Lemonade is an insurance company that markets its products toward people who are looking for affordable coverage from a transparent company. The company was founded in 2015 by Daniel Schreiber and Shai Wininger. The two now serve as CEO and president/CTO, respectively.
Lemonade began by offering options for renters insurance and homeowners insurance, before adding pet insurance plans in 2020 and term life insurance for some people in January 2021. On this page, we’ll look at Lemonade insurance for renters specifically. If you’re a homeowner, see our ratings for the best homeowners insurance.
Ability to sign up for coverage within minutes
Company donates a portion of revenue to charity
Fast claims process
Only available in 27 states and Washington, D.C.
May not be a good fit for those who prefer working with an agent
Coverage amounts vary by state
Lemonade, one of our Best Renters Insurance Companies of 2022, is a great fit for those who are comfortable purchasing and managing their renters insurance policy online. If so, you’ll be rewarded with a fast signup and claims process; depending on the nature of your claim, Lemonade may approve it instantly.
Unfortunately, those who want to work with an agent are out of luck. So are those who live outside of Lemonade’s service area, which includes 27 states and Washington, D.C. When you receive a quote, make sure to look at the fine print as not all states offer the same types of coverage. For instance, a Lemonade renter’s policy in New York covers up to 10% of your personal property limit for storage units, whereas policies in other states have a $1,000 limit.
Lemonade is also unique in that it donates a percentage of excess revenue (unused premiums) to a nonprofit of your choosing. Their Giveback program donated $1.1 million to 34 nonprofits, according to the company.
Lemonade renters insurance covers three main areas: personal property, loss of use, and personal liability.
Personal property coverage pays for the cost of replacing your items that are lost or damaged in a variety of scenarios, including fire, lightning, windstorms, hail, smoke, freezing, vandalism, or theft. Theft is covered even if your items are stolen outside of your home. Other specific situations involving natural disasters depend on location or circumstances. Flooding, for example, is not covered when caused by a storm, although water damage from, say, a burst pipe is covered. For renters in California, damage from earthquakes is not covered. Hurricane coverage is built into standard renters insurance policies in some states like Rhode Island, though it’s an optional add-on in other states like New Jersey.
Loss of use coverage refers to situations in which your home is not currently liveable. If, for example, a fire severely damages your home and you need temporary housing in a hotel or rental property, Lemonade renters insurance will cover those additional housing and living expenses.
Lastly, personal liability coverage protects you if someone is injured on your property and takes legal action against you. This could mean someone falling on your stairs that you haven’t repaired or warned guests about, for example. Lemonade’s renters insurance would cover your legal fees and the medical bills of the injured party. Fire damage is the most common reason for liability claims from Lemonade customers. A fire in your apartment may damage a neighbor’s apartment, in which case your renters insurance would cover your neighbor’s damages. Personal liability insurance can even extend to pet-related incidents, such as your dog biting someone. Remember that each scenario is different, so be sure to ask Lemonade’s customer service team if you have questions.
Every insurance company and policy is different, but you can use our guide about how renters insurance works to help you get a better idea.
- District Of Columbia
- New Jersey
- New Mexico
- New York
- Rhode Island
Lemonade renters insurance is currently offered in the U.S. 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, Washington, Washington D.C., and Wisconsin. It’s also available in France, Germany, and the Netherlands, with plans to expand to more European countries.
What Isn’t Covered by Lemonade Renters Insurance?
Lemonade renters insurance doesn’t cover utility outages like loss of power, heat, or water. It also doesn’t cover damage caused by such outages. You are, however, covered for damage caused by burst pipes, which may be an effect of power, heat, or water loss. Damage from flooding caused directly by natural disasters (i.e. natural bodies of water overrunning their banks) is not covered by renters insurance. Damage caused by earthquakes or sinkholes also isn’t covered, though damage from wildfires and tornadoes usually is. Renters insurance doesn’t cover damage caused by pests, like bedbugs, nor property damage.
Lemonade offers a discount if you have fire alarms, sprinklers, or security alarms installed in your home. You can also get a discount by bundling policies.
Lemonade offers insurance for renters and homeowners, including co-op and condo owners. It also recently began offering pet insurance, which kicks in if your pet is sick or injured, or requires special procedures or medication. You can get a discount if you take out both a home insurance policy (including homeowners, renters, and condo insurance policies) and a pet insurance policy with Lemonade.
You can add extra packages to your renters insurance policy to cover specific items of high value. These add-on coverage options include jewelry, musical instruments, bicycles, fine art, and cameras. While these belongings are covered by a base renters insurance policy, that base policy has a sublimit for certain items, such as a $1,500 cap for jewelry. If you have items that are worth more than that, you might want to consider additional coverage.
Here are the steps to buying Lemonade’s renters insurance policies:
- Go to Lemonade’s website or download its app and click on the pink “get started’ or “check our prices” button.
- To receive your quote, follow the prompts by providing personal information such as the type of insurance needed, your address, the type of property you own, and your email address. Lemonade will determine a premium based on the information you provide.
- Customize quotes by choosing different variables such as coverage amounts and any additional coverage before entering your credit card details to pay for your policy.
For more information read our guide on How to Buy Renters Insurance.
Here’s how you can file a renters insurance claim with Lemonade:
- If it is an emergency or you believe a crime has been committed, file a police report or contact emergency services before filing a claim with Lemonade. Otherwise, open the Lemonade app and sign in using the email address you used to purchase your policy.
- Click the pink “claim” button, and Lemonade will prompt you to verify your contact information and the exact nature of your claim. Submit required information (such as a video recording of what happened) or documentation and digitally sign the Pledge of Honor to indicate your claim is truthful.
- Lemonade runs fraud algorithms to determine if it will approve your claim instantly or send it to human claims adjusters for further investigation.
For more information read our guide on How to File a Renters Insurance Claim.
Lemonade vs. USAA
USAA offers renters insurance nationwide, making it a great choice for those who aren’t within Lemonade’s coverage area. However, USAA membership is only open to current and retired U.S. military members, their spouses, and children. Lemonade offers policies and processes claims quickly online, whereas USAA provides policyholders the option to contact the insurer by phone. Lemonade offers a few discounts such as paying annually and installing an alarm system, while USAA has additional discounts tailored specifically for military members.
Learn more in our USAA review.