Lemonade Homeowners Insurance Review: Service, Cost & More

Lemonade has a MoneyGeek score of 84 out of 100. While it ranks well in affordability, it scores average when it comes to customer complaints and financial stability. MoneyGeek’s Lemonade homeowners insurance review outlines the important information about this insurer.

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Last Updated: 9/20/2022
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pros

This is an iconOffers more coverages than the national average
This is an iconHas a mobile app available for Android and iOS users

cons

This is an iconOffers only two discounts
This is an iconReceived more customer complaints than average

Verdict

Lemonade received customer satisfaction and financial stability scores lower than the industry average and a customer complaint index score higher than the industry average. However, the insurer offers five unique coverages, including hidden water damage, mold, flood, earthquake and equipment breakdown. Policies are very affordable, but the provider only offers two additional discount opportunities to save money.

Does Lemonade Have Good Customer Service?

Lemonade received a MoneyGeek score of 84 out of 100 based on customer satisfaction, financial stability and affordability. This insurer has an excellent score for affordability, but its scores for customer satisfaction and financial stability are average. It also received a higher than average amount of customer complaints according to its National Association of Insurance Commissioners (NAIC) rating.

Customer Satisfaction Rating

Lemonade has a J.D. Power score of 3.50 out of 5. While its score isn’t the highest among the evaluated providers, it’s not the lowest. Regardless of how it compares to other providers, this score indicates that the insurer provides poor to average customer service.

Customer Complaint Index

Lemonade

Lemonade received an NAIC Customer Complaint score of 1.94, which is almost twice the national median of 1.00. This means that Lemonade received more customer complaints on average than other insurance companies.

Financial Stability Rating

The company received an AM Best score of 3.50 out of 5, indicating that it has average financial stability. This means that Lemonade is able to fulfill its policyholders’ claims most of the time.

What to Expect From Lemonade Homeowners Insurance

According to one study, most customers struggled to get a homeowners insurance policy because they were unfamiliar with the process. Every company has its own application process: companies offer the option to process applications in person, online or over the phone.

Lemonade’s process can be done online, especially with the help of its mobile app. MoneyGeek outlined the steps for setting up your homeowners insurance policy with Lemonade below.

1

Getting a quote

Homeowners can get a personalized quote on the Lemonade official website. MoneyGeek also collected quotes from Lemonade which can be found in the subsequent sections of this review.

2

Customer support

You can get customer support through the following channels:

  • Online: Lemonade mobile app or website
  • Over the phone: (844) 733-8666
  • E-mail: help@lemonade.com

Lemonade can respond to your request at any time. Its website also has a specialized link for customers who have an online account.

3

Filing a claim

Account holders can file a claim through the mobile app. The app will, then, help you with the process.

4

Canceling your policy

Homeowners can cancel their Lemonade homeowners insurance policy by using the Lemonade app. Lemonade can give you a refund for the rest of the period that you already paid for.

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FILING A HOMEOWNERS INSURANCE CLAIM WITH LEMONADE

To file a claim, it’s best to get the Lemonade mobile app. In the app, click on the ‘Claim’ button or link and there will be instructions to guide you through the process. Remember that you might need to provide information about the incident or proof to support your claim.

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STATE AVAILABILITY

Lemonade’s homeowners insurance is available in Arizona; California; Colorado; Connecticut; Washington, D.C.; Georgia; Iowa; Illinois; Indiana; Maryland; Massachusetts; Michigan; Missouri; Nevada; New Jersey; New York; Ohio; Oklahoma; Oregon; Pennsylvania; Tennessee; Texas; Virginia and Wisconsin.

How Much Does Lemonade Homeowners Insurance Cost?

A Lemonade homeowners insurance policy with a dwelling coverage of $250,000 costs $975 per year. On average, the cost of homeowners insurance is $1,979 per year, making a Lemonade policy cheaper than the national average.

Lemonade offers discounts for bundling and installing protective devices in your home. You can take advantage of these to lower the price of your homeowners insurance, but these are the only discounts offered by the insurer.

  • Dwelling Coverage
    Annual Premium
  • $250,000

    $975

  • $500,000

    $1,157

  • $750,000

    $1,732

  • $1,000,000

    $1,106

The cost of home insurance is affected by a number of factors: location, replacement cost coverage, personal coverage and deductible amounts are just a few of these considerations.

Homeowners can also choose the limits of other coverages. Other structures' coverage, for example, need to be 10% of your dwelling coverage.

A dwelling coverage of $250,000 is a good starting point but it may not be enough to cover your needs. To ensure that you, your house and your personal property are protected, it’s best to assess the value of your property to know how much coverage you really need.

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Home Insurance Calculator

State

Alabama

Dwelling Coverage

$100,000

Deductible

$500

Liability

$300,000

Personal Property

$20,000

Credit Score

Excellent
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low end

on average

high end

These are annual estimates. Get a personalized quote to determine your costs.

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MONEYGEEK EXPERT TIP

A home insurance policy with a low coverage limit and deductible may reduce your short-term cost, but you may end up paying more money out of pocket if your home is seriously damaged.

What Discounts Does Lemonade Offer?

Lemonade offers two common discounts, which is below the industry average. Still, Lemonade policyholders can save money by bundling their home and auto insurance policies and installing protective devices.

  • Discount
    Description
  • Bundling Discount

    Homeowners can get a discount when they get homeowners insurance together with another insurance policy, such as car insurance.

  • Protective Device Discount

    Lemonade gives a 3% discount for installing protective devices in your home.

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MONEYGEEK EXPERT TIP

Bundling your homeowners insurance with other insurance products allows you to save money on your premium. However, Lemonade only offers a few discounts, so the main way to save money with this insurer is by choosing a policy with less coverage.

Which Coverage Types Does Lemonade Offer?

Lemonade has six standard coverages, namely dwelling, personal property, personal liability, other structures, medical payments and loss of use. It offers seven optional coverages which is above the industry average.

This company offers five unique coverages: hidden water damage, mold, flood, earthquake and equipment breakdown. Lemonade, however, does not have wind and hail or water damage and freezing coverages. Earthquake coverage is available with the provider, but only in California.

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AVAILABLE COVERAGE LIMITS

MoneyGeek gathered quotes for the following coverage limits: $250,000; $500,000; $750,000 and $1,000,000. The details you provide to your insurer about your home may influence your coverage limits, which affects the cost of your homeowners insurance.

Remember that insurance companies rarely give you a list of coverage levels to choose from, so it’s best to give accurate information about your home so they can calculate the correct coverage limit.

Lemonade provides several coverages to protect homeowners from damage, loss or even breakdown of appliances. The list below will give you an idea of what these coverages cover and how they can protect you in the future.

1

Back-Up of Sewer or Drain

It covers damage caused by water coming up or overflowing from your drainage or sewer. It includes damages to your home and personal property.

2

Scheduled Personal Property

If your jewelry, fine art or other valuable items are lost, stolen or damaged, your insurance can cover it and reimburse you the value of the item.

3

Hidden Water Damage

It covers backed-up water or overflow from your sump pump. Damage from flood or surface water is not included in this coverage.

4

Mold

If your home incurs damage because of mold, your insurance can cover the cost of repair.

5

Flood

It covers damages caused by storm surges.

6

Earthquake

It covers damages, repairs and living expenses that homeowners may face because of an earthquake. Lemonade only offers earthquake coverage for homeowners in California.

7

Equipment Breakdown

In case home appliances and systems get broken, your insurance can cover them so you won’t have to pay so much for repair or replacement.

Standard coverages should be one of your top priorities when shopping for home insurance because it's important to have all of them. The more coverage you have, the more protected you are. It's a good idea to read the fine print of your policy before purchasing.

Flood, earthquake and pest insurance are frequently excluded from homeowner's policies. Companies can offer them as an endorsement or as a separate policy. However, other companies don’t have them at all.

What Online Homeowners Insurance Tools Does Lemonade Offer?

Customers of Lemonade can manage their accounts, pay their dues and file a claim online. They can use the official website or the Lemonade mobile app. These tools are available for policy owners and non-owners, though customers without an online account may have limited access to these services.

Other Lemonade Insurance Products

Lemonade offers other insurance products. These products can be bundled with your Lemonade homeowners insurance to receive a discount.

  • Type of Product
    Description
  • Car Insurance

    Lemonade car insurance covers accidents, damages, liabilities and more relating to your vehicle.

  • Pet Insurance

    Procedures, diagnostics and medication for your fur baby can be covered by Lemonade’s pet insurance.

  • Life Insurance

    Lemonade’s life insurance can cover certain medical conditions for up to 30 years.

Methodology

To evaluate Lemonade as a homeowners insurance company, MoneyGeek analyzed the Lemonade website, manually collected quotes and consulted consumer intelligence organizations such as J.D. Power, the NAIC and AM Best.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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