Lemonade Homeowners Insurance Review
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Homeowners’ insurance is an important financial safety net if you own a home. This insurance pays out to help you rebuild your home if a fire, tornado, or other natural disaster destroys it. It also helps you repair your home if it is damaged by hail or lightning strikes. And if a thief breaks into your home and steals your flat-screen TV, jewelry, artwork, and clothing, your homeowners’ insurance policy will pay out to help you replace your stolen items.
Mortgage lenders will not approve you for a home loan if you don’t take out a homeowners’ insurance policy first. Even if you are buying a home with cash or have paid off your mortgage, you should still invest in homeowners’ insurance. Repairing a fire-damaged house or building a new one after a tornado can drain your savings if you aren’t protected by homeowners’ insurance.
You will have your choice of insurance providers when choosing a property insurance policy. That includes Lemonade, an online provider of insurance products, including homeowners’ insurance, renters insurance, life insurance and pet insurance. But is Lemonade a good fit for you? Read our insurance review to find out.
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What is Lemonade homeowners’ insurance?
Lemonade homeowners insurance offers different types of coverage for various disasters that could hit your home. If your home is damaged, the dwelling coverage of your Lemonade policy will pay out to help cover the costs of needed repairs. Lemonade’s insurance coverage extends to other structures on your policy, such as a shed in your backyard or a garage, through your policy's other structures coverage.
If your home is unlivable due to fire damage, a lightning strike, burst pipes, or another covered event, your policy’s loss of use coverage will help cover your temporary living expenses, including the cost of staying in a hotel.
The personal property coverage of your Lemonade policy will cover the costs if someone steals your items. This is true even if your items are not in your home but are stolen from your car or a public place such as a restaurant or library.
Say someone falls down your front steps and needs medical care. Lemonade's medical payments protection will help cover your visitor's medical bills. And if someone sues you for an injury they suffered on your property, the personal liability protection coverage of your Lemonade homeowners insurance policies will help pay for your legal fees.
It’s important to remember, though, that a Lemonade homeowners’ insurance policy, like all homeowners’ insurance policies, won’t cover your home for everything. For instance, you won’t be covered if your basement floods from heavy rain unless you have purchased separate flood insurance. Your Lemonade policy also won’t cover preventable damages, such as damage caused by termites or water damage by pipes leaking for several months.
Lemonade homeowners’ insurance is also not offered in every state. According to Lemonade’s website, you can take out a policy in Arizona, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, Washington, D.C., and Wisconsin.
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How does Lemonade homeowners’ insurance work?
When applying for your Lemonade homeowners’ insurance policy, you’ll need to choose how much coverage you want. Your coverage amount is the maximum that Lemonade will pay for a covered event.
Say policyholders choose $300,000 in dwelling coverage. If their home is destroyed, Lemonade will pay a maximum of $300,000 to help them rebuild it. How much coverage you should choose depends on the type of homeowners’ insurance protection.
For dwelling coverage, you want a maximum coverage amount that is high enough to cover the cost of rebuilding your home. As Lemonade says, this has nothing to do with your home’s market value. Instead, it’s about how much you’d need to spend to rebuild your home if it is destroyed.
What about personal property coverage? Lemonade recommends making an inventory of your belongings and estimating the total cost of everything you'd want to replace if someone stole it or destroyed it. Then, make sure that the personal property coverage portion of Lemonade covers this amount.
You must also consider how much personal liability coverage you need. This can vary, but Lemonade says its personal liability coverage starts at $100,000, meaning that's the maximum it would pay to cover any costs you might suffer if someone is injured in your home.
Lemonade's homeowners' insurance policies also offer medical payments coverage, covering medical bills up to $5,000 for injured people on your property. You’ll also choose a deductible when removing a Lemonade homeowners’ insurance policy. Your deductible is the amount you pay out of pocket for every insurance claim before your homeowners’ insurance policy kicks in to cover the rest of the cost.
Deductibles vary, but Lemonade says they usually range from $1,000 to $2,500 for homeowners’ insurance policies. Say you choose a deductible of $1,000. If your house suffers $3,000 of fire damage, you’d pay for the first $1,000 worth of repairs while Lemonade would cover the remaining $2,000. The higher your deductible, the lower your homeowners’ insurance monthly premium. Make sure you can afford to pay that higher deductible should something happen to your home.
How do you get a quote for Lemonade homeowners’ insurance? That’s simple. Log onto Lemonade’s homepage. Then click on the “CHECK OUR PRICES” button.
Fill in your first and last name and click “LET’S DO THIS.” Enter your home’s address and click “NEXT” to bring up the next page. You’ll next be asked whether you are buying a new home for which you need insurance or considering switching insurance companies. After selecting, you choose whether you are buying a house, co-op or condo and click “NEXT.” You’ll then have to tell Lemonade what type of property you are buying and whether you will occupy it as your primary residence.
Lemonade will then ask you questions about your home, including its square footage and age. Lemonade will also ask if your home is protected by burglar alarms, fire alarms, deadbolts, or a smart water meter.
Once you get the insurance quotes, you can adjust how much you pay by tweaking your deductible and coverage limits. The higher your coverage limits, the more you will pay for homeowners’ insurance. The higher your deductible, the less you will pay.
How much does Lemonade homeowners insurance cost?
Determining the average cost of a homeowners' insurance policy from Lemonade isn't easy. Many factors will impact your policy's monthly premium.
This includes where you live, the age of your home, how much coverage you request, and the size of your deductible. You can also reduce the price of your policy by bundling your homeowners' insurance with other insurance products offered by Lemonade, including auto insurance and pet insurance.
Installing safety devices such as burglar and fire alarms can also net you a homeowners' insurance discount. You'll generally pay less, too, if you don't smoke and if you install protections such as hail-resistant roofs.
Lemonade says its homeowners' insurance policies start as low as $25 a month. But you will pay more than that depending on your home, where you live, and the amount of coverage you choose. Lemonade, citing numbers from ValuePenguin, says the average homeowners' insurance premium is $1,680 a year, or about $140 a month.
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- Rates subject to qualification and approval
Features of a Lemonade homeowners’ insurance policy
Lemonade homeowners’ insurance policies come with several perks and additional features. Here are some of the most important.
Filing a claim is easy
You can quickly file a claim with Lemonade through its mobile app. Once you open the app, click the “File a Claim” button. Once you complete the claim process, Lemonade will ask for your bank account information. Once Lemonade approves your claim, it will deposit your payment, minus your deductible, directly into your bank account.
Lemonade says that most simple property claims are paid almost instantly, but Lemonade might need to investigate complicated claims more thoroughly. It will take longer for Lemonade to resolve these claims.
You can add extra coverage at any time
Did you just purchase expensive artwork? Maybe you invested in a new bicycle or added costly jewelry to your collection. If you want extra coverage to protect these items, you can submit them to Lemonade through its app. Lemonade requests that you provide a photo, a short description, and receipts for or an appraisal of each item.
Earthquake coverage
Lemonade offers earthquake insurance policies for homeowners in California. The company, though, says that even if you don’t live in that state, your base policy already covers direct losses to your home caused by fire, explosion, or theft caused by earthquakes.
Coverage for items not stored in your home
Lemonade's personal property protection will pay out if someone steals your items, even if they are stored at a place other than your home. Lemonade's policies cover you for theft in these cases up to a limit of $1,000. Your homeowners' policy will cover dog bites: Your Lemonade policy will usually pay out if your dog bites someone and that person needs medical attention or sues you. There are two exceptions, though: Your policy won't cover bites if your dog has a history of biting or if your pooch is categorized as a breed of dog at high risk of biting.
Pros and cons of Lemonade homeowners’ insurance
Pros
- Affordable options. Lemonade homeowners’ insurance policies start at just $25 a month.
- Flexibility. You can tweak your coverage limits and deductibles.
- Full coverage. Lemonade homeowners’ insurance offers a variety of protections, including dwelling coverage, personal property insurance, personal liability coverage and medical payments coverage.
Cons
- Not offered everywhere. If you don’t live in Arizona, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, Washington, D.C. and Wisconsin, you can’t apply for a Lemonade homeowners’ insurance policy.
- Polices don’t cover everything. There are certain items that your policy won’t cover, such as floods caused by storms, damage from pipes that have been leaking for a long time, mold that’s caused from a longstanding leakage problem and damage from termites.
Who is Lemonade homeowners’ insurance right for?
A Lemonade homeowners’ insurance policy is a good fit for several homeowners:
You don’t have a lot of money to spend. You can tweak the monthly premium cost of your Lemonade homeowners’ insurance by choosing higher deductibles and lower coverage limits. This allows you to land on a monthly premium price that fits your budget.
You’re a pet owner. Lemonade’s homeowners’ insurance policies usually help cover the costs of medical bills or lawsuits if your dog bites someone.
You store your personal items in an offsite storage locker. Lemonade homeowners’ insurance policies will cover personal items that you stow in a storage locker or other offsite location. Lemonade will pay up to $1,000 for lost or damaged items.
You own expensive art or jewelry. Lemonade lets you add extra coverage for expensive items such as fine art, jewelry, and musical instruments.
Who shouldn’t invest in Lemonade homeowners’ insurance?
A Lemonade homeowners’ insurance policy isn’t right for everyone.
You need a more personal touch. Lemonade is mostly an online insurance provider. You'll do so online when you sign up for a policy or file a claim. If you prefer to speak with insurance agents in person or over the phone, you might do better with a larger national insurance provider that can provide more one-on-one attention.
You’re not comfortable filing claims through an app. If you need to file a claim, you’ll get the fastest responses using Lemonade’s app. Another insurer might be a better choice if you prefer not to enter personal information in an app.
You own a high-risk dog. While Lemonade usually pays out if your dog bites someone, it does not provide this coverage if you own a high-risk dog breed. Lemonade defines the following dog breeds as high-risk: Pit Bulls, Staffordshire Terriers, Doberman Pinschers, Rottweilers, German Shepherds, Chows, Great Danes, Presa Canarios, Akitas, Alaskan Malamutes, Siberian Huskies and Wolf-hybrids.
Use Home Insure to Find Affordable Home Insurance
- Get Home (or Rental) Insurance as Low as $19/Month
- Compare rates in minutes
- No cost or obligation to check
- Rates subject to qualification and approval
Lemonade vs. the competitors
Company | States where coverage is available | Extra protections | Discounts available? |
Lemonade | Arizona, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, Washington, D.C. and Wisconsin, | You can add extra protection for jewelry, musical instruments, fine art, and bicycles. | You’ll receive discounts by bundling with other Lemonade policies and installing safety devices such as burglar and fire alarms. |
Geico | All 50 states | Geico offers medical bill payment coverage and covers your living expenses if your home becomes uninhabitable. | You can receive discounts by bundling your homeowners’ insurance policy with a Geico auto insurance policy. Geico also offers discounts if you install fire or burglar alarms. |
Progressive | Available in all 50 states. | Loss-of-use insurance that covers your living expenses if you are forced to live elsewhere temporarily. | You might receive a discount for installing a fire or burglar alarm or for bundling your homeowners’ policy with other Progressive policies. |
Geico
Though Geico is most famous for its auto insurance, it also offers homeowners’ insurance policies in all 50 states. Like all major insurance carriers, it offers dwelling, personal property, and personal liability coverage.
Geico also offers medical bill coverage and will cover your emergency living expenses if your home is destroyed and you can no longer live there.
If you’re looking for a discount on your policy, your best bet is to pair a Geico policy with auto insurance from the company. Geico also offers discounts if you install smoke, fire or burglar alarms.
Progressive
Another national carrier, Progressive combines both online and in-person service. This can make Progressive a smart choice for customers who prefer a more personal touch when applying for or tweaking their coverage.
Like all national carriers, Progressive offers a comprehensive suite of homeowners’ insurance coverage: dwelling, personal property, personal liability, and medical payments. The insurer will also cover the costs you incur if you must temporarily move out of your home while it is being rebuilt or repaired.
You’ll qualify for discounts if you bundle your Progressive policy with other insurance products from the insurer or install burglar or fire/smoke alarms.
The bottom line
If you’re comfortable applying for and tweaking your coverage online, Lemonade might be a good choice for your homeowners’ insurance. The company offers a range of coverages, and depending on the coverage amounts and deductibles that you choose, you can adjust your policy’s monthly premium. If you’re on a budget, Lemonade’s homeowners’ insurance policies start at just $25 monthly.
When it comes to choosing the best homeowners insurance, you need to consider your needs, budget, and coverage options. Remember to check out the customer experience to ensure that you are choosing the right company.
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Writer
Dan Rafter is a freelance writer who has more than 20 years experience covering personal finance. He's written for the Chicago Tribune, Washington Post, Bankrate, CreditCards.com, Rocket Mortgage, NortonLifeLock and several others.
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