Sweet or Sour? Is Lemonade Renters Insurance Good? (or Bad)
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UPDATED: Mar 15, 2021
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We know what a struggle it can be to find the ideal renter’s insurance policy for your lifestyle. You want insurance coverage that fits your budget and gives you the protection that you need.
Lemonade Renters Insurance promises to be affordable and simple. Two words that haven’t traditionally been associated with insurance in any way.
This is why we decided to do a deep dive and to look at ‘Is Lemonade Renters Insurance good?’
Is Lemonade Renters Insurance bad? Is the hype about Lemonade Renters Insurance accurate?
Since the company is relatively new, we thought that we would take a closer at Lemonade Renters Insurance to see if they’re any good.
We’re going to look at the positives, the negatives, and what Lemonade brings to the table when it comes to renters insurance.
Is Lemonade Insurance Renters Insurance Good?
Lemonade promises to offer low rates. They do this by keeping expenses low as an insurance company. Everything is done through the website or the mobile app.
Some policies start for as low as $5/month. This makes Lemonade Renters Insurance the perfect option for those on a budget or for anyone who simply needs insurance because it’s mandated by a landlord.
When we looked for quotes in our Lemonade Renters Insurance review, we found quotes in NYC starting at $15/month.
We were able to find quotes for less than $10/month as well. If you reduce your personal property coverage and increase your deductible, you can easily find a renter’s insurance quote for under $10/month.
Easy to sign up for a renter’s insurance policy.
We’ve gone over the process of going through the sign up for Lemonade Renters Insurance many times and it’s surprisingly simple.
You can get a quote in minutes. From there you can adjust your coverage levels (personal property, add expensive items, work on your deductible, and so on) and sign up in minutes.
The sign up process was much simpler than it is with most other insurance companies.
For example, we’ve seen insurance companies that require your SSN for a renter’s insurance quote. Then there are other insurance providers that won’t even give you a quote online.
On that note…
You can customize your policy renter’s insurance policy with Lemonade.
You can customize every aspect of your Lemonade Renters Insurance policy. This ranges from how much personal property coverage you have to your deductible. This is beneficial for someone who doesn’t own much because you can lower your coverage to only $10,000 for your personal belongings.
Lemonade is a charitable company.
Lemonade is like no other renters insurance company because they donate leftover money to a charity of your choosing.
Lemonade will give money back that isn’t used to pay out insurance claims. Lemonade gave back $1,128,109 in 2020 to charities.
When you sign up for Lemonade Renters Insurance, you get to choose a nonprofit charity and then once a year the unclaimed money is tallied up to get donated.
So what this means is that a percentage of your premium goes towards charitable causes.
Everything is done on the Lemonade Mobile App.
You never have to call anyone or jump through hoops to have something figured you. You can file a claim or update your policy all through the mobile app.
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Is Lemonade Renters Insurance Bad?
So far we have looked at the positive features of Lemonade, but now it’s time to go over some of the negatives so that you have an accurate picture of what to expect.
The company is still relatively new to the industry.
Lemonade didn’t come on the scene until 2015. Many other renters insurance providers have been around for many decades and are established nationwide.
This also means that Lemonade Renters Insurance hasn’t been rated for financial stability by A.M. Best yet.
Lemonade isn’t available nationwide so you may not even be eligible for coverage.
This is critical because you either won’t even be able to apply for renter’s insurance coverage or you may lose your coverage if you move states.
Lemonade Renters Insurance offers replacement cost coverage with its standard policies.
A Lemonade Renters Insurance policy comes with replacement cost coverage for your personal belongings instead of actual cash value. What does this replacement cost coverage mean? According to the official Lemonade Renters Insurance website:
“Think of replacement cost as the ‘Amazon’ price for how your insurance company will value stolen or damaged stuff – it’s how much something of the same make and model would go for today, in a similar condition.”
You have to pay extra to add your roommate to your renter’s insurance policy.
With Lemonade Renters Insurance, you have to pay for a roommate to be added and covered. With some policies, this is free. The image below is from the quotes page.
Is Lemonade Renters Insurance Good or Bad Compared to Competitors?
We have analyzed almost every renter’s insurance company and policy out there so that we could give you the best reviews and comparisons possible.
How does Lemonade compare to State Farm, Allstate, and the other main companies in the renter’s insurance space?
Lemonade Renters Insurance is available in fewer states.
You can’t obtain a Lemonade Renters Insurance policy in every state yet. So what this means is that you currently may not be legible for a policy or your policy will expire if you move to a state where there’s no coverage.
There are no local agents to work with.
Everyone has a different expectation when it comes to working insurance agents. Lemonade does everything online or through its app. You won’t have a rep. The good news is that you save money this way. The bad news is that you don’t have someone to go over your policy with you.
This means you have to deal with customer service on the phone, website chat, or through email. See what Lemonade Renters Insurance Reddit Customers had to say about their experience.
You can obtain a renter’s insurance policy in less than two minutes.
Lemonade promises to provide you with a renters insurance policy in 90 seconds. This is a record time considering that there are still insurance companies that won’t provide you with a quote online. With Lemonade, you don’t have to spend any time waiting to speak with an agent.
You can’t bundle your insurance policies with Lemonade since the company only offers renters and homeowners insurance.
The issue with this is that you’re going to have to find a different insurer for auto insurance and any other insurance needs that you may have.
What’s the final word on Lemonade Renters Insurance?
The team at Value Penguin summarized Lemonade Renters Insurance:
“Lemonade offers some of the best home and renters insurance rates we’ve found, but in exchange for those lower rates, you’ll give up access to some extra features like specialized coverages and in-person customer support. However, for renters and homeowners looking for basic coverage at affordable rates, Lemonade is an excellent choice.”
If you live in a qualifying state and are looking for simplicity, then you should consider trusting Lemonade Renters Insurance with your insurance needs.
You can get a high amount of coverage (personal property coverage and personal liability coverage) for a low-rate within minutes. You don’t have to deal with agents nor do you have to worry about dealing with hassles if you ever file a claim.
Spending $15/month to protect all of your belongings is worth the investment.
If you want to bundle your renter’s insurance with auto insurance and other insurance needs, then you’re going to have to look for another company to go with.
That’s our fair and honest look at Lemonade Renters Insurance. You should have enough information in here to determine if you should explore Lemonade Renters Insurance.