Lemonade Homeowners Insurance Review in 2023

Lemonade Homeowners Insurance Review in 2023

Lemonade provides many different policy kinds, such as home insurance, renters insurance, life insurance, pet insurance, and auto insurance. Lemonade, a startup founded in 2015, stands out among the businesses in our rating for being virtually totally online, from obtaining estimates to submitting claims.

A public benefit corporation called Lemonade is incorporated. Through its Giveback program, customers can choose a charity to receive their surplus premiums after the firm deducts a predetermined proportion and pays claims with the remaining funds.

Lemonade, tied for No. 7 in our ranking of the Best Homeowners Insurance Companies of 2023, stands out for primarily conducting business online and through its mobile app; it lacks local agents to offer in-person support. Customers can obtain quotations and purchase policies using the company’s website or mobile application, and customers must download the app in order to maintain their policies, contact the Lemonade team for assistance, and submit claims. Additional online or mobile functions include customising policies, paying bills, and tracking claims.

The company’s typical homeowners insurance policy covers various structures on a property in addition to the home itself, as well as additional living expenses in the event that a home becomes uninhabitable due to an accident like a fire. Additionally, if something happens at a customer’s home, there is coverage for personal property, injuries and damage that a household member causes to other people or their property, as well as for visitors’ medical costs.

Additionally, customers have the choice to purchase extra coverages for priceless goods, earthquakes (now only in California), water backups, foundation water backups, swimming pools, equipment failures, and buried utilities.

Only 23 states and D.C. are offering Lemonade homeowners insurance.

Another noteworthy aspect of the business is its Giveback program, which, after Lemonade deducts a predetermined proportion of premiums, annually distributes unclaimed funds to a charity of consumers’ choosing.

Summary: Lemonade’s regular homes insurance policy provides the typical six categories of coverage in addition to a number of optional add-ons. It differentiates itself principally through its Giveback programme and nearly wholly virtual business strategy. Its two biggest limitations are that it isn’t available in 27 states and that there isn’t any access to in-person assistance.

What Kinds of Homeowners Insurance Coverage Does Lemonade Offer?

Lemonade’s regular house insurance policy include the following six standard coverages:

Dwelling Coverage: If your house or any attached structures are damaged due to a covered claim, this coverage pays to repair or replace them.

Other Structures: This refers to any detached buildings on your property that require repair or replacement, including fences, pole barns, and detached garages.

Personal property: This covers the replacement or payment for your clothing, furniture, gadgets, and other possessions.
Loss of Use: This insurance covers the cost of eating out or staying in a hotel when a covered risk renders your house unusable. It is also

known as supplemental living costs. (ALE).

Liability Insurance: Liability insurance offers protection in the event that you or a member of your family accidentally causes bodily harm or property damage to another person (or their personal property). The loss could happen on your property or elsewhere.

Medical Payments: This covers any medical expenses incurred as a result of visitor injuries sustained on your property or unintentionally brought about by a member of your household.

What Extra Homeowners Coverages Does Lemonade Offer?

On its home insurance policy, Lemonade offers a number of supplemental coverages, some of which are standard among insurers and some of which are not. These consist of:

Water Backup: This provides coverage for harm brought on by clogged floor drains, sump pumps, or pipes. The cause of the backup is not covered, but damage to the walls or floors of your house as well as to your possessions is up to $5,000 or $10,000.

Foundation Water Backup: This protects against foundation damage brought on by water accumulation, such as cracking, seeping, or leaking, which is normally not covered by a typical homes insurance policy.

Buried Utility: Also known as service line coverage, this insurance provides up to $10,000 for the repair or replacement of subterranean wires that connect your property to the street. This encompasses hazards including breakdowns, wear and tear, freezing, artificial currents, and excess weight and includes water, sewage, gas, electrical, and power lines.

Equipment breakdown: This covers up to $100,000 in losses and expands the list of risks that are covered for your appliances and devices to include mechanical failure and electrical power surges.

Additional Protection: Lemonade recommends this policy for expensive items like jewelry, musical instruments, artwork, cameras, and bicycles. This supplementary coverage will aid with unintentional damage and losses and cover the appraised values as these goods often have limited coverage under a conventional home insurance policy. There is no deductible necessary.

Extended Reconstruction Cost: If the initial coverage level is insufficient, this option will provide an additional 25% or 50% of your dwelling coverage to reconstruct your home.

Swimming Pool Coverage: This insurance protects you against accidents that happen while using your pool and are often not covered by a conventional homeowners policy. The pool’s construction is typically covered, though.

Lemonade policyholders frequently choose to add the extra coverages described above. Contact a Lemonade representative for advice if you have particular items or situations you want covered.

What is the price of Lemonade’s homeowner’s insurance?

The following variables will affect the price of a Lemonade homeowners policy:

Location. You will probably spend more if you reside in an area where natural catastrophes like hurricanes, tornadoes, earthquakes, wildfires, and flooding are more frequent than if you do not. Additionally, your rates will probably be lower if you reside in a gated community or close to emergency services like a fire station.

Amount of protection. The greater the rates, the more coverage your policy offers.

Deductible. In general, greater rates will result from lower deductibles. While cheaper premiums are typically associated with bigger deductibles.

the state of your house. An older or poorly maintained home will have higher premiums than a newer, well-maintained one.
Claims background. If you have made a lot of insurance claims, your insurance premiums will probably be higher than if you have made relatively few claims.

Discounts. Your monthly premiums can be reduced if you are eligible for discounts like those for bundling your home and vehicle policies.
What Lemonade Discounts and Bundles Are Available?

Lemonade offers fewer homeowner’s insurance policy savings than the other insurers in our review. The following are highlighted by the company:

Bundling: If you buy another Lemonade policy, such as auto or pet insurance, you’ll be eligible for this discount.

Protective Equipment: You qualify for this discount if your home is equipped with smoke alarms, burglar alarms, or deadbolts.

Annual Payment Plan: If you pay your payment in full each year, you’ll save money.

Lemonade states that it wants to pay out simple property claims relatively immediately. However, some liability or property damage claims could take longer to resolve, particularly if this isn’t the first loss you’re filing or if details are lacking. For this reason, Lemonade may ask for camera footage to assess your claim and receipts from purchases to confirm the value and ownership of the items.