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Lemonade wants us to forget everything we know about home insurance. I followed their advice. Here’s what I found.
Updated March 10, 2023
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If you’re anything like me, you know that home insurance is home security. Just like your alarm system will protect you in case someone breaks in, your policy will keep you safe should anything unthinkable happen.
And as we all know — life does tend to hand out lemons every so often. But you know what they say to do when life gives you lemons…
Enter Lemonade home insurance, one of the fastest-growing providers in the industry. And for good reason.
Lemonade has a lot going for it. It seems that everything the competition gets wrong, Lemonade gets right. Fast settlements. Transparent pricing. Happy customers. (And, interestingly, a flat fee that sends whatever’s left over from our collective premiums to charities of our choice.)
That’s at least the game Lemonade talks. But my thought was: “This is all really great. But would I actually trust my house with a company that’s been around for less than a decade when companies like Nationwide and State Farm have been writing policies for almost a century?”
My hunch was yes, especially considering Lemonade’s stellar track record of customer satisfaction. But the only way to truly answer that question was to take a deep dive into this provider’s homeowners plans — rates, coverage, bonuses, fine print, all the good stuff. I think you’ll like what I found.
Did You Know: Speaking of century-old homeowners providers, Nationwide has been insuring folks since 1926. For the inside story on how their homeowners policies actually stack up, check out my complete Nationwide home insurance review.
Lemonade makes home insurance simple.
Look, I get it. No one but me ever yells “Hooray! It’s time to shop for homeowners insurance!” But Lemonade will probably get the average Joe as close as they’ll ever come to feeling that adulation. Why? Because they take a human-centric approach to insurance, and explain everything in simple-to-understand, down-to-earth language.
Even better, they get hands-on about the everyday cases the average homeowner will most likely deal with when filing a claim, not just extreme disaster scenarios. For instance, did you know that termite damage is covered only if it’s literally inside the house, i.e. where you can’t see it? Not all of us do.
Does all that simplicity make for a better customer experience? Most of the time, yes, but at times they’re painting with a little too broad a brush. At times I really wanted to dig into the details, but was prevented from doing so for the sake of customer experience. I had no idea, for instance, what kind of valuables coverage Lemonade offered until I was actually reviewing my policy fine print — spoiler alert, it’s really good. I just wish I had known from the get-go.
In the meantime, here’s a bite-sized breakdown of what my basic Lemonade policy did include.
Homeowner’s Tip: Lemonade’s one-size-fits-all possessions coverage is actually atypical in the industry. Many home insurance providers offer à la carte options when it comes to calculating payouts for lost, damaged, or stolen belongings. For more flexible possessions coverage, check out Nationwide’s homeowners policies.
Pro Tip: Medical care is probably one of your top priorities if you care for an elderly family member. But you know no amount of insurance can protect them around the clock. If you’re concerned about their wellbeing, check out our Bay Alarm medical alert system review. They’re one of the best in the industry.
You’ll find all Lemonade’s extras when you’re building your online quote.
Homeowner’s Tip: Can’t find these extras on the Lemonade website? Don’t worry, they’re there. You just won’t see them until you’re fine-tuning your policy.
Lemonade’s online quote builder is fast and fun.
Lemonade is a digital-first insurance provider. They’ve got a gorgeous website — I don’t throw this praise around lightly — and an app with 4.9 out of 5 stars in the App Store (from over 1,000 reviews). They’ve also got an AI bot named Maya that helps out with online quotes.
Maya was there to greet me when I clicked for a quote and she led me through the whole quote-building process.
Getting my Lemonade quote with Maya took about five minutes.
The actual “interview” with Maya took under five minutes — record time for me — but there are still a few things I’d like to flag. For instance, I spent some time inventorying my home safety features like burglar alarms, dead bolts, and smoke and water leak detectors. This paid off because I got a 13 percent protective-devices discount in the end. So my advice is to be thorough there.
Adding my protective devices lowered my Lemonade rate by 13 percent.
Maya also asked for the last four digits of my Social Security number, presumably to verify that I was insurable. You’ll have to do the same to get a quote from Lemonade. A little invasive if you’re just shopping around? Maybe. Then again, a quick ID check did let me know right off the bat if a Lemonade policy was in the cards.
Other than that, putting together my Lemonade quote with Maya couldn’t have been easier. Standard coverage amounts were all tweakable. The extra coverage I wanted — bike and electronics — was literally a click or toggle away.
Tweaking my Lemonade coverage with a click!
Did You Know: Deductibles are one-off payments, not blanket fees. If you choose a $2,000 deductible, for example, you’re liable for that amount for every claim you file.
Lemonade claims the average homeowners policy costs $1,083 per year (or $90 per month). But average costs aren’t necessarily helpful and can even be misleading.
For instance, according to Lemonade, the average homeowners policy in Phoenix is $696, while the mean insurance premium in Chicago is $1,911. Could you end up with a $1,911 bill in Phoenix? Sure — if your house was twice the size of anything else on the block with a 20-year-old roof and no home security system or wired smoke detectors. You get the point.
At $122.42 per month, Lemonade’s rates were a little above average. This was for an older house (built in 1936) with a 15-year-old roof in a fairly expensive (but disaster-free) part of New Jersey. A newer house with a better roof would have brought my premium down considerably, despite the high property values.
| Type of Coverage | Amount of Coverage |
|---|---|
| Reconstruction costs | $575,000 |
| Other structures | $57,500 |
| Personal property | $287,500 |
| Portable electronics | $4,000 |
| Loss of use | Up to $172,500 |
| Personal liability | $300,000 |
| Medical payments to others | $1,000 per person |
| Bike insurance | $1.42 |
| Spouse added | Free |
| Deductible | $1,000 |
| Protective discount | 13% |
| Monthly cost | $122.42 |
| Yearly cost | $1,469.04 |
Don’t own a $575,000 home built in 1936? No problem. You can see from this table that Lemonade’s rates vary considerably just based on property values.
| Home Value | Estimated Monthly Rate |
|---|---|
| $275,000 | $71.73 |
| $375,000 | $88.76 |
| $475,000 | $105.59 |
| $575,000 | $122.42 |
Lemonade ranks No. 1 in customer satisfaction for renters.
Lemonade isn’t actually Better Business Bureau-rated yet, probably because it hasn’t been around long enough. But you can see from the customer reviews on the BBB website that Lemonade has a standout four out of five stars in customer satisfaction. That puts it head and shoulders above many of the entrenched names in the business we’ve reviewed.
J.D. Power didn’t rank Lemonade in their annual homeowners customer satisfaction or claims settlements reports this year (again, most likely because they’re newcomers). Still, they were number one in customer satisfaction for renters in 2021.2 Curious who made the top of the happy customer list? Metlife (now Farmers). Check out the full scoop in our Farmers review.
Homeowner’s Tip: Lemonade policies cover familiar accident scenarios like fire and lightning, frozen pipes, and water damage. But they also cover some worst-case scenarios you might not have thought of, like damage from riots and civil unrest, aircraft, and short circuit.
Lemonade has built a name in affordable, straight-dealing policies, so I wasn’t expecting much in the way of discounts. Still, I did uncover a few easy ways to trim my premium.
Lemonade Myth Buster: If you’ve been shopping around for home insurance, you may have read that Lemonade offers extra discounts for newly renovated or brand-new homes. A lot of insurance providers do. Unfortunately, this isn’t true for Lemonade. At this time, Lemonade does not offer any new home discounts.
Lemonade is certainly shaking the home insurance game up, but only in a handful of states. Today, this provider only writes policies in Arizona, California, Colorado, Connecticut, the District of Columbia, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, and Wisconsin. That’s less than half the U.S., if you’re counting.
But that list will definitely be growing fast. In the meantime, if you’re looking for an A+ homeowners provider with complete U.S. coverage, we really liked what we saw when we reviewed USAA home insurance.
| Provider | Online quote | Our score | Availability | BBB rating | Years in business | Customer satisfaction | Discounts | Bundling | Mobile app |
|---|---|---|---|---|---|---|---|---|---|
| Lemonade | Yes | 9.4 | 24 states | Not rated yet | 6 | A | Limited | Yes | Yes |
| Liberty Mutual | Yes | 8.6 | 50 states | B | 110 | B- | Yes | Yes | Yes |
| Nationwide | Yes | 9.1 | 44 states | A+ | 95 | B | Yes | Yes | Yes |
| Progressive | Yes | 8.7 | Most states | A- | 85 | B | Yes | Yes | Yes |
| State Farm | Yes | 9.2 | 48 states | A- | 99 | A- | Yes | Yes | Yes |
Lemonade is an insurtech disruptor that has successfully targeted practically every homeowner’s critical pain points: slow settlements, unresponsive agents, and policies steeped in legalese. In fact, they’ve not only targeted them, they’ve turned them upside down with instant payouts, smart, easy-to-use digital tools, and straight-talking language.
FYI: Want to get the most out of your homeowners insurance? Check out our complete Homeowners Insurance Buyer’s Guide. It explains the nitty-gritty of home insurance as well as Lemonade.
Could Lemonade go into a little more detail about their extra coverage and how they calculate settlements? I think so. I also looked hard but couldn’t find any information about inflation protection. Considering today’s skyrocketing construction costs, this is something I’d want solid figures on.
The only other brick wall I hit? Coverage. Lemonade only writes policies in 24 states, though that should be changing soon.
Lemonade offers pet, auto, and life insurance with a twist.
Lemonade goes into a lot of detail about the kinds of situations they help out with, which is a good sign that they actually know what caring for a pet means. Their exemplary pet insurance features consist of dental coverage, wellness exams, and access to online medical advice.
Like everything else they do, Lemonade does car insurance a little differently. Notably, they promise faster claims resolution (via their AI app) and lower premiums the less we drive. (They even plant trees to cover some of our carbon footprint!) EV and hybrid drivers also get discounts.
Lemonade will get you set up with a life policy online in minutes without any medical visits. Premiums start at $9 per month and you can cancel anytime.
Did You Know: Lemonade offers term life insurance because it’s more affordable and you can use it to cover a period of time when you need it the most – like during the 20 years your kids are still living at home.
As much as I “enjoy” sit-downs with my insurance agent, I’d rather do them online if I can, preferably via my smartphone. Lemonade has perhaps the best app in the business for that, churning out super-fast quotes and instant settlements when possible.
Even for those who know their way around homeowners insurance like yours truly, Lemonade’s everything-out-in-the-open, plain-language approach to insurance is refreshing. The fact that they are affordable and send what’s left of our premiums after the claims are paid to charities? Very nice.
Nice, that is, if you live in one of the states they cover. That may be sad news for many of you, but hopefully not for too much longer. Other than that, Lemonade is one newcomer to the homeowners game that is a lot more than just talk.
Very easily via their top-rated app. Maya (Lemonade’s AI) will ask you to answer a few questions and shoot a short video of the damage. If the claim is open-shut, Lemonade pays automatically. If your case needs human intervention, you’ll have to speak to an agent.
Yes, in minutes. Lemonade has one of the smoothest, coolest quote builders out there. Just be prepared to give Maya (again, that’s Lemonade’s AI bot) the last four digits of your Social Security number.
Lemonade’s rates are very competitive. The fact that they’re 100 percent digital keeps overhead lower, so they can pass on more savings to their customers.
No, they don’t. In fact, they only write in 22 states at present.
Sure. We recommend trying a homeowners and pet insurance combo to save on your bill. But you can also bundle home, auto, and life.
FEMA. (2022). Flood Insurance.
https://www.fema.gov/flood-insurance
J.D. Power. (2021, Sep). Home Insurers Struggle with Customer Loyalty as Boomers Flock to Rental Market, J.D. Power Finds.
https://www.jdpower.com/business/press-releases/2021-us-home-insurance-study
Bloomberg. (2021, Oct 22). Dog Owners Discover the True Cost of Their Pandemic Adoptions. https://www.bloomberg.com/news/articles/2021-10-22/how-much-pandemic-dogs-are-costing-their-owners-in-2021
