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4.0 Rating from The Zebra

A relative newcomer to the insurance space, Lemonade touts low premiums for home and renters insurance and takes pride in its somewhat unusual business model: peer-to-peer. Most traditional insurance companies collect premiums and keep the remaining capital after paying out claims and other expenses as profit. In Lemonade’s case, after pocketing a fixed percentage of premiums as profit, and paying for claims and reinsurance, the company donates the leftover funds left in the pool of unclaimed premiums to charities and non-profits chosen by policyholders. This program is called Giveback.

In addition, Lemonade does not employ insurance agents or agencies to sell policies; instead, the company relies on AI and other technologies not often employed by insurance providers. Policies are only sold through the Lemonade website and mobile app, and the company is known for its speedy claims process.

With an easy-to-use website, cheap rates, and a message advocating for social good, Lemonade may be an appealing choice for those looking to save on home or renters insurance.

Lemonade coverage is currently available in Arizona, Arkansas, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Wisconsin, and Washington, D.C.

Our Lemonade insurance review explores coverage options, discounts, and more to help you make an educated decision with your renters or home insurance coverage.

*The Zebra may receive a commission for policies purchased through links on this page. This does not influence our editorial choices or the contents of this review.

  • Claims satisfaction (J.D. Power) — Not rated
  • Customer satisfaction (J.D. Power) — Not rated
  • Financial strength (AM Best) — Not rated
  • NAIC Rating — Poor: Lemonade received more customer complaints than the national median, as logged by the National Association of Insurance Commissioners (NAIC).
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Lemonade renters insurance coverage options

The usual coverages for personal property, personal liability, loss of use (also known as additional living expenses), and medical payments to others are offered by Lemonade’s renters insurance. Coverage limits for each can be lowered or increased according to your needs, and customers can choose their own deductible, which ranges from $250 to $2,500. Lemonade also offers a few add-ons to supplement a renters insurance policy with some extra protection.

Scheduled personal property

Particularly valuable items come with their own sub-limits when it comes to personal property coverage. Items like electronics come with specific caps on how much you can be reimbursed. Endorsements for scheduled personal property extend these limits, and Lemonade offers the choice of adding extra coverage for jewelry, fine art, bicycles, cameras, and musical instruments.

Water backup coverage

Insurance will only cover water damage under specific circumstances. With this optional add-on, Lemonade will cover damage caused by water expelled from drains or sewers. This is a common endorsement in property insurance.

Earthquake coverage

Currently available only in California and Arkansas, Lemonade's earthquake coverage offers extra protection for customers in these states. Damages caused by earthquakes are typically excluded from a renters policy, and not all insurance companies offer earthquake coverage, even as an extra endorsement. Lemonade partners with Palomar Specialty Insurance to offer earthquake coverage as an add-on.

Lemonade discounts

Lemonade does not advertise discounts for renters insurance.

Homeowners may be in luck with a few discounts that are built into their rates. 

  • Home materials: earn savings if your home is built with masonry — 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.

One downside of Lemonade insurance is its relative lack of available discounts. The company's affordable rates offset the demand for further discounts, as pricing starts at just $5 a month for renters insurance and $25 for homeowners.


Lemonade home insurance coverage options

Lemonade’s options for homeowners insurance are quite standard, offering all the expected coverages: the reconstruction of your dwelling, personal property, liability, loss of use, and medical payments to others. Deductible amounts range from $250 to $10,000. Like with renters insurance, Lemonade makes available some extra add-ons meant to bolster your home policy.

Scheduled personal property

Extend coverage limits for certain valuables, like jewelry, fine art, bikes, cameras, and musical instruments with scheduled property endorsements. Without extra coverage, the reimbursement you would receive should these items be destroyed or stolen would be restricted by the item category’s sub-limit. If you own many valuables, like electronics, it would be prudent to ensure sufficient insurance protection is in place.

Water backup coverage

Get extra protection for water damage with Lemonade’s water backup coverage. This protects against potential damage from water coming from drains and sewers. Because homeowners insurance is specific about what kinds of water damage it will cover, having extra protection is a good safeguard should you experience something like a burst pipe or sewer backup. This is a common endorsement for home insurance.

Earthquake coverage

Homeowners in California and Arkansas have earthquake coverage available as an option when enrolling in Lemonade’s home insurance. Earthquake damage is typically excluded from a homeowners policy, and homeowners usually need to purchase a separate earthquake policy.

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 rider provides additional coverage even if the coverage limit for your dwelling is exhausted.


Other insurance products from Lemonade

Life insurance



Life insurance from Lemonade is 100% digital and does not require medical exams. The only type of life insurance available is term, with options of 10, 15, 20, 25 and 30 years. Lemonade life insurance is issued by North American Company for Life and Health Insurance. Quotes start at $9 per month based on the coverage and term you choose as well as your age, lifestyle, health and location. Lemonade encourages generally healthy people between the ages of 18 and 60 to apply, as those with a history of heart disease or cancer may not be eligible. 



Pet insurancepet-care-guide-for-the-holidays.2a-01.png

Lemonade pet insurance starts at just $10 per month and covers diagnostics, procedures, and medications due to accidents or illness. Lemonade also offers an optional wellness package that offers savings on annual care like wellness exams, heartworm tests, fecal tests, bloodwork and vaccines. Lemonade offers a 10% discount on pet insurance if you also have your home insurance through them.





Car insurance (coming soon)


car-iconLemonade’s rapidly expanding list of insurance products is soon adding auto insurance to their ranks. After adding term life and pet insurance in 2020, it was expected that Lemonade would work to introduce auto insurance next. It’s not yet confirmed what their car insurance policies will look like, but in keeping with Lemonade’s artificial intelligence methods, the company has confirmed that customers will use this technology to handle emergencies, file claims and receive payouts quickly. The Lemonade COO has also commented that Lemonade Car will be especially attractive to drivers of electric vehicles. Policyholders will also be given the option to bundle their other Lemonade policies with auto insurance.

Is Lemonade the right insurance company for you?

If you’re tired of dealing with the red tape of more traditional, monolithic insurance companies, and don’t need a ton of extra bells and whistles to go along with your renters or homeowners policy, Lemonade could be a refreshing option with very low rates. Lemonade’s investments in cutting-edge technology deliver a seamless quoting process, and many happy customers attest to quick claims payouts and overall positive experiences. Their charitable streak also doesn’t hurt, acting as a positive perk Lemonade customers can feel good about year after year.

However, it's worth noting that Lemonade received slightly more complaints than average, according to the NAIC, and the company is not yet rated by reputable organizations like J.D. Power and AM Best. It is ultimately up to you to decide if Lemonade has the coverage you’re looking for.

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Kristine Lee
Kristine LeeManager, Content and Data

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer.

She is an authority on all things insurance and covers the ins and outs of auto, home, life and renters insurance. Her specialty is in providing data-backed insights and information to help insurance shoppers make informed decisions.

Kristine's insurance expertise and research have been cited by publications such as CNBC, Car and Driver, Business Insider, Yahoo!, The Balance, Nationwide and Elephant.

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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.

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