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Lemonade Renters Insurance Review, Prices, and Discounts (2021)

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Purchasing renters insurance is one of the smartest financial decisions that you can make as a renter. At the young and booming insurance company Lemonade, you can find good renters insurance that will protect you financially in the event of an emergency in your rental space. In fact, Lemonade provides some of the most reliable and affordable renters insurance in the United States, offering up to $250,000 in coverage for things like art, property damage, and water back-ups. 

But how does Lemonade renters insurance compare to the coverage of other top insurance providers like Jetty and GEICO? Lemonade may be an underdog in the insurance industry, but customers are already expressing their satisfaction with their customer service, use of technology, transparency, and initiative to change the way people think about insurance. Below, we provide an in-depth review of Lemonade renters insurance and answer all of your important questions. 

Some of the top features of Lemonade’s renters insurance are:

  • Affordability (premiums starting at $5)
  • Fast 100% online claims process (payouts in three minutes)
  • Quick activation (insurance policy in 90 seconds)
  • Peer-to-peer insurance company model (Giveback program)

What Is Lemonade’s Business Model?

The business model of any insurance company is what determines what premiums they charge and how they approach claims. We’ve covered different business models before, such as that of mutual insurance companies, which are owned by their policyholders. Lemonade’s business model is interesting, and it has three main parts:

  • They use a flat portion of your premium (25%) to run the company
  • The majority of the funds they collect on premiums goes out to pay claims really fast
  • If there is any money left, they donate it to your favorite charity

Founded in 2016, Lemonade self-identifies as “insurance built for the 21st Century.” As a public benefit corporation and Certified B Corporation, Lemonade not only focuses on insurance, but also on social good. What sets Lemonade apart from other insurance companies is its disruptive business model, which has specifically drawn in millennials. Co-founders Daniel Schreiber and Shai Wininger created Lemonade’s business model with the notion of making customers feel safe through transparent policies and fees. The company also places importance on reliable technology that allows you to get a quote, make claims, and view your policy quickly. Lemonade follows the peer-to-peer insurance model, which means that the premiums of all Lemonade policyholders are used to pay claims.

Lemonade takes it a step further with its Giveback program that transforms insurance from a “necessary evil to a social good.” When you join Lemonade, you choose a nonprofit that you support. Then, once a year, Lemonade will donate up to 40% of all unclaimed money to the nonprofit that you and other policyholders chose. The growth of the Giveback program in the past four years is an indicator of the growth of Lemonade itself. In 2017, Lemonade donated $53,174 to charities. In 2020, Lemonade donated $1,128,109 through the Giveback program. 

Traditional insurance companies make a profit by pocketing unclaimed money. This means that when you make a claim, they lose money. Because of this, traditional companies are slow and hesitant to approve claims. At Lemonade, however, they break the mold by donating unclaimed money to charity, so they have no issue approving claims quickly. 

Is Lemonade a Good and Reliable Renters Insurance?

Yes, Lemonade is a legitimate insurance provider that offers reliable and affordable renters insurance. Other insurance products that Lemonde offers includes homeowners insurance, pet insurance, and life insurance. As playful as the name sounds, Lemonade is a publicly traded company (NYSE: LMND) with a $9 billion market capitalization (as of Feb. 15). Additionally, Lemonade is reinsured by some of the top reinsurers in the industry, including Lloyds of London. In the past couple of years, Lemonade has also won prestigious awards—a sign of its undeniable and quick growth. In 2019, Clearsurance titled Lemonade the most innovative insurer. Clearsurance based this award on customer reviews on the website, and these were some of the most impressive statistics from those reviews:

  • 92% said they were likely to renew their Lemonade insurance policy
  • 95% would recommend Lemonade to a friend
  • 94% stated they have had a positive claims process with Lemonade

What Does Lemonade Insurance Cover and What Does It Not Cover?

Lemonade renters insurance covers everything that you need protected as a renter. With this renters insurance, you can plan for financial protection against fires, thefts, injuries, water damage, vandalism, and bad weather. For example, you can choose personal property coverage ranging from $10,000 to $250,000 to cover your personal belongings inside and outside of your rental space. Items that you can cover include jewelry, bicycles, fine art, cameras, and musical instruments. In addition, you can also choose coverage options for personal liability coverage, medical expenses, and loss of use coverage. 

Lemonade also offers a few policy options that you can add to personalize your insurance. For example, for free, you can add both your spouse and property manager to your policy. For small fees, you can add a significant other ($1.67 a month), coverage for damage done to your landlord’s property ($.50 a month), and water back-up coverage ($.84 a month). However, it’s also important to consider that Lemonade renters insurance does not cover damage to structures and personal property from floods, your roommates’ items or personal injuries, or earthquakes. Earthquakes can be added on in California and Arkansas.   

Use this chart to see your options for Lemonade renters insurance coverage. 

Lemonade Renters Insurance: Type of Coverage Coverage Amounts Extra Monthly Fees
Options for deductibles $500, $1,000, or $2,500 n/a
Personal property coverage $10,000-$250,000 $0
Personal liability coverage $100,000-$1,000,000 $0
Coverage for others’ medical expenses $1,000-$5,000 $0
Loss of use coverage $9,000-$200,000 $0
Portable electronics $1,500-$6,000 $0
Jewelry  $1,000-$50,000 $1.25-$62.50
Fine art  $5,000-$25,000 $.67-$3.17
Bikes  $1,000-$10,000 $5-$50
Cameras  $1,000-$10,000 $1.42-$13.75
Musical instruments  $1,000-$10,000 $.42-$3.75
Significant other  Same as yours $3.92
Water Back-up $5,000-$10,000 $.84-$1.25
Landlord property damage Tenant water damage: up to $1 million per claim
Tenant pet damage: up to $500 per year
$1.50-$3.84

How Much Does Lemonade Renters Insurance Cost?

Lemonade offers some of the lowest rates in the industry. The average monthly cost of renters insurance is $19 a month. At Lemonade, you can purchase renters insurance starting at a premium of $5 a month. In addition to the monthly premium, policyholders can choose between four deductible options: $250, $500, $1,000, or $2,500. When purchasing renters insurance through Lemonade, you can adjust your coverage options. The more items you want to cover, the more money you will have to pay. The add-ons listed above will result in extra fees. However, with Lemonade, there are no hidden fees. Plus, you can cancel at any time. 

The price of renters insurance depends on several factors, including your age, distance from the coast, proximity to a fire station, and more. The best way to get an accurate price is to get a quote through Lemonade. Below, we discuss the price of Lemonade renters insurance in five of the states with the biggest populations. 

Cost of Lemonade Renters Insurance in Illinois

As a 23-year-old living in a 10th-floor apartment, I got a quote for Lemonade renters insurance in Chicago, Illinois. I was really surprised about how low my monthly premium was. I thought the location would increase the premium drastically, but despite living in the third largest city in the United States where crime is higher than average, I still received a quote for just $12.92 a month ($149 annually). When filling out the form, I marked that I had a fire alarm, but no burglar alarm. Other factors that went into the estimate were that I had no roommates, partners, kids, dogs, or cats. I also marked that I did not have any cameras, fine art, bicycles, or jewelry. However, I marked “yes” for owning portable electronic devices worth more than $1,500 (like tablets, laptops, and cell phones). Since I am new to the city, I indicated on the form that I did not have a current renters insurance policy, and that I didn’t have car insurance, life insurance, or homeowners insurance. 

The cost of Lemonade Renters Insurance in California

The approximate cost for Lemonade renters insurance in California is $13 per month, which is slightly higher than the national average. This estimate is based on a quote for State Farm. This quote compares to about $13 per month for Liberty Mutual and $18 per month for Allstate.

Cost of Lemonade Renters Insurance in Texas

The average price that Texas residents can get Lemonade renters insurance for is $18. However, the premium can be lowered if you choose increasing your deductible and opting for lower coverage amounts. This quote is among the lowest premiums for renters insurance in Texas. Among the higher premiums was State Farm, at $26 a month. 

How much does Lemonade Renters Insurance cost in New York ?

The average renter in New York can receive renters insurance for $14 a month ($168 annually). For New Yorkers looking for the most affordable renters insurance, Lemonade is the winner, at an average of $10 a month. Compared to other insurance providers, this is a steal. The average price of GEICO renters insurance in New York is $17. The highest average premium in New York, $19, comes from Liberty Mutual and Allstate.

Cost of Lemonade Renters Insurance in Ohio

The estimated cost of Lemonade renters insurance in Ohio is around $15. This estimate is based off of other insurance providers, like State Farm and Nationwide, who both offer an average premium of $16 in Ohio. The highest premium, $28, comes from Farmers. 

Finding cheap renters insurance is easy when you use the right tools. Below, you can enter your zip code and be taken to BestInsurer. There, you’ll receive a list of the cheapest rates near you. 

Where Is Lemonade Available?

Lemonade renters insurance is available in the following 26 states: Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, 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 Does Lemonade Compare With Other Renters Insurance Companies?

Although it isn’t quite as big or experienced as other insurance providers like Stare Farm and Allstate, Lemonade is making a name for itself by taking an innovative approach to insurance. With its technology, transparency, and social good initiatives, it’s possible that Lemonade starts taking over a younger generation of people starting to look for insurance. One of the things that sets Lemonde apart from other insurance providers is that it does not delay or deny claims. Lemonade is also one of the most affordable insurance providers for renters insurance. However, this means that the coverage that you receive for that low price will not be as extensive as other insurance company options like State Farm or GEICO. Additionally, other insurance providers will likely offer bundle and discount options. Below, we compare Lemonade’s coverage with the coverage of State Farm, GEICO, Allstate, and Jetty.   

Lemonade vs. State Farm Renters Insurance

State Farm is a mutual insurance company that is a key player in the insurance industry. The advantage that it has over Lemonade is its experience and reputation. However, according to Lemonade, 16% of its customers left State Farm to become Lemonade policyholders. For starters, Lemonade will likely offer cheaper monthly premiums than State Farm. Additionally, both Lemonade and State Farm’s deductibles start as low as $500. Still, State Farm policyholders will be able to increase their deductible all the way to $10,000, which will allow them to lower their premium. If you’re looking for ample personal property coverage, Lemonade wins over State Farm. Lemonade offers up to $250,000 worth of personal property coverage. On the website, State Farm only lets you set this coverage to a maximum of $110,000, without speaking to an agent. Both insurance providers offer personal liability coverage up to $1 million.

Policy Details Lemonade State Farm
Monthly premiums Starting at $5 $10.42
Deductibles $500, $1,000, or $2,500 $500, $1,000, $2,000, $5,000, or $10,000
Personal property coverage limits $10,000-$250,000 $2,000-$110,000 (could be increased if you speak to an agent)
Personal liability coverage $100,000-$1,000,000 $100,000-$1,000,000
Coverage for medical expenses $1,000-$5,000 $1,000-$10,000
Add-ons Art, landlord property damage, bicycles, camera equipment, instruments, jewelry, water backup, and earthquake coverage Computers, TVs, electronics, bicycles, furniture, and clothing, cyber event, earthquake, identity theft, fraud loss

Lemonade Renters Insurance vs. Allstate

National insurance provider Allstate is another mutual insurance company that has more experience and slightly more expensive rates than Lemonade. Still, 19% of customers left Allstate to purchase insurance with Lemonade. Allstate’s average premium is around $13, but the coverage that it offers is extensive. The advantage that Allstate has over Lemonade is that Allstate policyholders have many more coverage options to choose from. While Lemonade offers the basics, Allstate offers coverage that is hard to find elsewhere, including flood insurance, a personal umbrella policy, identity theft restoration, and scheduled personal property coverage. Additionally, Allstate gives policyholders to bundle their auto and renters insurance, unlike Lemonade. This feature might draw you more toward Allstate, since you can save significantly by having one insurance provider for multiple policies. Nevertheless, Lemonade is still a great option for renters insurance if you are looking for the basics at an affordable price. 

Policy Details Lemonade Allstate
Monthly premiums Starting at $5 $13
Deductibles $500, $1,000, or $2,500 $250, $500, or $1,000
Personal property coverage limits $10,000-$250,000 $15,000-$150,000
Personal liability protection coverage limits $100,000-$1,000,000 $100,000-300,0000 per occurrence
Coverage for medical expenses $1,000-$5,000 $1,000-$5,000
Add-ons Art, landlord property damage, bicycles, camera equipment, instruments, jewelry, water backup, and earthquake coverage Identity theft, family liability protection, reimbursed living expenses, flood insurance

Lemonade Renters Insurance vs. GEICO

Long-time industry veteran GEICO is another competitor of Lemonade that offers similar rates, but that doesn’t automatically make GEICO the better choice. In fact, 10% of customers switched their insurance policy from GEICO to Lemonade. GEICO offers customers the ability to cover certain add-ons, like stocks and bonds, that Lemonade does not. But, GEICO’s personal property coverage is not as extensive as Lemonade’s. With GEICO, the most amount of money you can cover for personal property is $95,000. At Lemonade you can cover up to $250,000 worth of items. Another important detail to note is that GEICO’s personal liability protection coverage only goes up to $100,000. Most other insurance providers, including Lemonade, allow you to cover up to $1 million in personal liability protection coverage. 

Policy Details Lemonade GEICO
Monthly premiums Starting at $5 Starting at $12
Deductibles $500, $1,000, or $2,500 $100, $250, or $500
Personal property coverage limits $10,000-$250,000 $10,000 – $95,000
Personal liability protection coverage limits $100,000-$1,000,000 $50,000-$100,000
Add-ons Art, landlord property damage, bicycles, camera equipment, instruments, jewelry, water backup, and earthquake coverage Furniture, clothing, accidental damage to another’s property, appliances, both medical expenses and legal fees, stocks, bonds

Lemonade vs. Jetty Renters Insurance

Like Lemonade, Jetty is a young insurance company that was founded in 2016. However, Jetty follows a different business model. While both insurance providers aim to provide reliable renters insurance at low prices, Jetty partners with apartment complexes to offer the residents renters insurance. While this partnership gives those residents extra benefits, Jetty also has critical downfalls. For instance, there is currently no way for Jetty policyholders to make a claim online. However, one of Jetty’s specializations is renters insurance for those who rent their apartment on Airbnb. Additionally, Jetty operates in more states, at 43 total. On the other hand, if you’re a dog owner, you may be more inclined to start a policy with Lemonade because Jetty has restrictions on certain dog breeds. 

Policy Details Lemonade Jeffy
Monthly Premiums Starting at $5 Starting at $9
Deductibles $500, $1,000, or $2,500 $250-$2,500
Personal Property Coverage Limits $10,000-$250,000 $6,000-$50,000
Add-ons Art, landlord property damage, bicycles, camera equipment, instruments, jewelry, water backup, and earthquake coverage Bedbugs, electronics, valuables, protection for theft in Airbnb

What Lemonade Renters Insurance Coupons or Discounts Can I Get?

Because Lemonade offers some of the lowest rates in the industry, Lemonade doesn’t offer as many discount programs as other insurance companies do. However, Lemonade makes sure that you save as much money as possible. When getting a quote or purchasing insurance, Lemonade asks you a series of questions that will determine if you are eligible for discounts. For instance, one of the first questions you are asked is whether you own a fire alarm or burglary system in your home. If you do, you may qualify to receive a discount on your renters insurance.    

Final Thoughts on Lemonade

Lemonade has only been in the insurance game for six years, but the company has grown remarkably. Lemonade’s business model focuses on changing people’s perspective on traditional insurance companies. By committing to using unclaimed money on social good, implementing advanced technology, and being transparent about fees, Lemonade has quickly attracted millennials. One of Lemonade’s best features is that it offers some of the lowest monthly premiums in the renters insurance market, starting at $5 a month. Lemonade is also a great choice if you want a no-nonsense, straightforward renters insurance policy that will give you financial protection in the event of an emergency in your rental space. On the downside, Lemonade doesn’t offer a lot of discounts or policy-bundling options. Still, policyholders remain impressed by this growing company. It’s only a matter of time before Lemonade grows even bigger and offers more to its customers. 

The most effective way to get an accurate quote on renters insurance is by using a site that will compile a list of local providers and their rates. When you enter your zip code in the form below, that’s exactly what BestInsurer will do for you. Click on the form below to save money on renters insurance and protect the belongings in your home. 

Source: on 2021-02-17 20:30:00

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