Our reviewers evaluate products and services based on unbiased research. Top Consumer Reviews may earn money when you click on a link. Learn more about our process.

Lemonade Review

Friday, August 12th

2022 Home Insurance Company Reviews

Top Consumer Reviews Best-In-Class Blue Ribbon Award Lemonade Review 5 Star Rating

Lemonade

5 Star Rating
  • Sign up or cancel online
  • Giveback program donates excess premiums to a charity, rather than the company just keeping the money
  • Send in videos or photos when submitting a claim
  • Receive claim money almost immediately
Top Consumer Reviews Best-In-Class Blue Ribbon Award

In today's society with so much of our busy lives spent on the internet, Lemonade's innovative focus is doing business entirely online, from getting a quote to filing a claim. If there's an excess of your premium at the end of the year, they'll bundle it with that of other clients and donate it to a charity (though we might also want a refund option). Use the app to upload a video of the damage, and save the time by not speaking to a person throughout.

Standard coverage

Your policy will cover rebuilding or repairing the structure of your home and other structures that are unattached to the home. They repair or replace personal property, provide hotel stays, restaurant meals, and other expenses if it's determined you can't live in your home for the time being. If guests are injured on the property, your policy will usually pay for up to $5,000 of their medical costs.

Add-ons

You can get extra coverage for additional valuable items and equipment breakdown, water backup, swimming pool liability, and more. These policies can be added on to your standard Lemonade policy as needed.

Discounts

If you pay on an annual basis rather than more frequent payments, Lemonade may offer you a discount as a thanks. They may also give you a discount due to home security systems, deadbolts, and smoke alarms. If you choose to bundle your pet insurance with your homeowners insurance, there may be a discount there as well.

Not available everywhere

Lemonade is available in several states, but not all of them. Check in for a quote and you'll see if your state is covered. If you happen to live in Europe, you can currently get coverage in France, Germany, and the Netherlands, and soon Lemonade policies will be available in 28 more European countries.

No bundling... yet

Well, you can bundle with your pet insurance, but you probably can't bundle with your car insurance. At the time of our review, we saw that Lemonade auto insurance was available in Illinois and Tennessee, so perhaps bundling is a possibility there now and may be available nationwide soon.

Best Home Insurance

Chatbot

When you're interested in a policy with Lemonade, you'll interact with a chatbot called Maya rather than a real agent. If you need to file a claim, you'll do that through the app and send photos or videos if requested. Due to the immediacy of sending and receiving information, it's actually possible that they will send you a payout within a few seconds if your claim is approved on the spot.

Live person

Lemonade realizes there might be situations, or even people, that call for a real person - pun intended. If automation or a chatbot isn't working for you, contact them during regular business hours where there's a live person on duty.

How charity donation works

Lemonade takes their fee off the top and then pays claims and other expenses. If there's any money left over, they will donate to charitable organizations that are suggested by policyholders. In 2021, they donated more than $2,300,000.

Customer experience

The people who use Lemonade seem pleased with the immediate response, and even though there may not be a real person to walk them through the claims process, most feel that the process was still seamless. They are surprised and grateful that the payment for a claim can happen within seconds. At the time of this evaluation, the BBB had designated Lemonade as "Not Rated" due to the company's working to resolve a few previously-closed complaints, but that's nothing to be concerned about.

Best new way to get home insurance

Lemonade is quite different. If your life is already pretty automated and much of what you do is via an app or other digital system, you might like Lemonade. There aren't a lot of options in personalizing a policy for you, they might not be available in your state, and they don't bundle house and car unless you are in Illinois or Tennessee. But think about it: if you look at the prospect of how automated our lives will be in the near future, Lemonade is ahead of the game. They've earned our highest rating.

The 8 Best Home Insurance Companies

Which Company Offers the Best Home Insurance?

Your home is probably one of the most important and valuable assets you have. Whether you've purchased a new home or have paid off the mortgage years ago - congrats on either! - your home is an asset you'll want to protect and not be without.

If you have a mortgage on your home, the lending company may require you to show proof of insurance to assure both them and yourself that you are protected, financially and otherwise, in case of a disaster causing damage or complete destruction. Even if you have paid for your home in full, a disaster that leaves your home damaged or uninhabitable could cost thousands to repair or hundreds of thousands to replace. Most people don't have that cash on hand; or if they do, that's not how they would choose to spend it.

The Best Home Insurance Companies Compare Home Insurance Companies Compare Home Insurance Company Reviews What are the best Home Insurance Companies Best Home Insurance Company Reviews

Home Insurance Company FAQ

If you have a mortgage on your home, your lender will more than likely require that you carry homeowners insurance. They will also require you to carry enough of it to rebuild your home if it were completely destroyed. When you have a mortgage, you don't completely own the home - the lender does, until you pay it off. That's why they require insurance. If it were to be damaged or destroyed, the bank needs to know that it will be taken care of.
There's regular homeowners insurance if you own your home, renters insurance if you're renting a free-standing home or an apartment, insurance for mobile homes, and more. When you start shopping for a home insurance policy, you'll be asked a series of questions that will determine what type of coverage is right for you.
Although the specifics can vary by company, there are a few things you can expect in a typical policy. First, your dwelling, or home, is covered, and so would a shed or other building on the lot. Your personal belongings would be covered, and medical costs of any guest injured on your property. Policies usually will pay for a hotel and meals from restaurants if you are displaced due to complete destruction of your home, if what happened is covered under the policy. You should also be protected in case of fire, storm, theft, or vandalism.
Yes and no. There are limits. When you purchase insurance, you and your agent will decide on the financial limits the policy will cover. A lower limit is cheaper, but it won't give you the replacement home you might think it will. A higher limit costs more, but will give you a better replacement home and personal belongings. Be aware that if your home is valued at $250,000, you can't get limits of $1,000,000 and get a million dollar home to replace yours. Your limits need to pretty much match what you currently have.
When you get a policy, you choose your deductible. This is the dollar amount you will be responsible for with each claim. If you want the insurance company to pay for it all, you will choose $0 deductible. Realize that having a low deductible will raise your rates. If you choose a higher deductible, such as $1,000, you'll have to pay that in the event of a disaster but your policy rates are lower. Choosing your deductible and your premium price is a balancing act.
Not all of your valuables may be covered under the standard policy, so you might choose what they call add-on policies for them. Let the insurer know if you have specific pieces to protect, and there will be a rider for each piece covering the amount it's worth. Although these add-ons might be expensive, it will be much more costly if something happened to them and they weren't listed in a separate policy.
You can usually get a discount for having zero claims on your history, living in a neighborhood with an HOA, being a senior, being a non-smoker, bundling with your auto insurance, signing on before your old policy expires, and more. If you have fire/smoke detectors and/or burglar alarms that are directly connected to emergency services (911), most policies will come with a significant discount there too. Be sure to ask your insurance company for ways to save money on your coverage.
Believe it or not, it's super-easy to get coverage online. Some insurers offer 24/7 live-person customer service, and others offer a live person only during typical business hours. But, if you don't want to talk to a person and you'd rather take care of all research and transactions from your phone or laptop, there are several companies that offer that. You can even get a quote in five minutes via the web or their app.
Compare the Best Reviews

Continued from above...

It's fast and easy to get a policy online. For many, it's a great decision. However, when it comes time to make a claim, you might not have purchased the right policy for you. For example, you may not have considered flood or earthquake insurance. You might not have insured your very valuable items individually, and if they're stolen, they're probably not covered.

On the other hand, if you work with an agent to get your policy, they will probably ask you a myriad of questions to get the policy you need. Online can be great, just be sure you know what you want in a policy.

Here are a few things to consider when purchasing a homeowners policy.

  • Standard coverage. What does the standard policy include?
  • Add-ons you might need. You might need insurance for floods, earthquakes, or hurricanes. You might want to insure specific valuables under a separate policy so you know they are covered..
  • The limits of the coverage. Limits are the maximum amount they would pay out per situation. Make sure the limits are high enough to cover your costs.
  • Your deductible. This is the financial responsibility you will have per occurrence. If you don't want to pay much per occurrence, you'll lower your deductible, but pay more in your yearly premium.
  • Discounts. There can be a few discounts that could pertain to you, depending on your situation and depending on the insurance company. You might qualify for a discount if you have had no claims, have a new house, are a senior citizen, have an HOA, and the list goes on.
  • Reputation of the company. More reliable companies might cost you more, and the less reliable companies might be super inexpensive. Beware: you might get what you pay for.

To provide you with the best information so that you can get the right policy and best insurance company for you, TopConsumerReviews.com has evaluated and ranked the most popular sources of homeowners insurance available today. Getting the right policy is like cuddling with a warm blanket, since you'll have that assurance you'll be covered if any damage or destruction to your home. The process of choosing a homeowners insurance policy might have seemed daunting and you may have avoided it for as long as you can, but we can help make it easy.

The Best Reviews of Home Insurance Companies