Lemonade Renters’ Insurance Review
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If you rent an apartment, you need renters insurance. If a fire destroys your furniture, TV, computer, or clothing, this insurance will pay out to help you replace these items. If someone breaks into your apartment and steals your jewelry or stereo system, renters insurance will again kick in to help you pay for replacements.
You might not think you own enough valuable items to justify this type of insurance. But ask yourself this: Could you afford to replace everything that might be destroyed or stolen from your apartment?
But what renters insurance policy should you choose?
New York City-based Lemonade Insurance Company provides renters insurance, which comes with a twist: When signing up, you choose a charity. After Lemonade pays for its expenses and claims yearly, it donates any leftover money to its customers' charities. In 2022, Lemonade donated more than $1.8 million to 59 non-profits.
But what else does Lemonade offer to renters? Here’s a look at the renters insurance company’s renters insurance program and its pluses and minuses.
Jump To
What is Lemonade renters insurance?
Like all renters insurance products, the policies offered by Lemonade pay out if the items inside your apartment unit are damaged, destroyed, or stolen. Lemonade lists several designated "perils" that your insurance policy will cover, including damage or destruction of personal items by theft, fire, vandalism, and certain types of water damage.
Like with most insurance providers, your policy won't cover damage caused by flooding but will cover any damage from burst water pipes or a leaking water heater.
But that's not all that a Lemonade renters insurance policy covers. It will also cover the costs of any temporary housing or living arrangements you need to make if your apartment suffers so much damage – say from a fire – that you can't live there for several days or weeks. If you must rent a hotel for a week, say, your Lemonade renters insurance will cover the cost of renting. It will even reimburse you for any food you need to buy while out of your home or any laundry, you must bring to the laundromat while your apartment is uninhabitable.
Finally, Lemonade's renters policies also include personal liability coverage. This will kick in if someone is injured while at your apartment. Say someone trips over your end table and breaks a leg. Your renters policy will cover your legal fees if that person sues you. Your policy will also pay for any medical services, including hospital stays, that your visitor needs.
The downside to Lemonade renters insurance? It's not offered in all 50 U.S. states. So far, you can apply for this insurance in 28 states plus Washington D.C. Lemonade renter's insurance is offered in Arizona, Arkansas, California, Colorado, Connecticut, the District Of Columbia, 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.
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How does Lemonade renters insurance work?
Signing up for a renters insurance policy with Lemonade is simple. You can download the Lemonade app from Google Play or the App Store or create an online account.
Lemonade recommends that before applying for a policy, you go from room to room in your apartment and estimate how much your personal items are worth. You should consider everything from your clothing to your stereo, computer, kitchen appliances not provided by your landlord, and furniture. You might decide, too, that you want extra coverage for more expensive items, everything from jewelry and your bicycle to fine art, musical instruments, or photography equipment.
Say you decide that your items are worth $15,000. Lemonade recommends that you round up to $20,000 to ensure you have enough coverage.
Next, you'll need to determine your deductible, the amount you'll have to pay before your insurance coverage kicks in. Say you set a deductible of $500. If you suffer $10,000 worth of damage, you'd have to pay $500 before your Lemonade policy kicks in and covers the remaining $9,500. The higher your deductible, the lower your monthly premium. But don't choose a high deductible you won't be able to afford when you're ready to file claims.
You'll also have to determine how much coverage you want for personal liability. Lemonade recommends that you select a higher amount if you often hold parties or large social gatherings at your apartment. More likely, someone will be injured if you frequently host large events.
Once you've determined your financials, you can log onto Lemonade's home page or use its mobile app to get an instant quote. When you press the "Get Your Quote" button, Lemonade will ask for your full name, street address, city, state, and apartment unit. Lemonade will then ask whether you have a fire alarm, burglar alarm, or smart water valve in your apartment, all items that could reduce the amount you pay monthly for renters insurance.
Lemonade will also ask if you share your apartment with roommates, a partner, kids, dogs or cats. You'll be asked if you own any valuable jewelry, cameras, bikes, fine art or portable electronics. You'll then have to provide your email address and date of birth. Once you do, Lemonade will send you a quote.
This quote will include your price per month and what that price covers. Your quote might include personal property coverage of $45,000, portable electronics coverage of $3,000, and personal liability coverage of $100,000. You can increase or decrease these coverage limits by pressing plus or minus signs next to the quotes. You'll also have the option to add extra coverage for items like bicycles, jewelry, and fine arts. At the bottom of your quote, you'll have the option to select the size of your deductible, starting from a minimum of $250.
You can click a button at the bottom of your quote to activate your insurance for the quoted price. You can also choose the policy's start date. Lemonade says that its policies become active as soon as 12:01 a.m. on the day its customers activate them.
If you need to make a claim, use the Lemonade app or sign in on the company's web page. Once you log into your account, click the "File a Claim" button in the upper right-hand corner of the app or Lemonade's home page. Lemonade's AI will ask whether you are filing a property damage or personal liability claim. It will also ask you about what items were damaged and the value of those items. Lemonade says that you usually won't have to file any paperwork and that it approves claims and provides your payout in seconds.
Lemonade says about 40% of its claims are approved instantly, making the claims process easy. If your claim is approved instantly, Lemonade’s AI will pay it in seconds. If not, one of Lemonade’s claims processors will take over the claim. At this point, you might have to provide proof of the value of your items or the damage caused, such as photos of the damaged items, receipts for how much the items cost, or any police or fire reports.
How much does Lemonade renters insurance cost?
The average price of a Lemonade renters insurance policy across the United States is about $14 a month as of August 1, 2023, according to Lemonade.
However, your policy price can vary depending on your apartment is location and the coverage you need.
For instance, when we typed in that we rented an apartment in Chicago and wanted $45,000 worth of personal property insurance, personal liability insurance coverage of $100,000, and electronics coverage of $3,000, with a deductible of $500, Lemonade said that such a policy would cost about $20 a month.
Lemonade says that policies start as low as $5 a month. There is room to tweak your monthly payment by increasing your deductible or lowering or increasing the amount of coverage you want. You can also lower your policy cost if your unit is protected by a fire or burglar alarm.
Lemonade renters insurance protects your stuff from the unexpected. Get covered with America's best-loved renters insurance in seconds. Starting from $5/month.
- Starting From $5/mo
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- Covered in as little as 90 seconds
- Claims paid at record speed
Lemonade renters insurance features
What features can you expect from a Lemonade renters insurance policy?
Lemonade policies offer full coverage
While Lemonade’s monthly policy premiums might be low, this doesn’t mean the company’s renters insurance only offers bare-bones coverage. Renters insurance is typically a good bargain, offering plenty of coverage for a relatively low price.
Lemonade policies, for instance, pay off when your possessions are damaged, destroyed, or stolen. They also help pay for medical expenses if someone is injured in your apartment or if someone sues you after they are injured in your home.
Savings if you bundle
You could reduce the amount you pay for your renters insurance if you bundle a policy with an auto, pet health, or term life insurance policy from Lemonade.
Additional coverage
Suppose you own valuable jewelry, fine art, or electronics. In that case, you can sign up for additional coverage that will help cover the expenses of replacing these more costly possessions.
Lemonade also features pet insurance, auto insurance and home insurance.
Support the charity of your choice
The Lemonade Giveback program allows you to select a charity to support. When you sign up for a policy, you can select a nonprofit you'd like to support. Once a year, Lemonade will add up the unclaimed money left by you and other customers. Lemonade will then give up to 40% of that unclaimed money to the nonprofits its customers choose.
Who is Lemonade renters insurance best for?
A Lemonade renters insurance policy is a good choice for many renters.
Those looking for reasonably priced insurance
With an average policy cost of about $14 a month, Lemonade offers renters insurance with a price tag that is pretty much average for the United States. Estimates of renters insurance costs each year vary, but the Insurance Information Institute said the average insurance policy cost $173 a year in 2020. That comes to about $14.41 a month. If you’re looking for a less expensive policy, Lemonade says its renters insurance can cost as little as $5 a month.
Those with valuable items
Lemonade lets you add insurance coverage for expensive items such as fine art, electronics, jewelry, or furniture. If you own several items with big price tags, choosing a Lemonade policy with add-on protection might be a smart move.
Those with an active social life
Lemonade also offers personal liability insurance, which will offer financial protection if people injure themselves at your apartment. If you frequently have large gatherings, investing in this insurance can save you from financial pain if someone suffers an injury or accident.
Those with a car or pets
If you bundle your renters insurance with an auto or pet health insurance policy from Lemonade, you’ll qualify for an automatic discount. You can save money on your insurance needs if you must insure a car or pet, too.
Who shouldn’t use Lemonade renters insurance?
Residents of certain states
Lemonade isn’t offered in every state. Residents of the following states are not eligible for this insurance: Idaho, Montana, Wyoming, Utah, Kansas, South Dakota, North Dakota, Minnesota, Vermont, New Hampshire, Maine, Delaware, West Virginia, Kentucky, North Carolina, South Carolina, Alabama, Mississippi, Louisiana, Alaska, and Hawaii.
Anyone who wants to cover a roommate
If you live with a roommate who is not your spouse or relative, you can’t add that person to your renters insurance. Your roommate will have to get his or her own policy.
Those who want to meet in person to discuss their insurance needs
Unlike many insurance providers, Lemonade is an online-only company. This means that you’ll never meet in person with an agent. Lemonade will provide you with policy quotes and approve you for renters insurance online. This could be a challenge if you prefer discussing your coverage options by speaking to an insurance agent in person. If you have questions, call Lemonade’s customer service team at 844-733-8666 from 9 a.m. to 8 p.m. EST Monday through Friday. You can also send an email to help@lemonade.com.
Pros and cons of Lemonade renters insurance
Pros
- Affordable. Prices will vary, but you can qualify for Lemonade renters’ insurance for as little as $5 a month. Lemonade says that its average policy costs about $14 a month.
- Customizable. You can customize your Lemonade policy by adding extra coverage for expensive items such as artwork, jewelry, electronics, or bikes.
- Giveback program. Through its Giveback program, Lemonade will support a charity of your choice with your unused premiums.
Cons
- Not available in all states. Lemonade is only available in 28 states and the District of Colombia.
- Can’t add roommates. You can’t add roommates to your policy unless they are related to you.
- No in-person help. Lemonade is an online-only provider. You won’t be able to meet with an insurance agent in person, though you can contact the company’s customer service number for help.
Lemonade renters insurance protects your stuff from the unexpected. Get covered with America's best-loved renters insurance in seconds. Starting from $5/month.
- Starting From $5/mo
- Most loved renters insurance in America
- Covered in as little as 90 seconds
- Claims paid at record speed
Lemonade vs. competitors
Company | Price | Coverage | Discounts |
Lemonade | Average renters insurance policy costs $14 a month | Personal property, temporary living expenses, liability | You’ll qualify for a discount if you bundle your policy with pet, auto, or life insurance. |
Allstate | Policies average $16 a month | Personal property, liability coverage, temporary living expenses | You’ll qualify for a discount if you take out more than one type of Allstate policy. You might qualify, too, for having smoke detectors or burglar alarms in your apartment. |
Travelers | Policies average about $17 a month. | Personal property, liability coverage, temporary living expenses | Discounts are available for bundling policies or having smart-home technology, security systems, or fire alarms in your apartment. |
Allstate
One of the bigger names in the insurance business, Allstate offers renters insurance policies that average, about $16 monthly. Allstate says, though, that if you also insure your car with the company, you might be able to pay as little as $4 a month.
A standard Allstate renters insurance policy includes personal property coverage if your items are damaged by fire or smoke, vandalism, or water damage from plumbing, furnace, air-conditioning unit, or water heater. The policy also covers theft.
Allstate will also cover the expenses you incur if you have to live somewhere else temporarily because of the damage to your apartment. A standard policy will include liability protection, too, and pay for medical costs if guests injure themselves in your home.
Travelers
Another big name in the insurance business, Travelers says that its average renters insurance policy costs about $205 a year, or a little more than $17 a month. However, your premium will vary depending on where you live, the value of your personal property, and how much liability coverage you choose.
A Travelers insurance policy will cover your personal belongings against loss or damage, legal costs for accidental bodily injury or property damage to others, living expenses when you can't live in your rental because of a covered loss, and any improvements that you made to your rental that are damaged because of a covered loss.
You might qualify for discounts if you have more than one insurance policy with Travelers, security systems in your home, fire alarms installed, or smart-home technologies that keep your residence safer.
FAQs
How can I make changes to my Lemonade renters’ policy?
On the Lemonade app or at Lemonade.com, choose the policy that you want to make changes to. You can change your coverage amounts by clicking the plus and minus signs. Lemonade will display an instant quote stating how much your new coverage will cost. You can also add coverage for more expensive items if you’ve recently purchased jewelry, fine art, or other pricy products.
When can I cancel my Lemonade policy?
You can cancel your policy through the app or Lemonade’s home page whenever you’d like. Lemonade writes your policy for a full year, but you will face no penalties or fees for canceling early.
How do I renew my policy?
Lemonade renters’ insurance policies last for a year. Near the end of the year, Lemonade will review your policy and usually renew it automatically. If it needs to increase your premiums, Lemonade will contact you in advance.
Lemonade renters insurance protects your stuff from the unexpected. Get covered with America's best-loved renters insurance in seconds. Starting from $5/month.
- Starting From $5/mo
- Most loved renters insurance in America
- Covered in as little as 90 seconds
- Claims paid at record speed
The bottom line
Lemonade renters insurance is an affordable way to protect yourself if your personal items are destroyed, damaged, or stolen. This insurance will also pay out if someone is injured in your home or sues you for medical coverage because of these injuries. At just an average of $14 a month, Lemonade renters insurance is a cheap way to buy peace of mind.
This doesn’t mean that a Lemonade policy is right for everyone. Lemonade is an online-only company. If you prefer meeting with an insurance agent in person to help determine the ideal coverage, you might consider working with a more traditional insurance company that provides both online and in-person service.
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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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