Lemonade home insurance review: Tech-friendly & fast coverage

Lemonade uses technology to make purchasing homeowners insurance through its app fast and easy, while still receiving high scores for customer service.

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Jessica OlivoFreelance contributorJessica Olivo is a writer living in Connecticut. She specializes in web and blog content in a variety of topics such as parenting, business, and culture, as well as serialized and short fiction.After working in publishing and book publicity for many years, she transitioned to freelance writing full time.

Edited by

Jennifer GimbelJennifer GimbelSenior Managing Editor & Home Insurance ExpertJennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
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Reviewed by

Ian Bloom, CFP®, RLP®Ian Bloom, CFP®, RLP®Certified Financial PlannerIan Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

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Lemonade

Lemonade logo

Policygenius rating

Our proprietary ratings methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the “Ratings methodology” section for more details.
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4.0

AM Best rating

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

NA

Cost

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

NA

The bottom line

Lemonade is a home insurance company as untraditional and easygoing as its name suggests, offering speed, ease, and reliability to homeowners around the world. While Lemonade is still relatively new to the insurance industry and much smaller than its competitors, it’s come a long way in a short time and continues to grow in popularity. 

Lemonade is geared toward app-savvy millennials and Gen Xers who don’t mind conducting all of their home insurance business through their smartphones. Lemonade’s customer service is only available online and through the app. And there are no in-person agents at your disposal, which may be a downside for homeowners looking for a more personal customer service experience.

Pros

  • Its app offers quick, easy service — whether you’re purchasing a policy, making a claim, or paying your premium

  • Donates any unused portion of your premium — after paying fees and claims — to a charity of your choice through its Lemonade Giveback program

  • Earns a perfect 5-star customer experience rating thanks to the minimal number of complaints it received in 2021

Cons

  • Only available in 22 states and Washington, D.C.

  • Doesn’t have financial stability rating from A.M. Best like older, larger companies

  • Doesn't offer in-person customer service

Basic coverages offered

Lemonade home insurance policies include these six standard coverages to protect your home, belongings, and personal liability:

  • Dwelling coverage: Pays to repair or rebuild the structure of your home after a covered loss.

  • Other structures coverage: Pays to repair or rebuild other structures on your property not connected to your home, including detached garages, storage sheds, and fencing.

  • Personal property coverage: Pays to repair or replace your personal belongings after a covered loss, including furniture, clothing, tech gadgets, and other stuff you own.

  • Loss of use coverage: Pays for hotel stays, restaurant bills, pet boarding fees, and other temporary living expenses after a covered loss if you need to live elsewhere while your home is being rebuilt.

  • Personal liability coverage: Pays for legal and medical expenses if someone is injured or their belongings are damaged while at your home and you’re found legally responsible.

  • Medical payments coverage: Pays for small-dollar medical bills if someone is injured while at your home — regardless of who is at fault.

Additional coverages offered

You can add these additional coverages to your Lemonade homeowners insurance policy for even more protection:

  • Scheduled property: Pays for accidental loss or damage to specific high-value items, such as jewelry, bicycles, musical instruments, and more.

  • Swimming pool liability: Offers liability protection and medical payments to others coverage for injuries to guests that occur in or around your swimming pool.

  • Equipment breakdown: Pays for repairs to household appliances caused by mechanical breakdown or other damage not covered in your standard policy.

  • Water backup: Pays for water damage caused by water backing up and overflowing from your drain or a sewer line, which is not traditionally covered by your policy.

  • Renters insurance: Includes coverage for the personal belongings in your rental home or apartment against fire, vandalism, theft, windstorms, and water damage, as well as personal liability and loss of use coverage.

Ratings methodology

Price

3.3/5

Our price rating scale looks at home insurance rates for a policy with $300,000 in dwelling coverage, as well as the total number of discounts offered. We didn't have cost information available for Lemonade as of February 2023, so its score is based solely on the three discounts the insurer has available.

Customer experience

5.0/5

Our customer experience scale uses data from the National Association of Insurance Commissioners (NAIC) complaint index. Lemonade has a score of at 0.61, which means it receives 40% fewer complaints than expected for a company of its size. (The expected number would be 1.0.)

Coverage options

3.2/5

Our coverage options rating is based on both the number and quality of additional coverage and policy options offered by the company. Lemonade scores below-average compared to other home insurance companies since it only mentions four additional policy add-ons on its website.

Financial strength

4.4/5

Our financial strength rating is a weighted combination of three industry-leading metrics to measure a company’s financial health: AM Best, Standard & Poor’s, and Moody’s. Since Lemonade is not rated by any of these companies, we based its score on its A (Exceptional) rating from Demotech, another rating firm that measures the financial strength and stability of insurance carriers. 

How much does Lemonade home insurance cost?

The average cost of home insurance with Lemonade will vary depending on a variety of factors, including:

  • Where you live

  • Your home’s age, condition, and claims history

  • Discounts you qualify for

  • Your coverages and policy limits

  • Your credit score

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What discounts does Lemonade offer?

You can save on the cost of Lemonade home insurance if you qualify for any of these discounts:

  • Home security: If you have fire alarms, security systems, and sprinklers installed in your home.

  • Bundling: If you purchase multiple insurance policies with Lemonade, such as car insurance, pet insurance, or term life insurance in addition to your home insurance policy

  • Annual payments: If you pay your premiums up front for the year rather than making monthly payments.

Lemonade home insurance state availability

Lemonade offers home insurance policies in 22 states and Washington, D.C.:

Arizona, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, and Wisconsin.

What to expect with Lemonade home insurance

  • How to get a quote: You can get a Lemonade home insurance quote online or by downloading the Lemonade app.

  • Customer service options: You can get in touch with Lemonade customer service by logging in to your online account through the Lemonade app or on its website.

  • How to file a claim: You can file a Lemonade home insurance claim through the “File a Claim” button on the app.

  • How to cancel your policy: You can cancel your Lemonade home insurance policy through the Lemonade app at any time.

Lemonade home insurance in the news

  • In October 2022, Lemonade launched in the UK, partnering with UK insurer Aviva. (Business Wire)

  • In August 2022, Lemonade confirmed in a letter to shareholders that net losses were at a peak, but expected to go down thanks to their new focus on bundling home and auto insurance policies through Lemonade and Metromile. (Insurance Journal)

  • In July 2022, Lemonade acquired pay-per-mile car insurance provider Metromile for over $155 million. (Insurance Journal)

Lemonade vs. other home insurance companies

Compare Lemonade home insurance to other insurers in the industry:

Company

Policygenius rating

AM Best rating

Cost

Lemonade

4.0/5

NA

NA

Auto-Owners Insurance

5.0/5

A++

$$

USAA

4.9/5

A++

$$

State Farm

4.8/5

A++

$$$

Amica

4.6/5

A++

$$$

The Hartford

4.6/5

A+

$$$$

American Family

4.5/5

A

$$$

Encompass

4.5/5

A+

$$$$

Erie

4.5/5

A+

$$

Farmers

4.5/5

A

$$$

Nationwide

4.5/5

A+

$$$

Progressive

4.5/5

A+

NA

Stillwater

4.5/5

A-

$$$

Allstate

4.4/5

A+

$$$

Country Financial

4.4/5

A+

$$$$

Travelers

4.4/5

A++

$$

AAA

4.3/5

A

$$$

Hippo

4.3/5

A-

$$

Homesite

4.3/5

A

$$

Liberty Mutual

4.3/5

A

NA

Safeco

4.3/5

A

$$$

Mercury

4.1/5

A

$$$

Geico

3.9/5

A++

NA

Swyfft

3.5/5

A-

NA

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Frequently asked questions

Is Lemonade good at paying claims?

Lemonade’s app allows customers to file claims efficiently and your money arrives faster since payments are transferred directly into customers’ bank accounts.

Is it easy to cancel Lemonade insurance?

Lemonade policies can be canceled at any time and without a fee using the Lemonade app, any unused portion of the premium will be refunded to you.

What is Lemonade’s flat fee?

Lemonade takes approximately 20% out of every premium to cover its costs. If there’s anything left after paying out claims on the policy, the Lemonade Giveback program makes a donation to a charity of your choosing.

Can I change my Lemonade home insurance policy?

You can make changes to your Lemonade home insurance policy instantly and at any time on the Lemonade app.

Author

Jessica Olivo is a writer living in Connecticut. She specializes in web and blog content in a variety of topics such as parenting, business, and culture, as well as serialized and short fiction.

After working in publishing and book publicity for many years, she transitioned to freelance writing full time.

Editor

Jennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

Expert reviewer

Ian Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

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