Features

Lemonade is an online insurance company based in New York City. It provides low-cost homeowners insurance (as well as renters, co-op and condo insurance). Although Lemonade is a new insurance company, it is reinsured by syndicates of Lloyd's of London, which give it a Financial Stability Rating of A- Exceptional. Lemonade is only available in New York, California, and Illinois.

Lemonade operates as a mutual insurance model with a twist. The underwriting engine is powered by AI and behavioral economics, and instead of returning dividends to shareholders they donate it to charity. The modern insurance model is based on an adversarial relationship where the interests of insurance company and clients are opposed. The less an insurance company pays out in claims, the

The modern insurance model is based on an adversarial relationship where the interests of insurance company and clients are opposed. The less an insurance company pays out in claims, the better off the shareholders will be. This creates an incentive to deny claims. In Lemonade’s peer-to-peer model (aka mutual insurance), the insurance company (i.e. Lemonade) charges a flat fee (20% of the premium) per customer. The rest of the money is used to pay clients’ claims and buy reinsurance from large insurance companies, such as Lloyd’s of London. Any money left over is distributed to charities selected by the clients.  

What Are Lemonade Renters Insurance’s Ratings?

Lemonade has received a Financial Stability Rating of A- Exceptional and they are reinsured by some of the industry's biggest names, such as Lloyd's of London. 

What Coverage Does Lemonade Renters Insurance Offer?

Lemonade offers homeowners, renters, co-op, and condo insurance.

Homeowners and renters insurance policies cover your belongings even if they are stolen outside of your home. Lemonade offers replacement value on your things. That means you will receive the cash amount you would need to buy again the item you lost – or a similar one if no longer available. Check your policy for limits on the amount you can claim for your stuff and covered events. You can increase your coverage on expensive items, such as jewelry or works of art.

How Does Lemonade Compare with Other Renters Insurance Companies?

Lemonade’s rates are low when compared to most homeowners and renters’ insurance. A typical renters insurance policy costs $5 a month.

We like:

- Low cost

- Easy to set up

- Donates unused money to charity

- Reduces conflict of interest between insurance company and client

- Insurance company charges a flat fee (20%)

We don’t like

- Not available in all states

- You don’t get to deduct the donation to charity

  • Cosmetic Damage
  • Liability
  • Personal Belongings
  • Reimbursed Living Expenses
  • Structure
  • AM Best Financial Strength Rating
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Lemonade is the worst insurance ever they don't pay on there claims. I had fire claim since 01/29/2017. I now have to lawyer up to get pay. Warning don't sign up with this Company,


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