score95Service, Cost and More
Lemonade Renters Insurance Review: Cost & Service (2023)
Review Rates
Ensure you're getting the best rate. Review quotes from a top insurance company.
score955/5
satisfaction
5/5
affordability
4/5
stability
pros
High customer satisfaction rating
Exceptional financial stability
Has a mobile app and other online tools to improve customer experience
cons
Few discount opportunities
Below average coverage options
Verdict
Lemonade scored well on customer satisfaction and financial stability, making it a great choice for renters insurance. However, its customer complaint ratio is higher than the national average. That means Lemonade gets more complaints than the average insurance provider.
With Lemonade renters insurance, there are six optional coverages and three discount opportunities, both of which are lower than the industry average. If you want opportunities to save money, you may find Lemonade renters insurance discounts are too few.
Does Lemonade Have Good Customer Service?
To find the best renters insurance, you must consider a company’s customer service. That way, you are assured that your chosen carrier provides quality service and follows through on claims.
Based on MoneyGeek’s analysis, Lemonade is among the best companies for renters insurance. It received high ratings from J.D. Power for customer satisfaction and Demotech for financial stability. However, it receives more customer complaints than the average insurer, according to the National Association of Insurance Commissioners (NAIC).
Customer Satisfaction Rating
Lemonade received a J.D. Power score of 870 out of 1,000, placing first overall on the customer satisfaction index ranking for renters insurance. That means it provides the best service experience to its policyholders. J.D. Power conducted its study by examining an insurer’s interaction, policy offerings, price, billing process, policy information and claims.
Lemonade
Another way to measure customer satisfaction is through the NAIC complaint score, which compares the performance of companies. Lemonade has a score of 1.94 on NAIC’s complaint index report. That is higher than the national median of 1.00, which means Lemonade receives more complaints than the average insurer.
Financial Stability Rating
An insurance company with strong financial stability means it can meet its financial obligations with no problems. Lemonade received an A rating from Demotech, indicating its exceptional ability to pay insurance claims. Demotech is a financial analysis firm that evaluates the stability of regional and specialty insurers.
What to Expect From Lemonade Renters Insurance
Shopping for renters insurance is easier when you have detailed information about the policy. However, the process of obtaining this varies by company. Some require you to speak to an agent, while others make it available online. Below, MoneyGeek outlined how to acquire, manage and cancel a Lemonade renters insurance policy.
1
Getting a quote
You can get a personalized quote online for renters insurance with Lemonade. Alternatively, you can browse the Lemonade renters insurance quotes collected by MoneyGeek in the next section.
2
Customer support
For questions or assistance, you can contact Lemonade through its app or website; getting in touch via phone is also possible.
3
Filing a claim
You can file claims through the mobile app. After clicking the “Claim” button, Lemonade guides you through the rest of the process.
4
Canceling your policy
You can cancel a Lemonade renters insurance policy any time through the mobile app or website. When you cancel your policy, you receive a refund for the remaining period you paid for in advance.
STATE AVAILABILITY
Lemonade renters insurance is available in the District of Columbia and the following states: Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington and Wisconsin.
How Much Does Lemonade’s Renters Insurance Cost?
Renters insurance has an average cost of $13 per month or $159 per year. However, rates may differ based on the insurer you choose, your coverage limit and location.
You must speak with an agent or get a Lemonade renters insurance quote online to determine the policy price. Keep in mind that purchasing additional coverage for valuable items can impact the cost of your monthly premium.
AVERAGE COST OF LEMONADE RENTERS INSURANCE
Personal Property Coverage | Annual Rate |
|---|---|
$20,000 | $84.46 |
$50,000 | $178.78 |
$100,000 | $300.86 |
Your coverage limit determines the cost of renters insurance. The trick here is to choose an amount that’s not too much or too little — $20,000 is usually a good starting point. But, it’s best to get the appropriate amount. You can use MoneyGeek’s personal property calculator to figure out how much coverage best suits your needs.
clothing
Total: $0
MONEYGEEK EXPERT TIP
Figuring out exactly how much your personal property costs can help you determine the amount of coverage you need when getting a Lemonade renters insurance quote. That can prevent you from purchasing too much or too little coverage, which can ultimately save you money.
What Discounts Does Lemonade Offer?
Lemonade offers three discount opportunities for renters insurance, which is fewer than the industry average of five. But Lemonade offers an annual payment discount, which is a rare discount that lets you pay less if you pay your full premium all at once.
Discount | Description |
|---|---|
Multi-Policy Discount | Lemonade automatically applies a discount if you bundle any of their insurance products: renters, homeowners, auto, pet health or term life insurance. |
Protective Device Discount | Lemonade provides a discount if you have protective devices, such as fire alarms, sprinklers or security alarms, installed in your home. |
Annual Payment Discount | Paying annually instead of monthly makes you eligible for a discount of around 4% on your Lemonade renters insurance policy. |
MONEYGEEK EXPERT TIP
One way to lower the cost of renters insurance is to bundle policies from the same company. With Lemonade, you can take advantage of its multi-policy discount and save quite a bit of money by bundling insurance products.
Which Coverage Types Does Lemonade Offer?
Several factors affect the cost of renters insurance, including coverage options. On average, renters insurance companies advertise seven coverages.
Individuals with a Lemonade renters insurance policy can choose from six optional coverages. Among these add-ons is landlord property damage, which is rarely offered by insurers. Lemonade also provides flood coverage, though it needs a separate policy.
MoneyGeek summarized the six optional coverages offered by Lemonade for a renters insurance policy. These include scheduled personal property, water backup, earthquake damage, flood coverage, equipment breakdown and landlord property damage.
1
Scheduled Personal Property
This coverage pays for stolen, lost or damaged jewelry items. It has an annual cost of $7 per $1,000 of jewelry value.
2
Water Backup
Costing $10 per year, this additional coverage pays for damage caused by water coming out of your drain or sewer.
3
Landlord Property Damage
For an additional $6 per year, you can purchase this endorsement and add coverage for your landlord’s property in case of damage by your pet or water.
4
Equipment Breakdown
It covers appliances and electronics, such as your air conditioner, phone or TV, if they suffer a mechanical breakdown. This additional coverage costs $24 annually.
5
Earthquake
This covers earthquake damage. However, only renters in California and Arkansas can add this optional coverage to their policy.
6
Flood
You can get flood coverage as a separate policy. This covers damage to your belongings caused by a flood.
When shopping for renters insurance, it’s critical to make sure you have the standard renters insurance coverages. These are personal property, personal liability, medical payments and additional living expenses coverage.
You may also buy flood, earthquake or insect coverage depending on your situation. However, some are rarely offered, so make sure to review the fine print before purchasing a policy. For example, Lemonade does not have insect coverage available to renters.
Renters Insurance Coverages: What to Expect
- Personal Property Coverage
- Personal Liability Coverage
- Medical Payments Coverage
- Additional Living Expenses (Loss of Use)
- Flood Coverage
- Earthquake Coverage
- Insect or Bed Bug Coverage
AVAILABLE COVERAGE LIMITS
You can choose a coverage limit for renters insurance through Lemonade, starting at $10,000. You can increase the amount in $10,000 increments to suit your needs. The maximum you may be able to get is $250,000 on a Lemonade renters insurance policy.
What Online Renters Insurance Tools Does Lemonade Offer?
The availability of various online tools or features can make the customer experience better. Lemonade provides a few tools that policyholders and interested people can use for online personalized quotes or policy management and payment.
Other Lemonade Insurance Products
Aside from renters insurance, Lemonade offers other insurance products, including homeowners, auto, pet health and term life insurance. When you buy a Lemonade renters insurance policy, you can also get its other products (excluding homeowners insurance).
Type of Product | Description |
|---|---|
Homeowners Insurance | If you’re not a renter, you can purchase a Lemonade homeowners policy, protecting your home and property from damage caused by wildfires, weather, crime and vandalism. |
Car Insurance | Lemonade’s auto insurance covers the cost of damage to your car caused by an accident, fire, weather, vandalism and more, or replacement if it is stolen. |
Pet Health Insurance | Lemonade offers pet insurance that can cover your pet’s medical needs, such as prescription medication, diagnostics, hospitalization, surgery and more. |
Term Life Insurance | You can get term life insurance from Lemonade. The term options are 10, 15, 20, 25 and 30 years. |
Compare Renters Insurance Rates
Ensure you're getting the best rate for your renters insurance. Compare quotes from the top insurance companies.
Methodology
To evaluate Lemonade’s quality as a renters insurance company, MoneyGeek analyzed Lemonade’s website, manually collected quotes and consulted consumer intelligence organizations such as J.D. Power, the NAIC and AM Best.
About Mark Fitzpatrick
sources
- J.D. Power. "Home Insurers Struggle with Customer Loyalty as Boomers Flock to Rental Market, J.D. Power Finds." Accessed April 4, 2022.
- NAIC. "Lemonade Ins Co National Complaint Index Report." Accessed April 4, 2022.
- Demotech. "Lemonade Insurance Company." Accessed April 4, 2022.
- Lemonade. "Insurance that keeps your stuff safe." Accessed April 4, 2022.
- Lemonade. "Renters Insurance." Accessed April 4, 2022.
- Lemonade. "America’s most loved homeowners insurance." Accessed April 4, 2022.
- Lemonade. "Protect Your Car, Help The Planet." Accessed April 4, 2022.
- Lemonade. "Pet Health Insurance With Super Fast Everything." Accessed April 4, 2022.
- Lemonade. "Term Life Insurance For The Next Generation." Accessed April 4, 2022.