Lemonade Insurance Company is a property and casualty insurance casualty company. While they have helped many people to obtain insurance, how good are they really? We conducted some research to give you the good, the bad, and the ugly concerning the process of purchasing insurance from Lemonade. Read on for our Lemonade Insurance Review.
Lemonade Insurance Review–The Good
Lemonade strives to be fast, affordable, and hassle-free, and for the most part, they are. Despite finding some typos on their website, overall the site is fairly understandable and easy to use. It is easy to get a policy, and affordable–for now. The process of getting an online quote was fast; you simply answer a few basic questions and get your price quote very quickly. A quick trial run shows they only offer insurance for single-family homes, so if you own a duplex, triplex or fourplex, you’re out of luck.
Transparency is one of Lemonade’s guiding principles, and that is one thing they definitely do well. This means they communicate in an open, clear, and accountable manner. They do a great job of explaining why they can’t insure everyone. If they are unable to offer you a policy (like if you have a multiplex) there is a link to their blog to learn why.
The entire claims process is automated. When you experience a loss, you can just upload a video of your damages via the app.
Lemonade is a certified B-Corporation, which means the business is beneficial to social and environmental problems. They accomplish this through their Giveback program which donates leftover money from your insurance pool to a charity of your choosing. However, the Giveback program is not a tax-deductible donation.
Lemonade Insurance Review–The Bad
Lemonade actually loses money on every policy they sell by paying too many claims. While this may not sound like a negative to the average consumer, it actually is for a few reasons; more claims paid means your insurance rates could rise substantially in the future to cover these losses, for one. This means reinsurance costs could also rise.
Lemonade operates under a pretense of doing social good through the aforementioned Giveback program, but on an annual basis, the amount actually donated to charity is in the thousands versus millions like say an insurance provider such as Travelers will donate. Lemonade’s annual giving is just $53,174 according to their website. By comparison, Travelers Insurance will donate $50 million over 5 years to the city of Hartford alone.
When you’re using the Lemonade online tool to get a quote, if you say you have a roommate, a message pops up that says “Your roommate’s stuff isn’t covered. They’ll have to buy their own policy.” So while their prices may seem affordable at first, buying 2 separate policies when you could get away with having only one makes for less affordable insurance. However, the website says you can cover your significant other for an additional cost. It’s kind of confusing–you can’t have a roommate but you can have a significant other on your policy? How do they plan on verifying if your roommate is your significant other or not? Compare this with Effective Coverage, where you can add a roommate to your policy easily, instead of both roommates having to purchase separate policies.
Lemonade only offers renters, co-op, and homeowner’s insurance. This means that you don’t have the ability to bundle your insurance together with say, your auto policy for one convenient bill per month. And Lemonade may not be available in your area; right now they only offer insurance policies in just a few states–New York, New Jersey, California, Nevada, Texas, Rhode Island, and Illinois. Lastly, Lemonade Insurance Company is not rated by A.M. Best, which is the gold standard of rating companies.
Effective Coverage Offers More
Effective Coverage policies are available in all 50 states, so no matter where you live, we can easily get you covered. We work with A-rated carriers, and our policies are rated by A.M. Best, which is the gold standard for insurance rating companies. You can certainly add any roommate to your policy, whether it is your significant other or otherwise. We offer renter’s, homeowners, condo, and auto insurance, which means you can easily bundle multiple policies and easily pay multiple bills with one payment.
If you are a landlord or property manager, Effective Coverage offers the only complete solution for tenant-caused damages. We combine renters insurance, insurance certificate management, and the creation and tracking of a resident-funded loss fund to save you time and money. Our integrated, award-winning solution is the best way to protect your property.
We also provide an extensive blog to answer any questions you may have. Insurance can get tricky and confusing, and we want to make it as easily understandable as possible. Ever wondered, for example, if your renters insurance will cover kitchen mishaps? Or if your renters insurance covers your at-home fitness business? We also try to warn against risks in our #wednesdaywarnings series.
We try to provide as many clear answers as we can to many commonly asked (and some not-so-common) questions. But Effective Coverage isn’t just all work and no play. We believe in a high quality of life, so we also provide information for things like how to find your Monday motivation, superfoods to beat winter blues, or how to decorate your rental on a budget.
We love to hear from our customers too. Do you have a photo you want to share with us? Tag us on the ‘gram at effective.coverage or on our Facebook page. And if you have any questions or would like to get set up with a policy, just call (800)892-4308 or click to get covered - whether you need renters insurance quotes online or coverage anywhere else!
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.
Photo Credit: Milo McDowell