Lemonade Review

The one common complaint with just about every kind of insurance is the cost.

Most people don’t like to pay massive premiums every month for something they aren’t going to use.

Lemonade wants to help their clients by giving them cheap insurance coverage for their homes and belongings.

They are completely changing the way we look at insurance.

Homeowner’s or renter’s insurance can protect your belongings, your loved ones, and your home itself.

You want to guarantee you have the coverage you’ll need, whatever Mother Nature throws at you, and Lemonade is making that process easier than ever.

Where is Lemonade Available?

Lemonade insurance logo*Before you read about Lemonade and their insurance coverage, you should be aware of the states it’s available in.

Currently, you can get insurance with Lemonade in the following states: 

  • Arizona
  • California
  • Connecticut
  • District of Columbia
  • Georgia
  • Maryland
  • Michigan
  • Nevada
  • New Jersey
  • New York
  • Pennsylvania
  • You can also get renters/condo insurance in Texas or Rhode Island.

How Does Lemonade Work?

Now that we’ve got the area covered, let’s look at Lemonade actual insurance coverage.

While the company doesn’t use the exact words, most people have designated them as a “peer-to-peer” insurance providers.

Here’s how it works.

Lemonade is EXTREMELY transparent in how they operate their business.

They take a standard 20% from every premium you pay; this money is used to pay for all of their operating expenses.  

The other 80% from premiums paid goes towards paying claims, which is is why they are a peer-to-peer insurance company.

Each person is essentially paying for the claims of another person.

Here is the best part: all of the money which isn’t used to pay claims is gathered up and given to charity!

This is an insurance company who is putting their money where their mouth is, dedicated to doing good and giving back.

As Lemonade’s mantra says, they “treat the rest of the money as yours, not ours.”

Every year, the company’s policyholders get to decide which charity is going to receive the surplus of money.

In 2017, Lemonade gave $53,000 to Women in Need, American Red Cross, and several more organizations.

In 2018, they gave much more – over $162,000 to Teach for America, ACLU, and Code to Inspire.

Although some life insurance companies give to charity, not all home insurance companies do, which sets Lemonade apart.

The Cost of Lemonade

The goal of the company is to provide affordable homeowners insurance and cheap renters insurance.

Based on the numbers from their home page, you can get renters insurance as cheap as $5.

For homeowner’ insurance, they claim you can get a plan for as cheap as $25 a month.

Both of these quotes are the cheapest you’ll find on the market.

Under those quotes, Lemonade shows you how much they help policyholders save when they switch:

  • They claim you can save as much as 31% if you’re coming from Farmers, Progressive, Assurant, and others.
  • If you’re an Allstate customer, you can save up to 19% on your coverage premiums by switching.

Obviously, these numbers are not going to be accurate for every person.

There are a lot of factors which determine your rates, but generally speaking, Lemonade saves you money when you switch from its competitors.

Not only does Lemonade save you money, but they also “take care of the switching hassle.”

Additional Coverage

Lemonade allows you to get some additional features and coverage on top of basic protection.

  • In some states, you can opt for a “Zero Everything” plan. If you ever have to make a claim, there is a $0 deductible (which is the amount you have to pay before the insurance company pays their portion). Not only do you not have to pay any deductible, but you can make two claims without having your rates go up. This is very different from other policies sold by the “big name” companies.
  • You can also add family members or a landlord (if they require it) at no additional cost to you.
  • If you want to add your spouse or significant other, it’s going to add a little extra to your premiums.
  • If you have any “outside buildings” or your stuff is in a storage area outside your home,  you get $1,000 or 10% of the policy coverage, which is greater.

Making a Claim

Lemonade says their customers can “file claims from your phone – anytime, anywhere.”

In fact, the company claims 25% of their claims are paid in 3 seconds. Yes, 3 seconds!

Here’s how it works:

  1. Download the app (hopefully, you already have it on your phone)
  2. Tap the “make a claim” button
  3. Type in what happened.
  4. Then Lemonade runs your claim through 18 algorithms to look for fraud
  5. Your claim is either approved by their AI (artificial intelligence) or it’s given to their claims team.

Applying for Coverage

If you decide to switch, it’s quick and simple.

Just like everything else with Lemonade, the insurance provider has tried to make the process as straightforward as possible.

All you have to do is start by answering some simple questions (are you buying renters or homeowners insurance, where do you live, do you have roommates, do you have a security system, etc.).

After this section, you’re going to answer a few questions about how much protection you’re going to need and any additional valuable possessions.

In just a few minutes, you can get an online quote.

And after you get the quote, you can still adjust the coverage amount and see how it will impact your premiums.

Once you’ve decided on your coverage options, you can pick a start date for your coverage and schedule out the coverage to start up to a year in advance.

This feature prevents you from having to pay for two plans at once.

Then all you have to do is pick the charity you want the money to go to.

Once you pick your non-profit, then you’re good to go.

It’s as quick as that.

Pros and Cons

Let’s start with the good.

  • You probably know the best part of Lemonade now – the price.

The goal of Lemonade is to give customers affordable coverage, and they do an excellent job.

Compared to the other carriers out there, the insurance plan is going to be noticeably cheaper.

  • The other advantage is how quickly you can get your coverage set up.

They make it much easier than the alternative, which involves long waiting periods and appraisals.

  • And If you’re into giving back to the community, why would you not choose Lemonade?

Yes, a lot of the other carriers have programs and funds set up to give to charity, but Lemonade is changing the way they give back.

  • The biggest problem with Lemonade is that they aren’t available in every state.

If you live in one of the states they work in, then you’re in luck.

They are continuing to add more states, but as of right now, there is a good chance you can’t buy one of their plans.

Bottom Line

Your home is where your heart is.

What would happen if Mother Nature were to sweep through and damage your roof and everything under it?

Homeowners/ renters insurance is a simple way to protect your belongings.

Even if you already have a quality plan in place, why not try to save money?

By shopping around, you can save hundreds of dollars.

Want some help with your insurance shopping?

Give us a call!


About InsuranceScored.com
About InsuranceScored.com

Susan Wright, CLU, ChFC, RHU, REBC, ADPA, CITRMS, CIPA has been in the insurance and financial field for over 27 years. Even with years of experience, she continues to create new resources for others. Everything from books to training material.

Susan received her MBA from St. Louis University and her BA from Michigan State University.

She has worked in several areas but excels in writing material for both finances and insurance. Her goal is to give professionals credibility and assist in streamlining the sales process.

She has written countless articles for a variety of websites.

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