What is Lemonade?

Lemonade Insurance Company is a property and casualty insurance company that is transforming the very business model of insurance. By injecting technology and transparency into an industry that often lacks both, we’re creating an insurance experience that is fast, affordable and hassle free. Unlike any other insurance company, we gain nothing by delaying or denying claims (we take a flat fee!), so we handle and pay most claims instantly.

How is Lemonade’s business different from that of a traditional insurance carrier?

Traditional insurance companies make money by keeping the money they don’t pay out in claims. This means whenever they pay your claim, they lose profit. This is why getting your claims paid fast and in full is sometimes so hard.

Lemonade was built differently. We take a fixed fee out of your monthly payments, pay reinsurance (and some unavoidable expenses) and use the rest for paying out claims. In essence, we treat premiums as if they were still your money and return unclaimed remainders in our annual 'Giveback'. Giveback is a unique feature of Lemonade, where each year leftover money is donated to causes our policyholders care about. We treat policyholders who care about the same causes as virtual groups of 'peers'. Lemonade uses the premiums collected from each peer group to pay for the group's claims, giving back any leftover money to their common cause, and uses reinsurance to cover for cases where the group's claims exceed what's left in the pool. This way, our customers enjoy amazing insurance, and society gets a little push for the better. It also means that, unlike traditional insurance companies, we're not in conflict with our customers, so we're happy to pay claims fast and with no hassle.

Is the Giveback guaranteed?

No. Giveback is part of our policy, and it is our plan to pay it every year. Sometimes, peer groups will not have any money left to giveback because the claim they paid depleted the giveback pool. Paying claims is our top priority, and in extreme circumstances could come at the expense of the Giveback.

How do I get Lemonade?

Lemonade is available in both mobile (iOS and Android) and web versions. We’re rolling out our renters, condo and homeowners insurance in New York State, and we plan on expanding to other states soon.

Is Lemonade reinsured?

We are. Some of the biggest reinsurers in the industry are reinsuring Lemonade, including various syndicates of Lloyd’s of London, XL Catlin, and others.

How are you using my premium dollars?

Glad you asked! Lemonade keeps a fixed 20% fee. This pays for developing loads of cool tech, paying our team's salaries and hopefully making some profit!

The remaining 80%?
Job #1 is to ensure we can always pay claims
Job #2 is to Giveback money that isn’t needed for Job #1.

Here’s how that works:
We spend approximately 20% buying ‘reinsurance’ from folks such as Lloyd’s of London, to ensure there will be enough money for your claim even in ‘bad’ years.

This kind of reinsurance buys us all peace of mind, but it is costly. So our data scientists have modeled an optimal mix of internal and external ‘reinsurance’, and we set aside another ~20% as our very own ‘Lemonade Reinsurance’. Think of it as a our ‘rainy day fund’.

We say ‘approximately’ because the costs of reinsurance fluctuate over time, and there are other smaller expenses (transactional fees, premium taxes and others) that are also paid out from this combined 40%.

The final 40% is what we can Giveback to the cause you selected each year, if none of the people who selected that cause make a claim. Of course most years there will be some claims, so the amount available for Giveback will average less than 40%. But our number crunchers tell us there should be a nice amount left for most causes most years.

And what about the ‘bad’ years? Fear not. That’s what the reinsurance is for, and our Lemonade Reinsurance as well as our reinsurance partners have set aside funds for exactly such a situation. It’s like we said: Job #1 is to make sure your claim is paid, job #2 is to Giveback what’s left.

When can I expect Lemonade to be available in my state?

We’re starting with New York and plan to expand to other states soon. Stay tuned and follow us on Facebook and Twitter.

Are you financially rated?

Yes. We've earned a Financial Stability Rating® of A-Exceptional, from Demotech Inc. and are reinsured by some of the industry’s largest brands.

How can I reach you guys?

You can get in touch with our team through our App and this website. Look for the 'Help' button on the lower right corner of this page. If you are considering Lemonade, feel free to get in touch with us using the message box on this page.

What does being a B-Corporation mean?

A B-Corp is a new type of company that uses the power of business to solve social and environmental problems. As a certified B-Corp, we’re committed to making a positive social impact. So although Lemonade, Inc. (Lemonade Insurance Company’s parent company) is a for-profit company, our mission is also to be a force for public good. Insurance was created as a social good, a covenant among members of a community to take care of one another. Our mission is to bring that back through what we call ‘Partnering on Purpose’ with nonprofits.

Policy questions

How do I know what my policy covers?

You get to see a summary of your coverage and a sample of a policy when you sign up, and before you pay. You’ll also be able to edit your coverage and other policy settings such as the deductible, start dates and more. After payment, we will instantly issue your final policy and send it to you by email.

How do you calculate my premium?

Premiums are calculated individually for each policyholder and are based on a number of different factors including your credit history, recent claims and information about your property including its age, size, and construction quality. We also factor in the sensitivity of your home to windstorms, severe weather damage, and fires. We then provide discounts for protection equipment you may have installed, such as fire and burglar alarms.

What policies does Lemonade offer?

We offer renters, condo, co-op, and homeowners insurance.

Can I increase or reduce my coverages?

You can, within limits. We made it easy to adjust coverage through the app. Before payment, we’ll show you a summary of your policy coverages. Tapping the Amounts tab will let you configure the coverage amounts of your policy.

What if I want to cancel my policy?

You can cancel your policy at any time through the app, and receive a refund for the remaining period you’ve paid for. Fyi, canceling your policy will eliminate any potential giveback associated with your policy. And if you ever want to come back? No problem! We’ll create a new policy for you. Know that our prices change from time to time, so your new policy may come with a different rate.

Can I switch to Lemonade if I already have an active insurance policy?

You sure can, and we take care of it all! If you’re a renter, we’ll simply ask for your current policy number and insurer, and email your provider notifying them of your change in policy. We’ll help you notify your prior insurance company so they can send you a refund, if applicable. If you’re a homeowner, we’ll notify your lender and handle your escrow payments (if relevant) to switch you over seamlessly to Lemonade.

How do I pay for Lemonade?

After reviewing your coverage summary and having an opportunity to look at a sample policy, you’ll be able to pay using your credit or debit card. We will only charge you on the first day of your coverage, after we’ve issued your policy. If you pay through an escrow arrangement, we’ll take a month’s deposit and be in touch to arrange further payments through your bank (if applicable).

Is my roommate covered?

No. Renters and homeowners insurance only covers you and the property that you legally own. Each of your roommates will need to get their own insurance policy.

Is my spouse or significant other covered?

You'll be happy to know that your policy automatically covers all residents of your household who are related to you by marriage, blood, or adoption, so make sure you buy enough coverage for all your (and their) stuff! If you are living with your significant other, just let us know and we would be happy to add them as an additional insured.

Am I covered if something I own gets stolen outside of my home or apartment?

Yes. Your Lemonade policy covers your stuff “...anywhere in the world…” (a real quote from our policy). Since theft is covered, if your bike gets stolen from in front of your apartment or your laptop gets stolen from your local coffee shop, you are covered up to your policy “stuff” limit. Your deductible applies, and we will also need you to file a police report with the officer’s name, precinct/department, and report number.

What kind of bad things am I covered for?

Your policy covers you for 16 bad things, or perils, and also covers extra living expenses, if one of those covered things happens. For example, if a kitchen fire forces you out of your apartment or condo, or your upstairs neighbor leaves a faucet running all day and it’s now raining inside your apartment--you may need to get a hotel. Make sure to review your policy to understand the amount of coverage that you have, because there is a lot going on in there!

What kinds of things are not covered under my Lemonade policy?

Unfortunately, it doesn’t cover those annoying things that sometimes happen. Things like your power, water or heat going out in your condo or apartment in the dead of winter, or if your apartment gets infested with bedbugs (eek!)--and you want to get a hotel room. We don’t blame you at all, but these events aren’t covered perils in your policy, so we can’t reimburse you for that. We also don’t cover stuff that gets mistakenly lost or broken.

Is my laptop covered?

Yes! Your Lemonade policy covers your personal electronic equipment up the amount you select for Property & Valuables when signing up. Coverage for laptops, phones, tablets, TVs, and other personal electronics are all included, as standard, in the policy. Please note that this is coverage against the list of 16 specific perils mentioned in the policy such as Theft, Fire, Explosion, Vandalism, etc. Now be careful with it, because your policy doesn’t cover loss or breakage if you drop it!

How do I add extra coverage for my expensive items?

We can help add extra coverage for your fine art, jewelry, watches, and some other stuff. Doing so is easy -- just send us a note with the appraised values of any items you own that fall in the categories above and we’ll get you a quote! We’ll be offering the ability to add extra coverage your other types of property soon, but in the meantime, you can rest easy knowing the policy already has basic coverage built in for your big purchases like furniture, designer clothing, bike, personal computer, and personal electronics.

If my dog bites someone, am I covered?

Generally, yes. If your dog bites someone you are covered. However, there are two exceptions: You are not covered if your dog has a history of biting or if your dog is categorized as high-risk, or “vicious.” Defined “vicious breeds” include: Pit Bulls, Staffordshire Terriers, Doberman Pinschers, Rottweilers, German Shepherds, Chows, Great Danes, Presa Canarios, Akitas, Alaskan Malamutes, Siberian Huskies, and Wolf-hybrids. This does not apply if the dog is Certified as a Seeing Guide Dog, Hearing Dog or is Trained to Assist the Physically Disabled.

If I report a loss or have bad credit, will my premium be affected?

It might. History shows that people with poor credit or who have a record of making claims are more likely to make claims in the future. In fairness, our rates have to take all relevant data points into account, and your credit and claims history are two of the factors in your rate. As your history changes (for better or worse) over time, your rates may reflect it. Some jurisdictions restrict our ability to increase rates due to prior losses or credit.

What if I miss a premium payment?

If your credit card is declined, we’ll ask you to provide us with a different one. Please note, we’ll keep bugging you to settle your tab, but eventually we’ll have to cancel your policy. We’ll warn you first.

Can I sign up by phone?

Lemonade will be available for signup only through our mobile apps and our website.

How do you calculate the value of my stuff during a claim?

We offer ‘replacement cost’ for any destroyed, damaged or stolen items. This means we’ll calculate the value of your item based on its current lowest as-new market value. If the item is no longer being sold, we will look for a similar one, and use that price as reference. Here’s an example: Your camera has been stolen. You bought it three years ago for $500, and today, this exact model sells at a reduced price of $350. Since our job is to provide you with an exact replacement, the value we will calculate is $350.

Killer prices? I got a quote that’s higher than my old insurer, what gives?

We say we have killer prices, and we mean it. But while our prices tend to be cheaper than the more established players, that won’t always be the case. Insurers use different models and data sets to set prices, and on occasion our prices will be higher than someone else’s. It’s the way statistics work. If it’s any comfort, please remember that any leftover money will be donated to a charity of your choosing, so go ahead and get Lemonade anyway!

Is my Self-Storage Locker covered?

For stuff stored in a a self-storage facility, or usually stored at a different place, our policy covers you for theft up to a limit of $1,000, or 10% of your Coverage C (Personal Stuff Limit), whichever is greater. Make sure to review your policy to understand the amount of coverage that you have. Oh, and BTW--if your stuff is stored in the basement closet or cage of your condo or apartment, it’s covered--because it’s still at your home address.

Claims

How do I file a claim?

Easy! Just open the Lemonade app and hit the Claim button. We will guide you through the rest of the short process there.

How will I get paid for a claim?

After you complete the claim report on the Lemonade app, you will be asked to enter your bank account wire information. Once your claim is approved, we’ll issue payment, minus the amount of the deductible, directly into your account.

How fast will a claim be paid?

Our goal is for the majority of simple property claims to be paid almost instantly. There will be cases in which we’ll need to fully review the incident to approve the claim, and there will be property damage claims or liability claims that may take longer to settle. If this is not the first loss you are reporting, or if some of the information we require is missing from your report, our team will need extra time to manually assess the incident and will most likely get in touch with you for further review.

Why does Lemonade ask me to record a video during the claims process?

There’s no better way for us to understand your incident than by having you tell us in your own words. It only takes a minute to shoot the video. We’ll use your video solely for the process of handling or reviewing your claim.

What’s considered a claim emergency?

We define an emergency as an event that requires immediate assistance or temporary housing as a result of fire, ongoing water damage, or any other structural damage that leaves your home exposed. Shortly after you report an emergency, our response team will call you to assess the situation and provide you with emergency services such as water or fire damage cleanup, temporary housing, or a designated specialist as soon as possible. We have your back, 24/7. Lemonade has a network of emergency response and repair partners enabling us to respond to just about any incident at just about any time. For emergencies, and in cases where you don't have access to our app or website, you may call us at: (844) 733-8666

What documentation do you need from me? Do I need to take an inventory?

When filing a claim, if you have receipts that's great! But, we know that not everyone saves their receipts. Tip from us: make sure to keep your receipts on the more expensive stuff you buy—say $250 and up. That way, we can settle your claim more quickly. Even if you don’t have the receipt, keeping note of where and when you purchased more expensive items will help us help you. Please note that if you have a claim, we'll always work closely with you to identify suitable replacements.

GENERAL INSURANCE QUESTIONS

What is a deductible?

This is the amount you’ll have to pay before your Lemonade insurance coverage kicks in. The higher the deductible amount, the lower the premium cost of your policy. For example, you might have a policy with a deductible of $500. If you file a claim for $4,000 and it’s approved, we will pay you $3,500.

What is liability protection?

We offer liability protection to both renters and homeowners, which means Lemonade will hire a lawyer to defend you, and pay covered damages you are found liable for, in the event someone claims to be injured due to your actions or negligence, or there is property damage to someone else’s property caused by your actions or negligence. Make sure to read your policy. If you experience an incident that may fall under this coverage, then make a claim using our app.

How can I lower my homeowners policy price (premium)?

Your policy price (the ‘premium’) is affected mostly by the coverage amounts of your policy, which you can easily adjust before payment. A higher deductible may lower your price.

In addition, your rate may be reduced if you live in areas that are less susceptible to environmental, crime, or weather damages and if you own protection equipment such as fire and burglar alarms.

Will my credit score be affected by applying for a policy?

No. We sometimes perform a ‘soft’ credit check, but this does not affect your credit score in any way. We may have to run this check in order to complete your policy pricing.

As a renter, how much coverage do I need?

Your policy limits for coverage should be determined by the value of the stuff you own. If you live alone, $10,000 is a good starting point. If you own jewelry items that are worth more than a $1,000 per item, let us know and we will be happy provide a quote for their addition. For couples, we suggest starting with $20,000 - $40,000 coverage.

Giveback and community

What is this Giveback thing?

Insurance works by pooling small amounts of money (premiums) from a large group of people to pay for the unlucky few who suffer covered losses (claims). Since it’s impossible to predict how much money will be needed to cover these losses, the amounts people are asked to pay may be higher than what’s needed some years. Often, there’s money left at the end of the year.

Insurance companies take this money as profits. That may make them reluctant to pay claims, since it damages their earnings. But we think there’s a better way. Instead of keeping this money, we intend to pay it forward to causes people care about and help bring positive social impact to local communities and global causes. Years with high claims and other expenses may deplete the “Giveback,” but the good news is that our actuaries (the folks who crunch the numbers for these sort of things) say that there “should” be some money left over for most causes every year.

Note, the Giveback is currently not recognized as a tax deductible donation- sorry!

When do you pay the Giveback?

On June 20th of every year we calculate and pay the Giveback. We pay the Giveback in 4 equal payments over 4 years.

What happens to my Giveback if I cancel my policy before receiving all four payments?

Lemonade only pays a Giveback with respect to active policies.

How often can I change causes?

Once you pick a cause, it will be set until the following June 20th. Once the Giveback is paid, you will have an opportunity to pick a new cause.

How can I add my cause to your Giveback program?

We’ll be happy to consider your cause for our Giveback program. For more information see our Fundraising section.

Is the Giveback guaranteed?

No. Giveback is part of our corporate policy, and our plan is to pay it every year. But sometimes, peer groups will not have any money left to give back because their claims depleted the Giveback pool. Paying claims is our top priority, and in extreme circumstances could come at the expense of the Giveback.