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Anyone who has taken out renters insurance knows what a tedious process it can be. Applying for coverage involves a ton of paperwork and forms. And once you’re approved, filing a claim is even more of a hassle.
But the company Lemonade promises a quick, hassle-free insurance experience. Using artificial intelligence, you can apply for coverage and claims through their app in as little as 90 seconds. Let’s look more closely at the company and their coverage to see if their service is really all that it claims to be.
Lemonade is a property and casualty insurance company providing renters and homeowners insurance. They were founded in April 2015 with the goal of changing up the traditional model for insurance.
Lemonade uses AI and chatbots to handle policies and claims through their app. By doing this, they bypass using insurance brokers altogether.
They offer renters and homeowners insurance policies in Arizona, New Mexico, New York, Rhode Island, Texas, Georgia, Nevada, Ohio, California, Illinois, New Jersey, Pennsylvania, Maryland, Iowa, Wisconsin, and the District of Columbia. The company does plan to expand to more states in the future.
One of the company’s most popular selling points is their commitment to giving back to the community. They are a certified B-corporation and promise that any money that is left over after a claim will be donated to charity.
Cost and Coverage
Obviously, individual policy pricing will vary depending on a variety of factors. But according to their website, Lemonade renters insurance policies start out as low as $5 per month.
>> Read More: Average Cost of Renters Insurance
You can purchase increased coverage on certain valuables. Lemonade promises transparent add-on coverage and will show you how much you’ll pay in premiums for every additional $1,000 you add on. And they will automatically cover all of your family members at no extra charge.
Customers in California, Illinois, Texas, Rhode Island, Nevada, Georgia, Pennsylvania, Washington DC, Maryland, Arizona, Michigan, Ohio, Iowa, Wisconsin, Oregon, Arkansas, and New Mexico have the option to choose the “Zero Everything” feature. This means there is no deductible for filing a claim, and your rates won’t go up until you’ve filed more than two claims.
You can apply for and adjust your level of coverage on their website or app. And most claims are paid out almost immediately. To file, you simply send a list of everything that’s missing and a brief video explaining what happened.
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Benefits and Disadvantages
The biggest benefit of signing up for coverage with Lemonade is how fast and easy it is to sign up. Transparency is one of their guiding principles, and they seem to deliver on that promise. If they are unable to offer you coverage for some reason, they provide a detailed explanation in their blog.
Their website is very easy to navigate and the sign-up process is very straightforward. Filing a claim is entirely automated and reviews of their service suggest that they pay out quickly. And because they are a certified B-corporation, this means they’re committed to helping fix social and environmental problems.
Despite these positives, Lemonade does have pretty limited policy options. They only offer renters and homeowners insurance.
You also don’t have the option to bundle your insurance together. This means you could find yourself making multiple insurance payments every month. And because they are only available in certain states, you may not qualify to receive coverage.
Lemonade is also not rated by A.M. Best, which is a global credit rating agency that focuses on insurance.
LendEDU’s Experience With Lemonade Renters Insurance
Personal experience by Dave Rathmanner, VP of Content at LendEDU
I’ve had a great experience with Lemonade’s renters insurance so far. Though I (thankfully) haven’t had to file a claim yet, I found that signing up and changing the address on my policy when I moved apartments was a seamless process and each took less than 10 minutes.
It was easy to select how much coverage I wanted, and Lemonade was able to pull in a lot of information about my apartment automatically, so I didn’t have to gather it myself.
I did find it odd that I had to download the Lemonade app to switch the address on my policy and to view my policy information, but it wasn’t too much of a hassle. I think letting users view and manage their policies completely on the Lemonade website would be a nice addition.
For customers who are looking for low-cost renters insurance, Lemonade may be a good choice. Potential customers can receive quotes and sign up for coverage in just a few minutes.
Customer support is offered through their app and the entire process is automated. Lemonade is also focused on giving back and making a positive impact in the community.
Customers do sacrifice certain benefits by choosing Lemonade. The company doesn’t offer in-person customer support and their policy options are limited only to renters and homeowners insurance.
So if you are looking for specialized coverage, Lemonade may not be the best option for you. But if you just want basic renters insurance at low rates, then Lemonade has you covered.
If you’d like to compare Lemonade to another provider, you can check out our comparison of Jetty vs. Lemonade.3.39 Lemonade Renters Insurance
Author: Nate Matherson