Lemonade Insurance Review 2019

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About Lemonade Insurance

Lemonade Insurance Co. is based in New York City and sells insurance for homes, condos, co-ops and renters. It currently does most of its business (87%) in California, New York and Texas, according to S&P Global Market Intelligence. The company has plans to expand into Europe.

The company sells insurance in several states:

  • Homeowners, renters, condo insurance is available in Arizona, California, Connecticut, Illinois, Indiana, Georgia, Maryland, Michigan, Nevada, New Jersey, New York, Pennsylvania and the District of Columbia.
  • Renters and condo insurance is available is in Rhode Island and Texas.
  • Only renters insurance is available in Arkansas, Iowa, New Mexico, Ohio, Oregon and Wisconsin.

Lemonade insurance coverage

Every insurance company must file its rates and policies with the insurance department in states where it operates. EverQuote examined Lemonade's insurance filings to bring you this inside scoop.

Lemonade offers all the basic coverage types you'd expect, including coverage for damage to a dwelling, damaged possessions, loss of use, personal liability and medical payments to others. You can buy extra coverage for special computer equipment, business property, home day care operations and more.

Absolute Lemonade

For an extra charge you can add this endorsement to a Lemonade homeowners, renters or condo policy. Absolute Lemonade will provide:

A waiver of your deductible for the first two losses. For example, if you have a kitchen fire and a theft claim there would be no deductible for the two claims. The waiver of deductible does not apply to certain claims such as hurricanes, earthquakes, windstorms and others.

First and second loss forgiveness. You won't get a rate increase at renewal time because of one or two claims.

Lemonade Insurance givebacks

Lemonade Insurance customers are put into "peer groups" based on the causes they care about. Customers choose from a pre-selected list of nonprofits. Lemonade subtracts claims payments made to the group members and company expenses from the group's premiums. The remaining money is available as a giveback to the group's cause. If the group makes many claims or some expensive claims, there's less money available as a giveback.

The nonprofits that customers can choose from include the ACLU, the Red Cross and Teach for America.

Based on EverQuote's examination of Lemonade's state insurance filings, up to 40% of a peer group's premiums are available for donation. In 2017, 10.2% of Lemonade's premiums went to nonprofits.

Other things to know about Lemonade insurance coverage

  • Lemonade offers earthquake insurance in Arkansas and California.
  • It also offers home business liability insurance, with rates based on the type of business and number of business visitors a week.
  • Lemonade offers extra coverage for home-sharing hosts, such as folks who are Airbnb hosts.
  • Pools, trampolines and skateboard ramps may have to be gated. You may be able to exclude them from coverage.
  • Lemonade does not insure mobile homes, modular homes, manufactured homes, house trailers or homes built over water.
  • Properties must have been renovated in the last 80 years to meet current building codes. (For example, homes with knob and tube wiring aren't accepted.)
  • Lemonade won't insure properties with underground tanks.

Ways to save on Lemonade insurance

Lemonade offers "credits" (their version of discounts) for the following. These credits can vary by state:

  • Dwelling age, with newer dwellings getting bigger price breaks.
  • Living in a gated community.
  • Loyalty based on the number of years insured by Lemonade.
  • Owning a condo in a building managed by a professional management company.
  • Doing a renovation in the last nine years that included upgrades to plumbing, heating and electrical systems.
  • Having protective devices such as smoke alarms, sprinkler systems, burglar alarms, deadbolts, a doorman, water alerts and more.
  • Having two or more policies with Lemonade.

Lemonade surcharges

Insurance companies often add surcharges for situations they consider higher risk. We analyzed Lemonade's state insurance filings to find its types of surcharges. Note that these can vary by state.

Claims surcharge: Based on the number of claims you've made in the last three years.

Multiple-family houses: A surcharge for a two-, three- and four-family homes.

High-risk dogs: A surcharge for pit bulls, Staffordshire terriers, doberman pinschers, Rottweilers, German shepherds, chows, great danes, presa canarios, Akitas, Alaskan malamutes, Siberian huskies, wolf hybrids or any dog with a prior bite history.

See more about home insurance dog breed restrictions.

Renovation/construction surcharge: A surcharge for customers who aren't living at home due to renovations or construction.

Vacant dwelling surcharge: A surcharge if no one lives at the home for more than 30 days.

Swimming pool surcharge: A surcharge for homeowners who have an in-ground or above-ground pool. Or a customer may the option to have the swimming pool excluded from coverage.

Insurance filings source: S&P Global Market Intelligence

Posted Jan. 11, 2019

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