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Lemonade

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6.5

Overall Score

LAST UPDATED: February 23rd, 2024

Transforming an industry that generally confuses consumers with complicated technical terms and lacks the latest technology is a sizable task, but that's exactly what Lemonade aims to do.

Lemonade is a licensed insurance company offering homeowners insurance, pet health insurance, and renters insurance in the United States. The company is powered by artificial intelligence behavioral economics and is driven by social good. Lemonade is a certified B-Corp and donates its unused premiums to nonprofits selected by the policyholders.

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The Good

  • Giveback Program
  • Hassle-Free
  • Robust Coverage
  • Financially Rated
  • Certified B-Corporation
  • International Presence

Giveback Program

Traditional insurance companies make a profit by keeping the money they don't pay out in claims. This means that the company loses money every time it pays a claim, giving the company the incentive to deny or delay funds.

Lemonade is unique because instead of keeping the money from your premiums, it donates the unclaimed remainder to charitable organizations.

At the end of the year, Lemonade gives back any leftover money to causes chosen by policyholders and uses reinsurance to cover the cases where the group's claims exceed what's left in the pool.

Lemonade's Giveback program includes charities such as American Red Cross, ACLU, New Story, Teach for America, The Trevor Project, 350.org, Direct Relief, and more.

Hassle-Free

Lemonade is known for being extremely technology-friendly. So it's incredibly simple to sign up and get a quote. While the company advertises that the process only takes about a minute and a half, we think 5 to 10 minutes is more accurate if you're carefully going over the coverage and including everything you know about your home or condo. Once you've entered the necessary information, Lemonade provides you with a monthly quote. From here, you can add coverage, choose your deductible, and check for discounts.

When buying homeowners insurance, you can add your mortgage to your policy, and Lemonade will send your proof of insurance. If you're already insured with a different company, you can easily switch since Lemonade will take care of that process for you.

Robust Coverage

Lemonade offers reasonably extensive coverage that's extremely affordable. The coverage you need will affect your monthly price, but homeowners can expect the following coverage from their basic insurance plan:

  • Personal Property — covers theft, damage, or destruction of personal items
  • Reconstruction Costs — covers the cost of repairs to the home
  • Personal Liability — covers medical expenses and legal fees when a guest or neighbor is injured on your property
  • Loss of Use — covers any living expenses if you are forced to leave your home for covered reasons

Lemonade customers can add extra coverage for additional personal property coverage. This extra coverage is helpful for expensive jewelry, fine art, bikes, cameras, and musical instruments to their policies. You can also quickly add your spouse or significant other to your policy (spouses are free, significant others can be added for a few extra dollars a month), add water back-up coverage (covers damage caused by water coming out of your drain or sewer), and add loss assessment (which covers you if your home or condo association charges you for damage to your building).

Financially Rated

Lemonade received a Financial Stability Rating® of A-Exceptional, from Demotech Inc. 

The insurance provider is also reinsured by some of the largest reinsurers in the industry. 

Certified B-Corporation

In May 2016, Lemonade became a Public Benefit Corporation and was awarded the provisional B-Corp Certificate (both firsts for an insurance carrier).

According to the Certified B Corporation website, "Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. B Corps are accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy."

International Presence

Back in 2018, Lemonade announced that it was extending its business to Europe.

In 2019, Lemonade began offering contents and liability insurance in Germany. A year later, the company launched in the Netherlands and 2020 in France.

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The Bad

  • Limited Customer Insight
  • Not Available Nationwide
  • Some Coverage Gaps

Limited Customer Insight

Best Company has not received many Lemonade home insurance reviews, which means an assessment of the customer experience is not available.

Despite this lack of insight, Lemonade's innovations and giveback program make it attractive for people interested in convenience and supporting nonprofits.

Not Available Nationwide

Although Lemonade plans to be available throughout the United States one day, its coverage is still limited.

Lemonade's Homeowners Insurance is not available to residents of the following states:

  • Alaska
  • Alabama
  • Arkansas
  • Delaware
  • Florida
  • Hawaii
  • Idaho
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Minnesota
  • Mississippi
  • Montana
  • North Carolina
  • North Dakota
  • Nebraska
  • New Hampshire
  • New Mexico
  • Rhode Island
  • South Carolina
  • South Dakota
  • Utah
  • Vermont
  • Washington
  • West Virginia
  • Wyoming

Additionally, Lemonade’s Condo Insurance is not available to residents of the following states:

  • Alaska
  • Alabama
  • Arkansas
  • Delaware
  • Florida
  • Hawaii
  • Idaho
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Minnesota
  • Mississippi
  • Montana
  • North Carolina
  • North Dakota
  • Nebraska
  • New Hampshire
  • New Mexico
  • South Carolina
  • South Dakota
  • Utah
  • Vermont
  • West Virginia
  • Wyoming

Lemonade encourages people to stay tuned as the insurer is continually expanding its services.

Coverage Gaps

Homeowners should keep in mind that Lemonade's insurance coverage does not include structural or personal property damage caused by floods. However, this is not unusual as most insurance companies don't offer flood insurance in their base homeowners policies. But if you specifically want flood insurance, you'll need to look at other insurance providers or buy a separate insurance product.

Depending on your location, you can add earthquake coverage to your Lemonade homeowners insurance policy. However, it's only available to homeowners in California and Arkansas.

Lemonade does not cover high-risk dog attacks. This means you're covered if your dog bites someone as long as they're not considered a high-risk breed and don't have a history of aggression.

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

The only exception to the breed restriction is if your dog is certified as a seeing guide dog, hearing dog, or is trained to assist the physically disabled.

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The Bottom Line

Lemonade's structure and technological innovations make it quite different from a traditional insurance company. Lemonade has become popular due to its low insurance premium rates, social good platform, and its technology-driven and transparent pricing policies.

Homeowners can pay as little as $25 per month for homeowners insurance - of course, your insurance rate will depend on a variety of factors such as how much personal property you have, if you choose to add extra coverage, etc. Lemonade is known for being extremely affordable, so we recommend getting a quote and comparing it to other insurance providers.

Homeowners should keep in mind that Lemonade homeowners insurance doesn't cover everything. Be sure to read the fine print and make sure you're getting the exact coverage you need.

As previously mentioned, a Lemonade policy isn't available nationwide. The company has plans to expand; however, when that will happen isn't disclosed.

While insight on the customer experience is limited, homeowners should anticipate a positive experience when working with Lemonade. The insurance provider aims to transform the insurance industry, and we applaud the company's dedication to providing consumers with a fast, affordable, and hassle-free experience.

Disclosure: Notwithstanding anything to the contrary in the Privacy Policy, Best Company will not sell the information you provide to us on this page or the information we collect automatically on this page to any third parties.

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4.8

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Nathaniel

Filed a claim for wind and hail damage, and the majority was approved without issue. However, there was an additional charge submitted for house wrap which is required by building codes in my area. It has now been over 7 weeks with no answer to this final payment. I've had to continue pushing to get any update on the status which has just been that it's being looked into every time. I don't understand how the prices was so smooth for the original amount of $30,000+ but suddenly the remaining amount under $1,000 is such an issue. If they needed something more from me that I could understand and would happy to do, but nothing. Failing at the entire purpose of insurance is a huge deal, and this failure will probably result in me taking my business elsewhere unless it's resolved soon.

1 year ago

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BDCI PUBLIC ADJUSTERS

CAMERON, THE CURRENT ADJUSTER, CONTINUES TO SEND CORRESPONDENCES DIRECTLY TO THE INSURED EVEN THOUGH THEY HAVE PROVIDED THE SIGNED CONTRACT WITH THE PUBLIC ADJUSTER AND INSTRUCTIONS WERE GIVEN TO LEMONADE NOT TO CONTACT INSURED DIRECTLY. LEMONADE CONTINUES TO LIE AND MISREPRESENT FACTS REGARDING THE LOSS ON A CONSISTENT BASIS. LEMONADE HAS BEEN LATE WITH PAYMENTS AFTER HAVING INVOICES IN THEIR POSSESSION FOR OVER 3 WEEKS. LEMONADE HAS MADE RIDICULOUS REQUEST FOR DOCUMENTATION, SUCH AS ASKING THE INSURED WHAT TYPE CARS THEY DRIVE SO LEMONADE CAN COMPUTE HOW MANY BOXES THEY SHOULD BE ABLE TO TRANSPORT IN EACH TRIP MOVING CONTENTS FROM THE RESIDENCE TO THE TEMPORARY HOUSING. LEMONADE HAS ASKED OF RECEIPTS FOM MILEAGE TRAVELED BY THE INSUREDS ABOVE NORMAL. LEMONADE VENDORS HAVE ASKED INAPPROPRIATE QUESTIONS OF THE INSURED, SUCH AS "WHY DID YOU HIRE A PUBLIC ADJUSTER". THIS INFORMATION IS NONE OF THEIR BUSINESS UNLESS LEMONADE HAS ASKED THEM TO SECRETLY ASK THIS OF THE INSURED SINCE THEY COULD NOT DO IT DIRECTLY. LEMONADES VENDORS SEND INFORMATION DIRECTLY TO LEMONADE WITHOUT HAVING WRITTEN AUTHORITY FROM THE INSURED TO DO SO. THEY DO IT BECAUSE THEY GET REFERRALS FROM LEMONADE, BUT THEY SIGN A CONTRACT WITH THE INSURED FOR THE ACTUAL WORK PERFORMED. THE INSURED IS THE 'ACTUAL' CUSTOMER BUT THEY ARE TREATED BY THE VENDORS AS IF THEY DONT MATTER. THEY HAD A FIELD INSPECTOR COME OUT TO INSPECT, BUT REFUSED TO STAY AND REACH AN AGREED SCOPE WITH THE PUBLIC ADJUSTER AND A CONTRACTOR THE INSURED CONTACTED. HE TOLD US HE HAD ANOTHER APPOINTMENT AND HAD TO GO. HE THEN MISREPRESENTED THE LOSS IN HIS PHOTOS HE PROVIDED. LEMONADE STILL HAS NOT PROVIDED HIS ACTUAL REPORT. THEY STARTED BY JUST SENDING HIS ESTIMATE. WE HAD TO REQUEST THE REPORT AND PHOTOS. LEMONADE DOES NOT STAND BEHIND THEIR INSUREDS. THEY PREFER TO STAND BEHIND THEIR VENDORS, WHO ARE NOT PAYING THEM ANY PREMIUMS AT ALL. I WOULD NEVER RECOMMEND LEMONADE TO ANOTHER INDIVIDUAL BECAUSE OF THE HARRASSMENT AND

1 year ago

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Katherine Lieberknecht Austin, TX

I finally just received full payment for hail damage from a May 2021 storm (almost 10 months after the event). Lemonade's adjuster provided an original estimate that was less than every roofer I spoke to, and it took me six months to resolve it with Lemonade. It seems like the problem is that the first three Lemonade staff people assigned to my case left the company, but Lemonade didn't reassign my case, so it took weeks between each staff person quitting for me to finally get a new staff person assigned to my case. My case totally fell through the cracks. I also received inconsistent info from each different staff person about the paperwork needed to adjust the estimate, which was a total pain for the roofer I ended up using.

2 years ago

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Ritesh B Ellicott City, MD

Poor claim settlement : My roof was damaged in storm and Lemonade approved less than 50% of the actual cost. Moreover it is difficult to contact claim advocate, there is no way to talk to them over phone. They can be contacted only by email and text. Tried to save few hundred dollars by choosing Lemonade has costed me thousands of dollars extra. Save yourself and avoid this company

1 year ago

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Nick Coveney Newburgh, NY

I was left completely un helped. I feel so un helped that I bet this review doesn't even make it to someone that will look further into it. I would love to explain what happened during my experience to another rep. But at the end of the day, I will have to look into another insurance company and look to leave more review on other platforms so others can understand what they are getting into if they use Lemonade.

1 year ago

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GREGORY MC LENDON

YOU HAVE TO FIGHT FOR WHAT YOU ARE ENTITLED TOO. THEY ARE IN THE HABIT OF REQUESTING THE SAME THING THAT THEY ALREADY HAVE IN THEIR RECORDS. THEY TAKE A LONG TIME TO RESPOND TO A QUESTION BY AVOIDING IT HOPING YOU WILL NOT FOLLOW UP ON SAME

1 year ago

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Ken Bachman South Lake Tahoe, CA

I first would like to know why you canceled my contract? Lemonade stated that it was due to the valuation of my home, which I tried many ways to have lowered, but there was no budging on your end. I would like to know the real reason for my cancellation with a response back about this matter.

1 year ago

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Melissa Longden Clinton, TN

I filed a claim for my roof and my representative has ignored my call, emails and finally the lemonade team got back to me. His name is Jeremy and he is clearly not suited for this position and is not good at customer service as it is obvious he has no idea how to handle conflict

1 year ago

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Jon Baker Marietta, GA

I had an absolutely horrendous experience. The initial process to sign up was wonderful, but my claims experience was abysmal. I was paid out appropriately and timely (for the most part) but the communication was very poor.

1 year ago

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T. W. McK Huntington Beach, CA

All started out well but then week after week of silence and the run around. Being approved and an estimate sent to the mitigation company just to be stalled and declined after work had been started.

2 years ago

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Snapper Rogers Indianapolis, IN

This company is worthless. We paid them for months for our condo insurance and we lapsed during covid and they refused to let us continue with them even though we never had a claim and we were caught up in payments,, so they cancelled us for no reason at all. Do not use them

1 year ago

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Luke Swierczynski Troy, MI

Can't get away from their commercials so I finally broke down and tried their quoting tool. They were 30% more for identical coverage that I already had.

2 years ago

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Mark Dane Portland, OR

That we give a $1,000 deductible and get $1,145 to pay for the damage !

1 year ago