With affordable premiums and an entirely online application you can complete in just a few minutes, the MarketWatch Guides team believes Lemonade renters insurance is suited for busy college students and working professionals.
While Lemonade does not offer the most comprehensive policies on the market, the company includes limits of up to $1 million in liability and $250,000 in personal property coverage. We recommend Lemonade to renters seeking standard personal property coverage with quick signup and budget-friendly rates, based on our research.
To help you decide whether Lemonade’s renters insurance policy is right for you, we at the MarketWatch Guides team carefully reviewed its features, costs, customer satisfaction and more. Read on to learn about Lemonade, what we think of its renters coverage and how much you might pay for a policy.
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Our Thoughts on Lemonade Renters Insurance
A relatively new name in the world of insurance, Lemonade opened in 2015 with an entirely online option for home and renters insurance. Their model is different from other big players in the insurance space like State Farm because rather than relying on local agents to handle policy activation and changes, they leverage smart technology. Generally, it is known for leveraging automated underwriting using artificial intelligence (AI) to speed up the application and claims process. Since launching, the company has expanded to cover pets and cars in some states.
We like Lemonade because they allow users the ability to start a policy and file claims completely online in an instant, allow more flexibility in selecting custom coverage than competitors, and offer some of the most affordable rates on the market. Lemonade is a good fit for renters seeking basic property coverage with fully online quote and claims processes. Its average monthly premium of $13.33 comes in under the national average of $14.08, and most users can apply for coverage in less than one minute.
On the other hand, Lemonade falls short compared to competitors when it comes to the ability to connect with a live agent, actual cost value coverage, and natural disaster endorsements. Our analysis of customer reviews on the Better Business Bureau (BBB) suggested some issues with the company’s AI-assisted customer service, including complaints about how certain reviewers preferred a human assistant. Lemonade also does not offer actual cost coverage or earthquake and flood endorsements, which you can find with other nationwide providers.
Pros and Cons
Costs an average of $13.33 monthly, lower than the national average
Makes filing claims simple through its intuitive app
Receives positive customer reviews, praising its fast claims process and easy approval
Requires you to connect with an AI chatbot before reaching a human representative
Is only available in 28 states
How Lemonade Scored in Our Methodology
After reviewing more than 20 of the largest renters insurance providers in the country, our team rated Lemonade 4.6 out of 5 stars based on our in-depth methodology. While the company earned top marks in the areas of cost and accessibility, it is not always the best choice for customers seeking a high number of endorsement options.
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
Flip Card
Lemonade Renters Rating
Lemonade Renters State Availability
Lemonade renters insurance is currently available in a total of 28 states and the District of Columbia, as you can see on the map below.
Availability of Lemonade rental insurance may vary depending on your location and distance to emergency services. When secretly shopping for a quote, our team received multiple coverage rejections for homes located in coastal and exceptionally rural areas. We also found that in areas experiencing natural disasters, Lemonade may require a later start date to begin coverage. Be sure to get a quote to confirm availability for your specific area before choosing Lemonade.
Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming
Lemonade Renters Insurance Cost
We requested several renters insurance quotes from Lemonade for rental units across the U.S. and determined an average monthly cost of $13.33. Considering the national average renters insurance rate is $14.08 per month, Lemonade offers competitive rates. Factors including your credit score, deductible choice, claims history and personal property value will play a role in your monthly premium pricing.
Calculate the Cost of Lemonade Renters Insurance
Use the calculator below to get an idea of how much you can expect to pay for renters insurance with Lemonade based on your desired personal property and deductible amounts.
Sample Premiums
Premiums can vary greatly by the state or territory you live in. Here are some of the sample premiums we received when collecting quotes for Lemonade policies with $30,000 in personal property coverage and a $1,000 deductible.
| State | Sample Monthly Premium |
|---|---|
| California | $11.58 |
| Washington, D.C. | $10.42 |
| New York | $11.92 |
| Texas | $16.17 |
| Florida | $13.33 |
Discounts
Lemonade customers may save on monthly premiums if their rental has specific safety features, including a fire alarm or sprinkler system. The company offers many of the same safety-related discounts as its competitors but lacks discounts for military members, students and senior citizens in most states. While savings options vary by state, common Lemonade discounts include the following:
- Fire alarm
- Burglary alarm
- Smart water valve
- In-home sprinkler system
You can also save on your Lemonade renters insurance when you bundle it with another Lemonade policy, such as auto or pet insurance.
Lemonade Renters Coverage Options
Like other renters insurance providers, Lemonade’s policies include multiple coverages for a single monthly premium. While specific coverage varies by location, renters insurance coverage generally includes:
- Personal property: Personal property coverage pays to fix or replace your physical possessions if damaged, including your clothing, furniture, electronics and more. Your policy may exclude valuables, such as fine jewelry. Lemonade’s renters insurance offers replacement cost coverage, so if your personal property is destroyed, the company will cover the cost to buy replacements at today’s market value without depreciation.
- Loss of use: Loss of use coverage compensates you if your rented space becomes temporarily unlivable. For example, if a fire in your apartment building causes your unit to need remodeling, you can use this coverage to offset the cost of a short-term rental and meals.
- Liability: Personal liability coverage can help pay legal expenses and settlements if someone gets injured in your rental unit and sues you. It can also come into play if you damage a guest’s property and they sue you for the cost of replacements.
- Medical payments: Similar to liability coverage, this protection helps pay for guests’ medical bills if they are injured in your rented unit or home. This coverage does not apply to yourself — generally, you would use health insurance to cover your own injuries on the premises.
Lemonade allows customers to choose their own coverage amounts to help build the perfect plan at the right price. This is different from most renters insurance companies which select coverage levels for you based on your personal property, leaving little room to lower your monthly cost.
Lemonade’s coverage limits and inclusions are not as robust as we found with other top renters insurance providers. For example, it caps liability coverage at $1 million and does not offer an option to add actual cost coverage, which can lower policy costs. However, its policy includes unique protections for electronics of up to $6,000 in most areas. These features may make Lemonade a stronger choice if you want electronic-specific coverage, or a less valuable choice if you’re looking for high-value coverage or more plan flexibility.
Here’s how Lemonade’s renters insurance coverage offerings stack up against recommendations from industry experts with the Insurance Information Institute (Triple-I).
| Coverage Area | Lemonade Amounts | Recommended Amount |
|---|---|---|
| Personal property | $10,000–$250,000 | Enough to cover the actual cash value to replace essential items in your home, or each item’s value minus depreciation over time |
| Loss of use | $3,000–$200,000 | Six months of living expenses or enough to supplement an emergency fund |
| Liability | $100,000–$1 million | Minimum of $100,000 |
| Medical payments | $1,000–$5,000 | Minimum of $1,000 |
Endorsement Options
We found that Lemonade does not offer as many endorsements as some other providers. While it offers some coverages not usually found with renters insurance policies — including property damage caused by pets — Lemonade does not offer coverage options for personal business property. It also does not offer identity theft protection, a common inclusion among some competitors.
Like discounts, available endorsement options vary by location. Here are some of the most common endorsement options offered by Lemonade based on quotes we gathered:
- Interested party coverage (adds your landlord to your policy)
- Significant other coverage
- Water backup coverage
- Tenant pet damage
- Equipment breakdown coverage
- Extra Coverage options with zero-deductible claims for jewelry, bicycles, cameras, musical instruments, and fine art
Lemonade Quote Process
We found the Lemonade renters insurance quote process was simple, straightforward and easy in most cases. For most quotes we collected, we were able to get full pricing and reach an official sign-up form in about a minute. We requested quotes in some states that required more questions, including Florida, Michigan and Pennsylvania, taking about three minutes to complete. Even at three minutes, Lemaonde’s quote process is quick compared to some other options, which makes it an appealing choice for those looking for no-fuss enrollment.
The specific process you experience when getting quotes from Lemonade will depend on your state. In most areas, we were able to get pricing entirely online after answering a few basic questions about the condition and amenities in the sample rental. You may need to answer questions about previous claims and any dog bites or medical incidents that have occurred on your property in the past. A few states, including Florida, require you to submit your Social Security Number to confirm pricing.
What Customers Think of Lemonade Renters Insurance
Our review includes an analysis of third-party customer reviews on the BBB and Trustpilot to better assess a company’s renters insurance coverage. Here’s what we found customers appreciate and don’t appreciate about Lemonade renters insurance.
What Customers Like
- Low-cost pricing: Customers often noted Lemonade’s lower-than-average pricing, which many reviewers mentioned was the most affordable option they found.
- Easy-to-use claims form: Some reviewers seemed happy with Lemonade’s online and app-based claims portals, which they called “easy to use” and “seamless.”
- Effective reimbursements: Many customer reviews touched on being paid quickly after filling a claim.
- Quick response time: Multiple reviewers said that if forced to wait for customer service to contact them at a later time, representatives were apologetic and seemed familiar with their concerns
- Friendly professionals: While some customers expressed frustration with Lemonade’s AI-first customer support services, reviews of human customer service professionals were generally positive.
What Customers Don’t Like
- AI-enabled customer assistance: Some customers seem to find the company’s use of AI systems frustrating, resulting in delayed claims processing and forcing the customer to work around non-responsive prompts.
- Denied claims: A few customers said Lemonade falsely denied or undervalued their claim, especially if it was related to electronics protections.
- Long claims process: Many negative reviews detail a long, frustrating claims process that included multiple rounds of back and forth with the company.
We reached out to Lemonade for comment on its negative customer reviews but did not receive a response.
*A.M. Best ratings accurate as of August 2024
Frequently Asked Questions About Lemonade Renters Insurance
Lemonade may not have as long a company history as some of its competitors, but we still regard it as a reliable and safe insurance provider. Lemonade has a financial stability rating of an A with independent credit rating agency Demotech, indicating a likelihood of being able to pay claims into the foreseeable future. It also ranked number 3 on the most recent J.D. Power Customer Satisfaction study with a score of 854/1000.
Whether someone considers Lemonade renters insurance as good or not likely depends on their coverage needs. If you’re a renter who does not have a significant amount of valuable personal property, Lemonade’s affordable premiums and easy buying process can make it a good choice. If you rent a high-value space and need high coverage limits, you may consider looking elsewhere.
The biggest difference between Lemonade and other renters insurance companies is the Lemonade Giveback program. Lemonade sets aside a fixed percentage of your insurance premium to cover claims, expenses and profit. It then donates whatever is left to the charity of your choice through its Giveback program. This business model minimizes the incentive for Lemonade to deny claims because any excess becomes a charitable donation rather than a profit.
Lemonade is an affordable insurance provider partially because it does not maintain a network of in-person locations like some of its competitors. It also uses largely AI-based underwriting processes, which can lead to savings on operations on staffing costs.
