Lemonade renters insurance coverage
Landlords sometimes require tenants to purchase a policy with a minimum amount of renters liability insurance, but otherwise, the coverage you choose is generally up to you. Below are the four types of coverage included in most standard renters policies:
Type of coverage | What it does |
|---|---|
Covers your clothing, furniture, electronics and other belongings. | |
Pays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs. | |
Pays out if you're responsible for injuries to other people or damage to their property. | |
Medical payments | Covers injuries to other people in your home, regardless of fault. |
For more details, see What Does Renters Insurance Cover?
Lemonade covers your belongings on a replacement cost basis. That means if your items are stolen or destroyed, Lemonade will pay enough for you to buy new replacements. Some companies pay less to reflect the depreciated value of your belongings.
Depending on where you live, optional coverage types may also be available, including:
Extra coverage, which pays if your jewelry, fine art, cameras, bicycles or musical instruments are lost, damaged or stolen. No deductible applies.
Water backup for damage caused by water coming out of your drain or sewer.
Equipment breakdown, which pays if appliances or electronics (like your phone or TV) have a mechanical failure.
Discounts
You may be able to save money on your Lemonade renters insurance policy if:
You buy another type of Lemonade policy such as pet insurance.
Your home has protective devices such as smoke alarms or deadbolt locks.
You pay your premium once a year rather than in installments.
Consumer complaints
Lemonade received 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 cover other home policy types, including renters, mobile home and condo insurance.)
Consumer experience
Website: Lemonade’s website is cleanly designed and easy to use, with an instant quote feature right on the homepage. You can find information about the company’s policies on its lengthy FAQ page.
App: Available for both iOS and Android, Lemonade’s app is the place to go to get quotes and buy your policy. You’ll also use it to file claims.
Claims: To file a claim on the app, record a video of yourself describing what happened, then fill in some information about the amount of your claim. Although many cases are transferred to a person on the claims team, Lemonade says it handles 30% of claims instantly and wires money to your bank.
If you don’t have web access, you can call 844-733-8666 to file your claim.
Customer service: Logged-in policyholders can use the Maya chatbot service. You can also send a message through the website, email [email protected] or call 844-733-8666.
Where Lemonade stands out
Technology. If you’d rather buy a policy with a few taps of your phone than spend time on the phone with an agent, you’ll appreciate how easy it is to use Lemonade’s website and app.
Coverage for your belongings. Lemonade’s replacement cost coverage is more generous than the “actual cash value” coverage some companies offer. With Lemonade’s coverage, you can buy brand-new replacements after a claim rather than receiving less of a payout for depreciated older items.
Where Lemonade falls short
Availability. Lemonade renters insurance isn’t yet available in all U.S. states.
Consumer complaints. Although Lemonade has improved on this measure since last year, it still draws more complaints to state regulators than expected for a company of its size.
» MORE: Lemonade pet insurance review
Lemonade vs. competitors
Here’s how Lemonade renters insurance stacks up against policies from other popular companies.
Lemonade vs. Geico renters insurance
The main difference between Lemonade and Geico renters insurance is that Lemonade sells its own policies while Geico offers coverage through third parties. With Geico, your coverage and discount options may vary depending on which company ends up writing your policy. Both Geico and Lemonade offer bundling discounts if you buy more than one type of insurance.
The claims filing experience is another area where the companies differ. Lemonade claims are filed through its app, and some are processed instantly. With Geico, you’ll need to reach out to the third party that services your policy to file a claim.
You can get quick online quotes from both companies, but Lemonade’s renters policies aren’t available in all 50 states the way Geico’s are.
Lemonade has a unique “Giveback” program that donates a portion of its premiums to charities chosen by its policyholders. Meanwhile, Geico supports a variety of causes through the Geico Philanthropic Foundation.
Read our full Geico renters insurance review.
Lemonade vs. State Farm renters insurance
One primary difference between Lemonade and State Farm is that Lemonade is one of the newest renters insurance companies in the industry, founded in 2015, while State Farm has been around for a century.
Lemonade takes a digital-first approach to insurance, offering most customer service functions, such as quotes, payments and claims filing, through its app. State Farm also has a robust website and app, but it has a large network of local agents for policyholders who want more personalized help.
Each company lets you add extra coverage to your base policy, though available options depend on where you live. They both also have bundling discounts if you buy more than one policy. However, State Farm has an advantage when it comes to consumer complaints. It’s drawn fewer complaints to state regulators than expected for a company of its size, while Lemonade has drawn more.
Lemonade comes out ahead when it comes to the speed of claims processing. Some of its claims are paid out almost immediately after being submitted through the app. However, State Farm’s renters policies are available in more states than Lemonade’s.
Read our full State Farm renters insurance review.
Other renters insurance companies to consider
Not ready to make a decision? You may be interested in these other renters insurance companies:
Allstate: Big national insurer with many discounts available.
Assurant: One of the few insurers that will cover bedbug infestations in some states.
Jetty: Offers insurance and other services for renters, but only at participating properties.
Progressive: Sells its own renters policies and those of a third-party partner.
Renters insurance ratings methodology
NerdWallet’s renters 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, coverage options, discounts and online experience. 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 full renters insurance rating methodology.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. 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. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
