Lemonade Renters Insurance Review: Fast Online Claims Processing

Many landlords require that you have renters insurance to sign a lease. But if you’re trying to save money, you don’t want to deal with another expense in your monthly budget.

That’s why getting renters insurance with a low monthly premium is key. Plus, when it’s a competitive rental market, you don’t want to waste hours completing an application.

Lemonade is an online insurance company that promises low premiums and a speedy application. They can keep costs down since, unlike traditional insurance companies, they don’t have brick-and-mortar sites or insurance agents who call on your birthday.

Lemonade focuses on providing fast quotes, as well as apps to manage your insurance. Plus, they’re a provisional B-corp and donate part of their revenue to various charities.

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Overview of Lemonade Renters Insurance

Lemonade renters insurance is an entirely tech-based service. They use AI bots to process claims and handle many customer service queries, so you won’t necessarily have to call a hotline.

While convenient, this can also make some customer service needs more challenging because you don’t have a dedicated insurance agent who can handle your calls. You have to send a note through the app or an email to [email protected].

Like most renters insurance policies, Lemonade’s policies cover the items you own if they’re stolen or damaged, even if they’re not in your home at the time. 

For example, if you leave your laptop in your car and it’s stolen, then your renters policy will help replace it. If your apartment floods and you need to stay at a hotel temporarily, then your renters insurance will pay those costs.

Renters insurance comes with a deductible that you must meet before the insurance company pays their share.

What Does Lemonade Renters Insurance Cover?

Lemonade renters insurance includes the following coverages:

• Personal property: The costs of repairing or replacing your stuff if it’s stolen, vandalized, or damaged by an event like a fire. You’re also covered if your things are stolen outside of your home, such as if your laptop is stolen from a cafe.
• Loss of use: Living expenses (such as hotel bills) if you have to temporarily move out of the property because it’s uninhabitable.
• Liability: Legal fees and damages if someone is injured or their stuff is damaged as a result of your negligence. This includes if your dog bites someone (so long it doesn’t have a history of biting and isn’t considered a “high-risk” breed).
• Medical: Coverage for medical bills if someone is injured in your home.

Your policy automatically covers anyone in your household who is related to you by marriage, blood, or adoption. If you’re not married but live with your partner, you can add them to your policy for an additional cost.

Learn more about Lemonade renters insurance.

What Doesn’t Lemonade Renters Insurance Cover?

Renters insurance doesn’t cover everything. You won’t be able to claim things like bed bugs or if you accidentally lose or break something you own.

Also, some natural disasters aren’t covered or are only covered in certain areas. For example, Lemonade currently only offers earthquake coverage in California and Arkansas.

While family and partners can be included in your policy, roommates can’t. They’ll need to take out their own insurance policy for their things. 

How To Apply for a Lemonade Renters Insurance Policy

Applying for a renters policy through Lemonade is fairly simple. You can start an application online or download the app.

First, you’ll be asked if you have a Lemonade account. Then, you’ll put in your full name and address.

You will then be asked if you have any of the following installed in your house or apartment:

• Fire alarm
• Burglar alarm
• Smart water valve

Check the appropriate boxes if you have any of these items.

Next, you will be asked if you share your home with any of the following:

• Roommates
• Partner 
• Kids
• Dogs
• Cats

You’ll then be asked if you own any valuable jewelry, cameras, bikes, or fine art. Make sure to only include any pieces that you would want to be specifically insured in case they were stolen or damaged. 

The next question will ask what kind of building you live in:

• Single-family home
• Multi-family home (like a duplex or triplex)
• Townhouse
• Apartment

Lemonade will also ask if you have any portable electronics, such as phones or laptops, that are worth more than $1,500 in total. 

The final question is if you already have a renters policy for that property. If you answer yes, Lemonade informs you that they can help you cancel your old policy and activate a new one with Lemonade. 

To get your quote, you will have to enter your email address and birthdate and agree to Lemonade’s terms of service. You’ll then receive your quote.

Learn more about Lemonade renters insurance.

How To File a Claim with Lemonade Renters Insurance

When you file a claim with Lemonade, you will be asked to record a video on the Lemonade app describing what happened. Many Reddit users said this was fairly easy and that their claim was approved within a few minutes. 

If your claim isn’t approved by the AI software, it will be sent to a Lemonade claims specialist who will examine your report. They may require additional information before processing your claim.

What We Like About Lemonade Renters Insurance

We love that Lemonade has very low monthly premiums, starting at just $5 per month. For comparison, most other providers charge more than $10/month. Many online reviews say that Lemonade has some of the lowest premiums they could find. 

We also like how easy it is to apply with Lemonade. Their online application is simple and only takes a few minutes to complete. 

Lastly, we love that you can manage your account directly on an app — and even file your claim from there via video. Recording a video that explains what happened can be much easier than writing out a report and filling out forms. Plus, approvals can be as quick as a few minutes.

Learn more about Lemonade renters insurance.

What We Dislike About Lemonade Renters Insurance

The biggest downside of Lemonade renters insurance is that it’s hard to speak with customer service. 

With traditional insurance plans, you have a dedicated agent to answer your questions. Lemonade doesn’t have traditional insurance agents, so you won’t have the same feeling that you get with major companies, like State Farm.

Also, some people have reported problems and glitches with the app.

Who Should Get Lemonade Renters Insurance?

If saving money is your biggest concern, then Lemonade may be the best fit for you. According to multiple reviews, Lemonade appears to have some of the lowest monthly premiums for renters insurance. 

Lemonade renters insurance is also a good option if you’re in a time crunch, as it’s fairly easy and quick to apply.

Finally, if you have a pet, you may be interested in Lemonade, since they also offer pet insurance.

READ MORE: Lemonade Pet Insurance Review

Who Shouldn’t Get Lemonade Renters Insurance?

If you already have other types of insurance through another provider, then it may not make sense to use Lemonade for your renters insurance, since you can often get discounts for “bundling”  your policies with one company. 

Lemonade is not available in every state. You can’t get renters insurance from Lemonade if you live in the following states:

• Alabama
• Alaska
• Delaware
• Hawaii
• Idaho
• Kansas
• Kentucky
• Louisiana
• Maine
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• New Hampshire
• North Carolina
• North Dakota
• South Carolina
• South Dakota
• Utah
• Vermont
• West Virginia
• Wyoming

Lastly, if you prefer talking to a representative over the phone or in person, then a Lemonade policy may not be the best fit for you.

Alternatives to Lemonade Renters Insurance

Lemonade vs. Policygenius

Policygenius is different in that it’s an aggregator, while Lemonade is a direct insurance provider. 

With Policygenius, when you fill out an application, they send your information to multiple companies, which then provide quotes. This can help you find the best rate without completing multiple different applications.

Because Policygenius isn’t just one provider, prices can vary depending on the provider. But Policygenius says most people can get renters insurance for less than $20 per month.

Plus, Policygenius is available to residents in all states, so it’s a great alternative if you don’t live in one of the 28 states that Lemonade covers.

Read our full review of Policygenius.

Lemonade vs. State Farm

As one of the biggest insurance companies around, State Farm is a more traditional alternative to Lemonade. If you’re looking for more personalized customer service, then State Farm is one of your best options for renters insurance.

State Farm policies include all the usual things covered by renters insurance, like personal property theft and damage, liability if someone is injured in your home, and loss of use if you have to temporarily move out.

They also an inflation coverage, which is unique — as the cost of living goes up, your coverage will adjust to keep you at the same level of protection.

Unlike Lemonade, you have to apply for renters insurance with an agent at State Farm, so the process may take longer. However, they do cover all 50 states, whereas Lemonade only covers 28.

Lemonade vs. Toggle 

Toggle is a subsidiary of Farmers Insurance, but their interface is similar to Lemonade. Like Lemonade, they want to make renters insurance easy to apply for. 

Similar to Lemonade, they also don’t offer coverage nationwide and are currently only available in certain states.

Pricing with Toggle starts at $5/month for basic coverage but can cost as much as $25. You can get a quote instantly, just like with Lemonade. Toggle is not as well-known as Lemonade but has an A rating from AM Best in terms of financial strength. 

FAQs

What factors influence renters insurance premiums?

Renters insurance is fairly cheap, but some factors can increase your monthly premium. These include your ZIP code, credit history, deductible, coverage limits, and add-ons. 

If you have lots of expensive items in your home, like a pricey diamond engagement ring or a valuable guitar, your policy may cost more.

Can my Lemonade renters insurance claim be denied?

Not all claims will be automatically approved. The claim must fit within your policy’s guidelines. 

For example, renters insurance often doesn’t cover anything that gets damaged if you short-term sublet or rent out your place (like on Airbnb), even if it would have been covered otherwise.

Can I be denied a Lemonade renters insurance policy?

In some cases, you may not be approved by Lemonade. This may happen if you have a poor credit score, a history of filing multiple claims, or if you live outside the Lemonade coverage area. 

Depending on the reason, you can always try again later if your circumstances change.

How do I save money on my Lemonade premium?

Insurance companies charge premiums based on your risk level. If you can reduce your risk, then you may qualify for a lower premium. Start by installing fire alarms and a security system if possible. 

You can also increase your deductible, which will usually lower your premium. Just make sure you can afford to pay the deductible in case you file a claim.

The Bottom Line

Lemonade offers cheap premiums for renters insurance and has a fast and easy application process. They also have a unique claims process: you record a video about what happened and approval is made by AI.

But because Lemonade is so tech-focused, you need to be comfortable with doing everything online (and through AI). If you’d rather a more human approach, you might like a more traditional insurance company instead.

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