Lemonade Insurance Review 2019 // Buy Homeowners Online Instantly!

Sep 13, 2019 (0) comment

lemonade insurance review

Use: Buy ​Homeowners Insurance Online

Process

​Get a quote and coverage ​in less than 5 minutes

Price

Some of the lowest in the industry

Ease of use

Simple online application ​process.

Demotech Rating

A-

(Excepetional)

We Like

  • ​Super Fast Quotes
  • Instant Online Coverage 
  • Earthquake Insurance Rider (CA & AR)
  • The Zero Everything Service
  • Detailed Explanation Of Claims Process
  • Lemonade Gives Back

We Don't Like

  • ​Not ​Available Nationwide
  • Some Policy Options Cost Extra

Summary: Lemonade Insurance is one of the best ways to buy homeowners insurance online and avoid the traditional 3 to 5 day home insurance application process.  

Lemonade even offers Earthquake Insurance in some states and has a solid Give Back program. 

However, there are some basic policy options that cost a bit extra that I was was included and they aren't available state wide.

This is why I put this Lemonade Insurance Review together.

So you can see how simple and fast they make it for you to apply online for homeowners insurance and get immediate coverage. 

Enjoy this Review!

Rates From $25.00/month​ ​

(Based on Newer construction in the state of Georgia, A good insurance score, and other desirable factors.)


One of the most confusing aspects of purchasing your home can be shopping for homeowners insurance to close on your loan. 

And get this...

According to a recent study, over 70% of people do absolutely no research before they buy home insurance, and 73% miscalculated how much coverage they would need.  

You can easily assume that 73% of homeowners don't even have enough coverage.

According to the Insurance Information Institute, a poll conducted by ORC International found that 95% of homeowners had homeowners insurance but only 41 percent of renters had renters insurance. 

This is alarming because it means that only about 20% of people shop for their home insurance and only about 20% of them have adequate coverage.

In this review today I am going to show you how their process works, and why it's the best way to buy homeowners insurance online.

It can save you both time and money when you get a home insurance quote and buy online.

lemonade instant insurance

Who Is Lemonade Insurance? 

Lemonade also falls under the category of what I like to call a NewTech Insurance Company.

A NewTech Insurance Company is an insurance company that creates a new buying process for their industry and sets a new standard; this is exactly what they are doing.

Lemonade is a property and casualty insurance company that is transforming the very business model of insurance.

Their business runs by mixing technology and transparency into the space of insurance and they only take a flat fee so there is nothing for them to gain by delaying or denying claims. 

Lemonade has been rated A (Exceptional) by Demotech for its financial stability. 

Why Should You Care About Demotech?

I like to think of Demotech like the JD Power of the insurance industry and they have been around since 1985.

They rate companies based mainly on their financial strength, which can be an indicator of claims-paying ability.

Claims Paying Ability "in plain English":   A Life Insurance Company's ability to pay out on a policy.

demotech ratings

What Makes Them Different?

Unlike other insurance companies, Lemonade only takes a fixed fee out of your monthly payments.

They pay for expenses like reinsurance and then use the rest for paying out claims.

Then at the end of the year they do an annual "Giveback" with the remainder of the unclaimed premiums.

We talk more about how the Giveback works below, but below is a quick review: 

Every year leftover money is donated to causes that you might care about.  

Whatever cause you choose, gets matched with other policy holders or "peers".  

Lemonade then uses the premiums collected from each group to pay for the group's claims, and then gives back any leftover money to their common cause. 

And don't worry, if the group's claims exceed what is left in the group or "pool", reinsurance will kick in and cover the difference.

Lemonade also offers the ability to purchase additional Earthquake coverage depending on the state that you live in.

Almost none of the top home insurance companies give you the option to add earthquake insurance. 

Lemonade's Zero Everything

What is Lemonade’s Zero Everything?

Lemonade’s Zero Everything is a unique product that allows users to ‘undo’ losses. From a stolen bike to water damage from your burst pipe, policyholders with Zero Everything can receive claim payments with no deductible (you’ll get full replacement cost upon claim approval) and no rate hikes, up to two claims per year.

Zero Everything is currently available only in selected areas.

How does Zero Everything work?

Zero Everything allows for the payments of up to two claims per year, and upon renewal starts off as a clean slate (no claims), and with no rate hike. If there are more than two claims a year, the third claim (and subsequently thereafter) will automatically have a $250 deductible tied to it, and upon renewal, this third claim will be counted towards a possible rate hike.

Zero Everything can be activated once per policy.

Lemonade Condo & Co-Op Insurance

Your Lemonade Condo Insurance or Co-Op Insurance quote can still be completed in about 30 to 60 seconds and have the policy finalized within 4 minutes.

This is awesome for anyone who wants to insure multiple homes with them or for anyone who wants the same great product and speed for their condo. 

The best thing about these two products is that they come with the same benefits of Lemonade's homeowners insurance.

What makes them different is that these products only cover your actual unit and the items inside, it doesn't cover the entire building.

lemonade condo insurance
lemonade co op insurance

If you own a Condo or Co-Op, you should definitely consider Lemonade. 

Lemonade Landlord Insurance

Lemonade is also offering landlord insurance if you have a rental property.

The way it works is if you're a condo/co-op owner in NY, CA, TX, IL, PA, DC, or NJ, and rent out your property less than 5 times a year, you can get their landlord insurance policy. 

If your property is in one of those states, you can get this policy by clicking here and just letting them know you own your unit, but will be renting it out.

Keep in mind that a landlord policy only protects the actual property and not the contents inside of it for your renter.

You'll want to encourage them to get their own renters insurance policy (or make it mandatory in your lease!).

Unfortunately, at this time, they do not provide landlord policies for single family homeowners.

What Does Lemonade Home Insurance Cover?

Coverage For Your Home

It will cover your home and any secondary structures on your property.  This part of your coverage does not include the coverage for your personal property or personal liability.

Rebuilding Cost - ​Just ​a general estimate of how much it would cost to rebuild your home and any secondary structures on your property in the event of ​total damage. ​

Extended Replacement Cost - For an extra cost, this added protection increases your standard home coverage by an additional 25% or 50% (depending on which option you select) in case the cost of rebuilding your home is higher than expected. 

Replacement Cost (RC) - When something in your plan is insured for its Replacement Cost, a covered claim would be reimbursed for the cost of replacing that item as of today, minus your policy deductible.

Coverage For Your Belongings

This is the ​coverage that will cover some of your personal property both inside and in certain instances, outside of your home.

When claims are made for covered items, your insurance pays the replacement value of your belongings.

The amount of coverage paid out may vary depending on type of item, location of item (in vs. out of home) and the specific type of peril. 

You can add additional coverage for the below items: 

  • Jewelry
  • Fine Art
  • Bikes
  • Cameras 
  •  Musical Instruments
lemonade extra coverage

Coverage For Your Liability

This is the insurance that covers certain instances of bodily injury, personal injury (emotional or other non-physical damages), medical expenses, and property damage sustained by others for which you or your family members are legally responsible.

If someone is hurt at your home and decide to file a law suit against you, this part of the coverage will kick in.

Loss Of Use Coverage

If your house is damaged by a covered loss to the point that you can't live in it, Lemonade will put you up in a nice hotel or similar rental home.

They will also include living expenses to get you back on your feet.  This part of the policy does have its own maximum limit that you can choose.

Portable Electronics

These items will have a max, you can go up to $6,000 in coverage so be mindful when considering the costs of all your portable electronics.

It covers things like:

  • Phones
  • Tablets
  • Laptops
  • Headphones

Medical Payments To Others

If your date cuts a finger while chopping veggies for dinner at your place and needs stitches, or the babysitter sprains an ankle running down the stairs to answer the door. 

You will be responsible for their medical payments, but don't worry. These medical expenses are covered in your policy.

Self-Storage Locker 

If you have your personal property stored in a self-storage facility, or usually store it at a different place, Lemonade's policy covers you for theft up to a limit of $1,000. 

Note, if you’re in NY, CA, or CT, their policy only covers your personal property in self-storage units for up to 10% of your Coverage C (personal property limit).

Additional Policy Options

Some additional policy options you can choose are: 

Mortgage: Add your mortgagee to your policy, and they will send them your proof of insurance for free. 

Spouse: Your spouse is automatically covered by this policy. You can easily add their name if you wish

Significant Other: Living with your significant other? Easily add them to your policy at an additional cost.

Water Backup: Covers damage caused by water coming out of your drain or sewer for an additional cost.  

What Else Is Covered

Lemonade covers other things as well such as: 

Fire & Smoke: A faulty Christmas light or your attempt at deep frying can cause some smoke and fire damage. They cover you for both.

Bad Weather: Wind, lightning, and hail are scary. You're covered for all of them. 

Crime & Vandalism: Your home is full of stuff: furniture, clothing, appliances. Lemonade will cover you if any of it is stolen or damaged.

Water Damage: Your pipes may be feeling a chill, or your neighbor's bathtub is leaking through your ceiling. Aka, if there's sudden or accidental water damage, you're covered.

Mold: Sometimes, water damage can cause side effects like Fungi, Bacteria and mold. While gross, the happy side is that you're covered for up to 5% of your replacement cost for this kind of damage. You can add more coverage if you'd like.

Earthquake Insurance In CA & AR

If you are lucky enough to live in CA or AR you can actually pay an additional fee and get earthquake insurance added to your policy.

Lemonade is one of the few companies that offers this option and they are looking to expand it into more states.

How Your Deductible Will Work

This policy has a General Deductible and you have the option to choose deductible ranges from $250 up to $10,000.

Keep in mind the lower your deductible the higher your monthly premium will be. 

The higher your deductible the more it's going to cost you out of pocket when you file a claim.

Lemonade Insurance Review (Walkthrough) 

This process really is all online and it doesn't take much time to get to the quote section of the process.

The first part is choosing the type of building you are going to be purchasing.

lemonade primary resident

In most cases this property will need to be your primary residence. 

This part is about describing your fixtures, I think it is to help determine what your limits of coverage should be in your policy.

I think this is for discounts maybe, you probably get lower rates if you have a fire alarm and burglar alarm in your home.

Truthfully, you should probably get a Haven Door Locking system as well, those things are great.

However, they probably won't get you any sort of discount.

This basically want's to know your insurance claim filing history.

This is a "soft pull" on your credit to check your insurance score, it will not affect your credit score.

Lastly they need an email and your date of birth before you can head to the next screen with the quote.

lemonade homeowners insurance

Once you have entered that basic information you will hit the quote screen.

As you can see, if you prefer to get more discounts you can click the "Get Discounts" button to answer additional questions for more discounts.

From this page it is only 1 more step which is finalizing payment with a credit or debit card or as part of escrow / closing costs.

It's this simple and you can be covered.

What Does Lemonade Not Cover?

Lemonade Insurance offers a very comprehensive plan; however, there are a few things that they Do NOT cover, like:

  • ​Flood damage
  • ​Sinkhole Damage (​In certain states)
  • ​Landslides & Mudflow Damage
  • Vicious Dog Attacks 

The dog Breeds they don't cover are:

Pit Bulls, Staffordshire Terriers, Doberman Pinschers, Rottweilers, German Shepherds, Chows, Great Danes, Presa Canarios, Akitas, Alaskan Malamutes, Siberian Huskies, Wolf-hybrids.

I know it doesn't seem fair to pet parents, but this is pretty much industry standard.

Who Does Your Lemonade Policy Cover? 

One of the most often asked questions is, "Who will this policy cover?"  

The reason this is an important question to ask is because it is easy to assume that because you have homeowners insurance that your room mate is covered.

However, that isn't true, they would need their own policy if they are renting, Lemonade made a nice video about who all is covered below: 

How Much Does Lemonade Coverage Cost?

​The main driver of your premium is the cost it would take to rebuild your home in case of a disaster. 

This is ​based on the materials used to build your home, number of rooms, number of stories, and many other factors.

The location of your home and your personal history with home or renters insurance claims are also taken into account.

Lemonade has made it very easy to compare quotes and review insurance rates online.

The best way to find out your cost is to get a few quick and free homeowners insurance quotes below.

Lemonade Insurance Availability:

There are a few things to take note of with a Lemonade policy: 

  • Lemonade offers Homeowners, Condo, & Co-Op insurance.
  • Lemonade Customers can add payments to their loan or pay with a debit or credit card.
  • Currently Available In - AR, AZ, CA, CO, CT, DC, GA, IA, IL, IN, MA, MD, MI, NJ, NM, NV, NY, OH, OK, OR, PA, RI, TN, TX, VA, & WI.

Giving Back To The Community

lemonade give back

So, just a quick overview, insurance works by pooling small amounts of money (premiums) from a large group of people to pay for the unlucky few who suffer covered losses (claims).

Since it’s impossible to predict how much money will be needed to cover these losses, the amounts people are asked to pay may be higher than what’s needed some years. Often, there’s money left at the end of the year.

Insurance companies take this money as profits. That may make them reluctant to pay claims, since it damages their earnings.

But Lemonade thinks there’s a better way and instead of keeping this money, they plan to use it for social impact by giving it to local communities and global causes.

And while, the Giveback is currently not recognized as a tax deductible donation it should be possible for Lemonade to give back every year.

When do they pay the Giveback?

At the end of June, they calculate and pay the Giveback. They pay the Giveback in 4 equal payments over 4 years.

What happens to my Giveback if I cancel my policy?

Lemonade only pays a Giveback with respect to active policies.

How often can I change causes?

Once you pick a cause, it will be set until the following June. Once the Giveback is paid, you will have an opportunity to pick a new cause.

How can I add my cause to the Giveback program?

Lemonade will consider your cause for their Giveback program if you email them at: team@lemonade.com.

Is the Giveback guaranteed?

No. Giveback is part of their corporate policy, and their plan is to pay it every year. 

But sometimes, peer groups will not have any money left to give back because their claims depleted the Giveback pool. 

Lemonade Claims Process

lemonade claims

How do I file a claim?

Lemonade has made filing a claim super easy, all you need to do is open the Lemonade app and click the "Claim" button. 

You will get guided through the rest of the process after that. 

How will I get paid for my claim?

Once you finish the claim report inside of the Lemonade app, you will be asked to enter your banking information for wire or direct deposit.

As soon as the claim is approved they will issue your payment minus the amount of your deductible, directly into your bank account. 

How fast will a claim be paid?

Lemonade's goal is to pay almost instantly for the majority of simple property claims.

For more complicated claims the process is going to depend on how long it takes you to get back the requested information to make a decision on the claim.

It's best to keep copies of all your documents in a safe place to get out of the claims process as fast as possible.

Why does Lemonade ask me to record a video during the process?

Honestly, there is no better way to understand your situation than for Lemonade to look a video of the incident and hear you go over the situation.  

It only takes a minute to record the video and it's used only for the process of reviewing your claim. 

What’s considered a claim emergency?

Lemonade considers an emergency as an event that requires immediate assistance or temporary housing as a result of fire, ongoing water damage, or any other structural damage that leaves your home exposed.

Once you report an emergency, their response team will call you to get an idea of the situation and provide you with emergency services. 

They have a network of emergency response and repair partners that are available 24/7 to assist you with almost anything at any time.

For emergencies, and in cases where you don't have access to our app or website, you can call them at: (844) 733-8666.

What documentation do you need from me? Should I take inventory?

It's always best to keep a copy of your receipt for expensive things, but, we all know that not everyone saves their receipts. 

The best thing to do is keep a copy of your receipts for things that are expensive, like $250 or more, this way your claim can get settled faster.

Even if you don’t have the receipt, keeping note of where and when you purchased more expensive items will help Lemonade help you faster. 


​How To Take Action

No other Lemonade Insurance Reviews are as long as mine; however, I wanted to make sure that you received as much information as possible.

If you have been holding off on buying homeowners insurance for any reason,  I say give Lemonade a chance. 

You have nothing to lose, if you decide to cancel the policy before the year is up, your remaining days of coverage will be pro-rated and you will receive a refund based on days remaining.

With their ability to cover new technology, focus on covering more modern lifestyles, and a commitment to being an overall better insurance company.  

Lemonade is changing the face of homeowners insurance and also changing the buying process.  

Just click on the ​button bellow to get started.​

Thanks For Reading My Review... Before You Go!

What did you think of my review?  Did I miss anything?

Summary
Review Date
Reviewed Item
Lemonade Insurance
Author Rating
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Sa El is the Co-Founder & CEO of Simply Insurance. He is a Licensed Life and Health Insurance Agent with over 11 years of experience in the industry. He is an Entrepreneur, Insurance Educator and Field Underwriter. Sa is on a Journey to get 1 Million Families insured.

All posts by Mark Mathon

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