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Hippo vs. Lemonade home insurance
Hippo and Lemonade are relatively new insurance companies that embrace a tech-forward approach and unconventional methods of doing business. Neither insurance company employs insurance agents or agencies to sell its policies, instead opting for a digital-first experience where users can apply, begin, and maintain a policy online.
While Hippo and Lemonade seem quite similar in these regards, the companies differ in many ways as well. Let’s dive a little deeper into each company’s offerings to see how they stack up against one another.
Insurance coverage comparison: Hippo vs. Lemonade
First and foremost, it is important to note that while Lemonade offers renters, homeowners, life and pet insurance, Hippo currently only offers homeowners insurance. If you are interested in bundling or exploring any of the other insurance products, Lemonade might be a better fit for your needs. For the purposes of this review, we will focus on both company’s dwelling insurance products.
As is standard, both Hippo and Lemonade offer the traditional suite of coverages associated with homeowners insurance: reconstruction of your dwelling, personal property, personal liability, loss of use (also known as additional living expenses) and medical payments.
Additionally, here are some of the extra coverages both companies offer:
- Water backup —This protects against potential damage from water coming from drains and sewers. This is a common endorsement to all homeowners policies; Hippo offers this coverage as part of its standard policy, while Lemonade considers this an add-on, available at an extra cost.
- Extended reconstruction costs — Another popular endorsement for homeowners insurance, this coverage guarantees that your home is rebuilt even if the cost of rebuilding is higher than expected. This is an endorsement at Lemonade and automatically included in each tier of coverage at Hippo, with varying percentages depending on which level of coverage you choose.
As a whole, Hippo offers more additional coverage options for homeowners insurance than Lemonade does. For a detailed list of coverage and more information on Hippo’s coverage tiers, see our Hippo home insurance review.
Where are Hippo and Lemonade policies available?
|Insurance company||Available states|
|Hippo||AL,AZ, AR,CA, CT,CO, DE,GA,IL,IN, KS, KY, ME, MI,MD,MN,MS,MO, NE, NH, NJ,NV,NM,OH, OR,PA,SC,TN,TX,UT, VA, VT, WA,WI|
|Lemonade (renters)||AZ, AR, CA, CO, CT, DC, GA, IL, IN, IA, MD, MA, MI, MO, NV, NJ, NM, NY, OH, OK, OR, PA, RI, TN, TX, VA, WA, WI|
Discount comparison: Hippo vs. Lemonade
While most insurance companies offer an array of discount opportunities to their customers, Lemonade strays from the pack. Because their products are already offered at exceedingly low premiums (renters insurance starts at $5 per month and homeowners at $25), they only offer two discount options, and both are specific to homeowners policies.
- Home materials: See some savings if your home is built with masonry — which is more fire-resistant than a wood frame, and therefore less risky.
- Fire and security systems: Get discounts for having fire extinguishers, smoke detectors, central station and fire department reporting alarms, sprinkler systems, and deadbolts in your home.
Hippo, however, follows the fold and offers an impressive list of discounts you may qualify for as a homeowner, though availability may vary based on location.
- Auto insurance: If you or your spouse have active auto insurance with any company, you can qualify for a Hippo discount.
- Recent home purchase: Get this discount if you’re buying a new home or have owned your home for less than a year.
- Gated community: Fenced-in communities are considered less risky to reside in by insurance companies. Qualify for this discount if your home or condo is part of a gated community.
- Homeowners association: Is there an HOA managing the community? See some savings with an HOA membership discount.
- Early bird: Be rewarded for your early planning. If you start your Hippo policy in eight or more days, you may be eligible for an early bird discount.
- No mortgage: Whether you’ve paid off your home or inherited it from family, Hippo offers a discount if there is no mortgage on the insured property.
- Preventive safety and smart home devices: Equip your home with fire or theft alarm systems, water leak detectors, fire extinguishers, and sprinkler systems to qualify for a safety systems discount.
- Storm shutters: Protect your home against hurricanes and other weather hazards with storm shutters installed on windows.
- Hail-resistant roof: Your roof must be certified as hail-resistant during the initial installation to be eligible for this discount.
Third party organization and customer reviews
As both of these insurance companies are still relatively young, not all of the usual third-party organizations have rated them yet.
The Zebra typically consults JD Power, A.M. Best, and the NAIC Complaint Index to determine customer feedback, financial standing and customer complaint data, respectively.
Hippo has only been rated by A.M. Best thus far, receiving a grade of A- indicating a strong financial ability to fulfill claims.
Lemonade has only been rated by the NAIC, with its homeowners product receiving a slightly below average number of complaints from customers in 2020.
Hippo vs. Lemonade: extra perks
With both of these companies placing an emphasis on modernization, it’s natural that their perks would prioritize unique features not offered by other insurers. While Lemonade's competitive rates mean the company doesn’t offer many extras or discounts, the company does operate in a unique way that sets them apart from competitors. Lemonade is a public benefit corporation and employs a program called Giveback. This means that when most major insurance companies keep leftover premiums as profit, Lemonade donates these extra funds to the charity of your choice. This is ideal for philanthropic policyholders and people who value corporations who prioritize social responsibility.
Hippo’s modern approach to insurance means the company offers certain perks related to modernizing your home. When you sign up for Hippo, they send you a smart home kit designed to prevent claims by warning you when it detects smoke, water, carbon monoxide and motion. Upgrading your home with smart devices and activating Hippo’s home tools earns you a further discount on your premiums.
Hippo also offers Hippo Home Care, a virtual home maintenance service. If you have a question or concern about your home, a phone or video call to a virtual home care assistant will provide you with guidance, quick fixes and references for professional service providers in your area.
Claims filing with Lemonade and Hippo
When filing claims with these companies, Lemonade and Hippo operate a little differently from one another.
Lemonade handles claims through their app, primarily using artificial intelligence bots with help from customer service professionals to determine whether your claim will be instantly approved and paid out or whether the team requires more information. Because Lemonade takes a flat fee from your premium and uses the funds to pay claims and then donate via the Giveback program, they have no reason to delay the claims process.
With Hippo, you must actually call a customer service representative and handle claims filing via phone. You are assigned a dedicated claims concierge that will walk you through the process step by step.
Which company is right for you?
While Hippo and Lemonade home insurance are both modern and tech-forward insurance carriers, they differ greatly in practice. Both companies offer similar levels of coverage and a seamless online experience. For renters or homeowners with basic coverage needs who don’t require many extra bells and whistles, Lemonade’s low rates and hassle-free quote and claims processes are a big draw. Its passion for philanthropy also acts as a positive perk that policyholders can feel good about.
For homeowners with slightly more complex needs, Hippo’s three-tiered coverage levels might be a better fit. With their extra coverages included in base policies (where most companies will charge extra) and an extensive list of discount opportunities, premiums are likely very competitive for the package you are receiving. Both companies have their strengths and weaknesses, and as always, it is up to the customer to decide which features are most important for the price.
If you're looking for a renters insurance policy, get a quote from Lemonade:
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.