Lemonade Homeowners Insurance Review 2022

Lemonade wants us to forget everything we know about home insurance. I followed their advice. Here’s what I found.

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SecureScore™: 9.4 / 10 This rating is derived from our editorial team's research, hands-on product testing, and customer surveys.
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Rob Gabriele https://www.safehome.org/author/rob-gabriele/
9.4 SecureScore™ How We Review
Affordability
9.8
Coverage
8.8
Customer Service
9.8
Online Quote
10
Discounts
8.8
Bundles
9.1
SecureScore™
9.4
How We Review

Lemonade Overview

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 six years 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.

PROS
  • Low rates
  • Fast, fun AI quote builder
  • Transparent policies
  • Excellent digital experience
  • Instant claims payments via the Lemonade app
  • Giveback program invests unused claims in charities

CONS
  • Can’t replace belongings at cost
  • Only available in 22 states (so far)
  • Only in business for six years

Lemonade’s Simplified Approach to Homeowners Coverage

Lemonade Insurance Options

Lemonade makes home insurance simple.

Lemonade really does a great job of explaining their coverage in down-to-earth language anyone can understand.

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? Mostly, yes. There were a few places where I wanted a little less “simple” and a little more “nuts and bolts.” I had no idea, for example, what kind of valuables coverage Lemonade offered. (Some pretty good coverage as it turned out, but I didn’t find out until later when I was actually building my policy.)

In the meantime, here’s a bite-sized breakdown of what my basic Lemonade policy did include.

Basic Coverage

  • Dwelling: If something unavoidable and beyond my control happens to my home, standard dwelling insurance covers it. Like a tree. If a storm blows a tree through my sunroom, I’m good to go. (As long as that tree hasn’t been rotting on my lawn for years. Then it’s on me.) My Lemonade policy also covers me for fire and smoke damage, theft and vandalism, and for water damage (think busted pipes, not a flood. Flood insurance is always extra.1)
  • Other structures: My house doesn’t have a fence or a shed, but it does have a carport. Like all the best home insurance providers I’ve reviewed in these pages, Lemonade will help me rebuild my carport if something happens to it. The same goes for whatever structures you’ve built on your property.
  • Personal property: Lemonade devotes a whole page on their website to personal property coverage, aka “contents insurance,” so I walked away with a good understanding of what’s covered. What I didn’t walk away with, however, was a sense of how Lemonade will calculate my settlement. Will I have the option to pay a little more per month and get reimbursed for the current market value of my stuff? Or will I have to settle for its depreciated value? Guess that’s a question for a Lemonade agent.

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.

  • Loss of use: There’s nothing too odd to report here. Lemonade will cover my hotel bills if I have to move out of my house temporarily while it’s being fixed. By the way, they’d also cover me for up to 25 percent of the value of a complete rebuild, but your situation may be different.
  • Personal liability: Lemonade’s standard liability insurance doesn’t just cover me in case my unshoveled sidewalk is the scene of a freak accident. It covers me if I accidentally damage someone else’s things, too, or if someone in my family (even my pet) damages someone or something.
  • Medical payments: $1,000 is Lemonade’s default payout for medical expenses. If you feel you need more coverage for guests injured in your home, the maximum is $5,000. Just keep in mind, the more medical bills Lemonade covers, the higher your premium.

FYI: Personal liability insurance is pretty elastic, but you can only stretch it so far. For example, you’re covered if your 10-year-old breaks the neighbor’s window. But say you run a yoga studio out of your house and one of your students gets injured on your property. Your policy wouldn’t cover you in that case.

Extra Coverage

Lemonade Insurance Extra Coverage

You’ll find all Lemonade’s extras when you’re building your online quote.

  • Valuables: Lemonade offers extra coverage for a pretty wide variety of “valuables” beyond jewelry (bike, fine art, and musical instruments, to name three). This was refreshing. But, as I mentioned above, you’ll only find out about those extras when you’re building your quote.
  • Portable electronics coverage: It’s about time gadgets got their own homeowners category. Lemonade’s default electronics insurance is $1,500. Because my new iMac is “part of the family,” I raised mine to $4,000. I was happy to see this only nudged my premium up by about $3.50 per month.
  • Water back-up: This is for serious water damage caused by sewer back-ups and broken sump pumps. I have zero experience with misbehaving sump pumps and bad drainage, so I left this one out. If I had opted for water back-up coverage, it would have set me back $9 per month.
  • Appliance breakdown (aka equipment breakdown coverage): All the kinds of accidents you’re not covered for with a warranty — spilling, dropping, cracking, busting — EBC covers you for. This includes TVs, by the way. Adding EBC to your Lemonade policy will run you about $3 per month.
  • Buried utilities: Have a gas, sewage, or power line running under your house? One day it may break, and you may be in for some serious repair bills. For $3.25 per month, Lemonade covers you for up to $10,000 in damages.

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.

Getting a Lemonade Quote

Lemonade Insurance Quote Builder

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 Lemonade Quote

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 Protective Devices

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.

Lemonade Coverage Amounts

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 Homeowners Rates

Cost

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

Estimated Monthly Rate Based on Home Value

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 Customer Experience and Claims

Lemonade Insurance Customer Service

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.

Discounts

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.

  • Protective devices discount: I obviously feel strongly about home protection. Lemonade does, too. So when you’re ready to build your policy, if you’ve got a top-of-the-line security camera, deadbolt, fire alarm, or smoke detector, you’ll save like I did.
  • Bundling: Pet insurance is more popular than ever these days due to pets living longer and rising medical costs.3 If you’re going that route, bundling your homeowners and pet insurance could shave a few extra dollars off your monthly bill. The same goes for auto and life insurance.
  • Paying annually: Pay once a year and Lemonade will give you a bit back.

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 Homeowners Policies Availability by State

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.

Lemonade vs. the Competition

Provider Online quote Our score Availability BBB rating Years in business Customer satisfaction Discounts Bundling Mobile app
Lemonade Yes 9.4 22 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

Where Lemonade Hits the Mark

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.

Where Lemonade Falls Short

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 22 states, though that should be changing soon.

Other Policies Offered by Lemonade

Lemonade Plants Trees

Lemonade offers pet, auto, and life insurance with a twist.

Pets

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.

Auto

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.

Term Life (10-30 years)

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.

Our Final Verdict

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.

FAQs

How can I file a claim with Lemonade?

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.

Can I get an online quote?

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.

Are Lemonade’s policies cheap?

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.

Does Lemonade cover the whole U.S.?

No, they don’t. In fact, they only write in 22 states at present.

Can I bundle my Lemonade policies?

Sure. We recommend trying a homeowners and pet insurance combo to save on your bill. But you can also bundle home, auto, and life.

Top
Citations
SafeHome.org only uses high-quality sources to support the facts within our articles. Read our editorial guidelines to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. FEMA. (2022). Flood Insurance.
    https://www.fema.gov/flood-insurance

  2. 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

  3. 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

Written By
Rob Gabriele
Managing Editor & Home Security Expert

As Managing Editor for SafeHome.org, Rob Gabriele has written and edited over 1,000 articles in home security. His expertise is in smart home automation and home protection with thousands of hours of testing and research under his belt. Formerly a reporter and producer for the USAToday network, Rob has been a writer and editor for over 10 years. He holds a Master’s of Science with an emphasis on writing from the University of Montana, and he currently lives in the Reno/Tahoe area of Nevada.