Home Insurance

Lemonade Home Insurance Review 2020

Pros Explained

Cons Explained

Standard Home Insurance Coverage Plan

Here’s what you can expect with Lemonade’s standard home insurance plan:

Factors That Affect Rates

While each insurance company may use slightly different criteria, here are the factors they generally consider when determining your rates: 

  • Property Location – Homes near a body of water, such as along the coast, generally cost more to insure. Also, if you live in an area that’s prone to wildfires, your insurance will likely be more expensive.
  • Roof Condition – The better your roof’s condition and the newer it is, the lower your premium will likely be. 
  • Home Characteristics The size of your home, the materials it’s made of, and if you have a trampoline in the yard or a wood-burning stove in the kitchen all affect the cost of your premium.
  • Claims History – Statistically, if you’ve filed claims before, there’s a greater likelihood that you’ll file a claim in the future, which could bump up the cost of your insurance, as could filing the same claim multiple times.
  • Home Security Systems – The greater your investment in protecting your home and belongings, the less expensive your policy. We’re talking about installing a home alarm, indoor fire sprinklers, deadbolts, or a security camera.
  • Dog Bites If there’s a history of reported dog bites on your property, your policy will probably be costlier.
  • Credit History Your credit history doesn’t just affect your ability to get financing; it also affects the cost of your insurance. The stronger your credit score, the lower your premium.
  • Home-Based Business – Because having clients or customers visiting you in your home increases the likelihood of an accident happening, this could potentially up the cost of your policy. And while some of the equipment and supplies for your home-based business might be included in a standard homeowners insurance policy, not everything will be.

Lemonade Home Insurance Discounts

Lemonade’s Get Discounts feature is integral to its process. When you’re getting a quote for your policy, it will let you know which discounts you’re eligible for and how much they will lower your premium. In particular, the installation of smoke detectors, burglar alarm systems, sprinkler systems, and deadbolts, as well as having water and temperature alerts and wind protection, all shield your home against theft and the threat of fire and can reduce your premium. Any security devices you install need to be part of a system that checks off these three boxes: 

  • Sounds an alarm within your home 
  • Is linked to a central reporting station 
  • Calls the police


HO3 vs. HO6 Insurance

Homeowners insurance is based on different categories. HO3 is a type of policy that is for a house that’s occupied by the owner. HO6 is a type of policy that’s designed for the owner of a condo unit.


Lemonade Home Insurance Availability

Lemonade is currently available in 23 states (and the District of Columbia): Arizona, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, and Wisconsin.


Other Lemonade Home Insurance Policies

Extra Coverage is an add-on for personal property to protect your jewelry, fine art, and that coveted, pricey pair of golf clubs. It covers accidental loss—when you’ve misplaced something—or accidental physical damage.


Lemonade Customer Service

You can get assistance in one of three ways: by phone, via email, or through Lemonade’s Maya chatbot feature on the app. As you might’ve guessed, using Maya is the easiest, speediest way to get help. If Maya can’t help, then your request or question on the chat function gets rerouted to a member of the customer support team. Their business hours are Monday to Friday, 9 a.m. to 8 p.m. ET. You can give them a ring at 844-733-8666.


How to Make a Home Insurance Claim With Lemonade

According to the NAIC, there was a grand total of five consumer complaints for Lemonade’s homeowners insurance in 2019. However, looking at the Complaint Index, which measures how a company fares against other providers in the insurance industry, Lemonade has a rating of 2.28 for its homeowners insurance, which is more than double the industry average of 1.0. The majority of complaints were about how the claims were handled. Lemonade’s app, however, fares quite well, receiving a 4.9 out of five stars and nearly 36,800 reviews on Apple’s App Store and a 4.6 out of five stars and about 7,900 reviews on Google Play. 


Lemonade Home Insurance Cancellation Policy

You can cancel a Lemonade homeowners insurance policy whenever you like through the app. A refund will be issued for any advance payment. Money from your premium that is paid back through its giveback program won’t be contributed to the Giveback program. One small thing: If you are moving, you don’t have the capability to switch addresses. You’ll need to cancel your existing policy and set up a new one.


Other Insurance Provided by Lemonade

Lemonade offers four other types of insurance policies.


Get a Lemonade Homeowners Insurance Quote

Lemonade can offer a quote in a very short amount of time. You can sign up for a policy through its app or on its website. While you can get your answers by giving Lemonade a ring during its business hours, you cannot sign up for a policy over the phone. 


Verdict

Lemonade is an affordable, forward-thinking, bold challenger insurance company that harnesses AI and machine learning to be efficient and pass on savings to the policyholder. If you’re not keen on handling your insurance through an online platform instead of with an agent, then you’ll be better off with another insurance company.


Compare Other Home Insurance Reviews

While you might be leaning toward Lemonade for your home insurance needs, it’s a good idea to do your homework and research other insurance providers. As there are advantages and downsides to every insurance company and their policies, compare several before making a decision.

Methodology

Investopedia is dedicated to furnishing consumers with unbiased, comprehensive reviews of homeowners insurance providers. We reviewed each insurance provider’s coverage options, available discounts, customer services and satisfaction ratings to ensure that our content helps users make the right insurance decision for their needs.