Lemonade - Homeowners Insurance
The New York-based Lemonade has been in business since 2015 and it utilizes a system of chatbots and artificial intelligence to onboard new customers and process claims. This is how it stands out from the crowd, as the process is much more efficient than dealing with traditional types of insurance companies. You are able to file and submit claims through the Lemonade app, and depending on the nature of the claim, you can get a payout in a matter of minutes.
It also has a different type of fee structure than most other companies in the space, as Lemonade takes from every premium a flat fee, with the remainder of the money covering expenses and paying claims. The leftover funds then go to charities of policyholders’ choice as part of the company’s Giveback program, which donated more than $2.3 million to 65 charities in 2021 alone. There are drawbacks to the Lemonade offering, each of which will be explored in this review.
People who are looking to have a much more efficient process when signing up for coverage, filing claims and getting payouts. It also offers quick quotes and as a certified B corp, Lemonade incorporates social impact into its business model.
Pros & Cons
- Fast quotes process
- 100% digital
- Claims are efficiently processed and paid out
- Portions of premiums go to charities
- Not yet available in every state
- Limited additional coverage options
- Human interaction isn’t the default
- Online Quotes and Claims: You will be able to get quotes almost instantly as well as file claims exclusively online.
- Fast Payouts: Depending on your case, it is possible to get a very fast payout if you submit a claim and it gets approved instantly. This can see you get your funds in no time at all.
Charitable Contributions: A portion of the policy premiums go to charity, with Lemonade donating nearly $4.3 million to charities since 2017.
- Charitable Contributions: A portion of the policy premiums go to charity, with Lemonade donating over $2.3 million to charities in 2021.
- Easy to Use: Both the website and the app are very easy to use. This is thanks to the clean design making the entire process from start to finish an efficient one.
Insurance Coverage Plans, Terms & Requirements
You will come across most of the standard types of homeowners insurance coverage when dealing with Lemonade. There are ways for you to customize your policy through various add-ons. Here is a look at the standard types of coverage:
- Dwelling: Covers repairs or the rebuilding of your home’s structure.
- Other Structures: Coverage damage to structures that are not attached, such as a fence or shed.
- Personal Property: Covers the cost to repair/replace personal belongings like clothing or furniture.
- Additional Living Expenses: Covers restaurant meals, hotel stays, and other expenses associated with living elsewhere due to repairs taking place at your home.
- Liability: Covers any legal-related expenses or damages if you are deemed responsible for other people getting injured or their property damaged.
- Medical Payments: This will cover the medical costs if someone gets injured in the home, no matter whose fault it might be.
There are also some different types of add-ons available to you, such as additional coverage for valuable items, water backup coverage, extended reconstruction cost, swimming pool liability, day-care liability, equipment breakdown coverage, and buried utility coverage.
Application Process & Customer Journey
The application process for Lemonade homeowners insurance is done completely online. You either visit the website or use the Lemonade app and choose the “Check Our Prices” section to get a quote.
You will enter standard information and be given a quote that you can compare to quotes from other insurers. If you decide to proceed with the Lemonade coverage, then you can choose any add-ons and then pay your policy premium. You will then be good to go.
|Credit card payments||Yes|
|Policy Delivery Method||Online|
|Online Policy Management||Yes|
How to file a homeowners insurance claim with Lemonade
The main way to file a claim through Lemonade is through the mobile app. If it is an emergency, then you can contact Lemonade’s customer service line to file the claim. When doing so through the app, you need to provide the relevant information regarding the claim, such as a police report if you’re filing for a stolen item.
You also need to link your bank account in order for Lemonade to send you the funds. Certain claims will get paid out on the same day, but some will require a manual review and interaction with the customer service team.
Privacy & Security
Lemonade has a good reputation in the space for being a reputable insurer. It has dealt with more than one million customers since launching in 2015 and it is a publicly-traded company on the New York Stock Exchange (NYSE).
It has relationships with many of the leading reinsurers in the world and the company works with all major banks and lenders, so you know you are dealing with a company that is legit. It takes the security and privacy of its customers very seriously. All sensitive information is encrypted and managed in a manner that is very safe and sound.
One of the main selling points of Lemonade is that it allows you to get a quote and submit claims without having to deal with any humans most of the time. However, there is still a customer service team that can be reached by email or by phone. However, some users report waiting times before getting through to their customer service team.
Lemonade definitely has a lot going for it as a homeowners insurance company. There is a wide range of plans for you to choose from, and with its mobile app, Lemonade offers a very user-friendly experience. The speed at which you can receive payouts is one of its main selling points, so people who enjoy the fast and efficient process that Lemonade offers will often find it to be a good fit.
Lemonade Insurance Company, 5 Crosby St., 3rd floor, New York, NY 10013
Disclaimer: “Property and casualty insurance provided by Lemonade Insurance Company, 5 Crosby St., 3rd floor, New York, NY 10013. Life Insurance provided by North American Company for Life and Health Insurance®, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193.”