Lemonade Renters Insurance Review: Cost & Service (2024)

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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).

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.