Lemonade Home Insurance Review 2024

Among the top winners in Forbes Advisor’s best home insurance companies analysis, Lemonade offered the lowest rates.

Company	Average annual home insurance cost
Lemonade	$1,461
Erie	$1,668
American Family	$1,731
State Farm	$1,836
Allstate	$1,910
Farmers	$2,019

Source: Quadrant Information Services, based on a house with dwelling coverage of $300,000

See MoreSee Less

Founded in 2015, Lemonade differentiates itself from most insurance companies. It takes a flat fee from insurance premiums for expenses and any money leftover after paying claims and expenses is donated to charities.

Lemonade’s home insurance features the coverage types you’d expect in a standard homeowners policy:

• Dwelling coverage pays to repair and replace your home if it is damaged due a problem covered by your policy, like a tornado or fire.
• Other structures coverage pays to repair and replace structures that are not attached to your house, like a fence or detached garage.
• Personal property coverage pays to repair or replace your personal belongings for problems like theft and fire.
• Liability insurance pays for accidental property damage and injuries to others, such as a guest who gets hurt on your property. It also covers a legal defense if you are sued over an incident covered by the policy.
• Additional living expenses coverage pays for costs like hotels, meals and other expenses (like laundry or pet boarding) if you can’t live in your home due to damage covered by the policy.

Lemonade Insurance sells several types of home-related insurance including homeowners, condo, co-op and renters insurance.

Policy add-ons available from Lemonade include extra coverage for expensive items such as musical instruments, jewelry and cameras. Earthquake insurance coverage is available to Lemonade customers living in California.

Lemonade may apply surcharges in certain instances, such as:

• Having a dangerous dog
• Multi-family homes based on the number of families living there
• If you are living outside of the home due to renovation or construction
• Vacant dwelling when the home is vacant for more than 30 days
• Swimming pool
• Wildfire risk

Lemonade may ban certain dogs from coverage. Examples of “aggressive” breeds that could be excluded include pit bulls, Dobermans, Akitas and Siberian Huskies. If your dog has a history of biting or aggression, it’s common practice for a home insurance company to exclude it from coverage.

Lemonade Insurance also sells condo, co-op and renters insurance.

Related: Cheapest Homeowners Insurance Companies Of 2024

Looking for ways to lower your home insurance premium? These are common discounts from Lemonade:

• Protective devices discount for devices such as smoke alarms, burglar alarms and deadbolts in your home.
• Bundling policies by buying more than one type of policy with Lemonade, such as home insurance and pet insurance.
• Annual billing discount for paying the full annual amount in one lump sum.

You may be able to land some other discounts, depending on your state:

• Gated community discount
• Loyalty discount
• Renovation discount
• New home discount

With the Lemonade Giveback program, unclaimed money is given to charities chosen by Lemonade customers.

Here’s how it works: When you sign up for a Lemonade policy, you will select a nonprofit for a cause you care about. Once a year, Lemonade adds up money left over (after paying claims and expenses) and will donate up to 40% to your nonprofit of choice.

We evaluated home insurance companies on a variety of factors that reflect their levels of protection, customer care and pricing.

• Home insurance rates (50% weight) based on national averages for each insurer. Source: Quadrant Information Services.
• Complaints about homeowners insurance (20% weight) upheld by state insurance departments. Source: National Association of Insurance Commissioners.
• Availability of extended and/or guaranteed replacement cost coverage (20% weight), which is important in the event of large disasters, when construction materials and labor costs tend to spike. Source: Forbes Advisor research.
• Banned dog lists (10% weight), which make homeowners ineligible for coverage. (A company’s banned dog list might not be applicable in all states.) While any homeowners insurance company may ban any dog with a biting history, not all put a ban on specific breeds. Source: Forbes Advisor research.