An “insurer” refers to the company providing you with financial coverage in the case of unexpected, bad events covered on your renters insurance or homeowners policy.

What do insurers do?

TL;DR – insurers are there to create insurance quotes, sell policies, handle claims filed by policyholders, and provide coverage in the form of financial compensation if need be.

Now, let’s break it down!

Getting a quote

Say you’re looking to get a new renters insurance policy. In this event, you’d turn to an insurer, a company that sells insurance and underwrites risk.

The insurer will start out by evaluating how risky an investment you are. Then, they’ll ask for some of your info, such as your name, address, and birthday, via phone, an online form, or, in some cases, a chatbot. After, they’ll calculate the risk of insuring you, taking into consideration the location and condition of your place, as well as your claims history, among other things.

Processing your info and offering you a quote can take your insurance company anywhere from 90 seconds, to a few days.

Once the numbers are crunched, the insurer will come back to you with a quote, which tells you how much you’ll pay for your policy.

If you decide to purchase coverage from that insurer, you’ll be covered for everything outlined in the policy. Yay!

Coverage, claims, and your insurer

Insurers will also provide financial compensation for stuff that’s damaged or lost as long as it’s covered under your policy.

So if something happens to you that’s covered under your insurance policy, you can file a claim with your insurer. They’ll check your claim against your policy to see if what happened to you is covered.

The claims process will take anywhere from 3 seconds (here at Lemonade HQ we broke the world record!), to a few months.

If the insurer approves your claim, they’ll reimburse you for the loss (minus your insurance deductible, of course).

Who is the insurer and insured?

There’s tons of confusion around the difference between the ‘insurer’ and the ‘insured,’ so we’re here to clear things up. As mentioned earlier, the ‘insurer’ is the one calculating risks, providing insurance policies, and paying out claims. The ‘insured,’ on the other hand, is the person (or people) covered under the insurance policy.

So if you got a home insurance plan through Lemonade, Lemonade would be your insurer, and you would be the insured!

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Karolin Beck
Just signed up for insurance with @Lemonade_Inc. Not only did I save 40% at the same coverage it also only took me 10 min for the whole process.
@Lemonade_Inc was the simplest and easy insurance I’ve ever purchased, “old” insurance companies need to step into the current century!!! 👏 👏 👏
Sherri Johnson
I don't do this often, but I just signed up for @Lemonade_Inc renters insurance, and both as a customer and a web designer I have to say, I enjoyed every moment of it!!

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