2022 Lemonade Renters Insurance Review

In this article: Advantages and disadvantages | With a glance | Policy coverage | price | Discounts | Customer reviews | Conclusion | Frequently Asked Questions | Methodology

Lemonade Insurance Company is a public benefit corporation that collects a flat fee as profit and donates the remainder to charity through its Giveback Program. Like most best renters insurance companies, Lemonade also offers other policies, including homeowners insurance, auto insurance, pet health insurance, and term life insurance. Lemonade’s user-friendly app — one of its standout features — uses artificial intelligence (AI) to activate policies and approve certain insurance claims within seconds.

We at the Home Media Review Team reviewed Lemonade renters insurance based on its coverage, pricing, pros and cons, customer satisfaction, and more.

Pros and Cons of Lemonade Renters Insurance

Consider these pros and cons of choosing Lemonade renters insurance:

+ The return program donates unused premiums to charity

+ AI technology simplifies the claims process and enables fast payouts

+ Policies cover the cost of replacing stolen, damaged or destroyed items

Claims can only be submitted through the Lemonade app

Renters insurance is not available in every state

Lemonade renters insurance at a glance

Our rating: 4.62 out of 5

Year of foundation: 2015

JD Power: 870/1000

AM Best Grade: N/A

Country Availability: 28 countries and Washington, DC

Lemonade renters insurance policy coverage

Lemonade’s standard renters insurance policy offers four main types of coverage:

  • Personal Property: This coverage helps renters replace lost, damaged or destroyed items due to one of the specified perils covered by the insurance policy. Perils listed include theft and vandalism, as well as damage from water, fire, smoke, wind, lightning, falling objects, freezing, short circuits, vehicle collisions, falling objects and explosions.
  • Loss of use: This coverage applies if a specified peril makes the tenant’s home unlivable. Covers living expenses related to temporary relocation, such as hotel accommodation, food and laundry services.
  • Personal responsibility: This covers bodily injury or property damage that occurs in your home or elsewhere because of your actions. If the injured party files a lawsuit, Lemonade will hire an attorney to defend you and cover legal fees.
  • Medical payments: This coverage is closely related to personal liability coverage. It helps pay medical bills, usually up to $5,000, related to accidents that happen in your home.

Additional coverage

In addition to its standard coverage, Lemonade offers renters the following policy add-ons:

  • Prescribed Personal Property: This cover provides extra protection for jewelry, fine art, bicycles, cameras, musical instruments and other valuables. Lemonade’s version is called Extra Coverage and includes claims without a deductible and accidental damage and mystery loss coverage.
  • Device coverage: This coverage for renter-owned electronics and appliances offers protection against damage caused by non-covered perils, such as mechanical breakdown or electrical failure. Lemonade calls this policy add-on Equipment Damage Coverage.
  • Earthquake Insurance: This coverage applies to damage caused directly by an earthquake and is only available to renters in California and Arkansas. Lemonade’s standard renters insurance covers damage caused by any theft, fire or explosion after an earthquake, but not damage from the earthquake itself.

Lemonade renters insurance costs

Lemonade renters insurance can cost as little as $5 a month, which compares favorably to the national average for $174 per year in 2019, as reported by the Insurance Information Institute in its 2021 report.

Your premium may be lower or higher than average based on the following factors:

  • location: Renters insurance will cost more in areas with high crime rates or natural disasters. These factors make renters more likely to experience a covered loss and file claims. Insurance providers weigh this risk and charge more to cover the cost of potential claims.
  • Age of home: Older homes are more likely to be damaged by inclement weather and other named hazards, meaning a greater chance of damage to a tenant’s belongings. As a result, renters insurance can cost more for older homes.
  • Home size and features: The size of your home, its construction and certain features can affect your renter’s insurance premium. The more you have to insure, the higher the price will be. A security system, smoke detector, and other features that reduce the risk of theft or damage can help lower your insurance rates.
  • Customize the rules: Renters may choose to upgrade their policies with higher coverage limits or lower deductibles, resulting in higher premiums. Likewise, add-ons such as additional cover and equipment breakdown cover will increase premiums. Conversely, lower coverage limits and higher deductibles will lower your premium.
  • Personal information: Lemonade will consider your credit score and claim history. You can expect higher rates if you’ve filed a claim in the last five years. Likewise, a bad credit score usually results in a higher rate.

Lemonade renters insurance discounts

Lemonade offers several discounts to help policyholders save money. Tenants can take advantage of the following benefits:

  • Annual payment discount: Renters in some states earn discounts by paying their premiums annually instead of setting up monthly payment plans.
  • Bundle discount: Lemonade offers a discount for bundling your renters insurance with one or more of its other products, such as pet insurance or car insurance.
  • Discounts on security devices: Devices that improve the safety and security of your home, including smoke alarms, deadbolts and burglar alarms, lead to a discount.

Lemonade renters insurance reviews

As of August 2022, Lemonade has an average rating of 3.41 out of 5 of BBB and 4.5 out of 5 stars on Trustpilot. Reviews tend to be polarized, with customers either very satisfied or extremely dissatisfied with Lemonade renters insurance. As a result, the majority of reviews are 1 or 5 stars.

Satisfied Lemonade customers praise the company for handling their claims quickly, insisting that the process is easy and efficient. These customers describe friendly, helpful, understanding and knowledgeable customer service agents. They also cite the quick response time and fair handling of claims as reasons for their positive feedback.

Negative reviews of Lemonade tend to focus on denied claims and poor customer service. Specific complaints include difficulty contacting the company by phone and long response times when emailing the company.

Below are some examples of customer reviews from BBB and Trustpilot for Lemonade. We have selected reviews focused specifically on renters insurance policies, but Lemonade Home Insurance Reviews are also available.

“One of the easiest/fastest and cheapest companies to get your renters insurance from. I only had one wonderful experience. When canceling the policy, as I was moving out of my old apartment, they even refunded me the portion of the month that was not used secondary after the early cancellation. They donate the money you didn’t use during the year to a nonprofit of your choice. I have nothing but good things to write about them and will be using them again in the future.” — Antonia Z. via BBB

“Great customer service and unbeatable prices. I have had Lemonade Renters insurance for a year. Now that I’m moving I won’t be able to continue with them and I’m heartbroken as I really love their customer service. Everything is easy and communication is informal and fast. You set everything up online and if you ever need anything they will message you right away and do whatever you need before you even ask. The portal is easy to navigate and everything you need is available.” — Leandro B. via BBB

“Okay for what they are, but don’t expect good customer service.” I had an issue with the app and was trying to resolve it with a customer service rep who basically said [me] maybe i should look for another insurance company. So I should take my business elsewhere? This was just for what seemed like a basic application solution to me and didn’t even include claims or other business issues. So I looked for another insurance and no, I do not recommend this lemonade. In this case, you get what you pay for. — Lou R. via BBB

“Claims are processed very slowly. However, once the claim was processed, I was pleased with the results. I wish it was faster and with more communication.’ — Carl Simon via Trustpilot

The Bottom Line: Is Lemonade Renters Insurance Best for You?

Lemonade can be an effective and affordable choice for renters insurance. You can purchase a policy without speaking to a representative and manage your account through the Lemonade app. Some claims are paid instantly thanks to the company’s AI technology, and its policies cover replacement costs. Customers who prioritize social responsibility will also appreciate the Lemonade Giveback program.

However, Lemonade renters insurance is not yet available in every state. Because this company relies heavily on its mobile app, it’s not a great fit for customers who prefer to work directly with an agent.

Whether you’re shopping for the best home owners insurance or renters insurance, we always recommend requesting insurance quotes from at least three different companies. Get your free lemonade offer on the provider’s website.

Frequently Asked Questions About Lemonade Renters Insurance

Methodology: Our system for ranking the best renters insurance companies

Through extensive industry research, we have determined the following factors and weights to evaluate each company. We rated each company on a 100-point scale, then divided the points earned for each vendor’s final score on a 5-point scale.

  • Total cost: 15/100
  • Add-ons and discount options: 20/100
  • Standard coverage: 17.5/100
  • Country Availability: 5/100
  • Support Availability: 20/100
  • Connection: 12.5/100
  • Authority: 10/100

We’ve used these rating factors to determine the best renters insurance companies to help you with your decision when looking at policies. We routinely monitor and update data regularly to ensure reviews reflect the most up-to-date information and advice.

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